* TPG to begin marketing for fund VII next year
* TPG gauging LP interest in fund VII
* Fund VI is 66 percent invested
By Luisa Beltran
NEW YORK, Nov 7 TPG Capital LP, the private
equity firm founded by David Bonderman and James Coulter, is
looking to raise between $8 billion and $12 billion for its next
global buyout fund, two placement agents said.
Fort Worth, Texas-based TPG, which has $51.5 billion in
assets under management, is gauging support among existing
investors for Fund VII, one placement agent said on condition of
anonymity because the information is confidential.
Fundraising for TPG Partners VII is expected to begin during
the first half of 2013, the person added.
"The feeling seems to be that a realistic target would be
about $10 billion," the source said.
The $8 billion to $12 billion target could also include
TPG's Asia-related funds, the second source said.
TPG declined to comment.
TPG is expected to vie against other large buyout shops for
capital. Bain Capital LLC, which has about $66 billion in assets
under management, is currently out marketing for its latest mega
fund, which has a $6 billion target. Apollo Global Management
LLC, which manages $105 billion, is expected to begin
fundraising for its latest buyout fund this year. Apollo is
reportedly seeking $10 billion to $12 billion for the pool.
TPG's seventh fund is coming in much lower than its last
pool. In 2008, the buyout shop collected $19.8 billion with its
sixth global buyout fund, TPG Partners VI. The pool is
"troubled," the second placement agent said. TPG VI has
generated an internal rate of return (IRR) since inception of
1.46 percent, according to March 31 data from CalSTRS.
Fund VI was 66 percent invested as of June 30, according to
Preqin. Private equity firms typically begin marketing once
funds are about 70 percent invested.
TPG's prior pool, Fund V, amassed $15 billion in 2006. The
pool is producing a negative 4.67 percent IRR since inception,
CalSTRS data showed.
Dow Jones LBO Wire, which first reported the fundraising for
Fund VII, said TPG plans to begin marketing for the pool next
Notable investments for TPG's fund VI include the J.Crew
Group. Last year, TPG and Leonard Green & Partners acquired the
clothing retailer for about $3 billion. TPG, more recently,
agreed to buy FleetPride, a retailer of heavy-duty truck and
trailer parts, in October. In July, the buyout shop also inked a
$1.9 billion deal for Par Pharmaceutical, the generic drug