Tuesday, 29 July 2014
Last updated 3 hours ago
Aug 7 2013 | 10:48am ET
TPG Capital needs a little more time.
The private-equity giant has asked investors to give it an extra year to invest the remaining $3 billion from its last fund. TPG, which is offering to waive a variety of fees in exchange for the additional time, told investors that it was simply too difficult to find enough promising opportunities during the economic crisis, the Financial Times reports.
TPG raised the fund, its sixth, just prior to the financial collapse in 2008. The firm won commitments of $19 billion, making TPG VI the third-largest private equity fund in history at that time.
Giving it until February 2015 to deploy the rest of the capital would allow TPG "to continue intense focus on performance" and would spare the firm the need "to begin raising TPG VII prematurely," it told investors.
TPG made its plea in a conference call last week. Investors have until Friday to approve the extension, which will require the support of two-thirds of investors. According to the FT, success is likely, given the backing of several large sovereign-wealth funds.
"It is better to extend than to do stupid deals," one investor told the newspaper.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…