Private Equity Calculus: 1 TPG = $14.0bn

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.

Related posts:

  1. The Rise of Public Private Equity
  2. LPs Offer Private Equity Pecking Order
  3. Another Private Equity Megafund Looms
  4. The Private Equity Bubble
  5. The Private Equity Boomlet

Comments

  1. While they have a huge fund, they do huge deals – like buying companies for $3 billion. Still, I sent them an email anyways looking to help them with their troubles.