TPG Sells Stake To Sovereign Wealth Funds

Apr 4 2011 | 1:23pm ET

Private equity giant TPG Holdings has sold a stake in itself to a pair of major sovereign wealth funds, raising several hundred million dollars.

The firm, which has some $48 billion in assets under management, told investors last week that it had sold a roughly 4.5% stake to the Government of Singapore Investment Corp. and Kuwait Investment Authority. Both sovereign funds are longtime investors in TPG.

"Yesterday we completed a private sale of a small, passive minority economic stake in the consolidated general partner of TPG," firm founder David Bonderman wrote to TPG investors without identifying the buyers. "We have chosen a private transaction as a path to provide capital to our firm," he added, indicating that TPG will not follow rivals Apollo Global Management, the Blackstone Group and Kohlberg Kravis Roberts with an initial public offering of its own, as the Carlyle Group hopes to do next year.

The proceeds of the sale will be used to increase hiring and expand its investment activities into emerging markets and real estate, The Wall Street Journal reports. The deal values TPG at about $11 billion, almost as much as KKR.

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