TPG Raising New Fund Focused on Public Company Investments

Private equity firm TPG is creating a fund to invest in public companies, “to offer its experience to aid in better decision making,” according to a recent article in Bloomberg.

The Strategic Capital Fund will reportedly focus on building minority positions in large companies, seek board seats and provide advice on corporate governance and environmental issues. But those familiar with the matter claim that the new fund “won’t write attack letters, launch proxy fights or agitate for management changes,” adding “Instead, it will mirror the sort of engaged, long-term investments made by Warren Buffett’s Berkshire Hathaway Inc.” [In recent years, Berkshire has provided equity to companies in exchange for board representation and preferred stock.]

While its unclear how much TPG is looking to raise, the article notes that the move “highlights just how much the industry has coalesced with traditional asset management. It also underscores the creative imperative for sponsors as they grapple with record amounts of stockpiled cash and lofty public market valuations.”