Two years into its expansion into real estate, TPG Capital has been able to parlay US$2 billion worth of equity investments in properties. The firm founded by David Bonderman and James Coulter have invested in malls in California, apartments in Florida and office buildings in London.
TPG has taken a different route from its traditional rivals. While many would raise a real estate fund, this firm has invested in properties using its money from its global buyout fund. It has also entered into agreements with pension funds and real estate companies. One of its biggest investors is a New Jersey State pension fund amounting to US$350 million. The fund is now just second to Blackstone Groups US$57 billion of equity investments.
On the other hand, TPG has been good in finding investable assets in distress in the housing market and commercial property market. Among its acquisitions has been Assisted Living Concepts Inc and DivcoWest.
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