PSERS Recommends $400MM to TPG Partners VI, L.P.


  • Fund size is anticipated to be $18 – $20 billion.
  • Significant investments in operating companies through acquisitions and restructurings.
  • Invest between $250 million & $1 billion of equity capital in companies with market valuations of $300 million or more.

Fund Strategy

  • Investing in businesses with strong underlying “franchise” assets, partnering with outstanding management teams, and prudently using leverage to enhance returns.
  • Focus on generating strong cash distributions earlier in the fund cycle than most other global private equity firms.
  • Pennsylvania Presence – TPG does not currently have a PA presence; however several of their portfolio companies sell their products in PA retail stores.

Investment Team

  • The Fund will be managed by TPG’s Founding Partners, David Bonderman and James Coulter.
  • The Team consists of over 100 professionals in North America, Europe and Asia.

GP “Value Add”

  • Developed the “Operating Group,” enabling TPG to pursue turnaround opportunities others could not consider, and improve portfolio company performance with active participation with management.
  • 11 professionals support the Operating Group with unique, focused skill sets such as lean manufacturing, pricing strategy, and procurement.


  • An overall gross IRR of 55% for vintage years 1985 through 2007.

Market Opportunity

  • Staff values TPG’s ability to generate attractive returns in all market cycles and their depth of experience across industry sectors.
  • TPG has proven success in contrarian, complex, distressed and turnaround situations.

History with PSERS

  • This is PSERS fourth fund with TPG Partners. Prior funds were TPG Partners I, II and V.


  • Staff, together with Portfolio Advisors, recommends a commitment of $400 million.

Source: Charles Spiller, PSERS