ImpactAlpha, May 18 – Private equity firms are reporting tough sledding in fundraising (though there are exceptions).
TPG, which hit the market last year with its third Rise fund, has raised almost $2.2 billion toward a $3 billion goal. Its impact funds, including Rise and the $7 billion Rise Climate fund, continue to cut deals “at a healthy pace,” TPG’s Jon Winkelried said on an earnings call this week.
TPG’s impact funds are the most active of the firm’s vehicles, deploying nearly $1.2 billion, according to its first-quarter statement. Rise and Rise Climate recently co-invested in residential solar company Palmetto. In April, Rise Climate invested in green hydrogen company Ohmium International. In total, TPG has invested almost $3 billion from Rise Climate and $451 million from Rise III.
Performance for the climate fund is particularly strong, with a nearly 40% internal rate of return, the firm reports.
TPG says it isn’t sure whether it will reach fundraising targets for Rise III or other funds.
“We set our original flagship fundraising targets under different market conditions,” TPG’s Jack Weingart said. “We still expect each fund to grow compared to its predecessor. But in aggregate, they may not grow as much as we previously expected.”