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106-475: TPG Inc. , previously known as Texas Pacific Group and TPG Capital , is an American private equity firm based in Fort Worth, Texas . TPG manages investment funds in growth capital, venture capital , public equity , and debt investments. The firm invests in a range of industries including consumer/retail, media and telecommunications , industrials, technology, travel, leisure, and health care. TPG became

212-406: A financial sponsor agreeing to an acquisition without itself committing all the capital required for the acquisition. To do this, the financial sponsor will raise acquisition debt, which looks to the cash flows of the acquisition target to make interest and principal payments. Acquisition debt in an LBO is often non-recourse to the financial sponsor and has no claim on other investments managed by

318-524: A private equity fund . Certain institutional investors have the scale necessary to develop a diversified portfolio of private-equity funds themselves, while others will invest through a fund of funds to allow a portfolio more diversified than one a single investor could construct. Returns on private-equity investments are created through one or a combination of three factors that include: debt repayment or cash accumulation through cash flows from operations, operational improvements that increase earnings over

424-425: A venture capital fund, or an angel investor ; each category of investor has specific financial goals, management preferences, and investment strategies for profiting from their investments. Private equity provides working capital to the target company to finance the expansion of the company with the development of new products and services, restructuring of operations, management, and formal control and ownership of

530-482: A $ 290 million IPO and Simon made approximately $ 66 million. The success of the Gibson Greetings investment attracted the attention of the wider media to the nascent boom in leveraged buyouts. Between 1979 and 1989, it was estimated that there were over 2,000 leveraged buyouts valued in excess of $ 250 million. During the 1980s, constituencies within acquired companies and the media ascribed

636-492: A USD 8.6 billion merger plan between Thailand’s second and third largest telecom operators (by subscribers), True Corporation (TRUE) and Total Access Communication (DTAC) – the proposed merger is subject to regulatory approvals. The merger was "acknowledged" by the regulator NBTC at a meeting on October 20, 2022. The newly merged company still retain the True Corporation name, which was founded on 1 March 2023 and it

742-416: A bid of $ 112, a figure they felt certain would enable them to outflank any response by Kravis's team. KKR's final bid of $ 109, while a lower dollar figure, was ultimately accepted by the board of directors of RJR Nabisco. At $ 31.1 billion of transaction value, RJR Nabisco was by far the largest leveraged buyouts in history. In 2006 and 2007, a number of leveraged buyout transactions were completed that for

848-441: A broad asset allocation that includes traditional assets (e.g., public equity and bonds ) and other alternative assets (e.g., hedge funds , real estate, commodities ). US, Canadian and European public and private pension schemes have invested in the asset class since the early 1980s to diversify away from their core holdings (public equity and fixed income). Today pension investment in private equity accounts for more than

954-482: A buyback of TPG's PIPE convertible in 2000, which would ultimately be acquired by UnitedHealth Group , in 2004. In 1999, TPG invested in Piaggio S.p.A. , Bally International (including Bally Shoe ), and ON Semiconductor . T3 Partners was started in 2001 to invest alongside the main fund in technology-oriented investments. In 2000 TPG and Leonard Green & Partners invested $ 200 million to acquire Petco ,

1060-411: A deal for ₹ 39 billion . In 2020, TPG joined Diligent Corporation 's Modern Leadership Initiative and pledged to create five new board roles among its portfolio companies for racially diverse candidates. On February 25, 2021, AT&T announced that it would spin-off DirecTV , U-verse and AT&T TV into a separate entity, selling a 30% stake to TPG Capital while retaining a 70% stake in

1166-562: A fee of around $ 600 million. TPG and movie producer Robert Simonds, Jr. , announced in March 2014 that they had entered a partnership with China's Hony Capital to produce up to 10 "star-driven" films a year, with mid-range budgets of about $ 40 million per film. In April 2014, it was announced that TPG had invested £200 million in Victoria Plumb after buying a majority stake. In November 2014, Prezzo Holdings agreed to

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1272-802: A fine of $ 650 million – at the time, the largest fine ever levied under securities laws. Milken left the firm after his own indictment in March 1989. On 13 February 1990 after being advised by United States Secretary of the Treasury Nicholas F. Brady , the U.S. Securities and Exchange Commission (SEC), the New York Stock Exchange and the Federal Reserve , Drexel Burnham Lambert officially filed for Chapter 11 bankruptcy protection. The combination of decreasing interest rates, loosening lending standards and regulatory changes for publicly traded companies (specifically

1378-502: A form of growth capital investment made into a publicly traded company . PIPE investments are typically made in the form of a convertible or preferred security that is unregistered for a certain period of time. The Registered Direct (RD) is another common financing vehicle used for growth capital. A registered direct is similar to a PIPE, but is instead sold as a registered security. Mezzanine capital refers to subordinated debt or preferred equity securities that often represent

1484-547: A generally low likelihood of facing liquidity shocks in the medium term, and thus can afford the required long holding periods characteristic of private-equity investment. The median horizon for a LBO transaction is eight years. Telenor Media Telenor is listed on the Oslo Stock Exchange and had a market capitalization in November 2015 of kr 225 billion, making it the third largest company listed on

