- $19 billion Fund VI was one of the largest ever
- Firm said to have $3 billion in dry powder still
- Investment period now to last till February 2015
Buyout shops across the world are sitting on a record level—about $145 billion—of uninvested capital expiring this year. But with the market for new deals showing only tentative signs of recovery, many firms face having to ask investors for more time to do deals or not use the money at all.
Texas-based TPG asked investors in July to extend the life of its $19 billion TPG Partners VI fund, raised in 2008, by 12 months to February 2015. In a letter to investors this week, a copy of which was seen by Reuters, TPG said that more than two thirds had given written consent ahead of a Friday deadline and so the extension would go ahead immediately.
The letter did not say how much the fund had left to invest, but the Financial Times reported it was $3 billion.
“We look forward to continuing our focus on the performance of the fund, to investing the remaining capital prudently, and to delivering you strong investment returns,” said the letter, signed by founders David Bonderman and James Coulter, as well as partners Jonathan Coslet, Jamie Gates and Jack Weingart.
TPG declined to comment.
Investors generally back extensions, especially as many of the funds raised up to 2008 suffered an 18-month freeze when dealmaking collapsed during the financial crisis, and because they do not want buyout houses to make rash investments.
Last month, British private equity firm Bridgepoint asked investors for a one-year extension for its 4.8 billion euro ($6.4 billion) buyout fund, which is set to expire in November.