The Fort Worth-headquartered firm is expected to acquire a majority position in NewQuest in the second quarter of this year, subject to regulatory approvals and other third-party consents, according to a statement. The deal would expand upon TPG’s initial minority investment in 2018.
NewQuest is one of Asia’s most prominent secondaries firms. It raised $1 billion for its NewQuest Asia Fund IV in 2019, the largest pool of capital dedicated to Asian secondaries to date.
NewQuest managing partner Darren Massara and his leadership team will maintain oversight of the firm’s business and its investment process, including the strategy for its existing funds, the statement said.
TPG’s acquisition comes amid a wider push into the secondaries market. The firm appointed the former head of secondaries at CPP Investments, Michael Woolhouse, in July to lead its expansion in North America and Europe.
“Secondaries have become an increasingly important part of our ecosystem over the past 10 years, and our partnership with Darren and the NewQuest team has provided us with unique exposure and insight into this fast-growing and evolving market,” TPG co-chief Jon Winkelried said in the statement.
TPG plans to leverage both Massara’s and Woolhouse’s “leadership and expertise” in delivering options for GPs and LPs, he added.
NewQuest spun out of Bank of America Merrill Lynch’s Asian private equity team in 2011 and has offices in Singapore, Hong Kong, Beijing and Mumbai. It manages five vehicles with aggregate commitments of $2 billion, according to Secondaries Investor data.