TPG Raises Fund Focused on Public Company Stakes

The transcript discusses a non-traditional approach to activism by TPG, a private equity firm. Unlike typical activist investors, TPG avoids proxy fights and attack letters, instead opting to work with companies that invite them. This strategy is driven by the challenges in private equity, such as high public market valuations and competition for targets. TPG acts more like a public market investor, buying traditional equities. The discussion also touches on potential companies TPG might target, emphasizing those receptive to their involvement, similar to Warren Buffett's approach with Occidental.

How does TPG's approach differ from traditional activist investors?

• They engage in proxy fights.

• They quietly build a position and announce it.

• They send attack letters.

• They are invited by companies to join the board.

What is a key reason for TPG acting more like a public market investor?

• Low public market valuations.

• Preference for small companies.

• Challenges in private equity and high public market valuations.

• Lack of capital.

What strategy is TPG using to deploy its capital?

• Avoiding public markets entirely.

• Focusing solely on technology companies.

• Buying small stakes in many companies.

• Traditional asset management with a more engaged approach.

Which type of companies is TPG likely to target?

• Only technology companies.

• Large companies across various sectors.

• Small startups in niche markets.

• Companies with less than 5% public ownership.

What example is given to illustrate the type of situation TPG might engage in?

• A firm seeking to reduce its public market presence.

• A small tech startup seeking venture capital.

• A company looking to go private.

• A large company needing funding, similar to Occidental and Warren Buffett.