TPG Capital, L.P.

From Wikipedia, the free encyclopedia

TPG Capital (formerly Texas Pacific Group, commonly referred to as "TPG") is a private equity investment firm founded by David Bonderman, James Coulter and William S. Price III in 1992. TPG has offices in Fort Worth, San Francisco, London, Hong Kong, Mumbai, Tokyo, Melbourne and New York City. TPG focuses on turnarounds, management buyouts and leveraged recapitalizations. The firm's industry focuses include media and telecommunications, industrials, technology, travel/leisure, and health care. The firm is currently investing its fifth fund, TPG Partners V, L.P.^{[citation needed]}

TPG is among the "megafunds" in the private equity industry as well as one of the four most elite players (TPG, The Blackstone Group, KKR, and The Carlyle Group). TPG is also known for its deep operating capability and consistently high returns over the course of its existence.

Euromoney named the firm Best Global Private Equity House in 2006, a year in which it was involved in deals that comprised a record $101 billion.

1 Notable investments
2 Recognitions
3 References
4 External links

[edit] Notable investments

Notable TPG investments (proposed and actual) have included,^[1]^[2] in chronological order:

1993 – TPG founded later in the year after Bonderman acquires bankrupt Continental Airlines
1996 – TPG invests in AT&T Paradyne, Beringer Wine, Ducati Motorcycles, and Del Monte Foods.
1997 – J. Crew Group.
1998 – ZiLOG and Oxford Health Plans.
1999 – Piaggio S.p.A, Bally International (including Bally Shoe), and ON Semiconductor.
2000 – Seagate Technology, Petco Animal Supplies, and the controversial acquisition of Gemplus SA.
2001 – Telenor Media for $600m, and MEMC Electronic Materials^[3]
2002 – the leveraged buyout of Burger King in July with Bain Capital and Goldman Sachs Capital Partners
2003 – a proposal to buy Portland General Electric from Enron on November 17, 2003. However, concerns about debt and local politics led to Oregon's Public Utilities Commission regulators to deny permission for the purchase March 10, 2005.^{[citation needed]}
2005 – acquisition of MGM and the acquisition of high-end retailer Neiman Marcus.
In the year 2006:
- June – with the help of children's television mogul Haim Saban, the firm won the bid for Univision, the largest Spanish-language media company in the United States.
- November – TPG was reported to have formed Airline Partners Australia, a consortium with Australia's Macquarie Bank, with the aim of purchasing Qantas.^[4]
- On December 1, 2006, it was announced Texas Pacific Group and Kohlberg Kravis Roberts have been exploring the possibility of a record $100 billion leveraged buyout of the nation's second-largest retailer Home Depot. ^[5]
- On December 19, 2006, Harrah's Entertainment announced that its board of directors voted to accept a buyout offer from Apollo Management and Texas Pacific Group for $17 billion, or $90-per-share.^[6]
February 2007, Texas Pacific Group and Kohlberg Kravis Roberts announce intention to acquire TXU for about $45 billion, including debt, in the largest-ever leveraged buyout.^[7] The deal is also notable for a drastic change in environmental policy for the energy giant, in terms of its carbon emissions from coal power plants and funding alternative energy.^[8]
March 26, 2007 Agreed to Purchase HealthSouth Corporation's Ambulatory Surgery Division. ^[9]
May 20, 2007 Agreed to partner with Goldman Sachs and purchase Alltel Wireless for $27 Billion.
June 5, 2007 Agreed to partner with Silver Lake Partners to purchase Avaya for $8 Billion.
August 12, 2007 Agreed to purchase Midwest Air Group subsidiaries including Midwest Airlines ending the hostile takeover attempt by AirTran Airways. Northwest Airlines also invested in this purchase as a passive investor.
August 14, 2007 Increased its offer to purchase Midwest after a late attempt by Airtran to increase its bid for Midwest.

[edit] Recognitions

During 2005 and 2006, Texas Pacific Group was recognized by several members of the media for its performance. The firm was called "Firm of the Year" by Buyouts Magazine^{[citation needed]}; "Best Global Firm of the Year" by Euromoney Magazine^{[citation needed]}; "North American Large Cap Private Equity Firm of the Year" by Global Finance Magazine^{[citation needed]}; and TPG-Newbridge was named "Best Firm of the Year" by the Asia Venture Forum.^{[citation needed]}