Fort Worth and San Francisco-based TPG Capital will pay about $13 million to settle claims it made misleading disclosures about fees it collected from buyout targets, according to the Securities and Exchange Commission. TPG will pay about $3 million as a fine with the remainder in disgorgement.
According to a Bloomberg report, TPG Capital is the latest private equity firm to be hit with a fine as part of an investigation into “whether firms have put their own interests ahead of investors.” In settling the case, TGP Capital did not admit or deny the allegations.
“TPG is firmly committed to upholding the highest governance and transparency standards. The SEC matter at hand relates to the absence of express disclosure in marketing documents, eight or more years ago, about the possible acceleration of monitoring fees, a then-common industry practice,” according to a statement from a TPG spokesman. “As the SEC order acknowledges, TPG disclosed its receipt of these fees at the time they were taken. As we move forward, in conjunction with this resolution, we remain dedicated to continually enhancing our practices on behalf of our fund investors and portfolio companies.”
TPG’s private equity platform has approximately $52 billion in regulatory assets under management as of Jan. 1, 2017, according to the SEC report.