TPG Said to Start Raising $10 Billion LBO Fund After Busts

TPG Capital, the buyout firm that invested in soured megadeals including TXU Corp., plans to start raising money this month for a flagship fund that’s seeking as much as $10 billion, said two investors.

The total amount for TPG’s seventh buyout pool would include $2 billion the firm already obtained for a bridge fund, according to the people, who asked not to be identified because the information is private. The predecessor fund raised $19.8 billion in 2008, just before the bankruptcy of Lehman Brothers Holdings Inc. triggered a global financial meltdown. TPG gathered $15.4 billion for its fifth fund in 2006 at the peak of the buyout boom.