TPG holds final close on $3.7bn for Growth IV

The fund has a global investment mandate to make growth equity and buyout investments in small and medium-sized companies.

TPG's previous growth fund held a final close on $3bn in April 2015, surpassing its $2.75bn target after five months on the road.

According to publicly available documents, the GP has set a 20% carry and an 8% hurdle for the fund. However, if an LP achieves a cumulative net TVPI of 2.5x or greater and a net IRR of 20% or greater, then a 25% carry rate will be charged by the manager. Management fees are 1.75% of capital commitments during the commitment period. Thereafter, or when management fees begin to accrue for a successor fund, it decreases to 1.25% of actively invested capital.

Cleary Gottlieb Steen & Hamilton and Morris Nichols Arsht & Tunnell provided legal advice to the vehicle, while KPMG provided fund administration services.

The GP also launched a social impact fund this year, in association with Bill McGlashan, Bono and Jeff Skoll – the fund held a final close on its $2.1bn hard-cap.

Investors
TPG raised more than $1.2bn in commitments from US-based pension funds, according to unquote" data. The Teacher Retirement System of Texas made the largest commitment at $250m, followed by Oregon Public Employees Retirement System with $200m. The GP itself made a 2% commitment.

For a detailed profile of TPG's funds, including further LPs for Growth Fund IV, visit the dedicated page on unquote" data. 

Investments
The fund plans to make between 20-30 control and non-control investments in small and mid-market growth equity and buyout opportunities across a variety of sectors. The fund will selectively consider later-stage venture investments as well.

TPG Growth – Bill McGlashan (managing partner).

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