TPG terminates Bill McGlashan amid US bribery scandal

Jim Coulter, co-CEO and founding partner of TPG, will take over as managing partner for both TPG Growth and the Rise Fund, according to a statement from the firm. Bloomberg and Reuters have reported that LPs in the successor to the Rise Fund, which launched last year with a target of $3.5 billion, will be permitted to withdraw their commitments.

McGlashan is accused of paying $50,000 to a fixer to have his son’s college entrance exam answers fraudulently corrected, and agreeing to pay $250,000 to a faculty member of the University of Southern California for his son to be recruited to the school’s athletic program. Prosecutors have charged 50 people in the scandal, including dozens of parents and faculty members at several schools.

In a letter sent to TPG’s board members prior to the GP’s statement, McGlashan said he had already decided to leave, describing his continued presence at TPG as a distraction from the firm’s work. Sources close to TPG told the Financial Times that the firm decided termination was more appropriate.

“After reviewing the allegations of personal misconduct in the criminal complaint, we believe the behavior described to be inexcusable and antithetical to the values of our entire organization,” TPG said.

McGlashan founded TPG Growth in 2007, and the platform closed its fourth fund at $3.7 billion in 2017, bringing its total assets under management – including the Rise Fund, which closed at $2.1 billion the same year – to over $13 billion. TPG Growth invests across a range of industries with a focus on strong consumer brands.

The platform has been an active investor in Asia, with its deals in the region focusing on India and China. Its India and Southeast Asia investments are headed by Shailesh Rao, who joined in 2017 from Twitter, while former Warburg Pincus executive Chang Sun manages its activity in China.

McGlashan has also stepped down from the board of STX Entertainment, the film and TV studio that he co-founded in 2011 alongside Hollywood producer Robert Simonds. STX recently raised a $700 million funding round led by Hony Capital and TPG Growth aimed at building its presence in overseas markets.

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