Oregon Investment Council to Invest $1B in Two TPG’s Private Equity Funds

Two private equity funds managed by Texas Pacific Group has been elected by Oregon’s public pension fund Oregon Investment Council to receive nearly $1 billion in funding.

The Oregon Investment Council voted to commit $700 million to TPG’s Strategic Partnership Account and another $250 million to TPG’s TSSP Adjacent Opportunities Partners L.P. The commitment represents 7 percent of the pension fund’s $14.3 billion in private equity investments, which represent about 21 percent of the $68 billion pension fund.

TPG hopes to raise a total of $10 billion in the first fund, which targets its traditional sweet spot: corporate buyouts requiring an equity investment between $250 million and $600 million, according to staff at the Oregon Treasury’s investment division. The second is a $2 billion special situations fund that targets an eclectic mix of investments such as drug royalty streams, European bank loans and residential and commercial real estate loans.

Oregon’s pension fund was an early investor in TPG.

Source: OregonLive


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KKR Announces the Signing of Merger Agreement with KFN

Kohlberg Kravis Roberts & Co. L.P., a leading global investment firm founded by Henry Kravis and George Roberts, announced it plans to acquire KKR Financial Holdings LLC in an all-stock agreement that values the specialty finance company at $2.6 billion.

KFN is a specialty finance company with a portfolio of assets spanning a complementary range of strategies, principally leveraged credit through ownership of subordinated and mezzanine notes across a number of CLOs; special situations; and Private Markets strategies including natural resources, commercial real estate and private equity. KFN is externally managed by KKR.

Under the agreement, which has been approved by the boards of directors of both KKR and KFN, in KFN’s case based on the unanimous recommendation of a committee of independent directors of KFN, shareholders of KFN will receive 0.51 common units of KKR for each common share of KFN. Based on KKR’s closing price as of December 16, 2013, the exchange ratio equates to a value of $12.79 per common share of KFN, implying a 35% premium to KFN’s closing price on December 16, 2013, or $2.6 billion in total common equity value.

Source: MarketWatch


Tags: Private Equity, Private Equity firm, Private Equity group, Private Equity Company, Private Equity Fund, Private Equity investment, Private Equity investor, Fund of Fund, Private Equity business, Private Equity industry, PE, Kohlberg Kravis Roberts & Co. L.P., KKR & Co. L.P., KKR, Henry Kravis, George Roberts, KKR Financial Holdings LLC, KFN, Natural Resources, Commercial Real Estate, Real Estate.

Private Equity Firms for $2 Billion Deployment in the Indian Real Estate Sector

A privately held commercial real estate services firm Cushman & Wakefield’s latest report on the private equity in real estate investment states that around $2 billion is offered with private equity groups for distribution in the Indian real estate sector.

The interest comes despite the fact that PE investment flow in the first half of 2013 dropped by around 46%.

The PE investments in real estate was recorded at $276 million (around 1,638 crore) in first half of 2013 as compared to $514 million (around Rs 3,050 crore) in the same period last year. The decline in the quantum of PERE investment was essentially due to less number deals (13 in H1 2013) as the average ticket size of deals remained same.

The consultancy firm attributed the drop to the volatility in the market, including slower growth of the Indian economy, political stalemates and depreciation of the rupee. While, there is a strong investment sentiment for PERE transactions in India, they display a reflection of the market sentiments, where funds are looking at only embarking on projects with strong fundamentals. Source


Tags: Private Equity, Private Equity fundraising, Real Estate, Real Estate firm, Indian Real Estate Sector, Private Equity Real Estate, PERE, Commercial Real Estate, Cushman & Wakefield, Sanjay Dutt, South Asia.

Private Equity bets on Commercial Assets

Recently private equity (PE) giants have been looking to commercial property, a trend highlighted by a recent $368 million PE investment in Vrindavan Tech Village, a large IT park near Bangalore. The investment was a partnership of Blackstone Real Estate Partners, Embassy Property Developments, GIC Special Investments, and HDFC Property Fund and demonstrates how a variety of private equity firms are betting on this attractive investment option.

One of the latest PE entrants in real estate has been Baring Private Equity Partners. After examining many opportunities, Baring’s maiden investment made in 2012 has been the $100 million it injected in RMZ Corp – a well known South India-based builder – for an estimated 28 per cent stake. RMZ already has close to five million sq ft of built and leased office space. The proceeds from Baring’s investment will be used by RMZ to add another six to seven million sq ft. Source

Likewise, last year Blackstone acquired a 50% ownership in a Bangalore portfolio which held three business parks. The parks involved in the $200 million deal have a total area of over 10 million sq ft. One private equity executive noted that as giant private equity firms begin allocating more of their funds toward these types of assets, exits will become “increasingly easy”.


Tags: Private Equity, Commercial Real Estate, Office Buildings, Blackstone, Investments, Bangalore, Business Parks, Private Equity Trends


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