FINALLY: TPG Files to go Public

Posted on 12/16/2021

Private equity firm giant TPG filed to go public. TPG’s assets under management have grown 81% from 2016 to US$ 109.1 billion as of September 30, 2021. From the year ended December 31, 2018 to the last twelve months ended September 30, 2021, their total revenues increased 288% to US$ 5.4 billion, and their fee-related revenue increased 55% to US$ 827 million. Over that same period, their net income increased 599% to $5.0 billion.

TPG was founded as Texas Pacific Group in 1992 with its first investment operations centered in the San Francisco Bay area. David Bonderman (age 79) is the controlling stockholder of TPG since its formation in 1992. James (Jim) G. Coulter (age 62) has been a controlling stockholder of TPG since its formation in 1992. Former Goldman Sachs executive Jon Winkelried has been the Chief Executive Officer of TPG since 2021 and has been a Partner of and was the Co-Chief Executive Officer of TPG since 2015.

Early Backers in the TPG Parent Company
Some of the early public fund investors in the TPG parent company (TPG Holdings, L.P.) include the California Public Employees Retirement System, Kuwait Investment Authority, and China Development Bank Holdings International. FS Investors, the family office of Michael Stone, is also an investor in the TPG parent. From 1989 to 2009, Stone was with J.H. Whitney & Co and retired from there as Managing Partner and President. FS Investors made its investment through Ptolemy Capital, LLC. J.H. Whitney, a diversified alternative asset manager, was the United States’ first venture capital firm.

TPG was one of the first private equity firms to establish an in-house operations group (TPG Ops) in 1995.

TPG was smart not to IPO in 2020. In the nine months ended, September 30, 2021, total revenue was US$ 3,897,060,000 vs. US$ 564,405,000 in revenue for the corresponding period in 2020.

By investor type, 46% of TPG’s capital is from pensions, 16% is from sovereign wealth funds, 16% is from fund of funds, 8% is from private wealth, 5% is from insurance, 4% is from financial institutions, 3% is from endowments and 2% is from other sources.

Performance Allocations
TPG defines “performance allocations” as amounts earned by TPG based upon the performance of a TPG fund. The performance allocation may be a profits interest in the realized gains of a fund or a fee based upon the appreciation of a fund.

Keywords: TPG Capital.

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