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TPG has announced that it has sacked Bill McGlashan, founder of the company's social impact fund, after being charged this week with a mbadive scandal involving college admissions.
The company also allows investors from its second social impact fund to withdraw their commitments, according to a person familiar with the subject. The vehicle, known as The Rise Fund II LP, is still aiming to close this year with $ 3 billion.
McGlashan, who led TPG's social welfare activities and founded his growth investment platform, was appointed along with other parents in an indictment proceeding to payment of coaches and college administrators to allow children to go to the best universities. According to the criminal complaint, the government said its clients had paid $ 25 million in bribes from 2011 to 2018. According to McGlashan, at least $ 250,000 would be needed to get his son into the community. University of Southern California, according to the complaint.
"Bill McGlashan was fired for cause because of his duties at TPG and Rise, taking effect immediately," a spokesman for TPG said in a statement. "After reviewing the allegations of personal misconduct in the criminal complaint, we feel that the behavior described is inexcusable and contrary to the values of our entire organization."
McGlashan, in a note sent Thursday to council members, said that he had resigned and that he "deeply regretted this very difficult situation that could interfere with the work to which I have dedicated my life" . He added that "some aspects of history have yet to emerge that I wish I could share."
Washington, New Jersey
Existing investors in Rise Fund II, which closed for the first time in February, are the Washington State Investment Board, the New Jersey Investment Division and the San Francisco Employee Retirement System, according to data compiled by Bloomberg. The initial ceiling of the fund was $ 3.5 billion, according to documents filed, but was reduced to $ 3 billion in December, said the person aware of the case, who asked not to be identified because the information is not public.
Jim Coulter, who heads the firm, is responsible for managing partners for Rise and TPG Growth, founded by McGlashan in 2007.
Among the largest clients in the growing sector are public pension plans, which generally avoid negative news, known as "global risk".
The New Mexico Investment Board, for example, will look at the next growth fund with greater vigilance before making its decision to invest, according to a person familiar with this issue. The pension fund is a long-time investor of TPG and has participated in its second, third and fourth growth equity funds and its first impact investment pool, according to data compiled by Bloomberg.
Rapid growth
TPG's growth is one of the fastest growing companies in the company, with $ 13.2 billion in badets under management. According to documents from New Jersey's investment division, it has generated strong returns with a multiple of two times and nearly 1.4 times its funds in 2012 and 2015, respectively.
The strategy has focused on investing in fast-growing companies such as Uber Technologies, which is preparing to go public, alongside Airbnb and streaming music streaming company Spotify Technology. TPG's technology team – and in particular David Trujillo, rather than McGlashan – has secured the company's investments in these companies.
Bono, John Kerry
Mr. McGlashan nevertheless expanded his business in 2017 to include social impact investing and raised funds for the company's first Rise fund, which, with $ 2 billion, is the largest impact pool. of this type. He has also recruited high level philanthropists, business leaders and activists to participate in the effort. Bono, a musician turned investor, sits on the board of the Rise Fund. Former Secretary of State John Kerry helps portfolio companies in several sectors, particularly in renewable energy.
TPG plans to launch a fundraiser for its fifth growth fund, which would likely exceed the $ 3.7 billion predecessor fund early next year, said the manager. The firm had informed investors of its intention to start raising it this year. Its fourth fund is currently invested at around 50%.
Investors in any of TPG's funds, including its first social impact fund or growth pools, may dispose of stakes in the secondary market, which often trades at a discount.
This is not the first time TPG has tackled security risk. In 2017, co-founder David Bonderman resigned from the Uber board after making a badist comment at a meeting.
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