1590-479: A large and active asset class and the private-equity firms, with hundreds of billions of dollars of committed capital from investors are looking to deploy capital in new and different transactions. As a result of the global financial crisis, private equity has become subject to increased regulation in Europe and is now subject, among other things, to rules preventing asset stripping of portfolio companies and requiring

1696-429: A notable slowdown in issuance levels in the high yield and leveraged loan markets with few issuers accessing the market. Uncertain market conditions led to a significant widening of yield spreads, which coupled with the typical summer slowdown led many companies and investment banks to put their plans to issue debt on hold until the autumn. However, the expected rebound in the market after 1 May 2007 did not materialize, and

1802-463: A number of the same tactics and target the same type of companies as more traditional leveraged buyouts and in many ways could be considered a forerunner of the later private-equity firms. Posner is often credited with coining the term " leveraged buyout " or "LBO". The leveraged buyout boom of the 1980s was conceived by a number of corporate financiers, most notably Jerome Kohlberg Jr. and later his protégé Henry Kravis . Working for Bear Stearns at

1908-745: A period in which a significant and apparently unexplained spike occurred in the market value of the certificates. On June 10, 2010, TPG announced an acquisition of Vertafore, a provider of software for the insurance industry, for $ 1.4 billion. On July 13, 2011, affiliates of TPG Capital acquired PRIMEDIA for approximately $ 525 million, or $ 7.10 per share in cash. TPG and fellow private equity firm Apollo Global Management are set to IPO their stake in Norwegian Cruise Lines in 2013. In July 2013, TPG announced it would buy global education publisher TSL Education, later TES Global, publishers of TES magazine ) from Charterhouse Group , for

2014-479: A private equity investor in Greek mobile phone operator WIND Hellas , formerly TIM Hellas, which filed for bankruptcy protection late 2009. Morgenson raised questions about the circumstances in which TPG and fellow private equity investors Apax Partners of London redeemed a significant quantity of "convertible preferred equity certificates" held by them to repay their own "deeply subordinated shareholder loans " during

2120-709: A public company in January 2022, trading on the NASDAQ under the ticker symbol “TPG”. TPG has historically relied primarily on private equity funds , pools of committed capital from pension funds , insurance companies , endowments , fund of funds , high-net-worth individuals , sovereign wealth funds , and from other institutional investors . Texas Pacific Group, later TPG Capital, was founded in 1992 by David Bonderman , James Coulter and William S. Price III . Prior to founding TPG, Bonderman and Coulter had worked for Robert Bass , making leveraged buyout investments during

2226-400: A reputation as a ruthless corporate raider after his hostile takeover of TWA in 1985. Many of the corporate raiders were onetime clients of Michael Milken , whose investment banking firm, Drexel Burnham Lambert helped raise blind pools of capital with which corporate raiders could make a legitimate attempt to take over a company and provided high-yield debt ("junk bonds") financing of

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2332-399: A third of all monies allocated to the asset class , ahead of other institutional investors such as insurance companies, endowments, and sovereign wealth funds. Most institutional investors do not invest directly in privately held companies , lacking the expertise and resources necessary to structure and monitor the investment. Instead, institutional investors will invest indirectly through

2438-482: A total of $ 748 billion in 2018. Thus, given the abundance of private capital available, companies no longer require public markets for sufficient funding. Benefits may include avoiding the cost of an IPO, maintaining more control of the company, and having the 'legroom' to think long-term rather than focus on short-term or quarterly figures. A new phenomenon in the Twenties are regulated platforms which fractionalise

2544-588: A transformational event in their life cycle. These companies are likely to be more mature than venture capital-funded companies, able to generate revenue and operating profits, but unable to generate sufficient cash to fund major expansions, acquisitions or other investments. Because of this lack of scale, these companies generally can find few alternative conduits to secure capital for growth, so access to growth equity can be critical to pursue necessary facility expansion, sales and marketing initiatives, equipment purchases, and new product development. The primary owner of

2650-421: A £303.7 million takeover by TPG. In the first half of 2014, the company started to raise funds for a real-estate specific fund. It had a goal of $ 1.5 billion to $ 2 billion. By October 2015, the company had exceeded its goal, raising more than $ 2 billion. In 2016, TPG partnered with Bono and Jeff Skoll to launch The Rise Fund, a social impact investment fund. In August 2016, TPG Growth,

2756-656: Is a leading TV content distributor in the Nordic region with about 2.7 million customers in 2011. On 13 April 2021, the merger of Canal Digital and Viasat in Allente was completed. Telenor also operates the national terrestrial broadcast network in Norway , through its subsidiary Norkring . Thor is a family of satellites owned by Telenor. On 11 February 2008, the THOR 5 satellite was launched into geostationary orbit. The launch

2862-513: Is acquired from the current shareholders typically with the use of financial leverage . The companies involved in these transactions are typically mature and generate operating cash flows . Private-equity firms view target companies as either Platform companies, which have sufficient scale and a successful business model to act as a stand-alone entity, or as add-on / tuck-in / bolt-on acquisitions , which would include companies with insufficient scale or other deficits. Leveraged buyouts involve

