TPG Mulls $8B – $12B Target For Fund VII

TPG, which has invested in Univision, Energy Future Holdings and Petco, is gauging support among existing investors for Fund VII, one placement source said. Fundraising for TPG Partners VII LP is expected to begin during the first half of 2013, the person said. “The feeling seems to be that a realistic target would be about $10 billion,” the source said.

The $8 billion to $12 billion target could also include TPG’s Asia-related funds, a different source said.

Fund VII is coming in much lower than TPG’s last pool. In 2008, the buyout shop collected $19.8 billion with its sixth global buyout fund, TPG Partners VI LP. The pool is “troubled,” a second placement agent said. TPG VI has generated an IRR since inception of 1.46 percent, according to March 31 data from CalSTRS.

TPG’s prior pool, Fund V, collected $15 billion in 2006. The pool is producing a -4.67% IRR since inception, according to an LP, the California State Teachers’ Retirement System.

Dow Jones LBO Wire, which first reported the fundraising, said TPG plans to begin marketing for fund VII next year. However, a different source said that TPG has made no decision on timing or a target for its next fund.

TPG has been active this year. In October, TPG agreed to buy FleetPride, a retailer of heavy-duty truck and trailer parts. The buyout shop, in July, inked a $1.9 billion deal for Par Pharmaceutical. The buyout shop also invested in Li Ning, the Chinese sports brand, in January. TPG Growth also took a minority stake in Survey Monkey last December.

TPG’s fundraising plans come as other buyout shops are also marketing. New Mountain Capital is expected to begin marketing in 2013 for its next fund, which will reportedly have a $3 billion target. Bain Capital is out fundraising for its latest mega fund which has a $6 billion target, peHUB has reported. And Apollo Global Management is expected to begin fundraising for its latest buyout fund this year. Apollo is reportedly seeking $10 billion to $12 billion for the pool.

Executives at TPG declined comment.

(Luisa Beltran is a senior writer for peHUB.)