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Shares of TPG jumped 15 per cent on their first day of trading as the private equity group co-founded by billionaires David Bonderman and Jim Coulter became the latest to capitalise on soaring valuations by tapping public markets to finance growth.
TPG is the largest company to go public in the US so far this year, and its successful listing comes as the wider IPO market grapples with poor performance and rising volatility.
“The markets are turbulent,” TPG chief executive Jon Winkelried told the Financial Times. “This IPO was a high-quality institutional book from a company that’s highly profitable and has been around for 30 years.”
In going public, TPG is preparing to dramatically expand its platform, which has $109bn in assets, by launching new funds and investment products and striking acquisitions. TPG raised $1bn in the IPO.
Bonderman, 79, and Coulter, 62, co-founded TPG in 1992 after cutting their teeth as dealmakers working under Texas oilman Robert Bass.
The public listing will also help to cement succession planning from Bonderman and Coulter. Winkelried, who was named sole chief executive in May 2021, is set to join Coulter and Bonderman as a controlling shareholder through a class of supervoting shares.
Thanks to all our readers who voted in yesterday’s poll. Nearly two-thirds of you thought the Fed was not acting quickly enough to combat inflation. Here’s the rest of today’s news — Gordon
Five more stories in the news
1. Tech shares fall heavily A sell-off yesterday of shares in the technology sector is the latest reaction to the growing expectation that the Federal Reserve will tighten monetary policy aggressively this year. The tech-heavy Nasdaq Composite index dropped 2.5 per cent while the benchmark S&P 500 index slid 1.4 per cent.
Opinion: Investors are right to kick the tyres on the long tech rally, says West Coast editor Richard Waters.
2. January 6 riot panel subpoenas tech groups The congressional committee probing the January 6 attack on the US Capitol has issued subpoenas to Alphabet, Reddit, Twitter and Facebook parent Meta, demanding records relating to the 2020 US presidential election. The subpoenas signal a significant escalation in the work of the January 6 committee.
3. Ukraine says government websites hit by ‘massive cyber attack’ At least 10 websites ceased functioning today, the government in Kyiv said. The websites of the ministerial cabinet, the foreign, education, agriculture, emergency, energy, and environment ministries as well as sites linked to the treasury were affected, according to Ukrainian officials.
4. MI5 warns of ‘political interference’ by Chinese agent British MPs have been warned by intelligence service MI5 that a Chinese agent has been “engaged in political interference activities” in parliament for the Chinese Communist party, including donating more than £420,000 to an opposition Labour member of parliament.
5. Prince Andrew to lose royal titles Buckingham Palace announced yesterday that the Duke of York will stop using the title “his royal highness” and lose his honorary military titles. The decision came a day after a judge in New York rejected an attempt by the Queen’s second son to prevent a civil court action lawsuit by Jeffrey Epstein victim Virginia Roberts Giuffre. Prince Andrew denies all the charges.
Coronavirus digest
The US Supreme Court has blocked Joe Biden’s mandate directing big companies to impose “vaccine or test” mandates on employees. The decision is a blow to the US government’s response to the Covid pandemic and comes as hospitalisations linked to the virus reach record levels.
The Australian government has cancelled Novak Djokovic’s visa for a second time, just days before the start of the Australian Open tennis tournament begins in Melbourne.
Pressure increased on UK prime minister Boris Johnson after reports that his staff held two parties the night before Queen Elizabeth was pictured sitting alone during the funeral of her husband, Prince Philip, last year.
China’s trade surplus soared to $676bn in 2021, its highest level on record. The data highlights China’s dominance in global trade during the coronavirus era.
The worst harm anti-vaxxers do is to their families, writes Simon Kuper. How will the grief of losing an unvaccinated loved one shape the millions of bereaved — and their relationship to the rest of us?
Pandemic-era managers deserve our sympathy, says the FT in an editorial.
For more on how the global economy is bouncing back from the pandemic, sign up to our Road to Recovery newsletter.
The days ahead
US bank earnings Investors’ hopes are high as JPMorgan Chase, Citigroup and Wells Fargo kick off fourth-quarter results season for banks. Asset manager BlackRock also reports its latest financial results.
Economic data US retail sales probably remained unchanged in December compared with the month before, according to economists’ projections, as a supply crunch and rising prices prompted many shoppers to spend earlier than usual ahead of the holiday season.
Fed speakers With the Federal Reserve gearing up for tighter monetary policy investors will closely watch remarks from New York Fed chair John Williams, a voting member of the policy-setting Federal Open Market Committee.
What else we’re reading and listening to
Washington’s Wall Street problem There is outcry inside Congress and across the US over investments made by public officials, which have raised questions about unfair market opportunities and prompted lawmakers to pursue bills to ban active investing. Who among the powerful should be allowed to trade?
Bain & Co, tax and Jacob Zuma As the fiscal bulwark of a young democracy, South Africa’s revenue service was renowned as one of the continent’s most effective tax gatherers. But a judicial report this month has criticised management consultant Bain & Co as an enabler of graft, shining a light on the muddy nexus between politics and corporations.
Don’t deride the Davos prophets of doom Each winter, the World Economic Forum polls its members about perceived risks. This year’s survey of Davos-goers is startlingly gloomy. Doubly striking is the detail about what scares the Davos elite, writes Gillian Tett.
The best business books for January From the homespun wisdom of a cheerleading coach to how to deal with the “jerk” at work, here are this month’s top business reads.
Bridging the workplace generation gap Often in the office, there can be dissonance between the “wisdom and experience” of Gen X and Boomers, and the “innovative energy” of those in their twenties and thirties. But what are the perks and pitfalls of working with people much older (or younger) than you? Isabel Berwick explores on the Working It podcast.
Why is it considered OK to be ageist? Lucy Kellaway explores the unspoken prejudice — and a puzzling discrimination against our future selves.
Readers respond
A busy week of diplomacy aimed at de-escalating the Ukraine crisis appears to have failed, with Russia declaring the talks at a “dead end”. Earlier this week we asked for your thoughts on the stand-off between the west and Moscow. Here are some excerpts from what you have been saying:
Given the historically composite structure of Ukraine, Nato and the EU should begin by publicly recognising the right of parts of Ukraine to seek independence — Hugh Small, England
Russia can’t win a war against the USA, so it is not in its interest to provoke it. But, if threatened, it may react — Anastase Livieratos, Monaco
Russia and Ukraine: Thought Experiment. Imagine it is 1975 and the Cuban Revolution has spread to Mexico which increasingly aligns itself with Moscow. How would the US react? The west is dangerously unimaginative about Russian sensibilities — David D’Avray, Oxford
Think of this issue as if Russia or China proposed to form a security alliance with Mexico. The US would not tolerate such a move. Moreover, it’s past time that Germany steps up to the task of ensuring European security, instead of its normal appeasement in service to commerce — Peter Ferrara, New York
History informs you must not roll over to bullies. Nato must prepare immediately — Peter Atherton, Manchester, England
Thanks for all your comments and please keep them coming to firstft@ft.com.
Source: Economy - ft.com
