Last year was a blockbuster for U.S. IPOs, with companies raising $150 billion. Private equity company TPG Capital filed for an IPO in 2021 and is expected to list next week in the first major U.S. IPO of 2022. What companies does TPG Capital own?
In going public, TPG Capital will join buyout companies Blackstone, KKR, the Carlyle Group, and Apollo Global Management, which have been public for years.
Who founded TPG Capital?
TPG Capital was founded in 1992 by David Bonderman, William S. Price III, and James Coulter. The company’s AUM (assets under management) have grown steadily—between 2016 and the end of Q3 2021, its AUM grew 81 percent to $109 billion.
TPG has five investment platforms
TPG has five investment platforms. The capital platform accounts for almost half of its AUM and the growth platform, the second-biggest, comprises AUM of $22.1 billion. The other three platforms focus on impact, real estate, and market solutions, respectively.
TPG has 280 active investments
TPG currently has over 280 active investments. These portfolio companies are spread across 30 countries and collectively employ over half a million people. These are active investments and do not include the companies where TPG has fully realized its investment and exited.
Some of TPG's prominent investments include Airbnb and Uber. While the former has seen its stock rise since its IPO, Uber is trading below its IPO price. TPG's investment in Indian e-commerce company Nykaa, which listed in 2021, was among its most profitable. The stock has grown almost 17-fold in less than three years.
Prominent companies in TPG’s portfolio
Acorns, Spotify, Cushman & Wakefield, Zscaler, Lenskart, C3.ai, Dream 11, Toast, and FreedomPay are some other prominent TPG investments. TPG has also invested in several startups in India.
TPG's impact platform focuses on companies that benefit society
TPG's impact platform comprises companies that deliver societal benefits. It's subdivided into three categories: the Rise Funds, TPG Rise Climate, and the Evercare Health Fund.
The platform has invested in Airtel Money, Dreambox Learning, Allogene Therapeutics, and Greenhouse. The Evercare Health Fund’s portfolio includes 30 hospitals, 82 diagnostics centers, and 16 clinics spread across Asia and Africa.
Key details of TPG's IPO
TPG, expected to price its IPO next week, is currently conducting roadshows. JPMorgan, TPG Capital BD LLC, Morgan Stanley, Goldman Sachs, and BofA Securities are the offering's lead underwriters.
At the top end of its IPO price range of $28–$31, the company would be valued at around $9.5 billion and raise over $875 million in the offering. Selling investors would get around 40 percent, and TPG will use the remaining funds for growth.
TPG is set to list under a dual share structure, which will give its executives 98 percent voting power. For now, none of the founders or executives are selling their stake in the IPO.