Updated on Jan. 13 with final pricing.

Private equity giant TPG makes its public market debut on the Nasdaq on Thursday at an exceptionally profitable time for PE firms, which has been driven in part by record exit activity and an economic recovery from the pandemic.

The Fort Worth and San Francisco-based firm raised $1 billion in its offering, selling 33.9 million shares at $29.50 apiece. TPG has flirted with a public offering for years, but finally took the leap this week at a fully diluted market value of $9.5 billion.

PitchBook has mapped out a timeline of TPG's road to the public markets, its current ownership breakdown and some key financial measures.

TPG manages $109 billion in assets, holds over $32 billion in dry powder and oversees over 280 portfolio companies.

Compared to the AUM of other public PE firmsBlackstone ($731 billion), Apollo Global Management ($481 billion), KKR ($459 billion) and The Carlyle Group ($293 billion)TPG enters the public markets as a smaller fish in a big pond.

The current wave of PE public listings has been dominated by European firms. In 2021, Paris-based Antin Infrastructure Partners and London-based Bridgepoint Advisers each held an IPO in their home markets. Swedish firm EQT held an IPO in 2019.

US firms led their own wave more than a decade ago, when PE giants including KKR, Apollo and Carlyle began trading in the public markets.

Public PE firms have considerably outperformed the S&P 500 in recent years, providing ripe conditions for new listings. While the S&P grew about 115% over the past five years, Blackstone's stock climbed 445% during the same period. KKR rose 409%, Apollo 290% and Carlyle 268%.

TPG was founded in 1992 by David Bonderman and James Coulter, who remain active at the firm, as well as Bill Price III, who retired in 2006.

TPG's IPO documents contain a detailed succession plan that will eventually lead to oversight by a majority independent board of directors, which will be elected by shareholders.

Currently, the firm is controlled by three membersBonderman, Coulter and CEO Jon Winkelriedbut it plans to expand this group to five members. The additional two members of the control group will be selected from active TPG partners.

The firm's highest-paid executive is President Todd Sisitsky, who hauled in more than $42 million in total compensation last year, followed by CFO Jack Weingart with nearly $27 million in compensation and Coulter, who was paid nearly $24 million. 

TPG's largest-ever deal was done in 2007, with the $45 billion buyout of Irving, Texas-based energy giant TXU, the second-largest PE buyout of all time.

The firm also acquired telecommunications company Alltel in 2007 for $27.3 billion. Its third-largest deal came in the form of an $8 billion secondary transaction for ridehailing giant Uber in 2018.

The firm has seen a steady increase in total net income since 2018, posting $1.3 billion in net income in 2021 through Sept. 30. Distributable earnings have also risen in recent years, posting a $425.8 million figure for 2021 through Sept. 30.

Related read: US PE Breakdown

Featured image by Drew Sanders/PitchBook News

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