2968-410: Is offered instead to specialized investment funds and limited partnerships that take an active role in the management and structuring of the companies. In casual usage, "private equity" can refer to these investment firms, rather than the companies in which that they invest. Private-equity capital is invested into a target company either by an investment management company ( private equity firm ),

3074-602: Is often most closely associated with fast-growing technology , healthcare and biotechnology fields, venture funding has been used for other more traditional businesses. Investors generally commit to venture capital funds as part of a wider diversified private-equity portfolio , but also to pursue the larger returns the strategy has the potential to offer. However, venture capital funds have produced lower returns for investors over recent years compared to other private-equity fund types, particularly buyout. The category of distressed securities comprises financial strategies for

3180-492: Is sold two years after the buy-out for $ 13bn, yielding a profit of $ 2bn. The original loan can now be paid off with interest of, say, $ 0.5bn. The remaining profit of $ 1.5bn is shared among the partners. Taxation of such gains is at the capital gains tax rates , which in the United States are lower than ordinary income tax rates. Note that part of that profit results from turning the company around, and part results from

3286-717: The Carnegie Steel Company using private equity. Modern era private equity, however, is credited to Georges Doriot , the "father of venture capitalism" with the founding of ARDC and founder of INSEAD , with capital raised from institutional investors, to encourage private sector investments in businesses run by soldiers who were returning from World War II. ARDC is credited with the first major venture capital success story when its 1957 investment of $ 70,000 in Digital Equipment Corporation (DEC) would be valued at over $ 355 million after

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3392-707: The Nasdaq stock exchange through an IPO at a $ 9 billion valuation. In April 2022, the company purchased a majority stake in Morrow Sodali, a proxy firm based in New York. In May 2023, TPG agreed to acquire alternative investment firm Angelo Gordon in a cash and stock deal valued at $ 2.7   billion. In July 2023, together with Francisco Partners, TPG agreed to acquire web tracking and analytics firm New Relic in an all-cash deal valued at $ 6.5 billion. On September 30, 2024, AT&T announced that it

3498-613: The PPF Group , for a sum of 2.8 billion euros in order to focus more on Asia and the Nordic market. In 2019, Telenor bought DNA , the third largest mobile operator in Finland . On 21 June 2021, Axiata , Telenor and Digi agree to a potential merger of Celcom and Digi to create a stronger telco in Malaysia, which if approved will be completed by the end of 2022. This come after advanced discussions two months earlier. The deal

3604-622: The Sarbanes–Oxley Act ) would set the stage for the largest boom private equity had seen. Marked by the buyout of Dex Media in 2002, large multibillion-dollar U.S. buyouts could once again obtain significant high yield debt financing and larger transactions could be completed. By 2004 and 2005, major buyouts were once again becoming common, including the acquisitions of Toys "R" Us , The Hertz Corporation , Metro-Goldwyn-Mayer and SunGard in 2005. As 2006 began, new "largest buyout" records were set and surpassed several times with nine of

3710-587: The Scandinavian Broadband and TV market, both with regard to the number of subscribers and to the extent of coverage. The TV distribution is branded Allente . Telenor is also a prominent actor in Asia with operations in five different Asian countries. At year-end 2021, Telenor held controlling interests in mobile operations in Norway , Denmark , Finland , Sweden , Thailand , Malaysia , Bangladesh , Myanmar and Pakistan . The Myanmar operation

3816-532: The " corporate raid " label to many private-equity investments, particularly those that featured a hostile takeover of the company, perceived asset stripping , major layoffs or other significant corporate restructuring activities. Among the most notable investors to be labeled corporate raiders in the 1980s included Carl Icahn , Victor Posner , Nelson Peltz , Robert M. Bass , T. Boone Pickens , Harold Clark Simmons , Kirk Kerkorian , Sir James Goldsmith , Saul Steinberg and Asher Edelman . Carl Icahn developed

3922-432: The $ 2.3 billion leveraged buyout of Burger King from Diageo . However, in November the original transaction collapsed, when Burger King failed to meet certain performance targets. In December 2002, TPG and its co-investors agreed on a reduced $ 1.5 billion purchase price for the investment. The TPG consortium had support from Burger King's franchisees, which controlled approximately 92% of Burger King restaurants at

4028-475: The 1980s. In 1993, Coulter and Bonderman partnered with GE Capital vice president of strategic planning and business development William S. Price III to complete the buyout of Continental Airlines . In 1994, TPG, Blum Capital and ACON Investments created Newbridge Capital, a joint-venture to invest in emerging markets, particularly in Asia and, later, in Latin America. In June 1996, TPG acquired

4134-648: The 1986 buyout of the Revco drug stores, Walter Industries, FEB Trucking and Eaton Leonard. Additionally, the RJR Nabisco deal was showing signs of strain, leading to a recapitalization in 1990 that involved the contribution of $ 1.7 billion of new equity from KKR. In the end, KKR lost $ 700 million on RJR. Drexel reached an agreement with the government in which it pleaded nolo contendere (no contest) to six felonies – three counts of stock parking and three counts of stock manipulation . It also agreed to pay

