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TPG targets US$3.5B for The Rise Fund II

4 December 2018

TPG is preparing to raise US$3.5b for its second impact investing fund, The Rise Fund II, and it will focus mainly on healthcare, education, financial services and energy. New Jersey State Investment Council committed up to US$125m to the new fund.

(Dallas Business Journal) TPG is going back to market with a second impact fund that aims to make investments with measurable social impacts or environmental benefits.

As reported by Private Equity News, the PE giant, which is dual headquartered in Fort Worth and San Francisco, has returned to market with The Rise Fund II LP, aiming to raise $3.5 billion. The information is based on an investment memorandum from the New Jersey State Investment Council, which is considering bankrolling $125 million into the fund.

TPG previously planned to raise $3 billion for its second social impact fund, according to an October report by Bloomberg. The Rise Fund II will be significantly larger than the first Rise Fund raised by the PE firm, which reached $2 billion.

Launched in 2016, the first fund attracted well-known names. It was co-led by musician Bono, and former Secretary of State John Kerry was recruited to help source deals.

Kerry said in April that the TPG fund could “write a new playbook” for impact investing and convince bigger institutional investors to put more capital to work in social and environmental causes “without compromising returns.”

The first Rise Fund invested in companies like SystemOne, which specializes in technology that rapidly detects and responds to infectious diseases, and Austin-based CLEAResult, which designs and implements tech that improves energy efficiency, according to Private Equity News.

The second fund will focus on four core sectors: health care, education, financial services and energy, Private Equity News wrote. It will also invest in food and agriculture, technology, and growth infrastructure as secondary sectors.