Chinese state-owned insurance firm China Life Insurance is set to invest $250m in private equity fund TPG, the Wall Street Journal reported yesterday, citing a source familiar with the matter.
The funding will be provided as an equity investment, and will make China Life a general partner in TPG as it gets ready to raise a $10bn global buyout fund. The insurer will secure a stake in the firm sized between 2% and 5%.
Singaporean and Kuwaiti sovereign wealth funds previously invested hundreds of millions of dollars in TPG in 2011 in return for stakes worth around 5% altogether. TPG reportedly raised the latest money as it considers the launch of an initial public offering.
In addition to its private equity activities, TPG also makes early stage investments through its TPG Growth fund and funds life science companies through its TPG Biotech subsidiary.