TPG Capital ‘contemplating’ public offering

02/25/2014 11:07 AM

02/25/2014 11:16 AM

TPG Capital, a private equity firm with about $55 billion in assets under management, would consider an initial public offering, according to founding partner David Bonderman.

TPG hasn’t ruled out an IPO for the Fort Worth-based business at some point, though it’s not something the firm would think too hard about, Bonderman, 71, said in response to a question at the SuperReturn International conference Tuesday in Berlin.

Contemplating is the right word for us,” Bonderman said, according to The Wall Street Journal.

The company is one of the world’s largest private equity firms to remain closely held after the IPOs of competitors including Blackstone Group, Carlyle Group and KKR & Co. in the past seven years. Blackstone, which sold shares to the public before the 2008 financial crisis, more than doubled in 2013, lifting the wealth of Chairman Stephen Schwarzman by $3.7 billion.

TPG dates to 1992, when it was launched in Fort Worth by Bonderman and other former financial advisers to Fort Worth billionaire Robert M. Bass. Bonderman had gone to work for Bass in 1983 after a stint in Fort Worth representing the bankrupt Braniff Airways.

The company maintains a Fort Worth office but also has offices in San Francisco and elsewhere around the world. TPG’s first investment was the $450 million takeover of Continental Airlines, a deal that got the company off to a flying start.

According to TPG’s website, it holds stakes in Southlake-based Sabre Holdings, Dallas-based Energy Future Holdings, Petco, J. Crew and scores of additional companies. It claims $55.7 billion of capital under management.

Like other private equity firms, TPG has been selling companies or taking them public during the stock market’s run-up. Last year, it and a partner sold Dallas-based Neiman Marcus Group, which they had acquired in 2005. And in January, Sabre filed plans to go public.

TPG also sold 5 percent of its management company to the Kuwait Investment Authority and the Government of Singapore Investment Corp. for an undisclosed fee in 2011. The proceeds were aimed at financing expansion into new business lines and emerging markets.

This month, TPG started to raise a real estate fund, TPGRE II, with a $2 billion target.

This report includes material from the Star-Telegram archives.

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