TPG Credit Gets Fund Extension on Way to $1 Bln

TPG Credit Management LP, founded by former Cargill Inc. executive Rory O’Neill, expects to close its new distressed-asset fund at its $1 billion limit in October, according to a person familiar with the situation.

TPG Credit Strategies Fund II, which has closed on $893 million so far, was granted a fund-raising extension by investors, to Oct. 15 from Aug. 1, to give it more time to raise capital, the person said. The extension gives as many as three more limited partners time to commit to the fund, two people familiar with the situation said.

At $1 billion, the fund will be more than twice as large as its predecessor, which raised $475 million in 2007. TPG Credit Strategies Fund LP was generating a 1.3 times multiple and 5.6 percent net internal rate of return as of Dec. 31, according to performance data from California Public Employees’ Retirement System.

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