TPG plans February close for Opps III

TPG Capital is readying a second and final close for TPG Opportunities Partners III, according to the New Mexico State Investment Council. The fund is oversubscribed.

Fund III is scheduled to hold its final close in February, according to a New Mexico SIC spokesperson. New Mexico SIC approved a commitment of between $50 million and $75 million at its Tuesday meeting.

“It’s going very quickly, and the motion has a range in it because the fund is heavily oversubscribed. We have a minimum amount that we’re locked into, and we’re eking our way into a higher amount,” said one member of New Mexico’s investment team in a video recording of the meeting.  

TPG is understood to have launched fundraising for Opportunities III last year. The firm set a $2.6 billion target and $3 billion hard-cap for the vehicle, according to a Pennsylvania Public School Employees’ Retirement System (PSERS) investment memo. The memo indicated that TPG expected to hold a final close in early 2014.

TPG declined to comment.

The firm expects Fund III to deploy between 35-45 percent of its capital in special situations, 30 percent in corporate dislocations and 25-35 percent incorporate distressed-for-control investments, according to presentation materials available through the New Mexico SIC website.

“I spend a lot of time chasing banks and trying to find bad assets,” TPG’s Clint Kollar told New Mexico SIC at the Tuesday meeting. “We do have enough flexibility in our mandate, we have a large enough team with enough specialised expertise, we can hopefully identify the best opportunities throughout the world.”

TPG closed its previous Opportunities Fund on more than $2 billion in 2011. Fund II was generating a 19.1 percent internal rate of return through 30 June, according to PSERS. Presentation materials available through New Mexico’s website pegged the vehicle as being 78 percent invested.