TPG Growth/Impact insight? Culture/comp/hours?
Can anyone provide any insight into the growth and impact funds at TPG? Specifically what the culture/comp/hours are and how they differ between the two?
Any info would be much appreciated, feel like there isn’t much on here.
Analyst 1 in IB - Cov, way too quiet in here. What about these resources:
More suggestions...
Hope that helps.
Regarding the Rise (Impact) fund -- I don't have too much insight into culture / hours, but have heard anecdotally they have "trash" returns. These are not my words, so happy to be contradicted.
Not a Rise LP but have seen their returns since they're in the market with Rise III right now. Rise I is third quartile, possible sneaking into second depending on how you benchmark it. Rise II is still very much in the j-curve, only a couple notable markups, and so looks very bad from a quartile perspective.
Interesting, thanks for sharing.
Can you explain in simple terms what this actually means for the fund? Does that just make it harder to fundraise, or does it cause anything else? My sense was that the big selling point for the fund was the ESG aspect, not necessarily that it has/needs stellar returns.
It will be interesting to see how the Rise III fundraise goes. I suspect they'll hit the hard cap (the Climate fund TPG raised in 2021 was wildly oversubscribed) given how trendy ESG/impact investing is now but true market rate investors will struggle to justify making a commitment given how the track record is starting to shape up. That said, so many institutions now have some sort of "impact" bucket that they can just allocate out of that and hold their nose on the returns because it's easier to justify the TPG platform to an investment committee, particularly if they're an LP in another strategy, than to switch to another megafund GP who has less of a track record (KKR Impact, Bain Double Impact, Apax Global Impact, etc) or move down market to any of the dozens of small funds.
In most other cases, I would tell you that I'd expect a Fund III to get raised because the GP will tell a nice story about how performance is going to improve in the previous funds for various reasons, existing LPs will commit but there probably will be very few new LPs who join up, and the fund struggles to hit its target size. Then either the GP actually executes on its Fund III marketing spin, performance improves, and Fund IV is raised with no problem or the GP continues to produce mediocre numbers and it's a three-fund run where Fund IV never gets raised. Raising a first fund is hard. Raising a second fund is a lot easier. Raising a third fund is decently easy, though raising a much larger third fund is hard and requires good performance. Raising a fourth fund of any size requires good performance.
Growth makes primarily minority investments in high growth businesses and their teams are sector specific. Impact/Rise is the esg investment arm. Impact/Rise has a bigger aum on paper but growth raises a new fund every 2-3 years. The wlb at growth is significantly better than tpg capital with the exception of maybe growth business services/industrials. They’re also paid the same. Rise/Impact takes a slight discount on bonus but still will likely crack the 300k mark for first year. Rationale being esg investing is still a newer industry with less consistent high yield returns.
This is very helpful, thank you. Also good to know about Growth WLB, know someone who joined the normal buyout fund and got absolutely destroyed (working longer hours than in banking). Any insight into the hours in Rise?
Pretty good. Would say on average 60 hours, at least that’s what I’m told. I got a chance to interview at all 3, won’t specify for now which one I’m going to do as to not completely dox myself. The rise funds sit within impact and in general you can get a feel that they’re a bit more green thumbed and liberal than traditional pe. Given they’re also SF based I think it’s a solid move for ppl who care about esg and sustainability/impact.
also to clarify. Tpg growth has a higher aum but i believe the fund size is a bit smaller. That said, they tend to raise a new fund every couple of years and exit their investments fairly quickly. Usually no more than a 5 year holding period.
Your talking about tpg alternative in ca for the growth firm right?
Bump
Bump
Interested as well
One of my friends (tall, intelligent, and good looking) just signed this cycle, so I think highly of them
I can second this. He's my friend too. Incredibly cute guy with a penchant for Poker (he always loses to me btw).
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