With exits few and far between, limited partner capital is tied up, making it challenging for private equity firms to go back to market and raise new billion-dollar funds.
As a result, some buyout funds are reportedly using rolling closes to limit an investor’s ability to pull back their commitments. Carlyle Group asked for an extension to fundraise its $22 billion fund, according to the Financial Times. “This is one of the most challenging fundraising environments we've seen,” Jon Winkelried, CEO of TPG Capital, the $135 billion Fort Worth, Tex.-based private equity firm that went public just over a year ago, said in the company’s fifth-ever earnings call yesterday afternoon. He added he was “very pleased” with TPG’s conversations with LPs and satisfied with his private equity firm’s 2022 performance.
