TPG Writes Down Values Of Investments In Latest Fund By 29 Percent

TPG, the Texas based private equity firm, wrote down the value of investments by its latest buy out fund, TPG Partners VI, by 29% at the end of 2008, according to Reuters. TPG lost $473 millio on its investment in

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TPG, the Texas-based private equity firm, wrote down the value of investments by its latest buy-out fund, TPG Partners VI, by 29% at the end of 2008, according to Reuters.

TPG lost $473 millio on its investment in savings and loan company Washington Mutual Inc following a move by the US government to close and sell WaMu’s banking assets to JPMorgan Chase & Co. TPG had a total investment in WaMu of $1.35 billion but that was spread across three of its funds.

Investments in Tygris Commercial Finance Group, Strauss Coffee and American Beacon are marked in total at a value of $217 million compared to a cost of $307 million.

The fund has made a total realised loss of $563 million, a significant portion of the $780 million invested so far.

Only a small percentage of the $19 billion fund has been invested as it closed just six months ago, the report said.

Last month is was reported that TPG returned 25% of commitments to a $6 billion fund it raised to invest in distressed financial companies.

The firm, formerly known as Texas Pacific Group, has over $50 billion of capital under management and typically makes investments of between $100 million and $750 million.

D.C.

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