TPG Real Estate Credit Closes $2.1 billion Fund Amid Rising Real Estate Debt Fundraising
NEW YORK – TPG Real estate Credit has finalized its latest fund with approximately $2.1 billion in commitments, the firm announced during its Q3 2025 earnings call. The fund, launched in September 2023 and holding a first close in November of that year with $750 million, focuses on real estate credit opportunities in North America.
The final close positions the fund as one of the largest North America-focused real estate debt funds closed to date this year, according to data from PERE Credit. Notable commitments include a $200 million allocation from the Texas Municipal Retirement System in October 2023.
“we’re seeing our thesis prove out, with the fund outperforming its initial return projections and generating double-digit cash-on-cash yields,” said Jon Winkelried, TPG’s chief executive.The firm believes a contraction in valuations and available leverage presents an opportunity for attractive risk-adjusted returns.
TPG has already deployed approximately $426 million of equity across 17 investments, primarily in the industrial and multifamily sectors. The fund’s flexible mandate allows investments across high-yield senior and subordinate loans, preferred equity, and real estate debt securities, led by partner and head of real estate credit, Doug Bouquard.
This fund is an extension of TPG’s broader real estate platform, which has committed or invested roughly $15 billion of equity and originated or acquired around $20 billion of debt since 2009.The platform also includes TPG RE Finance trust, a publicly traded mortgage REIT, and core-plus and high-yield real estate equity strategies.
The close occurs during a period of increased fundraising activity in the real estate private credit space. Bridge Investment Group recently closed its Bridge Debt Strategies V at $2.15 billion, and other meaningful closes this year include funds from Related Fund Management ($1.47 billion), KSL Capital Partners ($1.44 billion), and Prime Finance ($1.4 billion).
Through the first three quarters of 2025, approximately $17.42 billion has been raised for North America-focused real estate private strategies, a substantial increase from the $14.29 billion raised during the same period in 2024, according to PERE credit data.