TPG Mulling IPO

Feb 25 2014 | 12:08pm ET

TPG Capital may join its fellow private-equity giants Blackstone Group, Carlyle Group and Kohlberg Kravis Roberts in the public markets.

David Bonderman, co-founder of the former Texas Pacific Group, said today that the firm is considering an initial public offering.

"'Contemplating' is the right word for us," he told the SuperReturn International conference in Berlin. "We're thinking about it, but not too hard."

Still, Bonderman left little doubt that TPG would one day be a public concern.

"At the end of the day, everybody will go public," he said.

In wide-ranging remarks, Bonderman said the frenzied selling of investments by p.e. firms wouldn't last long. "Is it sustainable? The answer is no," he said. "These years are relatively few and far between."

He also said that investors "have more cash than they know what to do with" and haven't made good on threats to avoid publicly-traded p.e. firms, fearing a conflict of interest between investors' best interests and those of shareholders.

"The LPs have not put their money where their mouth is," Bonderman said.

He also touched on co-investment deals with sovereign wealth funds, which are among the largest investors in p.e. funds. Bonderman said such arrangements were "more complicated" but "something we'll all end up living with." And he urged people not to put private equity firms or managers on too high a pedestal.

"Candidly, what we're doing is not rocket science. We're not doing brain surgery; we're not curing cancer," he said. "We're trying to figure out what the right bond return is. Come on."

Equally candidly, when asked about the cyclical nature of private-equity fundraising and returns, he said the remedy was simple: "whiskey and soda."


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.