TPG Capital

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TPG Capital (abbreviation for Texas Pacific Group ) is an American investment company. It is one of the largest private equity investment firms in the world, focusing on leveraged purchases, growth capital and floating recapitalization investments in depressed companies and turnaround situations. TPG also manages investment funds that specialize in capital growth, venture capital, public equity, and debt investments. Companies invest in a variety of industries including consumer/retail, media and telecommunications, industry, technology, travel/recreation and health care.

The company was founded in 1992 by David Bonderman, James Coulter, and William S. Price III. Since its inception, the company has raised more than $ 50 billion of investor commitments in more than 18 private equity funds.

TPG is headquartered in Fort Worth, Texas, and San Francisco, California. The company has additional offices in Europe, Asia, Australia and other parts of North America.

Video TPG Capital

Private equity funds

TPG historically relies primarily on private equity funds, a collection of capital commitments from pension funds, insurance companies, endowments, funding, high-value individuals, state wealth funds, and other institutional investors. By the end of 2008, TPG has completed raising funds for more than 20 funds with total investor commitments of more than $ 50 billion.

The Company manages investment funds in a number of different strategies including:

TPG leverage principal purchase fund
Venture capital funds, primarily focused on biotechnology investments
Depressed debt and other credit strategies were invested through a series of funds collected in 2007
Asian and Latin American Funds, including the Newbridge fund family and the company's TPG Asia
Other private equity funds. These include T3 Partners TPG funds, which invest in technology-focused transactions alongside the company's main purchasing fund. TPG Star has a broad investment mandate including purchases, venture capital and capital growth, but all of its investments are on the smaller end of the range, compared to traditional TPG investments.

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Important history and investment

Establishment

The Texas Pacific Group, as it was originally known, was founded in 1992 by David Bonderman, James Coulter and William S. Price III. Before setting up TPG, Bonderman and Coulter had worked for Robert M. Bass to make leveraged purchasing investments during the 1980s. In 1993, Coulter and Bonderman partnered with William S. Price III, who is Vice President of Strategic Planning and Business Development for GE Capital, to complete the purchase of Continental Airlines. At that time, TPG was completely alone in its belief that there was an investment opportunity with the airline. The plan includes bringing in new management teams, improving aircraft utilization and focusing on profitable routes. In 1998, TPG generated an annual internal rate of return of 55% of its investment.

Texas Pacific Group in the late 1990s

In 1997, TPG completed fund-raising for a second private equity fund, securing more than $ 2.5 billion of investor commitments. In June 1996, TPG acquired AT & amp; T Paradyne, a multimedia communications business, from Lucent Technologies for $ 175 million. Also in 1996, TPG invested in Beringer Wine, Ducati Motorcycles, and Del Monte Foods.

TPG's main investment in 1997 was a takeover of retailer J. Crew, acquiring a 88% stake of approximately $ 500 million. However, investment is experiencing difficulties because of the relatively high purchase price paid relative to corporate earnings. The company successfully completed the turnaround in 2002 and completed its initial public offering in 2006.

The following year, in 1998, TPG led an investor group in minority investments at Oxford Health Plans. TPG and his co-investors invested $ 350 million in convertible preferred stocks that could be converted to 22.1% from Oxford. The Company completed the repurchase of TPG PIP conversion in 2000 and will eventually be acquired by UnitedHealth Group in 2004.

When this decade is almost over, TPG once again raises funds, for its third private equity fund. But this time, TPG is not only raising new purchases, but also new funds, T3 Partners who will invest with key funds in technology-oriented investments. In 1999, TPG invested in Piaggio S.p.A, Bally International (including Bally Shoe), and ON Semiconductor.

TPG has also been recognized for a special operations group that has become a major part of the process of investing for sale in many of their portfolio companies. The group is led by Dick Boyce and engages in complex turnaround situations, upgrades of operations and other tasks that help create value in the company. Other large private equity firms have started to develop operating groups as well, trying to recreate the model in TPG but most have difficulty creating an expanding program.

Texas Pacific Group in the early 2000s

In 2000 TPG and Leonard Green & amp; Partners invested $ 200 million to acquire Petco, a pet supplies retailer as part of a $ 600 million purchase. In two years they sell mostly in a public offering that rewards companies with $ 1 billion. Petco's market value increased more than doubled by the end of 2004 and the companies will eventually reap a profit of $ 1.2 billion. Then, in 2006, private equity firms took private Petco again for $ 1.68 billion.

