TPG has emerged as one of the lead buyers for pan-European mid-market investor Oakley Capital’s €1.2 billion continuation fund, three sources familiar with the matter told Secondaries Investor.
Other investors have also formally joined the process, with TPG taking on a co-lead position, Secondaries Investor understands.
London-headquartered Oakley is looking to move German university group IU Group from its €800 million Oakley Capital Private Equity III fund into a new vehicle.
Lazard is understood to be advising on the transaction, Secondaries Investor reported last month. Spokespeople with Lazard did not respond to our original request for comment.
TPG and Oakley declined to comment.
TPG has raised at least $469.56 million for its debut GP-led secondaries vehicle, TPG GP Solutions, according to Secondaries Investor data. The fund is understood to be seeking between $1.5 billion and $2 billion. It reached a first close last year, according to documents prepared in connection with its fourth-quarter earnings.
Oakley acquired a majority stake in IU Group in 2017 via Fund III alongside a number of the vehicle’s underlying investors, according to a statement at the time. Fund III initially invested €85 million in the business, with the transaction partly funded by a unitranche debt facility from BlueBay, the statement added.
IU Group, which has more than 100,000 students, delivered a student intake compound annual growth rate of 63 percent between 2019 and 2021, according to Oakley’s website.
Oakley partner Rebecca Gibson said in February the continuation fund market is “fascinating” with the innovation “creating a lot more liquidity and alternative exit routes”, adding that the firm considers every opportunity and avenue for value creation in the market.
– Adam Le contributed to this report
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