TPG has raised $402 million so far for its first-ever mid-cap private equity fund focused on Asia’s developed markets, marking a significant milestone after CEO Jon Winkelried’s announcement in February that the fund had already reached nearly half of its fundraising target in its first close. The 2025-vintage fund has so far deployed $52 million, according to the firm’s first-quarter earnings report.
Fund Focus and Investments: The fund has made initial investments in Singaporean nursing home operators Orange Valley and Econ Healthcare, which recently received a take-private offer, and Australia’s IFive Good Friends. These investments were among the first transactions under the new fund, Winkelried confirmed during a call with analysts.
Market Conditions and Capital-Raising Challenges: TPG’s fundraising efforts come amidst a volatile market environment, particularly with the ongoing challenges presented by U.S.-China trade tensions and the fluctuating tariff situation under former President Trump. Winkelried noted that many of the firm’s capital-raising efforts might take longer due to these disruptions, aligning with sentiments expressed by other Wall Street fund leaders.
“Several of our campaigns will likely elongate as clients manage through this period of disruption,” Winkelried said, referring to the uncertainties in the global economic environment.
Climate-Focused Funds: TPG is also actively marketing a suite of climate-related funds, including Rise Climate II, the Climate Transition Infrastructure Fund, and the Global South Initiative. These funds have been impacted by policy uncertainties in the U.S., leading to delays in their closure. Despite these challenges, TPG has raised more than 60% of its target capital for these funds, although they are expected to close later than originally planned.
China Exposure: As U.S.-China tensions continue to rise, the approach of U.S. investors towards China is under scrutiny. Winkelried noted that China now represents a small portion of TPG’s portfolio, accounting for less than 2% of the firm’s total assets under management (AUM). While the firm has reduced its focus on China in recent Asia funds, it continues to manage its existing investments in the region.
“China continues to be a small part of our total exposure,” Winkelried said, adding that TPG remains committed to managing its residual portfolio in China and still views it as a critical market for its portfolio companies.
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