In the same year, in 2000, TPG completed the controversial acquisition of Gemplus SA, one of the leading smart card manufacturers. TPG wins the struggle with company founder, Marc Lassus, to control the company. Also in 2000, TPG completed an investment in Seagate Technology.

In 2001, TPG acquired Telenor Media, a Norwegian telephone directory company, for $ 660 million, and soon acquired a controlling stake in ULC's third-largest Electronic Device Builder.

In July 2002, TPG, along with Bain Capital and Goldman Sachs Capital Partners, announced the purchase of Burgage King giant from Diageo for $ 2.3 billion. However, in November, the original transaction failed, when Burger King failed to meet certain performance targets. In December 2002, TPG and its co-investors agreed to reduce the purchase price of $ 1.5 billion for the investment. The TPG consortium has the support of the Burger King franchise, which controls about 92% of Burger King's restaurants at the time of the transaction. Under its new owner, Burger King underwent major brand improvements including the use of The Burger King's character in advertising. In February 2006, Burger King announced plans for an initial public offering.

In November 2003, TPG gave a proposal to buy Portland General Electric from Enron. However, concerns about debt and local politics led to the regulator of the General Commission of Public Affairs to refuse permission for the purchase of March 10, 2005. Oregon Public Utility Commission (March 10, 2005). "ORDER NO. 05-114" (PDF) . Retrieved February 1, 2008 .

TPG ventured into the film business in late 2004 in a major leveraged purchase of Metro-Goldwyn-Mayer. A consortium led by TPG and Sony completed a $ 4.81 billion movie studio purchase. The consortium also includes companies that focus on the media Providence Equity Partners and Quadrangle Group and DLJ Merchant Banking Partners. The transaction, announced in September 2004, was completed in early 2005.

Also in 2005, TPG was one of seven private equity firms involved in purchasing SunGard in a $ 11.3 billion deal. TPG's partners in the acquisition are Silver Lake Partners, Bain Capital, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts, Equity Equity Partners, and Blackstone Group. It represents the largest leveraged purchase completed since the takeover of RJR Nabisco in the late 1980s by utilizing a purchase boom. Also, at the time of its announcement, SunGard will be the largest purchases of technology companies in history, a distinction to be handed over to the purchase of Freescale Semiconductor. The SunGard transaction is also important in the number of companies involved in the deal, the biggest club deal being finalized at the time. The involvement of seven companies in the consortium was criticized by investors in private equity which assumed that cross ownership among firms was generally uninteresting.

On May 15, 2006, Smurfit-Stone reported a definitive sale for $ 1.04 billion in cash for the Consumer Packaging division to the Texas Pacific Group.

TPG and purchase boom 2006-2007

In early 2006, when TPG completed fundraising for the fifth private equity fund and the boom of purchases was entering full swing, TPG founder Bill Price announced that he would reduce his work at the company to focus on personal searches including his ownership in the vineyard.

On December 1, 2006, it was announced that TPG and Kohlberg Kravis Roberts had explored the possibility to record a $ 100 billion purchase from the second largest retailer at US Home Depot. Although this massive purchase never really finished, TPG was a leading investor during the 2006-2008 purchase boom, completing some of the biggest deals of the period.

In early 2007, the company, officially changed its name to TPG Capital , changed all funds across different geographies. The company's Asian fund, which was historically managed by TPG Newbridge, a joint venture with Blum Capital.

TPG and credit crunch

On April 7, 2008, TPG led a $ 7 billion investment in Washington Mutual. On September 25, 2008, Washington Mutual was taken over by the US government, spending $ 1.35 billion. This has been called by some analysts "the worst deal in the history of private equity."

On March 12, 2010, Gretchen Morgenson at the New York Times discussed TPG's role as private equity investor in Greek mobile phone operator WIND Hellas, formerly TIM Hellas, who filed for bankruptcy protection late last year. Morgenson raised the question of the circumstances in which TPG and fellow private equity investors Apax Partners of London traded a large number of "convertible preferred equity certificates" held by them to pay their own "subordinate shareholders' loans over a significant period and a spike that did not can be explained to occur at the market value of the certificate. Post-recession_activity_.282010-2017.29 "> Post-recession activities (2010-2017)