TPG Inc.

TPG Capital
(formerly Texas Pacific Group)

File:TPG Capital Logo.png
Company type	Private Ownership
Industry	Private Equity
Founded	1992
Founder	David Bonderman, James Coulter and William S. Price III
Headquarters	Fort Worth, Texas San Francisco, California
Products	Private equity funds, Leveraged buyouts
Total assets	$50 billion
Website	www.tpg.com

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. The firm's industry focuses include consumer/retail, media and telecommunications, industrials, technology, travel/leisure, and health care. The firm is currently investing its fifth fund, TPG Partners V, L.P.

TPG has offices in Fort Worth, San Francisco, London, Hong Kong, Mumbai, Tokyo, Melbourne and New York City.

TPG is among the "megafunds" in the private equity industry. Notable companies TPG has owned or invested in over the years include Continental Airlines, Ducati, Neiman Marcus, Burger King, J. Crew, Lenovo, MGM, Alltel Wireless, Harrah's, Avaya, Freescale Semiconductor, and Univision.

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.

Notable Investments

Notable TPG investments (proposed and actual) have included, 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
• 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.Oregon Public Utility Commission (March 10, 2005). "ORDER NO. 05-114" (PDF). Retrieved 2008-02-01.
• 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 formed Airline Partners Australia, a consortium with Australia's Macquarie Bank, with the aim of purchasing Qantas. The bid failed in May 2007.
  • November 29, 2006 Agreed to partner with Hellman & Friedman and JMI Equity to purchase Intergraph Corporation for $1.4 Billion.
  • 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 second-largest retailer in the U.S. Home Depot.
  • 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.
• 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. 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.
• March 26, 2007 Agreed to Purchase HealthSouth Corporation's Ambulatory Surgery Division.
• May 20, 2007 Agreed to partner with Goldman Sachs and purchase Alltel Wireless for $27 Billion. The transaction was approved by the Federal Communications Commission, subject to various conditions, and closed on November 16, 2007.
• 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.
• November, 2007 - In partnership with GS Capital Partners, takes ownership of Alltel Wireless in a $27.5B leveraged buyout.
• January 28, 2008 TPG and Apollo complete the acquisition of Harrah's Entertainment
• April 7, 2008 - Leads $7 Billion investment in Washington Mutual. This investment effectively was rendered worthless on September 25, 2008, when the Federal Deposit Insurance Corporation seized Washington Mutual.
• June 1, 2008 - Buys a 20% stake in Bradford & Bingley. (Aborted on July 4)
• June 5, 2008 - Along with GS Capital Partners, sells Alltel Wireless to Verizon
• August 4, 2008 - Along with Global Infrastructure Partners, offers to buy Asciano for AUD 2.9 bn in an unsolicited takeover
• September 25, 2008 - Washington Mutual is taken over by the government costing TPG a 1.35 Billion dollar investment.

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; "Best Global Firm of the Year" by Euromoney Magazine; "North American Large Cap Private Equity Firm of the Year" by Global Finance Magazine; and TPG-Newbridge was named "Best Firm of the Year" by the Asia Venture Forum.

Notable Current and Former Employees

• Kevin Rollins - former President & CEO of Dell Computers

External links

• TPG - Texas Pacific Group Official Site