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TPG tallies $4.6B to join Asia fundraising heavyweights

With its latest effort, TPG Capital has become the fourth US-based firm this decade to raise at least $4 billion for a buyout fund based in Asia.

In US private equity circles, if you hear reference to a so-called Big Four of firms, the investors in question are probably publicly traded giants Apollo Global Management, Blackstone, The Carlyle Group and KKR. But when it comes to US PE firms raising buyout funds in Asia, there’s a different set of four firms that’s dominating the picture.

To cement its membership in that group, TPG Capital has closed its seventh namesake Asia fund on $4.6 billion, topping its target and becoming the fourth US-based firm this decade to exceed the $4 billion mark for a buyout fund based in Asia, per the PitchBook Platform. KKR closed a headline-grabbing Asia fund on $9.3 billion in 2017, while Carlyle wrapped up a $6.55 billion effort last June and Bain Capital reportedly brought in $4.65 billion in December.

Those four are leading a fundraising flurry that’s set a new standard in Asia, a region where, until recently, US firms had been more focused on raising smaller funds. But now they’re challenging major regional players like Hillhouse Capital and PAG at the very top of the continent’s fundraising pyramid.

And other firms are close behind. Warburg Pincus is said to be seeking $4 billion for its latest China fund, while Blackstone brought in $2.3 billion for an Asia buyout fund last year and billions more for real estate deals in the region.

For TPG, the latest fund is the firm’s first in Asia since 2014, when it closed its sixth fund in the series on a reported $3.3 billion. The firm has already spent more than 40% of the cash for the newest fund, including investments in Baidu spinout Du Xiaoman and Australian petcare provider Greencross.

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    Written by Kevin Dowd

    Kevin Dowd wrote The Weekend Pitch newsletter for PitchBook, covering startups, buyouts and the rest of the private market.

    A native of the Pacific Northwest, he’s an alumnus of the University of Washington with a degree in creative writing and journalism. He enjoys books and basketball and, most especially, books about basketball. He feels uncomfortable writing about himself in the third person.

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