TPG Capital

Texas Pacific Group Capital

TPG Capital is one of the largest global private equity firms which manages $45 billion in capital across several funds. This is part of our ongoing effort to follow private equity firms across the industry in the Private Equity Tracker Tool.

According to the firm's site, "Since the firm's founding in 1992, TPG's investment philosophy has been to create value by investing in change - change created by industry trends, economic cycles or specific company circumstances. Our tradition of providing unique investment insight and value-added operating capabilities to companies undergoing change, as well as our comfort in dealing with complexity and distressed companies, differentiates us from many traditional private investment firms."

Story #1: Texas Pacific Group Launching Chinese Currency Funds

I came across this story in the Times this morning.  Texas Pacific Group (TPG), one of the largest private equity firms, has struck a  deal with the municipal governments of Shanghai and Chongqing to raise $1.5 billion for funds denominated in Chinese currency.  This is a huge step into China for Texas Pacific Group, the venture could make it one of the biggest investment firms in the rapidly developing country. 

China recently surpassed Japan as the second-largest economy in the world and private equity firms are working to get on the ground floor.  The Blackstone Group and Carlyle Group have already launched funds denominated in the renminbi. Source
Story #2: TPG Capital Hires Goldman Sachs and Other Bankers for Australian IPO
Private equity firm TPG [TPG.UL], eyeing an initial public offer in Australia's largest department store Myer, has hired Macquarie Group (MQG.AX), Goldman Sachs (GS.N) and Credit Suisse (CSGN.VX) to lead manage the sale, two sources with direct knowledge of the matter told Reuters on Tuesday.



The IPO, which could value Myer at around A$2.5 billion ($2.1 billion), would be the biggest listing on the Australian stock exchange since the credit crisis took hold in July 2007, underscoring the return of confidence in the market.


The sources declined to be identified as the banker appointments and other details were not public yet. TPG and Myer declined to confirm the appointment of any bankers. Source



Story #3: TPG Private Equity's Portfolio Company's Unit Files Chapter 11

Aleris International Inc., an aluminum producer owned by private-equity giant TPG, put its North American operations into bankruptcy protection, blaming a sharp decline in aluminum prices and depressed demand from car makers and home builders.

The move represents a major blow for TPG, which bought the Beachwood, Ohio, company for $1.7 billion in December 2006. The private-equity firm stands to lose about $800 million on Aleris, which has about 8,400 employees and obtained financing to continue operating.

Thursday's Chapter 11 filing is a harbinger of deeper misery for private-equity firms, which issued more than $1.5 trillion in debt to fund leveraged buyouts since 2003, according to Dealogic. Many of those buyout-owned companies now are choking on the debt, and the recession is starting to push some of them toward financial catastrophe. Read more...

Story #4: TPG Private Equity Buys 20% of Armstrong World Industries

Private equity firm TPG said on Tuesday that it would buy up to 20 percent of building products company Armstrong World Industries Inc. (AWI.N)

TPG said it had agreed to buy 7 million Armstrong shares, about 12 percent of those outstanding, for $22.31 each from the company’s asbestos personal injury settlement trust. It will also buy economic interests in an additional 1.04 million shares from the trust, bringing the total value of the deal to around $180 million.

Shares of Armstrong were up 22 cents, or nearly 1 percent, at $25.87 in early New York Stock Exchange trade. The trust is currently the company’s largest shareholder, with about 64 percent of Armstrong’s stock.

TPG said it expected the transaction to close in the next several weeks, after which the trust will hold an economic interest in slightly more than 50 percent of the shares outstanding. Source



Tags: TPG Capital, Texas Pacific Group, TPG Private Equity, Texas Pacific Group Private Equity, TPG Capital Buyout, Buyouts TPG, Private Equity Profile TPG, Texas Pacific Private Equity

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