TPG Finds College-Scandal Leader Sought Investment From Firm
(Bloomberg) -- TPG said ousted executive William McGlashan introduced the ringleader of the college admissions scandal to managers at the firm and allowed him to pitch investment ideas to them.
An investigation by TPG found that McGlashan introduced its growth and social impact teams to William Singer for a potential investment in the college counselor’s businesses, according to a letter sent to fund investors and employees Thursday. The introduction came in 2017
soon after McGlashan first met with Singer but prior to any of the allegations made by the government. Singer allegedly helped McGlashan’s son try to cheat his way into college.
TPG said it passed on the investment opportunity because it wasn’t viable and before charges against McGlashan surfaced. Singer met with TPG executives in 2017.
“We are confident that the process and deal team worked as they should, free from any undue influence by Mr. McGlashan or knowledge of unethical or criminal behavior in Mr. Singer’s businesses,” a TPG spokesman said in a statement Thursday.
A representative for McGlashan wasn’t immediately available for comment.
TPG was rocked after news emerged that the leader of its business focused on social good was charged along with other parents for their involvement in schemes that paid coaches and college administrators to get children into top colleges.
Government wiretaps revealed conversations between Singer and McGlashan discussing paying money to get his son into the University of Southern California. TPG said it responded by firing McGlashan and opening an internal investigation.
TPG has also determined that McGlashan will forfeit his vested and unvested profits in the firm’s growth and impact funds and unvested interests in the company, according to the spokesman. He will keep some economic stakes in the firm and funds such as co-investments.
The TPG probe also uncovered that McGlashan charged $24,738 in expenses to the funds, which TPG will give back to investors. The expenses were charged to the funds by mistake or without enough documentation to substantiate them, according to the letter.
“The investigation found no evidence that fund or firm monies were paid to Mr. Singer or his related entities, and no fraud or systematic misconduct associated with Mr. McGlashan’s financial dealings with the fund,” the spokesman said.
The firm also found that two additional TPG professionals used Singer’s college counseling business, but for legitimate reasons.
McGlashan paid Singer $50,000 to bribe a proctor to improve his son’s answers on the ACT college admissions test, investigators said. His lawyer has said the case is flawed.
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