Exclusive: TPG raises $6.5 billion for new buyout fund by Dan Primack @FortuneMagazine March 2, 2015, 10:45 AM EDT E-mail Tweet Facebook Google Plus Linkedin Share icons Private equity firm TPG Capital is expected to inform investors that it has held a first close of around $6.5 billion for its seventh flagship fund, Fortune has learned. Sources say that the close formally occurred after the close of business this past Friday. The $6.5 billion includes both the rollover of interim bridge commitments TPG secured last year, plus part of a general partner commitment that ultimately could total $400 million. TPG continues to target a total of $8 billion, with a hard cap of $10 billion. When the Texas-based firm began formal fundraising last October, there was a lot of speculation that it wouldn’t even approach its target. Performance for recent flagship funds had been depressed by large investment failures in companies like Energy Futures Holdings and Washington Mutual, and certain institutional investors had sworn off large-cap private equity funds in favor of small-cap and middle-market vehicles. But, as we reported at the time, TPG’s returns had finally begin to improve and the firm further endeared itself to investors by covering their portion of a large legal settlement related to alleged private equity collusion. Through the end of Q3 2014, TPG’s fifth flagship fund was in the black with a 4.38% internal rate of return, while its sixth fund’s IRR was 11.7%. TPG also is said to be nearing a large first close on its latest growth equity fund, which is targeting $3 billion. A firm spokesman declined comment. Sign up for Term Sheet, our daily newsletter on deals and deal-makers.