TPG Exceeds Target with $4.8 Billion for Growth Fund, Eyes Rapidly Growing Companies

TPG has raised $4.8 billion for its growth fund, exceeding its initial target of $4 billion. The firm has committed 40% of the fund to 10 deals, including Schott Pharma, Cliffwater, and K2 Medical Research. TPG Growth has achieved a 2-to-1 ratio of investment sales to new acquisitions and has avoided a slowdown in distributions to private equity investors.

Private equity firm TPG Inc. has successfully raised $4.8 billion for its latest growth fund, TPG Growth VI, surpassing its initial target of $4 billion. The firm, known for its investments in software and enterprise technology, internet, digital media, healthcare, and business services, has committed approximately 40% of the fund to 10 deals, including Schott Pharma, Cliffwater, and K2 Medical Research [1].

The fund's rapid growth, driven by investments from new investors in the Middle East, Asia, and Latin America, has allowed TPG to maintain its strategy of focusing on high-growth sectors. The firm's ability to avoid a broader slowdown in distributions to private equity investors, despite higher interest rates and economic uncertainties, underscores its resilience in the current market conditions [1].

David Trujilo, co-managing partner of TPG Growth, highlighted the firm's focus on businesses that can generate growth of 20% to 30%. The strategy is designed to mitigate the impact of macroeconomic uncertainties, with the firm's investments in companies that are growing rapidly being more important than the broader economic climate [1].

In addition to its growth fund, TPG Private Equity Opportunities, a fund for wealthy individuals, will invest in select deals alongside TPG Growth. TPG's ability to influence governance and strategy through control investments or minority positions of at least 20% sets it apart from some of its peers [1].

The successful fundraise comes at a time when many private equity firms are struggling with a slowdown in distributions due to higher interest rates and exit difficulties. TPG's ability to maintain its distribution pace and focus on high-growth sectors bodes well for its future performance [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-08-06/tpg-raises-4-8-billion-for-growth-fund-beating-initial-target