LPs

Washington State prepares $200 mln stake in TPG special-situations fund

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TPG, Sixth Street Partners, private equity, pension fund, Washington State Investment Board
The Space Needle and Mount Rainier on the Seattle skyline on Feb. 11, 2017. Reuters/Chris Helgren
  • Pledge would expand state’s relationship with TPG
  • Investment board controls $132 bln in assets
  • Pension fund has 20.7 pct PE allocation, 23 pct target

Washington State Investment Board plans to commit $200 million to TPG Sixth Street Partners’ special-situations fund.

The pledge was approved by the board’s private-markets committee and will be considered by the full board on Feb. 21.

The committee will seek approval to commit to TSSP Capital Solutions, a special-situations fund TPG Sixth Street is raising with a target of $2 billion.

The commitment would represent a new investment strategy with one of WSIB’s existing general partners, according to a WSIB spokeswoman.

The pledge was also backed by Washington State’s independent consultant, Hamilton Lane.

The state investment board, which controls $132.3 billion in assets, including the state’s pension fund, has a 23 percent target allocation to PE.

The pension fund’s PE portfolio was valued at $21.3 billion as of January, putting it near the lower end of its policy target of 19 to 27 percent.

Action Item: Read Washington State’s latest PE IRR report: https://bit.ly/2TIc2i7