TPG to close debut GP-led secondaries fund by year-end

The final close of TPG GP Solutions will be one of the key pillars driving the firm’s growth in 2024, CEO Jon Winkelried said in its latest earnings call.

TPG, the world’s sixth-biggest private equity firm according to the PEI 300, expects to close its debut GP-led fund this year.

The Forth Worth, Texas-based firm’s growth in 2024 will be driven by several primary sectors, including the completion of several first-time fundraises, such as its GP secondaries and real estate credit vehicles, chief executive Jon Winkelried said on the firm’s fourth quarter 2023 earnings call on Tuesday.

The fund, TPG GP Solutions, focuses on opportunities in Europe and North America, and launched at the beginning of 2022, according to Secondaries Investor data.

It is unclear how much TPG GP Solutions is targeting. During early conversations with potential LPs, TPG talked about a target of up to $2 billion, affiliate title Buyouts reported in late 2022.

The secondaries market hit a new fundraising record in 2023, with a total of $117.92 billion raised across all asset classes, according to Secondaries Investor data. That figure is more than double the prior year’s $53.28 billion and almost 17 percent higher than the previous record set in 2020.

The GP solutions fund held a fourth close last June, securing $750 million, Secondaries Investor reported at the time. The fund had completed four transactions by August, Winkelried said in the firm’s second quarter 2023 earnings call.

The firm emerged as a co-lead on pan-European mid-market investment firm Oakley Capital’s €1 billion-plus continuation fund for German university group IU Group, as Secondaries Investor reported. HarbourVest PartnersGoldman Sachs Asset ManagementGlendower Capital and Pantheon also backed the Oakley deal, according to a later statement about the transaction.

It was also a co-lead on San Francisco-headquartered mid-market firm Calera Capital’s $700 million-plus single-asset continuation fund for US healthcare laundry service company ImageFIRST, Secondaries Investor reported. Goldman Sachs Asset Management was the lead investor, with Blackstone Strategic Partners and Portfolio Advisors also lining up as co-leads.

TPG invested over $22 billion of capital last year and expected “a robust pace of deployment to continue in 2024”, Winkelried said in the call.