TPG execs to pocket potential $1.4b tax windfall after IPO

TPG execs to pocket potential $1.4b tax windfall after IPO

Photo by Josh Appel on Unsplash

TPG‘s top dealmakers will force the buyout firm to pay them the cash value of tax savings it expects to receive, currently estimated to be worth $1.44 billion, in the years following its initial public offering, a regulatory filing shows.

The practice has been popular with buyout firms going public since Blackstone Inc deployed it in its IPO in 2007. Private equity firms argue the arrangement is justified in rewarding their partners. Critics say it strips their public shareholders of value that should have gone to them.

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief
Subscribe to Newsletter