TPG raises $8 bln for Asia-focused private equity, real estate funds
Adds TPG comment in paragraph 11
May 9 (Reuters) -TPG TPG.O raised around $8 billion for its Asia-focused private equity and real estate funds, the global alternative asset manager said in a statement on Thursday.
The fundraising takes TPG's total Asia assets under management to $35 billion, spread across "dedicated Asia-focused private equity, real estate, and secondaries," the company said.
"Looking ahead, we expect markets across Asia to continue to experience strong economic growth," TPG's CEO Jon Winkelried said.
TPG's eighth Asia-focused private equity fund secured about $5.3 billion in aggregate capital commitments, making it the firm's largest Asia fund in three decades, while its two real estate funds secured an aggregate $2.5 billion ofcapital.
"We continue to see a wealth of compelling investment opportunities across the region," said Wilson Leung, head of Asia real estate activities at TPG Angelo Gordon, a unit of the asset manager.
TPG's fundraising comes as investment firms confront geopolitical uncertainties, higher interest rates, market volatility and macroeconomic headwinds.
Investors have been particularly cautious about deploying capital in China because of an economic slowdown, regulatory crackdown and Sino-U.S. tensions.
TPG kicked off fundraising for the eighth private equity fund in January 2022, targeting $6 billion , the firm said at the time.
The fund's allocation to China would be much lower than TPG's previous private equity funds, said two people close to the firm, who declined to be identified as they were not authorised to speak to the media.
In TPG's last two funds, about 20% of the total capital was allocated to China investments, Reuters reported in 2022.
TPG declined to comment on allocations to specific markets, but said it has a balanced team and capital deployment across Asia and is committed to extending its leadership position in Asia.
TPG said its fifth Asia realty fund closed more than 50% higher than the previous vehicle, with a focus on off-market transactions in Japan, Korea, China, Hong Kong, and Singapore.
TPG also raised a maiden Japan realty value fund, which will target value-add real estate opportunities, the firm said.
Reporting by Sameer Manekar in Bengaluru and Kane Wu in Hong Kong; Editing by Sherry Jacob-Phillips and Christian Schmollinger
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