TPG Inc, the US private equity firm, is set to reach the first close of its new Asia-focused fund at more than USD 3 billion. In January, TPG started fundraising its eighth private equity fund for the region, targeting nearly USD 6 billion.

If successful, the fund will be its largest Asia fund to date. It is to be noted that private equity funds typically start investing after their first close when they have received an initial round of commitments from investors.
TPG is among a slew of global and regional private equity firms raising new funds for the region this year. TPG’s US competitor Carlyle Group aims to raise USD 8.5 billion in a new Asia fund.

The first close of the TPG fund is likely to come against the backdrop of a challenging global geopolitical and macroeconomic environment which has triggered a sharp sell-off in markets and an increase in financing costs.
In the region, the total value of deals backed by private equity in 2022 up to September 15 was USD 121.5 billion, falling 41 per cent from a year ago. TPG’s new Asia fund would have about 20 per cent of its capital allocated to China investments.