TPG joins the wave of private equity groups going public

TPG, one of the largest acquisition companies in the world, has submit going public, is the latest in a series of private equity groups that have sought to capitalize on sky-high valuations by listing their shares on the stock exchange.

The Texas-based group, which has $109 billion in assets, joins Blackstone, KKR and Apollo – companies once known for disrupting an increasingly institutionalized and attracted global financial landscape. public investors finance their development.

Potential of TPG public output emerged after a decades-long process of enumeration. Founded in 1992 by billionaires David Bonderman and Jim Coulter, TPG was one of the last large-scale acquisition groups to remain private, despite its assets under management being a fraction of that. with larger publicly listed competitors.

After a rather lukewarm initial reception in the public markets, buyback groups have seen their share prices skyrocket in recent years, with Blackstone and KKR tripling in value since the start of 2019. , which encouraged a wave of public listings including Sweden’s EQT Partners and the UK Bridge Points.

Bonderman and Coulter were co-workers for the Bass family in Texas. The pairing led to the acquisition of Continental Airlines out of bankruptcy, making it profitable again and making one of the legendary deals in private equity history. The two founded the first company called Texas Pacific Group, not long after.

The financial crisis took a to Entertainment, as well as the rescue of the Washington Mutual bank.

However, in recent years, the company has expanded significantly, building a large credit investment business with publicly traded investment platforms. Its private equity bets, which focus on healthcare and technology investments such as Par Pharmaceuticals and McAfee, have yielded substantial results.

Early-stage “growth capital” investments in Airbnb and Uber have also proven highly profitable. The company was a first mover in socially responsible investments, building the industry’s first multi-billion dollar acquisitions ESG fund, called TPG Rise, which now manages over $6 billion asset.

Assets under management grew from $60 billion in 2016 to $109 billion. Rising financial markets also helped TPG record soaring profits. Total revenue for this year is close to $4 billion and profits are over $1.7 billion, it said in its prospectus.

Those results have led to soaring wages. For 2020 and 2021, Bonderman received a total of $163 million in distributions, largely from transfer interest in TPG funds, while Coulter earned more than $35 million.

The offering is also part of a planned succession plan to move TPG from a privately held partnership to a fully independent public company within five years of listing. listing. As part of the offering, former Goldman Sachs executive Jon Winkelried, who joined TPG in 2015 and was named sole executive director in May 2021, will be added to a group of controlling investors including Bonderman and Coulter.

TPG will then add two more members to the control group. It recently appointed healthcare entrepreneur Todd Sisitsky as the company’s president and has poached executives such as chief human resources officer Anilu Vazquez-Ubarri, who currently serves as director of the board. A few years from now, the control group will be unbound, allowing shareholders full power to elect a majority on its board by 2027, the company said in a filing with the Securities and Exchange Commission. Transaction.

TPG said the proceeds from the IPO will be used to buy shares from the company’s current owners, although none of the selling shareholders are current partners or founders.

JPMorgan, Goldman Sachs, Morgan Stanley and TPG’s own brokerage agency will act as tokenizers for the IPO along with a consortium of banks managing the offering. TPG joins the wave of private equity groups going public

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