NEW YORK (Reuters) – TPG Capital senior government Bill McGlashan on Thursday left the personal fairness firm after he was charged in reference to a U.S. college fraud scheme that has ensnared Hollywood celebrities and company elite.
A plaque is pictured at University of Southern California in Los Angeles, California, U.S., March 13, 2019. REUTERS/Mario Anzuoni
It is 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 youngsters get into elite universities.
McGlashan, one of TPG’s highest-profile figures, helped lead investments in corporations similar to Uber Technologies Inc and Airbnb Inc, and introduced movie star buyers corresponding to Bono into the firm’s Rise Fund.
In a press release by way of a spokesman, McGlashan stated he was resigning from the TPG Rise Fund, which he based and was chief government, and TPG Growth, the place he was managing companion.
“I will be focused on addressing the allegations that have been presented, and there are aspects of the story that have yet to emerge that I wish I could share,” he stated.
In a separate assertion, TPG stated it had fired McGlashan.
“We believe the behavior described to be inexcusable and antithetical to the values of our entire organization,” TPG stated in a press release.
Regarding the conflicting statements, a spokeswoman for McGlashan offered an e mail change which she stated was between McGlashan, TPG co-CEOs Jon Winkelried and Jim Coulter, and Chairman David Bonderman. The trade suggests McGlashan resigned round an hour earlier than he was informed TPG had terminated his employment.
In the e-mail trade, Winkelried wrote that the firm was getting ready to ship McGlashan his discover of termination when he despatched his resignation word.
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 conversant in the matter stated on Thursday. [nL8N21181Y]
TPG made the supply to buyers who participated in the primary 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 influence investing which goals to profit society whereas delivering monetary returns.
TPG is aiming to boost as much as $three.5 billion for its second Rise Fund, in response to paperwork from the State Investment Council of New Jersey, which has dedicated as much as $125 million in the fund.
The Rise Fund is a small half 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 influence investing.
TPG has stated Jim Coulter will take over managing associate duties for TPG Growth and Rise.
Reporting by Joshua Franklin in New York, modifying by Rosalba O’Brien, Lisa Shumaker and Richard Chang