TPG raised around US$8 billion for its Asia-focused private equity and real estate funds, the global alternative asset manager said on Thursday (May 9).
The fundraising takes TPG’s total Asia assets under management to US$35 billion, spread across “dedicated Asia-focused private equity, real estate, and secondaries”, the company said.
“Looking ahead, we expect markets across Asia to continue to experience strong economic growth,” TPG’s CEO Jon Winkelried said.
TPG’s eighth Asia-focused private equity fund secured about US$5.3 billion in aggregate capital commitments, making it the firm’s largest Asia fund in three decades, while its two real estate funds secured an aggregate US$2.5 billion of capital.
“We continue to see a wealth of compelling investment opportunities across the region,” said Wilson Leung, head of Asia real estate activities at TPG Angelo Gordon, a unit of the asset manager.
TPG’s fundraising comes as investment firms confront geopolitical uncertainties, higher interest rates, market volatility and macroeconomic headwinds.
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Investors have been particularly cautious about deploying capital in China because of an economic slowdown, regulatory crackdown and Sino-US tensions.
TPG kicked off fundraising for the eighth private equity fund in January 2022, targeting US$6 billion, the firm said.
The fund’s allocation to China would be much lower than TPG’s previous private equity funds, said two people close to the firm, who declined to be identified as they were not authorised to speak to the media.
In TPG’s last two funds, about 20 per cent of the total capital was allocated to China investments, Reuters reported in 2022.
A TPG spokesperson did not immediately comment on the fund’s China allocation.
TPG said its fifth Asia realty fund closed more than 50 per cent higher than the previous vehicle, with a focus on off-market transactions in Japan, Korea, China, Hong Kong, and Singapore.
TPG also raised a maiden Japan realty value fund, which will target value-add real estate opportunities, the firm said. REUTERS
