We have a new metric in private equity, which I’d like to call the “TPG”. Named after the private equity firm Texas Pacific Group, a TPG is $14bn, which is the size of that firm’s soon-to-be-announced latest fund.
The monstrous new raise, admittedly one whose size had been rumored to be $10-billion plus, will now end up being the largest single pool of private equity capital ever raised. Assuming a four-year investment span (on an eight-year life), David Bonderman & Co. will have to put money out at the prodigious rate of $15.8-million a day. A revised line from the Hitchhiker’s Guide to the Galaxy comes to mind:
TPG’s new fund is big — really big – you just won’t believe how vastly, hugely mind-bogglingly big it is.