Private-equity powerhouse TPG Holdings has reached a deal to sell nearly 5% of itself to sovereign-wealth funds operated by Kuwait and Singapore. The deal values the firm at about $11 billion and allows it to raise several hundred million dollars, according to people close to the matter.
TPG sent a letter to its investors Thursday night informing them of the transaction, although the firm didn't name the purchasers. People close to the matter say the buyers are the Kuwait Investment Authority, the Gulf country's sovereign-wealth fund, and the Government of Singapore Investment Corp., among the world's most active sovereign-wealth funds. KIA and GIC will pay several hundred million dollars for the roughly 4.5% stake, according to these people, a sum that places a value on TPG that is close to the $11 billion market value of rival Kohlberg Kravis Roberts (KKR 16.75, +0.34, +2.07%) & Co.
The move gives TPG a pot of so-called permanent capital that it will plow into new investments. It underscores how the asset-management business is becoming more global, and that foreign investors often have deeper pockets, and a more upbeat outlook for U.S. firms, than do domestic institutions.
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