TPG Appoints Bankers to Participate in Private Equity Company’s Initial Public Offering

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Private equity update

TPG has appointed Goldman Sachs and JPMorgan Chase for initial public offerings, getting closer and closer to listing on the stock market Private property The company has been thinking about it for most of the past ten years.

According to people familiar with the matter, the group may submit IPO documents to US regulators as early as September.

People familiar with the matter said that the executives of the acquiring company had been evaluating a merger with a special purpose acquisition company for several months, but ultimately chose the traditional way of listing.

If the transaction continues, David Bondman’s company will embark on the path pioneered by competitors such as Blackstone, KKR and Apollo Global Management more than a decade ago.

Those companies founded by Bondman’s colleagues before he was founded TPGHaving cooperated in the acquisition of large targets, this strategy has led to high-profile failures, including the bankruptcy of energy group TXU and casino operator Caesars Entertainment.

But more than a decade after the end of the “club deal” boom, TPG has fallen far behind its former collaborators. Today, the company has $96 billion in assets under management, while industry leader Blackstone has $684 billion in assets under management.

This gap means that TPG is unlikely to reach a valuation that matches the largest listed private capital group, although Bondeman’s company can still benefit from the surge in stock prices in the entire financial sector.

The combined market value of Blackstone, KKR, Carlyle, Apollo and Ares is approximately US$252 billion, more than three times higher than the low of US$80 billion in March 2020.

This rise reflects the early stages of the economic recovery, the rise in the stock market that eliminated the continuing book losses at the beginning of the pandemic, and the increase in fee income as pension funds and other asset allocators increased their investment in private capital.

TPG executives concluded that investors will take traditional IPOs more seriously than listing through Spac.

Listed black check companies that thrived at the height of the pandemic have recently been caught up in a series of scandals and controversies that have eroded investor interest.

JPMorgan Chase and Goldman Sachs declined to comment on their appointments, which is First report The Wall Street Journal.

TPG said: “We will continue to evaluate strategic alternatives, there is nothing to announce at this time.”

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