4240-573: The 1990s, Telenor began mobile operations in other countries: Russia (1994), Bangladesh , Greece , Ireland , Germany and Austria (1997), Ukraine (1998), Malaysia (1999), Denmark and Thailand (2000), Hungary (2002), Montenegro (2004), Pakistan (2004), Slovakia , Czech Republic , Serbia (2006), Myanmar (2014). Operations in Greece, Ireland and Germany were sold in 1999/2000, and profits were re-invested in emerging markets. In October 2005, Telenor acquired Vodafone Sweden, changing

4346-548: The AT&;T Paradyne unit, a multimedia communications business, from Lucent Technologies for $ 175 million. Also in 1996, TPG invested in Beringer Wine , Ducati Motorcycles and Del Monte Foods . In 1997, TPG raised over $ 2.5 billion for its second private equity fund. TPG's most notable investment that year was its takeover of the retailer J. Crew , acquiring an 88% stake for approximately $ 500 million;

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4452-596: The OSE after DNB and Equinor (previously known as Statoil). Telenor started off in 1855, as a state-operated monopoly provider of telegraph services named Telegrafverket . The first Norwegian planning for a telegraph were launched within the Royal Norwegian Navy in 1848, but by 1852, the plans were public and the Parliament of Norway decided on a plan for constructing a telegraph system throughout

4558-652: The Telenor Group, as well as to the individual Business Units across Telenor markets. Telenor Research's mission is to create business value for Telenor through applied research. Telenor started exploring the M2M potentials in 2000, when Telenor R&D established a project both aimed at technology, services and business models. This was further spurred when Telenor acquired the Swedish mobile company Europolitan, which contained parts of Vodafone 's research capabilities in

4664-460: The US private-equity industry were planted in 1946 with the founding of two venture capital firms: American Research and Development Corporation (ARDC) and J.H. Whitney & Company . Before World War II, venture capital investments (originally known as "development capital") were primarily the domain of wealthy individuals and families. In 1901 J.P. Morgan arguably managed the first leveraged buyout of

4770-605: The area. As a result, two separate companies have been established: Telenor Connexion in Stockholm, Sweden (aiming higher up in the M2M value chain), and Telenor Objects (aiming further down in the value chain). The initiative has resulted in a substantial market share of Europe's fast-growing M2M market and is being used by Nissan in Europe to connect its customers' electric cars . Telenor's wholly owned subsidiary Canal Digital

4876-548: The asset class, to invest in private equity from older vintages than would otherwise be available to them. Secondaries also typically experience a different cash flow profile, diminishing the j-curve effect of investing in new private-equity funds. Often investments in secondaries are made through third-party fund vehicle, structured similar to a fund of funds although many large institutional investors have purchased private-equity fund interests through secondary transactions. Sellers of private-equity fund investments sell not only

4982-634: The assets making investment sizes of $ 10,000 or less possible. Although the capital for private equity originally came from individual investors or corporations, in the 1970s, private equity became an asset class in which various institutional investors allocated capital in the hopes of achieving risk-adjusted returns that exceed those possible in the public equity markets . In the 1980s, insurers were major private-equity investors. Later, public pension funds and university and other endowments became more significant sources of capital. For most institutional investors, private-equity investments are made as part of

5088-439: The automatic NMT system in 1981, and the enhanced NMT-900 in 1986. Norway was the first country in to get an automatic mobile telephone system. The digital GSM system came into use in 1993. The third generation of mobile technology with UMTS system began full operation 2004. The Opera web browser was created in 1994 by Jon Stephenson von Tetzchner and Geir Ivarsøy during their tenure at Telenor, and Opera Software

5194-409: The buyouts. One of the final major buyouts of the 1980s proved to be its most ambitious and marked both a high-water mark and a sign of the beginning of the end of the boom. In 1989, KKR (Kohlberg Kravis Roberts) closed in on a $ 31.1 billion takeover of RJR Nabisco . It was, at that time and for over 17 years, the largest leveraged buyout in history. The event was chronicled in the book (and later

5300-434: The company may not be willing to take the financial risk alone. By selling part of the company to private equity, the owner can take out some value and share the risk of growth with partners. Capital can also be used to effect a restructuring of a company's balance sheet, particularly to reduce the amount of leverage (or debt) the company has on its balance sheet . A private investment in public equity (PIPE), refer to

5406-525: The company to be acquired) as well as the interest costs and the ability of the company to cover those costs. Historically the debt portion of a LBO will range from 60 to 90% of the purchase price. Between 2000 and 2005, debt averaged between 59.4% and 67.9% of total purchase price for LBOs in the United States. A private-equity fund, ABC Capital II, borrows $ 9bn from a bank (or other lender). To this, it adds $ 2bn of equity – money from its own partners and from limited partners . With this $ 11bn, it buys all

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5512-671: The company was partially privatised and listed on Oslo Stock Exchange and NASDAQ . The privatisation gave the company 15.6 billion  kr in new capital , with the Government of Norway owning 77.7 percent of the company. As of 2014, the Norwegian government holds 53.97 percent of the Telenor shares directly and another 4.66 percent through the Government Pension Fund Norway . In the second half of

5618-405: The company's initial public offering in 1968 (a return of over 5,000 times its investment and an annualized rate of return of 101%). It is commonly noted that the first venture-backed startup is Fairchild Semiconductor , which produced the first commercially practicable integrated circuit, funded in 1959 by what would later become Venrock Associates . The first leveraged buyout may have been

