The first big IPO of US stocks in 2022 is coming!
According to US media reports, on January 4 local time, TPG capital, one of the world’s largest private equity giants, has conducted a pre IPO roadshow. It is expected to land on NASDAQ as soon as next Thursday (January 13), with the stock code “TPG”.
It is reported that TPG’s pricing range for this offering is $28 to $31 per share, and seeks a valuation of up to $9.5 billion. In addition, according to the public relations draft released by TPG, the IPO brought together as many as 23 investment banks and securities companies such as Da Mo, Goldman Sachs, Citigroup and Wells Fargo as joint bookkeepers and joint managers.
(source: TPG official website media PR draft)
Public information shows that TPG capital was established in 1992 by David. David Bonderman, Jim. Co founded by Jim coulter and William S. price III.
TPG currently manages $109 billion in assets. In terms of asset management scale, TPG is not as good as the three listed private placement giants Blackstone, KKR and Carlyle, but this does not affect its important position in the industry.
TPG is known for leveraged buyouts. It is reported that it has participated in three of the seven largest and most famous leveraged buyouts in the world’s history, and bondman, one of the founders, is known as “acquisition artist”. In addition, TPG is also a leader in alternative asset management and a pioneer in influence investment. In recent years, TPG has also frequently made efforts in the secondary private equity market and ESG investment field.
holding hundreds of billions of dollars
nine month total revenue soared 590%
According to the prospectus submitted by TPG, as of September 30, 2021, TPG has more than 900 employees worldwide, including 320 investment and operation professionals and more than 280 invested enterprises, distributed in more than 30 countries and regions around the world.
TPG’s investment platform currently covers five asset categories: private equity, growth, impact, real estate and market solutions. As of September 30, 2021, the management models of various platforms were $52.6 billion, $22.1 billion, $12.6 billion, $11.5 billion and $10.3 billion respectively, Total assets under management amounted to 109 billion US dollars (about 700 billion yuan).
Among them, TPG’s private equity fund has invested US $79 billion, with an IRR of 23%; Growth investment funds invested nearly 14 billion US dollars, with an IRR of 23%; The influence investment fund invested US $3 billion, with an IRR of 30%; The real estate platform invested $6 billion, with an IRR of 27%. Since its establishment, TPG has created a value return of US $94.4 billion for LP.
(source: TPG prospectus)
In terms of financial data, the information disclosed in the prospectus shows that from 2018 to 2020, TPG achieved revenue of US $1404 million, US $1988 million and US $2115 million respectively, with net profits of US $711 million, US $1.18 billion and US $1439 million in the same period.
(source: TPG prospectus)
It is worth noting that in the nine months ended September 30, TPG’s net income attributable to controlling shareholders was $1.7 billion, up from $319.4 million in the same period in 2020. Total revenue in the nine months soared 590% to nearly $3.9 billion. In addition, this also reflects the severe market fluctuations affected by the epidemic, which has hit TPG’s revenue and profit in 2020.
firm investment in China
has been deeply cultivated in China for nearly 30 years
TPG has a far-reaching relationship with China.
According to the information on the official website, as early as 1994, the third year of TPG’s establishment, TPG jointly founded Xinqiao capital with Blum capital and ACON investment, and officially entered the Asian investment market. In the same year, TPG opened its first China office in Shanghai, becoming one of the first global private equity investment institutions to enter China.
Over the past ten years, TPG has made pioneering investments in many companies in different fields in China, including financial services, health care, consumer retail, technology, media and information services, as well as social influence investment.
(some Asian projects invested by TPG source: TPG official website)
According to the information on the official website, TPG has a wide range of investment fields, and the invested enterprises design all aspects of Chinese society, which has a profound impact on the process of Chinese society, such as Li Ning, united family medical, Dingdang quick medicine, Lenovo, China International Capital Corporation Limited(601995) , China Postal Savings Bank, Shenzhen Development Bank, Beijing Novotel Sanyuan Hotel, Ibis Beijing Sanyuanqiao Hotel, Wumart, Mobai, etc.
Take TPG’s most famous Impact Fund as an example. TPG established the rise fund in 2006 to focus on social influence investment of “upholding justice and profit”, with an investment scope all over the world. According to the information on the official website, the fund invested in China for the first time in 2018. The first project is Baidu finance, which is now Du Xiaoman finance. In addition to Du Xiaoman, the fund has also invested in three other projects: Zhonghe rural credit, green customer alliance and art treasure, and is looking for more opportunities in the fields of climate change, inclusive medical care and Inclusive Finance.
In addition, according to 21 finance and economics, TPG has also made frequent moves in the medical field in China in recent years. It has invested in baixin’an, Zhaoke Ophthalmology, Kangji medical, AGCO Baifa and other enterprises. Its latest investment in the medical industry is Dingdang express, which has submitted an IPO application for Hong Kong stocks. It was completed in June this year, with a financing amount of US $220 million, led by TPG Asia Fund, followed by Aobo capital and Hongwei capital.
(source of financing process of Dingdang express: tianyancha)
According to media reports, the fund is the largest private equity fund focusing on social influence launched by private institutions.
It is worth noting that TPG has also been making efforts in ESG influence investment this year. In July 2021, the climate fund under Shangshan Ruisi fund completed the first round of fund-raising. As of September 30, the fund-raising scale had reached US $6 billion, and it is planned to raise no more than US $7 billion. The fund has been subscribed by large global institutional investors, including allstar, AXA, the Hartford, Ontario teacher retirement Foundation (OTPP), Saudi public investment fund (PIF), etc.
It is reported that the fund will focus on the five industries most related to climate change: clean energy, low-carbon solutions, low-carbon transportation, green industry, agriculture and nature based solutions. In addition, the fund is managed by Jim coulter and executive chairman of Hank Paulson, former US Secretary of the Treasury.
VC / PE listing is not new
the market value of the three giants has soared
In the global capital market, the listing of VC (venture capital) and PE (private equity) is no longer new. Global private placement giants, including Blackstone, KKR, Carlyle, Apollo global management, etc., have been listed for many years, and their share prices have risen sharply in varying degrees, outperforming the market.
(both the increase and market value are up to the previous trading day, source: China Fund News reporter sorted according to the data)
In 2021, it can be said that the listing of VC / PE has set off a frenzy.
According to several foreign media reports, bridgepoint, a British private equity company, completed its IPO on the London Stock Exchange in July 2021; LVMH’s affiliated institution L catterton and the world’s largest s fund Ardian have also successively reported listing news.
As one of the world’s largest private equity institutions second only to the big three, TPG’s listing undoubtedly adds a “fire” to this boom.
In addition, the giants seem to have reached a certain consensus on “heavy position China”.
Blackstone founder Su Shimin said in public more than once: the best investment opportunity is in China. Blackstone has been sweeping the Chinese market in recent years. KKR has been pursuing the strategy of “heavy position in Asia” in recent years. Ji Zhen, managing director of KKR, also said that China is one of the most important markets in Asia.
We will wait and see how the TPG listing will perform and how it will stir the capital market.
(China Fund News)
