NEW YORK (Reuters) – TPG Capital senior govt Invoice McGlashan on Thursday left the non-public fairness agency after he was charged in reference to a U.S. school fraud scheme that has ensnared Hollywood celebrities and company elite.
A plaque is pictured at College of Southern California in Los Angeles, California, U.S., March 13, 2019. REUTERS/Mario Anzuoni
It’s the newest fallout from a U.S. federal case charging rich mother and father, together with McGlashan in addition to actors Felicity Huffman and Lori Loughlin, in what authorities say was a $25 million rip-off to assist their kids get into elite universities.
McGlashan, one in all TPG’s highest-profile figures, helped lead investments in firms resembling Uber Applied sciences Inc and Airbnb Inc, and introduced celeb buyers resembling Bono into the agency’s Rise Fund.
In an announcement by way of a spokesman, McGlashan stated he was resigning from the TPG Rise Fund, which he based and was chief govt, and TPG Progress, the place he was managing accomplice.
“I shall be targeted on addressing the allegations which have been offered, and there are elements of the story which have but to emerge that I want I might share,” he stated.
In a separate assertion, TPG stated it had fired McGlashan.
“We imagine the conduct described to be inexcusable and antithetical to the values of our whole group,” TPG stated in an announcement.
Concerning the conflicting statements, a spokeswoman for McGlashan supplied an electronic mail alternate which she stated was between McGlashan, TPG co-CEOs Jon Winkelried and Jim Coulter, and Chairman David Bonderman. The alternate suggests McGlashan resigned round an hour earlier than he was advised TPG had terminated his employment.
Within the electronic mail alternate, Winkelried wrote that the agency was making ready to ship McGlashan his discover of termination when he despatched his resignation be aware.
TPG declined to remark additional.
CHANCE TO WITHDRAW
To stem the fallout, TPG has provided buyers in its Rise Fund II the prospect to withdraw, a supply accustomed to the matter stated on Thursday. [nL8N21181Y]
TPG made the supply to buyers who participated within the first spherical of fundraising. TPG determined to do that given the change in circumstances this week and never as a result of it was triggered by McGlashan’s departure, the supply stated.
A spokesman for TPG’s Rise Fund declined to remark.
TPG raised $2 billion for the primary Rise fund in 2017, a fund targeted on affect investing which goals to learn society whereas delivering monetary returns.
TPG is aiming to boost as much as $3.5 billion for its second Rise Fund, in accordance with paperwork from the State Funding Council of New Jersey, which has dedicated as much as $125 million within the fund.
The Rise Fund is a small a part of the $103 billion in belongings that TPG has beneath administration, however it’s a high-profile space because of the rising urge for food for affect investing.
TPG has stated Jim Coulter will take over managing accomplice obligations for TPG Progress and Rise.
Reporting by Joshua Franklin in New York, modifying by Rosalba O’Brien, Lisa Shumaker and Richard Chang