TPG Lowers Fundraising Goal at Impact Fund After College Scandal

(Bloomberg) -- TPG lowered the target for its second social impact fund, which was rocked after its leader Bill McGlashan was indicted in the college admissions scandal.

The fund, known as The Rise Fund II LP, is expected to raise about $2.5 billion after setting a goal of $3 billion, according to people familiar with the matter. The group is planning to close on more $1.2 billion of commitments from investors as soon as this month and reach $2 billion later this year, the people said.

TPG Lowers Fundraising Goal at Impact Fund After College Scandal

TPG lowered the fundraising target after it took over a $1 billion health-care fund, a spokesman said. Abraaj Group previously managed the fund, which had $500 million in undeployed capital.

McGlashan, who led TPG’s business focused on social good and founded its growth investing platform, was named with other parents in an indictment detailing schemes that involved paying coaches and college administrators to get children into top colleges. McGlashan discussed paying at least $250,000 to get his son into University of Southern California, according to the criminal complaint. McGlashan, who left the firm, has denied the allegation.

TPG gave existing investors in the second fund, including Washington State Investment Board, New Jersey Division of Investment and San Francisco Employees’ Retirement System, the chance to withdraw their commitments. So far none have, the people said.

The initial hard cap for the second Rise Fund was $3.5 billion, according to filings, but was lowered in December to $3 billion, Bloomberg reported earlier this year.

TPG announced in June that Maya Chorengel and Steve Ellis will be co-managing partners of the Rise Fund with Jim Coulter, co-founder of the firm.

The unit has invested in 30 companies since 2017 expect to invest more than $5 billion in companies, Chorengel said in an emailed statement.

The Wall Street Journal earlier today reported on the lower target.

©2019 Bloomberg L.P.

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