US-based private equity major TPG Global has announced the final close of its second tech-focused fund at $3.4 billion, exceeding its $3-billion target.
The commitments raised for the fund, TPG Tech Adjacencies II, and related vehicles also more than doubled the amount raised for the inaugural fund in 2018.
Fund I collected $1.6 billion to provide primary capital solutions, mostly in the form of minority investments, to companies seeking liquidity or in the expansion mode.
The latest fund, which invests in technology companies across all stages of growth through structured and opportunistic minority investments, counts the Minnesota State Board of Investment among its backers.
Led by Co-Managing Partners Nehal Raj and David Trujillo, TPG Tech Adjacencies has developed a portfolio of leading technology companies including Indian fantasy sports platform Dream11; payments firm FreedomPay; cybersecurity platform Kaseya; SaaS company Learneo; software firm Sonatype; and restaurant management platform Toast.
TPG Tech Adjacencies grew out of TPG’s technology practice, recognising the significant opportunity for value creation as more technology companies opted to stay private through more advanced stages of growth.
“This strategy is purpose-built for the evolving tech sector, and we look forward to continuing to partner with many of the industry’s most innovative companies to enable future growth,” said Raj.
TPG is a global alternative asset management company, founded in San Francisco in 1992, with $135 billion of assets under management and investment and operational teams around the world. The company invests across five multi-product platforms — capital, growth, impact, real estate and market solutions.
TPG raised $30 billion last year, of which $3.6 billion was in the fourth quarter of 2022. The fresh capital raised in 2022 included $8.9 billion in its TPG IX vehicle, $3.4 billion in Asia VIII, and also $6.8 billion in TREP IV, which is part of TPG Real Estate Partners.
In February, TPG, through its global impact investing platform The Rise Fund, led a consortium of investors in acquiring a controlling stake in Malaysia’s Asia Pacific University of Technology and Innovation.
TPG’s other investments in Malaysia include: diagnostic service providers Gribbles, Lablink, Clinipath and Quantum, as part of Pathology Asia; Columbia Asia hospitals; heart treatment hospital CVSKL; and PropertyGuru Malaysia.