5724-409: The company. As a financial product, the private-equity fund is a type of private capital for financing a long-term investment strategy in an illiquid business enterprise. Private equity fund investing has been described by the financial press as the superficial rebranding of investment management companies who specialized in the leveraged buyout of financially weak companies. Evaluations of

5830-658: The controversial acquisition of Gemplus SA , a smart card manufacturer. TPG won a struggle with the company's founder, Marc Lassus, for control of the company. Also in 2000, TPG completed an investment in Seagate Technology . In 2001, TPG acquired Telenor Media , a Norwegian phone-directory company, for $ 660 million, and shortly thereafter acquired a controlling interest in silicon-wafer maker MEMC Electronic Materials . In July 2002, TPG, together with Bain Capital and Goldman Sachs Capital Partners , announced

5936-427: The country. Televerket began by connecting Christiania (now Oslo) to Sweden (Norway was at that time in a union with Sweden ) as well as Christiania and Drammen . By 1857, the telegraph had reached Bergen on the west coast via Sørlandet on the south coast, and by 1871, it had reached Kirkenes on the far north coast. Cable connections were opened to Denmark in 1867 and to Great Britain in 1869. The telegraph

6042-528: The definitive sale for $ 1.04 billion in cash of its consumer packaging division to the Texas Pacific Group. In early 2006, as TPG was completing fundraising for its fifth private equity fund, co-founder Bill Price announced that he would reduce his work at the firm. On December 1, 2006, it was announced TPG and Kohlberg Kravis Roberts had been exploring the possibility of a $ 100 billion leveraged buyout of Home Depot . In early 2007,

6148-410: The financial sponsor. Therefore, an LBO transaction's financial structure is particularly attractive to a fund's limited partners, allowing them the benefits of leverage, but limiting the degree of recourse of that leverage. This kind of financing structure leverage benefits an LBO's financial sponsor in two ways: (1) the investor only needs to provide a fraction of the capital for the acquisition, and (2)

6254-509: The firm officially changed its name to TPG , rebranding all of its funds across different geographies. In August 2007, Midwest Air Group, parent company of Midwest Airlines, signed a definitive merger agreement to be acquired by an affiliate of TPG Capital in a transaction valued at approximately $ 450 million. On April 7, 2008, TPG led a $ 7 billion investment in Washington Mutual . On September 25, 2008, Washington Mutual

6360-409: The first time surpassed the RJR Nabisco leveraged buyout in terms of nominal purchase price. However, adjusted for inflation, none of the leveraged buyouts of the 2006–2007 period would surpass RJR Nabisco. By the end of the 1980s the excesses of the buyout market were beginning to show, with the bankruptcy of several large buyouts including Robert Campeau 's 1988 buyout of Federated Department Stores ,

6466-476: The formation of Kohlberg Kravis Roberts in that year. In January 1982, former United States Secretary of the Treasury William E. Simon and a group of investors acquired Gibson Greetings , a producer of greeting cards, for $ 80 million, of which only $ 1 million was rumored to have been contributed by the investors. By mid-1983, just sixteen months after the original deal, Gibson completed

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6572-413: The fund close, the firm formed Rise Climate Coalition, organized to scale climate technologies and share best-practices. Members include individuals and representatives from companies such as Apple , Bank of America , Honeywell , Boeing , and John Deere . In April 2022, the fund announced the final close of TPG Rise Climate with $ 7.3 billion in total commitments. On January 13, 2022, TPG went public on

6678-467: The general increase in share prices in a buoyant stock market, the latter often being the greater component. Notes: Growth capital refers to equity investments, most often minority investments, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a major acquisition without a change of control of the business. Companies that seek growth capital will often do so in order to finance

6784-633: The growth equity and smaller buyout investment arm of TPG Capital, acquired technology staffing firm Frank Recruitment Group in a deal that valued the company at £200 million. In January 2017, TPG acquired a majority of A&O Hotels and Hostels , Europe's biggest privately owned hostel platform, based in Germany. On January 25, 2017, TPG announced that after a nearly two-year search, it had hired Bradford Berenson as its general counsel. Berenson had been vice president and senior counsel for litigation and legal policy for General Electric (GE), where he

6890-503: The investment struggled due to the high purchase price paid relative to the company's earnings. The company was able to complete a turnaround , beginning in 2002, and to complete an IPO in 2006. In 1998, TPG led a minority investment in Oxford Health Plans . TPG and its co-investors invested $ 350 million in a convertible preferred stock that can be converted into 22.1% of Oxford shareholding. The company completed

6996-434: The investments in the fund but also their remaining unfunded commitments to the funds. Other strategies that can be considered private equity or a close adjacent market include: As well as this to compensate for private equities not being traded on the public market, a private-equity secondary market has formed, where private-equity investors purchase securities and assets from other private equity investors. The seeds of

7102-454: The lack of market confidence prevented deals from pricing. By the end of September, the full extent of the credit situation became obvious as major lenders including Citigroup and UBS AG announced major writedowns due to credit losses. The leveraged finance markets came to a near standstill during a week in 2007. As 2008 began, lending standards tightened and the era of "mega-buyouts" came to an end. Nevertheless, private equity continues to be

