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TPG Inc.

From Alfawiki
TPG Inc.
Company typePublic
IndustryPrivate equity
Founded1992
FounderDavid Bonderman, James Coulter, William S. Price III
Headquarters
Fort Worth, Texas
,
United States
Area served
Worldwide
ProductsInvestment portfolios including growth capital, venture capital, public equity, debt instruments

TPG Inc., previously known as Texas Pacific Group and TPG Capital, is a private equity firm based in Fort Worth, Texas, United States. The firm oversees investment portfolios spanning growth capital, venture capital, public equity, and debt instruments, with a focus on sectors including consumer and retail, media, telecommunications, industrials, technology, travel and leisure, as well as healthcare. TPG became a publicly traded company in January 2022, listed on NASDAQ under the symbol “TPG”.

Founding and early development

Established in 1992 by David Bonderman, James Coulter, and William S. Price III, Texas Pacific Group—later rebranded as TPG Capital—originated from Bonderman and Coulter’s leveraged buyout experience with Robert Bass during the 1980s.

In 1993, Coulter and Bonderman joined forces with William S. Price III of GE Capital to acquire Continental Airlines. The following year, TPG collaborated with Blum Capital and ACON Investments to create Newbridge Capital, aimed at emerging markets in Asia and Latin America.

TPG broadened its holdings in 1996 by purchasing AT&T’s Paradyne division from Lucent Technologies for $175 million. That year also saw investments in Beringer Wine Estates, Ducati Motorcycles, and Del Monte Foods.

By 1997, TPG had secured over $2.5 billion for its second private equity fund. A key acquisition was an 88% stake in J. Crew for approximately $500 million. Although initially challenged by a high purchase price relative to earnings, J. Crew experienced a successful turnaround beginning in 2002 and went public through an IPO in 2006.

In 1998, TPG led a $350 million convertible preferred stock investment in Oxford Health Plans, acquiring a 22.1% ownership interest. Oxford repurchased this stake in 2000 before being acquired by UnitedHealth Group in 2004.

By 1999, TPG had made investments in Piaggio S.p.A., Bally International (including Bally Shoe), and ON Semiconductor. In 2001, the firm established T3 Partners to co-invest alongside its primary fund focusing on technology-driven opportunities.

Developments from 2000 to 2010

In 2000, TPG partnered with Leonard Green & Partners to invest $200 million as part of a $600 million acquisition of Petco. Within two years, they divested most of their holdings through a public offering that valued Petco at $1 billion, ultimately realizing gains of $1.2 billion by 2004. The companies took Petco private again in 2006 for $1.68 billion.

That same year, TPG acquired control of smart card manufacturer Gemplus SA from founder Marc Lassus. Additionally, the firm invested in Seagate Technology in 2000.

In 2001, TPG purchased Norwegian directory publisher Telenor Media for $660 million and obtained a controlling stake in MEMC Electronic Materials, a silicon wafer producer.

In July 2002, TPG joined Bain Capital and Goldman Sachs Capital Partners to announce a $2.3 billion leveraged buyout of Burger King from Diageo; after initial delays, the acquisition was completed at $1.5 billion in December of that year. Under new ownership, Burger King underwent brand revitalization and disclosed plans for an IPO in 2006.

TPG’s attempt to acquire Portland General Electric from Enron in 2003 was halted by regulatory authorities due to concerns over debt levels.

Towards the end of 2004, TPG led a consortium—including Sony—to purchase Metro-Goldwyn-Mayer for $4.81 billion, marking the firm’s entry into the film production sector.

In 2005, TPG participated alongside Silver Lake Partners, Bain Capital, Goldman Sachs, KKR, Providence Equity Partners, and Blackstone Group in the $11.3 billion acquisition of SunGard—the largest technology company buyout at that time.

In May 2006, TPG acquired the consumer packaging division of Smurfit-Stone for $1.04 billion.

Co-founder Bill Price began reducing his active role within the firm early in 2006 as TPG completed fundraising for its fifth private equity fund.

By December 2006, TPG explored with KKR a possible leveraged buyout of Home Depot valued at approximately $100 billion.

In early 2007, the company adopted the unified brand name TPG for all its global funds.

In August of that year, TPG purchased Midwest Air Group for close to $450 million.

On April 7, 2008, TPG led a $7 billion investment into Washington Mutual; however, later that year the bank’s seizure by government authorities resulted in a loss estimated at $1.35 billion—considered one of private equity’s most significant setbacks.

On October 31, 2008, TPG acquired a 35% ownership interest in Indonesia’s P.T. Bumi Resources for $1.3 billion.

In June 2009, Republic Airways Holdings reached an agreement to acquire Midwest Airlines from TPG.

