TPG Capital, trailing rivals that struck partnerships with large U.S. public pension funds, is seeking to secure its own big-ticket investor, with the Oregon Investment Council, according to two people with knowledge of the matter.
The firm has talked to the Tigard-based council, which oversees the $58.4 billion Oregon Public Employees Retirement Fund, Salem, about backing a separate account, though an agreement isn’t certain, the people said.
TPG, which plans to start raising its next buyout fund in 12 to 18 months, is seeking to join other buyout firms in securing more permanent capital from a large backer as buyout funds are shrinking for the first time in the industry’s history. Blackstone Group, Carlyle Group, KKR & Co. and Apollo Global Management have all paired up with at least one major U.S. pension plan, drawing commitments as large as $3 billion. In such deals, investors write big checks and back multiple strategies at one firm in exchange for better terms such as lower fees.
TPG would use the money from a future partner to invest in opportunities outside of its existing funds, according to one of the people. TPG, known for investments in companies such as Burger King and J. Crew Group, has about $51.5 billion under management, according to its website.
Michael Mueller, the interim chief investment officer at the Oregon pension fund, declined to comment on whether the pension has discussed a separate account with TPG. The pension fund is regularly in talks with firms over potential investments, he said. Owen Blicksilver, a spokesman for TPG declined to comment.
Oregon has backed TPG since its first fund in 1994, investing outside the firm’s mega-buyout strategy as the firm diversified. When TPG started a business dedicated to smaller deals, Oregon committed money to the venture.