7208-577: The launch of startup companies to late stage and growth capital that is often used to fund expansion of existing business that are generating revenue but may not yet be profitable or generating cash flow to fund future growth. Entrepreneurs often develop products and ideas that require substantial capital during the formative stages of their companies' life cycles. Many entrepreneurs do not have sufficient funds to finance projects themselves, and they must, therefore, seek outside financing. The venture capitalist's need to deliver high returns to compensate for

7314-402: The launch of a seed or startup company, early-stage development, or expansion of a business. Venture investment is most often found in the application of new technology, new marketing concepts and new products that do not have a proven track record or stable revenue streams. Venture capital is often sub-divided by the stage of development of the company ranging from early-stage capital used for

7420-449: The levels that traditional lenders are willing to provide through bank loans. In compensation for the increased risk, mezzanine debt holders require a higher return for their investment than secured or other more senior lenders. Mezzanine securities are often structured with a current income coupon. Venture capital (VC) is a broad subcategory of private equity that refers to equity investments made, typically in less mature companies, for

7526-583: The life of the investment and multiple expansion, selling the business for a higher price than was originally paid. A key component of private equity as an asset class for institutional investors is that investments are typically realized after some period of time, which will vary depending on the investment strategy. Private-equity investment returns are typically realized through one of the following avenues: Large institutional asset owners such as pension funds (with typically long-dated liabilities), insurance companies, sovereign wealth and national reserve funds have

7632-762: The loan debt. Lewis Cullman's acquisition of Orkin Exterminating Company in 1964 is often cited as the first leveraged buyout. Similar to the approach employed in the McLean transaction, the use of publicly traded holding companies as investment vehicles to acquire portfolios of investments in corporate assets was a relatively new trend in the 1960s popularized by the likes of Warren Buffett ( Berkshire Hathaway ) and Victor Posner ( DWG Corporation ) and later adopted by Nelson Peltz ( Triarc ), Saul Steinberg (Reliance Insurance) and Gerry Schwartz ( Onex Corporation ). These investment vehicles would utilize

7738-455: The major banking players of the day, including Morgan Stanley , Goldman Sachs , Salomon Brothers , and Merrill Lynch were actively involved in advising and financing the parties. After Shearson's original bid, KKR quickly introduced a tender offer to obtain RJR Nabisco for $ 90 per share—a price that enabled it to proceed without the approval of RJR Nabisco's management. RJR's management team, working with Shearson and Salomon Brothers, submitted

7844-439: The most junior portion of a company's capital structure that is senior to the company's common equity . This form of financing is often used by private-equity investors to reduce the amount of equity capital required to finance a leveraged buyout or major expansion. Mezzanine capital, which is often used by smaller companies that are unable to access the high yield market , allows such companies to borrow additional capital beyond

7950-466: The movie), Barbarians at the Gate : The Fall of RJR Nabisco . KKR would eventually prevail in acquiring RJR Nabisco at $ 109 per share, marking a dramatic increase from the original announcement that Shearson Lehman Hutton would take RJR Nabisco private at $ 75 per share. A fierce series of negotiations and horse-trading ensued which pitted KKR against Shearson and later Forstmann Little & Co. Many of

8056-961: The name to Telenor in April 2006. Grameenphone was the first Telenor venture in the Asian telecom market and is now the largest mobile operator in Bangladesh , Telenor holds 55.8 per cent of the company. Grameenphone started trading its shares on the stock exchanges in Dhaka and Chittagong on 16 November 2009. The success of Grammeenphone lead to an increased focus on Asia, with successful entries into Malaysia , Thailand Pakistan , and Myanmar . Telenor also entered India , but had to withdraw from that market in 2017, with substantial losses. In March 2018, Telenor sold its business in Southeast Europe ( Bulgaria , Hungary , Montenegro and Serbia ) to

8162-575: The new standalone company. The deal was closed on August 2, 2021. In July 2021, TPG announced it had raised $ 5.4 billion in a first close for its inaugural TPG Rise Climate fund, a climate investing strategy focused on commercially viable climate technologies. Institutional investment backers included Allstate , the Ontario Teachers’ Pension Plan , and the Washington State Investment Board. Concurrent with

8268-630: The notification and disclosure of information in connection with buy-out activity. From 2010 to 2014 KKR , Carlyle , Apollo and Ares went public. Starting from 2018 these companies converted from partnerships into corporations with more shareholder rights and the inclusion in stock indices and mutual fund portfolios. But with the increased availability and scope of funding provided by private markets, many companies are staying private simply because they can. McKinsey & Company reports in its Global Private Markets Review 2018 that global private market fundraising increased by $ 28.2 billion from 2017, for

8374-407: The pet supplies retailer as part of a $ 600 million buyout. Within two years they sold most of it in a public offering that valued the company at $ 1 billion. Petco's market value greatly increased by the end of 2004 and the firms would ultimately realize a gain of $ 1.2 billion. Then, in 2006, the private equity firms took Petco private again for $ 1.68 billion. In 2000, TPG completed

