Private equity giant TPG says it fired a top executive after he was caught in the college admissions scandal, and it's letting investors pull money
- Private equity firm TPG said it fired William 'Bill' McGlashan, an executive caught in the college admissions scandal.
- TPG said he was terminated, but in a note to board members, McGlashan said he resigned.
- The private equity firm is letting investors take out their money from the latest fund McGlashan was raising.
Private equity company TPG said it fired William 'Bill' McGlashan and will let investors pull money from the fund he ran.
McGlashan, who joined the firm in 2004, is the founder and managing partner of TPG Growth, which makes investments in growth equity and middle market buyouts. He's also cofounder and CEO of the Rise Fund, an investment fund focused on companies trying to tackle social and environmental issues.
A TPG spokesperson said on Thursday that McGlashan was "terminated for cause" in a statement.
"After reviewing the allegations of personal misconduct in the criminal complaint, we believe the behavior described to be inexcusable and antithetical to the values of our entire organization. As we stated in the previous announcement of Mr. McGlashan's administrative leave, Jim Coulter will take over managing partner responsibilities for TPG Growth and Rise."
In an email to board members, McGlashan said he resigned.
"The progress we have made is too important for you to be distracted by the issues I am facing personally ... I am deeply sorry this very difficult situation may interfere with the work to which I have devoted my life," he wrote. "As you can imagine, my primary concern at this point is for my family. I will also be focused on addressing the allegations that have been presented, and there are aspects of the story that have yet to emerge that I wish I could share. It is essential however that this process happens apart from The Rise Fund and TPG Growth."
TPG is seeking to raise up to $3.5 billion for the second Rise fund, according to documents from the New Jersey Division of Investment, which earmarked $125 million for the vehicle.
Investors are reportedly wary of future funds: Bloomberg reported that longtime investor New Mexico State Investment Council would more closely scrutinize TPG's next growth fund.
McGlashan allegedly had discussions with an unnamed individual who participated in the scheme, dubbed "CW-1" in the indictment. CW-1 created "a fake football profile using Photoshop software" so that McGlashan's son could be enlisted as a "purported football recruit," according to court documents.
TPG has more than $100 billion in assets, with the growth fund holding $13.2 billion in assets, according to the company's website.