Alternative asset manager TPG Inc. filed to go public, joining its buyout peers at a time when the industry has been reporting bumper results and paying out record compensation. TPG listed an offer size of $100 million, a placeholder amount that will likely change, according to a prospectus filed on Thursday.
TPG was founded in 1992 as Texas Pacific Group by Jim Coulter and David Bonderman. The firm’s willingness to take massive bets on unloved or risky companies has often paid off.
TPG has $109 billion in assets under management as of Sept. 30, 2021 according to the filing.
It’s one of the last big private equity firms to join the stock market. Blackstone Group Inc., Carlyle Group Inc., Apollo Global Management Inc. and KKR & Co. Bridgepoint Group Plc and EQT AB are among the private equity peers that have gone public in recent years.
The firm, which also invests in real estate and hedge funds, has its own SPAC platform. Last year, TPG and its credit platform Sixth Street ended their partnership.
Over the years, it’s shown an appetite for technology deals and was an investor in Uber Technologies Inc. and Airbnb Inc. before they went public.
The private equity firm generated $3.8 billion in net income in the first nine months of 2021, compared to $295 million in 2020 when it reported losses from investment activities, according to the filing.
The Fort Worth, Texas-based firm warned of a number of risks, including investors’ willingness to commit new capital to its funds in lieu of the decision to go public, changes to China’s governmental policies impacting industries in which portfolio companies are exposed to, and changes in the U.S. political and financial regulatory environment.
Compensation could take a hit after the firm goes public. TPG said it may not be able to provide its future senior professionals with equity interests to the same extent or with the same economic and tax consequences as before. It said its profit margins could also be affected if it has to increase the level of compensation to retain and recruit talent.
JPMorgan Chase & Co., Goldman Sachs Group Inc., Morgan Stanley, TPG Capital and Bank of America Corp. are leading the offering.
TPG plans to list on the Nasdaq Global Select Market under the symbol TPG.