TPG Offering LPs a Break on Financial Fund

TPG Capital is reportedly offering the limited partners in its TPG Financial Partners fund the chance to reduce their commitments. The fund originally closed on $6 billion in February 2008 but was reduced to $4.6 billion in January 2009 and could now possibly be cut all the way down to $2.5 billion. TPG has said that the US Government's TARP and its recent ruling on PE investment in failed banks has decreased its investment opportunities. The cut in fund size will give TPG a more aprropriately sized fund for its current opportunities and provide some relief to LPs with over-allocations to PE or that are having difficulty meeting current capital calls.