One of the largest and most successful private equity investment firms in the world, TPG (formerly known as Texas Pacific Group) was founded in 1992 by David Bonderman, James Coulter and William S. Price III.
Spread across 18 separate private equity funds, TPG has raised more than $50 billion of investor commitments since it first opened its doors.
Located in Fort Worth, Texas and San Francisco, California, TPG also has offices in Europe, Asia, Australia and North America.
The firm specialises in leveraged buyouts, growth capital and leveraged recapitalisation investments in struggling companies and firms which have potential to be turned-around.
Other areas TPG choose to invest in include growth capital, venture capital, public equity, and debt investment opportunities across consumer/retail, media and telecommunications, industrials, technology, travel/leisure and health care sectors.
In 1993, TPG took the bold move to invest in the buyout of Continental Airlines, a firm struggling with a second bankruptcy and labour issues, when there were very few firms who considered the airlines to be a sound investment – As James Coulter explains, “One of the reasons we were interested is few other folks were.”
The strategy saw a new management team installed; better use of aircraft assets; and a renewed focus on using lucrative routes. Within five years, TPG was producing an annual return of 55% on its original investment.
Other successful investments by TPG include Oxford Health Plans Inc, a company struggling due to overextended and outdated data systems generating severe losses in 1998 as public investors dumped stock.
TPG utilised the company’s strong customer base and introduced new operational processes and technology to make the company profitable with 12 months of investment.
At the turn of the century, TPG purchased a 51 percent stake in Korea First Bank, the firm’s first foreign acquisition. TPG was successful in introducing new financial controls and risk assessment tools, and by repositioning it as a retail bank.
TPG has developed an established international presence with 17 offices in 10 countries across several continents with interests in Asia and Europe since the mid-nineties.