By March 2010, attention was drawn to TPG’s investment in Greek mobile operator WIND Hellas following its bankruptcy filing; concerns centered around transactions involving convertible preferred equity certificates used to repay subordinated shareholder loans amid unexplained surges in market value.

2010–2020

On June 10, 2010, TPG completed the acquisition of Vertafore, a software company serving the insurance sector, for $1.4 billion.

TPG Capital affiliates purchased PRIMEDIA on July 13, 2011, in a cash deal valued at roughly $525 million. In 2013, TPG and Apollo Global Management intended to take their holdings in Norwegian Cruise Lines public through an IPO.

In July 2013, TPG acquired TSL Education (which later became TES Global), a global education publisher, from Charterhouse Group for approximately $600 million.

By March 2014, TPG had formed a partnership with film producer Robert Simonds and China's Hony Capital to develop up to ten mid-budget films annually.

In April 2014, TPG invested £200 million to secure a controlling interest in Victoria Plumb. Later that year, in November, it agreed to acquire Prezzo Holdings for £303.7 million.

Early in 2014, TPG launched a real estate fund with a target between $1.5 and $2 billion; by October 2015, the fund surpassed $2 billion in capital raised.

In 2016, TPG co-established The Rise Fund alongside Bono and Jeff Skoll, focusing on investments that generate social impact.

TPG Growth expanded its portfolio by acquiring Frank Recruitment Group, a technology staffing firm, for £200 million in August 2016.

January 2017 saw TPG purchase a majority stake in A&O Hotels and Hostels, recognized as Europe's largest privately held hostel operator.

That same month, Bradford Berenson joined TPG as general counsel. He brought substantial legal expertise from his tenure at General Electric and experience as Associate White House Counsel during President George W. Bush’s administration.

In 2017, founder David Bonderman stepped down from Uber's board amid controversy. Subsequently, Ajay Kanwal and Naveen Chopra were appointed senior advisors in July.

TPG Capital acquired a controlling interest in Novotech Clinical Research, Australia's leading contract research organization, in September 2017. Two months later, it purchased Mendocino Farms, a fast-casual restaurant chain, naming Harald Herrmann as CEO.

Between 2017 and 2018, TPG invested in Solinftec, an agricultural technology company.

In February 2018, TPG supported former AOL CEO Jon Miller in acquiring Fandom (previously Wikia). Miller took on the role of co-chairman alongside Jimmy Wales; meanwhile, TPG director Andrew Doyle served as interim CEO.

March 2018 marked the acquisition of Fortis Healthcare by Manipal Hospitals and TPG Capital for ₹39 billion as part of a strategic investment in healthcare.

2020–present

In 2020, TPG joined Diligent Corporation's Modern Leadership Initiative by committing to create five new board positions designated for racially diverse candidates within its portfolio companies.

April 2020 saw TPG acquire Lifestance Health for $1.2 billion in equity. Lifestance subsequently went public with a market valuation exceeding $7 billion.

On February 25, 2021, AT&T announced plans to spin off DirecTV, U-verse, and AT&T TV into an independent entity while selling a 30% stake to TPG Capital; AT&T retained the remaining 70%. This transaction was finalized on August 2, 2021.

In July 2021, TPG secured $5.4 billion during the initial closing of its first TPG Rise Climate fund aimed at commercially viable climate technologies. Institutional investors included Allstate, Ontario Teachers’ Pension Plan, and Washington State Investment Board. Additionally, the firm established the Rise Climate Coalition featuring members such as Apple, Bank of America, Honeywell, Boeing, and John Deere. By April 2022, the fund achieved a final close at $7.3 billion.

TPG debuted on Nasdaq through an IPO on January 13, 2022, with an estimated valuation near $9 billion.

In April 2022, TPG acquired a controlling interest in Sodali & Co., a New York-based proxy advisory firm.

May 2023 brought an agreement for TPG to acquire alternative asset manager Angelo Gordon through a cash-and-stock transaction valued at $2.7 billion.

Together with Francisco Partners in July 2023, TPG agreed to purchase web analytics company New Relic for $6.5 billion in an all-cash deal.

In March 2024, TPG launched a significant Asian buyout fund totaling W6.7 trillion (approximately $5 billion), allocating 10% of the capital specifically to the Korean market.

On September 30, 2024, AT&T disclosed the sale of its remaining 70% stake in DirecTV to TPG. Concurrently, TPG Angelo Gordon and co-investors arranged $2.5 billion financing to refinance DISH DBS’s debt maturing in November 2024.

Private equity funds

TPG predominantly secures funding by establishing private equity funds, which aggregate investments from a diverse group of institutional backers such as pension plans, insurance providers, endowments, fund of funds, affluent individuals, sovereign wealth entities, and other large-scale investors.

Notable employees

See also

External links

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