GP Playbook in partnership with

In 2022, the U.S. private equity industry and its companies generated $1.7 trillion of GDP. Today, diverse people account for roughly 30 percent, or $5 trillion, of purchasing power in the U.S. The alternatives industry has growing influence in an economy that is increasingly more diverse.

Diverse ecosystems, however, remain significantly undercapitalized. The Knight Foundation estimates that women and diverse-led firms represent less than 2% of the alternative asset management industry’s AUM. The lack of diverse representation across the value chain of capital allocation represents a challenge but also a compelling investing opportunity for GPs and LPs alike.

We launched TPG NEXT to address this market inefficiency. We wanted to use our platform, capital, 30-plus year history, and business-building expertise to seed and support the next generation of alternative asset managers. By putting capital in the hands of diverse principal talent, we see an opportunity to not only align our industry with broader demographic trends but also deliver better performance. We believe there is a ripple effect to this work that will benefit underserved communities and ecosystems.

Launching a fund isn’t easy. It’s even harder when you don’t have access to the circles, networks, and pathways that have traditionally defined success in the alternatives space. We designed this open-source playbook to demystify GP formation, providing investor entrepreneurs with a behind-the-curtain look into the strategies and tactics that go into launching a business. Scroll down for centralized expertise, best practices, and actionable insights.