Two of TPG NewQuest’s four founding partners are stepping back as the Asia-focused private equity secondaries investor shakes up its team ahead of a planned final close on Fund V early next year, according to four sources familiar with the situation.

Bonnie Lo and Min Lin were part of the team that spun out from Bank of America Merrill Lynch (BAML) in 2011 and raised a debut fund to acquire investments from the bank’s balance sheet. Both are exiting for personal reasons, two of the sources said. Lo is TPG NewQuest’s COO and Lin is co-head of Greater China.

The other two founding partners, Darren Massara and Amit Gupta remain in place. Gupta oversees investment activities in India and Southeast Asia while Massara now has responsibilities with TPG [NASDAQ:TPG] globally as well as with TPG NewQuest in Asia.

Separately, Nitin Agarwal, a managing director focused on India, departed the firm earlier this year. There is also one pending senior arrival, the first three sources added. Roy Kim is set to join from Canada Pension Plan Investment Board (CPPIB), where he currently serves as a managing director. Kim declined to comment.

The first source added that TPG NewQuest is in the process of making additional hires, partly with a view to strengthening its coverage of developed markets like South Korea, Japan, and Australia. The firm declined to comment on personnel matters.

TPG NewQuest launched Fund V in early 2022 looking to raise at least USD 1.5bn. The hard cap was set at USD 2bn. A first close of approximately USD 600m came in mid-2022. As of June, the fund had committed capital of USD 667m, of which USD 308m had been deployed, TPG’s public filings show. The net multiple and IRR were 1.5x and 67%, respectively.

The fundraising period has been extended several times, with a final close now expected by March 2025, the second and third sources said. According to the second source, this has been done to accommodate some potentially large commitments.

Fund I, which was primarily used to acquire positions from BAML, had a corpus of USD 390m and generated a net multiple of 3.2x and a net IRR of 37%. Fund II (2013 vintage, USD 310m) and Fund III (2016 vintage, USD 541m), were marked at 1.8x and 1.3x as of June with net IRRs of 19% and 8%.

Fund IV, which closed on USD 1bn in late 2019, was marked at 1.2% and 8% as of June.

TPG NewQuest, which has around USD 3.2bn in assets under management, started out as a direct secondaries specialist, picking up single positions and portfolios from other managers. It subsequently expanded into GP-led transactions, although these are typically complex restructurings intended to provide bespoke liquidity solutions.

For example, in 2018, TPG NewQuest backed a roll-up of six India IT services investments into a USD 175m fund managed by newly formed Basil Technology Partners (BTP). Five years later, it was part of a larger consortium that anchored a USD 700m fund comprising assets held by BTP and Capital Square Partners, facilitating a merger of the two managers.

TPG acquired a one-third stake in TPG NewQuest – then known as NewQuest Capital Partners – in 2018 and increased its holding to two-thirds in 2021. The target’s management team received a mixture of cash, a minority interest in TPG’s holding company, and minority interests in select other businesses.