TPG Hits $2B Hard Cap For New Impact Investing Fund

Oct 5 2017 | 11:00pm ET

An impact investing fund managed by private equity company TPG has raised $2 billion in capital commitments in just over half a year, hitting its hard cap.

The original target for the Rise Fund was $1.5 billion, according to a Bloomberg article, and a final close including any additional capital contributed by TPG employees is expected “imminently.” 

The largest fund of its kind raised to date, the Rise Fund was conceived by TPG Growth managing partner Bill McGlashan, the article said. McGlashan has formed an impressive board of global philanthropists, social activists and business leaders, including Bono, Reid Hoffman and Jeff Skoll, to help advise the fund alongside TPG founders David Bonderman and Jim Coulter.

Impact funds aim to combine attractive financial performance with environmental, social and governance criteria, and the Rise Fund is an attempt to bring scale to the process, Bloomberg said. It will target opportunities in a number of sectors, including education, agriculture & food, energy and healthcare, and has already started investing.

Along with traditional financial metrics, the fund will also measure what it calls the “impact multiple of money,” a statistic unique to each portfolio company that quantitatively assesses impact achieved by the business in its community. 

Other impact-oriented funds to hit the market recently include Bain’s $390 million Double Impact Fund that closed in July 2017, while Barclays launched its Multi-Impact Growth liquid alternative fund of funds in September that will invest into a global range of 14 impact funds.

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