8480-411: The previous record set in 2000 by 22% and 33% higher than the 2005 fundraising total The following year, despite the onset of turmoil in the credit markets in the summer, saw yet another record year of fundraising with $ 302 billion of investor commitments to 415 funds Among the mega-buyouts completed during the 2006 to 2007 boom were: EQ Office , HCA , Alliance Boots and TXU . In July 2007,

8586-537: The profitable investment of working capital into the corporate equity and the securities of financially weak companies. The investment of private-equity capital into distressed securities is realised with two financial strategies: Moreover, the private-equity investment strategies of hedge funds also include actively trading the loans held and the bonds issued by the financially-weak target companies. Secondary investments refer to investments made in existing private-equity assets. These transactions can involve

8692-449: The purchase by McLean Industries, Inc. of Pan-Atlantic Steamship Company in January 1955 and Waterman Steamship Corporation in May 1955 Under the terms of that transaction, McLean borrowed $ 42 million and raised an additional $ 7 million through an issue of preferred stock . When the deal closed, $ 20 million of Waterman cash and assets were used to retire $ 20 million of

8798-403: The purchase on March 10, 2005. TPG entered the film production business in late 2004, in the major leveraged buyout of Metro-Goldwyn-Mayer . A consortium led by TPG and Sony completed the $ 4.81 billion buyout of the film studio. The consortium also included media-focused firms Providence Equity Partners and Quadrangle Group , as well as DLJ Merchant Banking Partners . The transaction

8904-426: The returns of private equity are mixed: some find that it outperforms public equity, but others find otherwise. Some key features of private equity investment include: The strategies private-equity firms may use are as follows, leveraged buyout being the most common. Leveraged buyout (LBO) refers to a strategy of making equity investments as part of a transaction in which a company, business unit, or business asset

9010-470: The returns to the investor will be enhanced, as long as the return on assets exceeds the cost of the debt. As a percentage of the purchase price for a leverage buyout target, the amount of debt used to finance a transaction varies according to the financial condition and history of the acquisition target, market conditions, the willingness of lenders to extend credit (both to the LBO's financial sponsors and

9116-434: The risk of these investments makes venture funding an expensive capital source for companies. Being able to secure financing is critical to any business, whether it is a startup seeking venture capital or a mid-sized firm that needs more cash to grow. Venture capital is most suitable for businesses with large up-front capital requirements which cannot be financed by cheaper alternatives such as debt . Although venture capital

9222-399: The sale of private equity fund interests or portfolios of direct investments in privately held companies through the purchase of these investments from existing institutional investors . By its nature, the private-equity asset class is illiquid, intended to be a long-term investment for buy and hold investors. Secondary investments allow institutional investors, particularly those new to

9328-472: The shares of an underperforming company, XYZ Industrial (after due diligence , i.e. checking the books). It replaces the senior management in XYZ Industrial, with others who set out to streamline it. The workforce is reduced, some assets are sold off, etc. The objective is to increase the valuation of the company for an early sale. The stock market is experiencing a bull market , and XYZ Industrial

9434-464: The takeover of RJR Nabisco at the end of the 1980s leveraged buyout boom. At the time of its announcement, SunGard would be the largest buyout of a technology company in history, a distinction later ceded to the buyout of Freescale Semiconductor . The involvement of seven firms in the consortium was criticized by investors in private equity who considered cross-holdings among firms to be generally unattractive. On May 15, 2006, Smurfit-Stone reported

9540-578: The telephone system was started in 1920, and completed in 1985. In 1946, the first Telex service was offered, and in 1976, satellite telephone connections to the Norwegian merchant navy, at the time the largest in the world and to oil platforms in the North Sea were made operational. This is the start of Inmarsat Satellite Communication, and formed the first steps to digitalise the telephone network in 1980–1985. Televerket opened its first manual mobile telephone system in 1966, being replaced with

9646-469: The three Bear Stearns bankers would complete a series of buyouts including Stern Metals (1965), Incom (a division of Rockwood International, 1971), Cobblers Industries (1971), and Boren Clay (1973) as well as Thompson Wire, Eagle Motors and Barrows through their investment in Stern Metals. By 1976, tensions had built up between Bear Stearns and Kohlberg, Kravis and Roberts leading to their departure and

9752-455: The time of the transaction. Under its new owners, Burger King underwent a brand overhaul including the use of The Burger King character in advertising. In February 2006, Burger King announced plans for an initial public offering . In November 2003, TPG provided a proposal to buy Portland General Electric from Enron . However, concerns about debt and local politics led to Oregon's Public Utilities Commission regulators to deny permission for

9858-463: The time, Kohlberg and Kravis along with Kravis' cousin George Roberts began a series of what they described as "bootstrap" investments. Many of these companies lacked a viable or attractive exit for their founders as they were too small to be taken public and the founders were reluctant to sell out to competitors and so a sale to a financial buyer could prove attractive. In the following years

9964-403: The top ten buyouts at the end of 2007 having been announced in an 18-month window from the beginning of 2006 through the middle of 2007. In 2006, private-equity firms bought 654 U.S. companies for $ 375 billion, representing 18 times the level of transactions closed in 2003. Additionally, U.S.-based private-equity firms raised $ 215.4 billion in investor commitments to 322 funds, surpassing

