TPG Targets $3.5bn for Second Healthcare Fund

TPG is seeking $3.5bn for its second fund focused exclusively on healthcare deals, according to people familiar with the effort.

Commitments for the new vehicle, TPG Healthcare Partners II LP, are being raised as part of the firm’s broader campaign to collect a combined total of $18.5 billion for the healthcare fund and the firm’s latest main fund, TPG Partners IX LP, the people said.

Recently, TPG has closed its TPG Rise Climate at $7.3bn. The climate investing fund closed at its hard cap, a news release said Wednesday.

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TPG Rise Climate launched in 2021 and has already made a number of growth-stage investments in firms dedicated to climate solutions. Those include investments in Nextracker, a solar tracking company, and Tata Motors, an electric carmaker based in India.

TPG originally announced the fund had a hard cap of $7 billion when the company disclosed the first close of $5.4 billion in July 2021.

Investors in the fund include the $193.8 billion Washington State Investment Board, Olympia; $100.6 billion Michigan Retirement Systems, East Lansing; $95 billion New Jersey Pension Fund, Trenton; and $24.1 billion Los Angeles City Employees’ Retirement System.

Source: WSJ

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