TPG Capital has gathered over $2B of capital pledges for its first multi-investor real estate fund, TPGRE II. It managed to exceed its target, despite the volatile market.
Kelvin Davis and Avi Banyasz lead the property unit and started raising money for the pool about 20 months ago.
TPG's dedication to real estate began after the financial crisis, when home and building prices plunged and related debt created opportunities to acquire assets at bargain prices. It's made about 10 real estate investments so far, using $2.3B of equity in a pool called TPG Real Estate I.
TPG is joining the trend of investors looking towards US real estate for its safe and higher yields as the Chinese economy continues to rattle and commodity prices fall. Carlyle Group did the same last month when it raised $4.2B for its seventh real estate fund. [Bloomberg]
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