Over the past few weeks, we've seen some of the extensive damage done to the mega private equity operators, such as the Blackstone Group LLP (NYSE: BX) and KKR.
Now, according to a report from Reuters, we've got the details on the performance of TPG. And, of course, it's ugly (interestingly enough, TPG's roots are in the distressed investing category).
TPG took a 29% write down of its $19 billion fund (Reuters was able to obtain the investor documents). Keep in mind that the fund made one of the worst private equity deals in history: the investment in Washington Mutual, which saw its value go to zero in about six months. In all, TPG took a $473 million loss.
The good news is that the fund still has lots of firepower. TPG can make up for the losses. And, with stabilization in the credit markets – as well as the relatively low valuations – it's certainly possible for TPG to see success over the new few years.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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