TPG has closed its sixth growth equity fund at $4.8bn, surpassing its $4bn target and drawing commitments from a broadened global investor base, including LPs across the Middle East, Asia, and Latin America, according to a report by Bloomberg.
The vehicle – TPG Growth VI – focuses on high-growth businesses across enterprise software, internet and digital media, healthcare, communications, and business services. The strategy, launched in 2007, targets companies capable of delivering 20-30% annual growth, with a preference for control or significant minority stakes.
Approximately 40% of the fund has already been deployed across 10 investments, including Schott Pharma, Cliffwater, and K2 Medical Research. As of mid-year, the TPG Growth platform managed $20.2bn in AUM.
Despite broader headwinds in private equity exit activity, TPG Growth has maintained a favourable distribution pace – closing or signing $2.3bn in realisations year-to-date and maintaining a 2:1 exit-to-deployment ratio. Co-Managing Partner David Trujillo attributed this to disciplined portfolio construction, noting the firm’s restraint during the 2020-21 period of frothy tech valuations.
TPG Private Equity Opportunities, the firm’s private wealth-focused vehicle, will co-invest in select transactions alongside Fund VI.
Co-Managing Partner Matt Hobart added that while macro uncertainty remains elevated, the strategy remains focused on sector-level and company-specific growth fundamentals.
TPG reported a 30% year-over-year rise in Q2 after-tax distributable earnings to $268.3m. The firm raised $11.3bn during the quarter and deployed $10.4bn. Total firm AUM stood at $261bn as of 30 June.
Shares of TPG rose 4.9% to $60.08 in early trading on Wednesday.
Founded in San Francisco in 1992, TPG oversaw $261bn of assets at the end of June. The firm, led by Chief Executive Officer Jon Winkelried, invests across private equity, impact, credit and real estate.
After-tax distributable earnings for the second quarter rose 30% from a year earlier to $268.3m, TPG said in a presentation. The firm raised $11.3m during the quarter and invested $10.4m.
Shares of TPG rose 4.9% to $60.08 at 11:24 am in New York, paring their decline this year to 4.4%.
