Lexington Partners led a consortium in a transaction buying about $1 billion in limited partnership interests in two TPG funds, TPG Asia V and TPG Asia VI, according to a news release.
Other terms of the general partner-led secondary deal that closed on Dec. 7 were not disclosed.
TPG Asia V closed in 2007 with $3.8 billion. TPG Asia VI closed with $3.3 billion in 2014.
TPG Group said in 2015 that Benjamin Gray, a former managing partner and co-ahead of TPG's Asian business, said he would leave TPG once TPG Asia VI was fully invested and that TPG would participate with Mr. Gray in forming the new firm. Mr. Gray, Simon Harle, a former partner of TPG, and Robin Bishop, former head of Macquarie Capital, Australia and New Zealand, formed a new firm, BCH Capital, focusing on investing in Australia and New Zealand. That firm closed its first fund with A$2.6 billion ($1.87 billion) in May.
In a written statement, Stephen Bamford, co-head of fundraising at TPG said that TPG launched the process to sell limited partnership interests in the two funds on the secondary market "as some of our limited partners have voiced a desire for liquidity or rebalancing."
"As the alternatives landscape continues to evolve, the secondary market has emerged as an important tool for asset managers and investors to actively manage their portfolios," he said. "We believe offering creative liquidity options to our limited partners in these markets represents good fund management."
Todd Fogarty, Lexington Partners spokesman, declined comment beyond the press release.
