TPG Capital, the US private-equity firm that formed a real estate division after the credit crisis, is trying to raise as much as US$2 billion for its first multi-investor property fund. The firm, whose real estate unit was founded by Kelvin Davis, a senior partner, has begun soliciting pledges for the new fund, according to investor presentation documents and two people with knowledge of the situation. TPG is among private-equity firms that have been chasing distressed real estate assets since the American housing market collapse and Europe's economic crisis depressed commercial property values worldwide. The company, based in Fort Worth, Texas, is seeking to take advantage of investor appetite for real estate at a time of low rates on fixed-income assets. TPG's property investments since 2009 were ultimately bundled into an investment vehicle called TPG Real Estate I, and the new fund is known as TPGRE II, according to the 60-page presentation to prospective investors. TPGRE I contains 10 deals representing US$2.3 billion of equity that came from the firm's main buyout funds and separate accounts with institutional clients such as New Jersey's state pension fund and Ivanhoe Cambridge, the real estate arm of the Canadian pension fund Caisse de Depot et Placement du Quebec. Deals in TPGRE I include stakes in North American homebuilder Taylor Morrison Home, Catellus Development, office landlord Parkway Properties and European warehouses. The firm also owns office buildings in London and Silicon Valley. TPG seeks to buy property assets and firms at discounts to underlying net asset values, the presentation says. The firm has 16 people devoted to real estate in San Francisco, New York and London. Davis, who has worked at TPG for 14 years, is a co-founder of Colony Capital, led by Tom Barrack. He and Avi Banyasz are co-heads of TPG Real Estate. Owen Blicksilver, a spokesman for TPG, declined to comment on the fundraising. TPG's new fund would be among the largest opportunistic real estate funds, after two pools for Europe and the Asia-Pacific region being raised by Blackstone Group, according to Preqin, a London-based research company. Many investors last year moved away from focusing on low-risk real estate and are looking for higher-risk, higher-return opportunities, it said.