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TPG Sixth Street Raises $2.2 Billion to Fund Growth Companies

Melissa Karsh
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TPG Sixth Street Raises $2.2 Billion to Fund Growth Companies

(Bloomberg) -- TPG Sixth Street Partners, the credit business that’s part of buyout giant TPG, exceeded its initial fundraising target by collecting $2.2 billion for a fund focused on growth companies.

The vehicle, TSSP Capital Solutions, has already deployed more than $500 million, the firm said in a statement Tuesday. TPG had been seeking $2 billion, Bloomberg previously reported. The fund will invest across assets -- from structured and preferred equity to debt deals -- in late-stage growth companies.

TPG Sixth Street is benefiting from a fundraising boom as yield-hungry investors pile into alternative asset classes. Private capital funds raised a record $857 billion last year, including across equity, debt and real estate strategies, according to data compiled by Bloomberg.

“Private companies are looking for more options and greater flexibility when funding their next phase of development, and we look forward to creating those solutions,” Robert "Bo" Stanley, co-head of capital solutions at TPG Sixth Street, said in the statement. He runs the group with Mike McGinn, a former co-head of the private-capital investing team at Goldman Sachs Group Inc.

The fund will make investments of $25 million to more than $500 million.

TPG Sixth Street has more than $32 billion in assets and was co-founded in 2009 by former Goldman Sachs partner Alan Waxman.

To contact the reporter on this story: Melissa Karsh in New York at mkarsh@bloomberg.net

To contact the editor responsible for this story: Alan Mirabella at amirabella@bloomberg.net

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