TPG Real Estate Partners, the real estate division of global private-investment firm TPG, is trying to raise $5.5 billion for its TPG Real Estate Partners IV fund (Fund IV), which is expected to target self-storage investments in addition to other real estate assets. It secured an investment of up to $65 million from the Teachers’ Retirement System of Louisiana (TRSL) pension fund, according to the source.
In addition to self-storage, Fund IV will target industrial, hospitality, life-science, office, residential, retail, senior-housing and student-housing opportunities in Europe and North America. It’s expected to hold up to 30 investments for four to six years, the source reported.
TRSL indicated its investment won’t exceed 10% of the total capital raised for the TPG fund. The pension fund revealed its intent with TPG in an investor’s meeting document.
TPG Real Estate raised $3.7 billion for its third opportunity fund in March 2019, according to the source. In 2014, the company invested $120 million in self-storage operator LifeStorage LP, which sold for $1.3 billion in 2016 to real estate investment trust Sovran Self Storage Inc. Sovran subsequently rebranded its name to Life Storage Inc.
Since 2009, TPG Real Estate has built a differentiated real estate portfolio in Europe and the United States, with $5.3 billion of assets under management. Founded in 1992, parent company TPG has $109 billion in global assets under management. It has a history of making public and private investments through leveraged buyouts, recapitalizations, spinouts, growth investments, joint ventures and restructurings, according to its website.
Source: IP&E Real Assets, TPG Real Estate Seeks $5.5B for New Opportunistic Fund