TPG Capital, the private-equity firm started by David Bonderman and Jim Coulter, plans to seek about $2.5 billion for its next global credit-focused fund, according to two people familiar with the matter.
TPG Opportunities Partners III LP, which is preparing to start formally marketing, plans to seek the about the same amount as the predecessor vehicle raised last year, said one of the people, who asked not to be identified because the information isn’t public. The firm hasn’t yet set an official target on the new fund.
TPG, based in Fort Worth, Texas, has been pursuing deals outside of the firm’s main buyout funds. In 2012, the firm raised $2 billion for its latest growth-equity fund and started marketing its fourth biotechnology vehicle.
Owen Blicksilver, a spokesman at Owen Blicksilver Public Relations Inc., declined to comment on behalf of TPG.
The new fund will be run by TPG’s credit arm, known as TPG Opportunities Partners, or TOP, which makes special-situations or distressed investments. Under TOP’s strategy, special situations may involve companies that are poorly managed, lack access to capital or face structural changes in an industry, according to a marketing document. The firm also seeks to buy loan portfolios directly from banks at deep discounts.
TOP is led by Alan Waxman, a former co-head of the Americas Special Situations Group at Goldman Sachs Group Inc.
TPG’s next fund will have a similar strategy to the prior vehicle, TPG Opportunities Partners II LP. Fund II, among other things, provides capital to companies facing distress or dislocation and purchases commercial and residential nonperforming loan portfolios or other distressed assets from banks at steep discounts, according to the document.
TOP in December provided a $250 million loan facility to ASG Software Solutions, a Naples, Florida-based provider of information-technology and business-software services. Other past investments include Palms Casino Resort, Clear Channel Communications Inc., CIT Group Inc. and Alinta Energy Ltd.
The firm’s predecessor fund is generating a multiple of 1.2 times invested capital, one of the people familiar said.
TPG and Waxman formed TOP in 2009 to take advantage of liquid and illiquid credit dislocations and other special situations across various economic cycles, according to the memorandum. TOP started investing that May, primarily out of the 2008 flagship fund TPG Partners VI LP and TPG Financial Partners LP. Founded in 1992, TPG manages $56.7 billion in capital, according to the firm’s website.