Trainee journalist Ivan
The first big IPO of the US stock market 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-listing roadshow and is expected to land on the NASDAQ as soon as next Thursday (January 13), with the stock code "TPG".
TPG's offering is priced in a price range of $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 brokers such as Damo, Goldman Sachs, Citigroup, wells Fargo Bank as joint bookrunners and co-managers.
(Source: TPG official website media public relations draft)
Public information shows that TPG Capital was founded in 1992 by David M. David Bonderman, Jim. Jim Coulter and William W. Co-founded by William S. Price III.
TPG currently has $109 billion in assets under management. In terms of asset management scale, although TPG is not as good as the three listed private equity giants Blackstone, KKR and Carlyle, this does not affect its important position in the industry.
TPG is known for its leveraged buyouts. It was reportedly involved in three of the world's largest and most famous leveraged buyout deals of all time, and One of the founders, Bondman, was hailed as an "acquiring artist." In addition, TPG is also a leader in alternative asset management and a pioneer in impact investing, and has frequently made efforts in the private equity secondary market and ESG investment in recent years.
Hundreds of billions of dollars in hand
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 companies, distributed in more than 30 countries and regions around the world.
TPG's investment platform currently covers five asset classes: Private Equity, Growth, Impact, Real Estate and Market Solutions, with $52.6 billion, $22.1 billion, $12.6 billion, $11.5 billion and $10.3 billion as of September 30, 2021, respectively. Total assets under management are US$109 billion (about 700 billion yuan).
Among them, TPG's private equity fund has invested $79 billion, with an IRR of 23%; growth investment funds have invested nearly $14 billion, with an IRR of 23%; impact investment funds have invested $3 billion, IRR is 30%; real estate platforms have invested $6 billion, with IRR of 27%. Since its inception, TPG has generated $94.4 billion in value returns for LPs.
(Source: TPG Prospectus)
In terms of financial data, the information disclosed in the prospectus shows that from 2018 to 2020, TPG achieved revenue of $1.404 billion, $1.988 billion and $2.115 billion, respectively, and net profit of $711 million, $1.18 billion and $1.439 billion for the same period.
Notably, TPG's net income attributable to controlling shareholders was $1.7 billion for the nine months ended Sept. 30, up from $319.4 million for the same period in 2020. Total revenue soared 590 percent in those nine months to nearly $3.9 billion. In addition, this also reflects the impact of the epidemic and the sharp fluctuations in the market, which makes TPG's revenue and profit in 2020 both hit hard.
Firmly invest in China
It has been working in China for nearly 30 years
TPG's ties to China are profound.
According to the official website information, as early as 1994, the third year of TPG's establishment, it joined forces with Blum Capital and ACON Investment to establish Shimbashi Capital, officially entered the Asian investment market, and opened its first China office in Shanghai in the same year, becoming one of the first global private equity investment institutions to enter China.
Over the past decade, TPG has made pioneering investments in China for companies in a variety of sectors, including financial services, healthcare, consumer retail, technology, media and information services, and social impact investing.
(Some of TPG's asian projects Source: TPG's official website)
According to the information on the official website, TPG has a wide range of investment fields, and the investment enterprises design all aspects of Chinese society, which has profoundly affected the process of Chinese society, such as Li Ning, United Family Medical, Dingdang Fast Medicine, Lenovo, CICC, Postal Savings Bank of China, Shenzhen Development Bank, Novotel Beijing Sanyuan Hotel, ibis Beijing Sanyuanqiao Hotel, Wumart, Mobike, etc.
Take, for example, TPG's most famous Impact fund. TPG established The Rise Fund in 2006 to focus on "both righteousness and profit" social impact investments, with a global investment scope. 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 Guest Alliance, and Fine Arts Treasure, and is looking for more opportunities in the fields of climate change, inclusive health care, and inclusive finance.
In addition, according to 21 Finance, TPG has also frequently sold the medical field in China in recent years. It has invested in Baixinan, Zhaoke Ophthalmology, Kangji Medical, AGCO Baifa and other enterprises. Its latest investment in the healthcare industry is Dingdang Fast Medicine, which has submitted an application for a Hong Kong stock IPO, which was completed in June this year with a financing amount of US$220 million, led by TPG Asia Fund, and followed by Aobo Capital and Hongwei Capital.
(Dingdang Fast Medicine Financing Process Source: Tianyancha)
According to media reports, the fund is currently the largest private equity fund launched by the private sector that focuses on social impact.
It is worth noting that TPG has also continued to make efforts in ESG impact investment this year. In July 2021, the Climate Fund under the Shangshan Ruisi Fund completed its first round of fundraising, and as of September 30, the fundraising scale has reached 6 billion US dollars, and the final fundraising is planned to be no more than 7 billion US dollars. The fund has been subscribed by large institutional investors around the world, including Studios, AXA, The Hartford, the Ontario Teachers' Retirement Foundation (OTPP), the Saudi Public Investment Fund (PIF), and others.
The fund will focus on the five industries most relevant 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 former U.S. Treasury Secretary Hank Paulson.
VC/PE listings are nothing new
The market capitalization of the three giants has soared
In the global capital market, the listing of VCs (venture capital) and PE (private equity Private Equity) is not a new thing. The global private equity giants – including Blackstone, KKR, Carlyle, Apollo Global Management and others – have been listed for many years, and stock prices have risen to varying degrees, outperforming the market.
(The increase and market value are as of the previous trading day Source: China Fund News reporter according to the data collation)
And 2021 can be said to be another VC/PE listing has set off a frenzy.
According to a number of foreign media reports, in July 2021, the British private equity company Bridgepoint completed its IPO debut on the London Stock Exchange; L Catterton, an affiliate of LVMH, and Ardian, the world's largest S fund, also reported listing news.
As one of the world's largest private equity institutions after the Big Three, TPG's listing has undoubtedly added another "fire" to this boom.
In addition, the giants seem to have reached a certain consensus on "heavy position China".
Blackstone founder Schwarzman has said more than once in public that the best investment opportunities are in China. In recent years, Blackstone has been sweeping goods in the Chinese market. KKR has been pursuing a "heavy position in Asia" strategy in recent years, and KKR Managing Director Ji Zhen also said that China is one of the most important markets in Asia.
How the TPG listing will perform this time and how it will stir up the capital market, we will wait and see.
EDIT: Captain
Tragic! Resume the card directly to the waist! 8 times the big demon stock flash crashed and stopped, and the bank appliances suddenly broke out! Lithium battery semiconductor military industry fell sharply, 100 billion white horses fell more than 9%! Alibaba Tencent was fined again, and Hang Seng Technology stocks fell hard