Two sovereign wealth funds — the $202 billion Kuwait Investment Authority and the $100 billion Government of Singapore Investment Corp. — are buying a combined 5% stake in private equity firm TPG Holdings for several hundred million dollars, according to sources.
The money will remain with the general partnership, according to a source who received a letter from TPG to investors. It will be used to expand existing business lines and general partnership investments as well as to fund the growth of TPG operations, said the source, reading from the letter.
There are no restrictions preventing TPG from using the capital to fund co-investments with limited partners, the sources said.
Owen Blicksilver, TPG spokesman, declined to comment.
“CalSTRS investment staff will monitor the situation to determine if engagement will be necessary,” stated Ricardo Duran, spokesman for the $150.1 billion California State Teachers’ Retirement System, West Sacramento, in an e-mail. CalSTRS is an investor in several TPG funds.