TA Associates raises $8.5 bn in new private equity fund

By Ranjani Raghavan

  • 07 May 2019
Credit: Thinkstock

Boston-based private equity firm TA Associates has hit the final close of its 13th fund at $8.5 billion.

The TA XIII fund was launched in the first quarter of 2019 and exceeded its $7.5 billion target, the firm said in a statement. The fund aims to start investing during the second half of 2019, it said.

TA’s previous fund closed at $5.3 billion and began investing in March 2016.

The new fund got commitments largely from existing global investors, including public pension plans, sovereign wealth funds, foundations and endowments.

TA Associates joins a bunch of PE firms that have raised global or Asia-focussed funds over the past year or so. Blackstone, the world’s biggest PE firm, raised $22 billion last month while TPG closed its seventh Asia-focussed fund in February.

TA Associates said that the new fund, like the predecessor vehicles, will focus on equity investments in middle-market growth companies, primarily in opportunities originated and led exclusively by TA executives.

The fund’s equity investments will range from $75 million to $500 million. The firm will seek to invest in growth companies with high-quality, profitable business models around the world within the technology, healthcare, financial services, consumer and business services industries, according to the statement.

“TA XIII will build on our existing strategy of providing transformational capital and strategic resources to great businesses and management teams across the globe,” added Ajit Nedungadi, managing partner at TA Associates.  

In India, TA Associates signed its latest deal last month when it invested in healthcare firm Indira IVF. Before that, in June 2018, it backed mutual fund distributor Prudent Corporate Advisory Services Ltd. 

TA Associates also struck a couple of exits in January this year. Cumulatively, the PE firm may have returned close to $400 million from its Indian investments, according to a previous VCCircle analysis.

Goodwin Procter LLP served as fund counsel for TA XIII.