Dealflow | September 24, 2018

TPG Growth moves to raise second Rise Fund, and this time the target is $3 billion

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

Private equity firm TPG Growth closed its fundraising for the Rise Fund at $2 billion last year. The firm says it already has committed $1.5 billion. Now TPG Growth is planning a second Rise fund; it is reportedly looking to raise $3 billion.

The Rise Fund’s founder, Bill McGlashan, has described himself as “hell-bent on activating the trillions needed to achieve the U.N.’s Sustainable Development Goals.” The Rise Fund has been furiously ushering its own money out the door to that end, with an impact performance methodology it spent two years and millions of dollars developing in partnership with Bridgespan Group. A spokesperson declined to comment on the fund’s impact performance.

Rise Fund’s Impact Multiple of Money: A conversation with TPG’s Bill McGlashan

So far, 15 of the Rise Fund’s deals have made headlines. They include several $100-million-plus deals, like its $130 million investment in edtech company DreamBox and $120 million investment in EverFi. The portfolio also includes relatively smaller deals in the tens of millions, like Indian dairy company Dodla Dairy and energy company Fourth Partner Energy, as well as a number of earlier stage investments. 

Dutch pension fund moves from impact alignment to impact management

A portion of the $1.5 billion the Rise Fund has committed has been invested in small, co-investments. The fund also appears to have capital slated for follow-on investments.