TPG allows LPs to cut commitments by $2bn

The firm will also cut management fees across the board and has promised not to call more than 30% of LPs’ total commitment next year.

The shrinkage of the mega-funds continues. TPG has followed an unprecedented move by fellow mega-buyout firm Permira earlier this month to help cash-starved investors, according to a source with knowledge of the situation.

In a letter sent to LPs yesterday, the firm said it would allow them to reduce their commitments by as much as 10 percent, or up to $2 billion, the source said.