TPG expects to raise more than $55bn this year after increasing its previous forecast of more than $50bn, according to Private Equity Wire, citing a report by The Wall Street Journal. The updated expectation would set a firm record, according to Private Equity Wire.
Fundraising pace through September
TPG raised nearly $42bn through September, according to Private Equity Wire. The firm also holds approximately $86bn in uncommitted capital, the publication reported.
Deal pipeline and market conditions
TPG executives pointed to strong deal pipelines despite higher interest rates and market volatility weighing on the wider private equity industry, according to Private Equity Wire. The publication reported that executives linked the firm’s outlook to deal pipelines even as interest rates and volatility affect the broader industry.
Timing of expected fund closings
TPG said it was set to benefit from some fund closings that had been expected to take place early next year, according to Private Equity Wire.
Higher interest rates are widely known to increase the cost of leverage used in many buyout transactions. Market volatility is widely known to affect transaction timing and financing conditions across private markets.
