TPG poised to launch second distressed fund

TPG, led by David Bonderman, is seeking to raise a successor to its previous credit vehicle, TPG Opportunities Partners II, which raised $2.41bn.

Texas-based TPG Capital is understood to be targeting $2.5 billion for its next distressed debt fund, according to Reuters.

The fund, TPG Opportunities Partners III, is currently in pre-marketing and is likely to be a similar size to the firm's second vehicle, the 2011-vintage TOP II, which had a target size of $1.5 billion but closed on $2.41 billion last year. TPG could not be reached for comment by press time.

TPG Opportunities Partners (TOP) is helmed by Alan Waxman, formerly co-head of Americas special situations at Goldman Sachs. The investment platform was launched in 2009 and began investing that year, initially using capital from the firm's flagship buyout fund TPG Partners VI and TPG Financial Partners, before a dedicated fund was raised (TOP II).

The funds target special situation or distressed opportunities, and are also active in the secondary market, buying up portfolios of loans.

The previous fund received backing from a host of institutional LPs, including: The New Jersey Division of Investment, Arizona Public Safety Personnel Retirement System, CalSTRS, Pennsylvania Public School Employees' Retirement System, State of Wisonsin Investment Board, and the Washington State Investment Board.