Private equity fund scouts for new PH projects

US-based private global investment firm TPG has raised more than $4.6 billion in commitments for a new Asia-focused private equity fund, some of which are seen to flow to new investments in the Philippines.

TPG, described as an alternative asset firm, announced the final close of its latest Asian-focused private equity fund, TPG Capital Asia VII.

“Thanks to the continued support of our global investor partners, we surpassed the target figure for TPG Asia VII. We are proud to have reached this milestone,” said Ganen Sarvananthan, co-managing partner for TPG Capital Asia. “With Asia VII, we will continue to invest in opportunities that reflect our differentiated investment strategy, deep sector expertise and focus on operational improvement. We look forward to continuing to deliver value for our investors while helping to build great new companies across Asia.”

“We are on the lookout for an investment in the Philippines for Asia VII,” Sarvananthan replied in an
e-mail inquiry.

Under its previous fund Asia VI, TPG had invested in leading local mass housing developer 8990 Holdings as well as TE Healthcare, which has investments in a cancer center in Pampanga.

Asked which sectors the group was interested in the Philippines, Sarvananthan said: “TPG will be exploring opportunities in financial, consumers services, healthcare and TMT (technology, media and telecommunications) sectors.”

The Philippines is liberalizing its telecommunications industry, having recently picked a new mobile player, the Mislatel consortium led by Davao-based businessman Dennis Uy and China Telecom, to challenge an existing duopoly enjoyed by PLDT and Globe.

Sarvananthan said the targeted sectors of TPG would enable the group to provide sector expertise from both a global and regional perspective in areas that the group had “operational excellence” in. “They also represent sectors that enable us to invest alongside the creation of a middle class in the Philippines as its economy continues to develop and mature at a healthy pace.”

TPG Asia VII has so far committed more than 40 percent of the capital across 12 companies, including Du Xiaoman, the consumer lending, wealth management and payments platform spun out from Baidu; Pathology Asia Holdings, Healthscope’s Asian Pathology business that operates 39 labs across Singapore, Malaysia and Vietnam; UPL, a global leader in agricultural solutions, and Greencross Ltd., an integrated pet care platform in Australia.

This 2019 marks TPG’s 25th year investing in Asia since establishing its first regionally dedicated fund in 1994. Comprised of around 50 investment professionals, the TPG Capital Asia team is based in TPG’s offices in Beijing, Hong Kong, Mumbai, Seoul, Singapore and Melbourne. The platform has invested $11 billion in 88 investments across 13 countries through varied local and regional economic cycles.

Globally, TPG has more than $103 billion in assets under management and offices in Austin, Beijing, Boston, Dallas, Fort Worth, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, San Francisco, Seoul and Singapore.