David Bonderman, founding partner of TPG Capital. (Photographer: Andrew Harrer/Bloomberg)

TPG Is Said to Target $11 Billion for Next Main Buyout Fund

(Bloomberg) -- TPG is targeting $11 billion for its eighth flagship buyout fund and launching a supplementary health-care pool at the same time, according to people familiar with the matter.

The target for the health-care fund, known as a sidecar, is $2.5 billion, said the people, asking not to be identified because the details are private. That pool is likely to split the main fund’s health-care deals on a 50-50 basis, one of the people said.

A representative for TPG declined to comment. Buyouts Insider earlier reported the firm’s fundraising plans.

TPG, whose main offices are in San Francisco and Fort Worth, Texas, closed on $10.5 billion for its seventh main pool in May 2016. That fund was generating a 15.7 percent return net of fees at year-end, according to a report from the Minnesota State Board of Investment, putting the pool in the top quartile of comparable funds, data compiled by Bloomberg show.

Having a fund to complement the main pool can help accommodate TPG’s substantial -- and successful -- activity in health care. The firm is bidding for Mednax Inc., a U.S. provider of physician-management services, according to people familiar with the matter, months after announcing plans to buy Kindred Healthcare Inc. for $4.1 billion, including debt, alongside Humana Inc. and another private equity firm.

TPG also sold Par Pharmaceutical Holdings Inc. to Endo International Plc for $8 billion in 2015. Last year it offloaded its stake in Surgical Care Affiliates Inc. as part of UnitedHealth Group Inc.’s $2.3 billion purchase of the company, among other deals.

With more than $79 billion of assets under management across private equity, credit, real estate and hedge funds, TPG invests in industries including technology, health care, financial services, retail and energy.

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