Global alternative asset firm TPG announced the launch of TPG Next, a new fund aimed at investing in underrepresented alternative asset managers.

The new fund is being launched with a $500 million commitment from the California Public Employees’ Retirement System (CalPERS). TPG said that it will continue raise third-party capital fir the fund, citing a “significant pipeline” and “compelling opportunity set across the diverse manager landscape.”

TPG CEO Jon Winkelried said:

“We launched TPG NEXT to empower principal talent underrepresented in alternative assets to become next generation industry leaders. CalPERS’ anchor commitment to the inaugural TPG NEXT fund is an important step in mobilizing change in our industry. Together, we will bring financial and operational capital support to diverse-led firms, accelerating their growth and success and demonstrating their ability to generate competitive returns.”

The launch of the fund marks an expansion of TPG’s impact investing platform, which also includes the Rise Fund, investing in companies driving measurable social and environmental impact, and its climate solutions-focused fund TPG Rise Climate. TPG Rise Climate recently announced its final closing, raising more than $7 billion from institutional investors and global corporations.

According to TPG, the new fund aims to increase the number of diverse-led firms in alternative assets, bringing the industry into closer alignment with broader demographic trends. The fund will seed new managers from groups underrepresented in the industry, help strengthen their access to capital, and offer business-building expertise and strategic advisory support.

Pamela Pavkov, Partner and Head of TPG NEXT, said:

“TPG NEXT seeks to address the talent gap through a suite of capital solutions and value-add support that is designed to address frequent pain points of new firms in a comprehensive way. Our aim is that this fund will not only advance diverse-led firms but also the diverse communities that these managers are connected to, bringing our industry more in line with demographic trends while also providing unique access to differentiated investment opportunities.”

In addition to anchoring the fund, CalPERS will also partner with TPG  to create additional insights, resources, and networking opportunities for the investor entrepreneurs, and the organizations will also develop tools to provide operational and managerial expertise for the investors, as well as hosting gatherings to convene GPs and LPs seeking to diversify the alternative asset management ecosystem.

CalPERS Chief Investment Officer Nicole Musicco, said:

“CalPERS is committed to giving access and opportunity to new and innovative talent in the investment industry. We hope this partnership with TPG is the first step in developing an ecosystem that will catalyze the next generation of diverse talent and foster different ways of seeing and solving problems.”

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