Monday, September 8, 2008

TPG raises $30 billion

Fighting off a difficult fund-raising environment, private-equity firm TPG has closed on $30 billion in new funds this year to invest in everything from Asian assets to distressed banks to corporate takeovers.

Fort Worth, Texas-based TPG has amassed its war chest at a time when some of its competitors are experiencing difficulty doing the same. Blackstone Group LP, Carlyle Group and Madison Dearborn Partners have all run into delays raising their most recent funds.

TPG is putting the new capital, all of it raised this year, to work across three funds -- $19.8 billion for its sixth flagship buyout fund, a roughly $6 billion financial-services investment vehicle and a $4 billion Asian fund. While the firm has previously described its intentions to raise the three funds, their final size hasn't been disclosed to date.

With the debt markets hampering the firm's ability to conduct traditional leveraged buyouts, TPG has focused on what it calls "off the beaten path" deals, such as its highly structured $2 billion investment in Washington Mutual Inc. It has also shifted its attention from the U.S. to other locations, having done deals this year in Russia and Israel.

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