10070-411: The turmoil that had been affecting the mortgage markets , spilled over into the leveraged finance and high-yield debt markets. The markets had been highly robust during the first six months of 2007, with highly issuer friendly developments including PIK and PIK Toggle (interest is " P ayable I n K ind") and covenant light debt widely available to finance large leveraged buyouts. July and August saw

10176-718: Was "responsible for litigation, government and internal investigations, compliance, and legal policy worldwide." From 2001 to 2003, Bereson served as Associate White House Counsel to President George W. Bush . In 2017, Bonderman left the board of Uber "after he made a sexist comment in response to Arianna Huffington at an Uber meeting". In July 2017, Ajay Kanwal and Naveen Chopra joined TPG as senior advisors. In September 2017, TPG Capital acquired majority stake in Australia's largest contract research organization, Novotech Clinical Research. In November 2017, TPG Capital acquired Mendocino Farms ; former Yard House CEO Harald Herrmann

10282-481: Was announced in September 2004, and completed in early 2005. Also in 2005, TPG was involved in the buyout of SunGard in a transaction valued at $ 11.3 billion. TPG's partners in the acquisition were Silver Lake Partners , Bain Capital , Goldman Sachs Capital Partners , Kohlberg Kravis Roberts , Providence Equity Partners , and Blackstone Group . This represented the largest leveraged buyout completed since

10388-709: Was announced sold in 2021, and the transaction completed in March 2022. Telenor Kystradio is responsible for the infrastructure for maritime radio communication in Norway, and also includes five staffed coast radio stations whose primary purpose is to monitor the maritime radio traffic (over e.g. VHF and MF bands) and to assist marine vessels in distress. Telenor Research is Telenor's corporate unit for research. The unit conducts research and delivers research based advice on topics such as market, technology, data analytics, innovation and organization. Telenor Research provides research based analysis and strategic recommendations to

10494-458: Was appointed as its CEO. In 2017–2018 TPG invested in Solinftec . In February 2018, TPG backed former AOL CEO Jon Miller in acquiring Fandom (formerly Wikia, Inc.). Miller was named co-chairman of Wikia, alongside Jimmy Wales , and TPG Capital director Andrew Doyle assumed the role of interim CEO. In March 2018, Manipal Hospitals and TPG Capital acquired Fortis Healthcare as part of

10600-431: Was approved by both Celcom and Digi shareholders on 18 November 2022. The merged company is named CelcomDigi. At completion, Axiata and Telenor will hold equal ownership of 33.1 percent each in the newly merged company. The merger was completed on 30 November 2022 and the company began its operation the next day. On 22 November 2021, Telenor and Charoen Pokphand Group , officially announced they have agreed to explore

10706-743: Was established in 1995, when they went on to continue development of their browser. Telenor and Huawei conducted a successful test of 5G with 70 Gbit/s Speeds in Lab environment. The corporation changed its name to Televerket in 1969. In 1994, then the Norwegian Telecom was established as a public corporation . The telecom sector in Norway, was deregulated in stages between 1994 and 1998. An attempt to merge Telenor with its counterpart in Sweden , Telia , failed in 1999, while both still were owned by their respective governments. On 4 December 2000,

10812-482: Was listed on the Stock Exchange of Thailand under the stock ticker symbol TRUE on 3 March 2023. Telenor offers a full range of telecommunication services in the Nordic countries, including mobile and fixed telephony, Internet access and as well as cable TV access and content. Telenor still remains the largest actor in Norway despite competition from Telia and others. The group holds a prominent position in

10918-410: Was most important for the merchant marine who now could use the electric telegraph to instantly communicate between different locations, and get a whole new advantage from better logistics . The first telephone service in Norway was offered in 1878, between Arendal and Tvedestrand , while the first international telephone service between Christiania and Stockholm was offered in 1893. Automation of

11024-537: Was provided by International Launch Services using a Proton-M launch vehicle built by Khrunichev Space Center . Telenor operates three satellites from its satellite control centre at Fornebu (THOR5, THOR6 and THOR7). Telenor has sold a number of divisions after its privatisation, including Bravida, the former installation division and Findexa , now part of Eniro that is responsible for telephone directories . The browser vendor Opera Software originated in Telenor's R&D department. Telenor formerly provided

11130-483: Was selling its remaining 70% stake in DirecTV to TPG. On September 30, 2024, TPG Angelo Gordon and a certain amount of its co-investors, as well as DirecTV, provided $ 2.5 billion of financing to fully refinance DISH DBS’ November 2024 debt maturity. Private equity Private equity ( PE ) is stock in a private company that does not offer stock to the general public. In the field of finance , private equity

11236-648: Was taken over by the U.S. government, costing TPG a $ 1.35 billion investment. It has been called by some analysts "the worst deal in private equity history." On October 31, 2008, TPG completed the purchase of a 35% interest in P.T. Bumi Resources , from its previous owner Bakrie & Brothers, Indonesia, for $ 1.3 billion. In June 2009, Republic Airways Holdings Inc., a provider of regional flights for larger carriers, agreed to buy Midwest Airlines from TPG Capital. On March 12, 2010, Gretchen Morgenson , in The New York Times , discussed TPG's role as

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