TPG Raises $1.2B So Far For VC, LBO, Growth Cap Fund

Mega-firm TPG has been looking to expand its franchise down-market with a fund flexible enough to invest in small buyouts, venture deals and growth capital. Investors seem to agree it’s a good idea.

The Fort Worth, Texas-based firm has cruised past its $1 billion target for TPG Star LP, securing $1.2 billion in commitments from limited partners. The fund, which picks up in the smaller and mid-markets where TPG’s $15 billion mega-fund leaves off, remains open, raising the possibility that TPG will corral more cash for the fund. TPG declined to comment for this story.

The firm has been active in venture capital since 2001, and has long made a specialty of technology investing. TPG Star, marking an extension of those efforts, will also be earmarked for investments in airlines, health care and energy. Geographically, the firm plans to invest the new fund in the United States as well as in China and India. It will generally limit investments to about $75 million per transaction.

TPG Star’s investors include the California Public Employees’ Retirement System, which has committed $150 million; the New Jersey State Investment Council, which has pledged $100 million; and the Los Angeles County Employee’s Retirement System, which has dedicated $20 million.—J.H.