Clearly, private equity sleuths David Carey and Lisa Gewirtz over at The Deal did far more digging (subscription required, sort of) into Texas Pacific Group's recent payoff IPO than I. Crawling around in dusty filings from J. Crew they paint a more accurate picture of Texas Pacific Group's initial investment than the poorly researched, 1997 Daily News piece I relied on. The duo finds the following:
The figures I used actually represented a group of investors, probably including some of the limited partners of TPG who co-invested using, among other things, a bland sounding vehicle called "TPG Advisors II." (Note to self: remember to name holding companies for mostly obscure victims in Greek tragedies so as to befuddle uneducated and entertain clever financial reporters in the event the deal goes south. Jocasta is my current favorite. A good name for a chain of highly overpriced coffee stores, no? Well, that is, except for that whole "marry your own son, find out and kill yourself so he can gouge out his own eyes with your broaches" thing).
According to the Dynamic Debt Duo, TPG itself only invested in the Series A preferred and common. They held about 77% of the preferred. This is in addition to around $50 million they invested in the common along with "direct affiliates."
I suspect their figure for an original investment of between $115 to $125 million for TPG's initial stake is closer than mine. The recalculation of IRRs is left as an exercise for the Going Private Reader.
