Private Equity Firm TPG Files with SEC for $9.5B IPO

Private equity firm TPG is planning to sell shares between $28 and $31 each in an initial public offering (IPO) that could raise $877 million and value the firm as much as $9.5 billion, according to a Tuesday (Jan. 4) filing with the Security and Exchange Commission.

Founded in 1992 in San Francisco, TPG plans to trade on the Nasdaq under the ticker symbol TPG. In the filing, the company said its early West Coast base gave the firm an “affinity for disruption and technology” while its “principled focus on innovation” helped the company grow organically over time.

“Dating back to the earliest days of our firm, our track record reflects our history of organically incubating, launching and scaling new platforms and products, often early in the development of important alternative asset industry trends,” TPG said in the filing.

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TPG is planning to sell 28.3 million shares in the offering, while China Life Trustees Ltd. plans to sell 5.6 million shares, per the filing. China Life acquired a $250 million stake in TPG in 2014. The offering is being led by J.P. Morgan Chase, Goldman Sachs Group and Morgan Stanley.

The company plans to use about 40% of the net proceeds to purchase holdings from existing outside investors, according to a company press release. The remaining capital would be used to expand into complementary business sectors or geographic markets.

TPG has $109 billion of assets under management and investment and its 912 employees are in 12 offices across eight countries. The company invests across capital, growth, impact, real estate and market solutions.

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Assets under management went up 81% from 2016 to $109.1 billion as of Sept. 30, 2021. From the year ended December 31, 2018 to the last 12 months ended Sept. 30, 2021, total revenues increased 288% to $5.4 billion.

Fee-related revenue went up 55% to $827 million. Over that same period, the company’s net income increased 599% to $5 billion, according to the filing.