Monday, October 28, 2019

Rise Fund's Bill McGlashan PEU Fall

TPG Capital, a Forth Worth, Texas based private equity underwriter (PEU), targeted social and environmental impact in addition to massive profits in their Rise Fund.  TPG calls that "complete returns."

The Rise Fund, which launched in December 2016, was co-founded by Bill McGlashan, Founder and Managing Partner of TPG Growth and Co-Founder and CEO of The Rise Fund; U2 lead singer Bono, a well-known activist and a special partner with TPG Growth; and Jeff Skoll, a global entrepreneur, film producer, and impact investor. 

Education is a crucial part of The Rise Fund’s mission. Expanding access to quality education creates a foundation for long-term growth, progress, and prosperity,” said Bill McGlashan. “There is a vast need for improved and expanded educational resources around the world. At the same time, there are exciting opportunities to build innovative and impactful educational businesses and technologies.  
Rise refers to the fund as a "leading global education investor."  Institutional Investor reported:

Bill McGlashan, founder and managing partner at TPG Growth and co-founder of The Rise Fund, a social and environmental impact fund, was accused of allegedly paying bribes to facilitate his children's admission to colleges, federal prosecutors said.

Institutional Investor later added:

TPG was a few months into fundraising for Rise Fund II when co-founder McGlashan was accused of bribing a University of Southern California official to facilitate his son’s admission to the school as a recruited athlete.
CNBC reported Rise co-founder McGlashin was either fired for cause or quit:

“After reviewing the allegations of personal misconduct in the criminal complaint, we believe the behavior described to be inexcusable and antithetical to the values of our entire organization."

McGlashan is disputing the terms of his departure, saying he resigned.
TPG co-founder David Bonderman made a sexist remark at an Uber board meeting which caused his resignation from the Uber board.  I am not aware of any funds pulled from TPG as a result of Bonderman's comment to fellow board member Arianna Huffington.

The impact of McGlashin's actions has not hurt Rise Fund fundraising.  Rise Fund II is at $1.7 billion with a target of $2.5 billion.  Contrast this with Ken Fisher of Fisher Investments.  Pensions and Investments reported:

The toll exacted by asset owners for Kenneth L. Fisher's sexist comments made at a conference earlier this month is $3 billion and counting.
The same groups put money into Rise and Fisher investments.   How does one firm get a free pass while the other gets pummeled?  The big money boys will have to answer. 

It's like the Dubai Ports World brouhaha where the prospect of American ports falling into Middle Eastern hands caused a giant uproar.  Shortly after that The Carlyle Group sold fifty U.S. airport operations to Dubai Aerospace and there was not one peep in the media.  

It's a rising PEU world, even as one of their stars fell.