China’s sovereign wealth fund recently announced the investment of approximately $2.5 billion into mega firm TPG’s latest fund with a target close of $15 to $20 billion. What’s so interesting about this commitment is that it follows China’s well noted direct investment of $3 billion into The Blackstone Group (NYSE: BX) last summer.

China’s Blackstone investment could not have been more poorly timed as BX is off more than 50% since its 2007 IPO. However, despite the Blackstone sting, China is demonstrating the wealth fund is not afraid to re-up in US managed private equity. The larger lesson learned as an outside private equity investor is that the safe way to get your positive returns is to stay the traditional course and be an LP in funds.

This entry was posted on Thursday, June 12th, 2008 at 12:23 pm and is filed under Private Equity News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.