--Anastasia Donde
Private equity and investment giant TPG is looking to capitalize on the subprime meltdown by raising a distressed credit fund to scoop up distressed debt and bank loans. The vehicle will be called TAC 2007 Fund, a consultant said. The firm is reportedly considering partnering with other managers, including TCW and Canyon Capital, to make investments for this fund. It will be offered to current and potential clients. The $80 billion New Jersey Division of Investment has decided to commit $100 million to the fund, pending due diligence reviews.
TPG has $30 billion in assets under management and offers buyout, venture capital and debt funds. Its clients include the California Public Employees Retirement System, the Oregon Public Employees Retirement System and the Washington State Investment Board. Owen Blicksilver, spokesman for TPG, declined to comment.
A number of other firms have recently launched funds to take advantage of the credit crunch such as Oaktree Capital Management, Eaton Vance Management, BlackRock, PIMCO and TCW.