After a decade or more of modest gains and sometimes losses, shares of publicly traded buyout companies surged from 2020. Blackstone, for example, gained 84% from 2007 to 2019. In the two years since followed, stocks jumped 117 percent.
Bet on the unloved
After being founded as the Texas Pacific Group in 1992 by Jim Coulter and David Bonderman, TPG’s willingness to take massive bets on unloved or risky businesses has often paid off. He was an early investor in companies such as Spotify Technology, Uber Technologies, and Airbnb.
Traditionally, private equity funds have been made almost exclusively accessible to institutional investors and high net worth individuals. TPG’s IPO could attract the attention of retail investors looking to play a role in start-ups and start-ups.
TPG had $ 109 billion in assets under management as of September 30, according to its prospectus, up from $ 60 billion in 2016. TPG, which also invests in real estate and hedge funds, has its own SPAC platform.
With 912 employees, TPG has more than 280 portfolio companies based in more than 30 countries, according to its documents.
Coulter owns nearly 3.5 million Class A shares, Bonderman owning about 780,000. Together with chief executive Jon Winkelried, they own all of the company’s approximately 230 million Class B shares.
At the IPO price, that block is worth around $ 6.8 billion and will also give them over 97% of the voting rights of the company’s shareholders, according to TPG documents.
The offering is led by JPMorgan Chase, Goldman Sachs, Morgan Stanley, TPG Capital and Bank of America. The company’s shares are expected to start trading on Thursday on the Nasdaq Global Select Market under the ticker symbol TPG.