Private-equity company TPG said it fired William "Bill" McGlashan and would let investors pull money from the fund that he ran.
McGlashan was first placed on leave on Tuesday after he was among dozens of parents and coaches indicted by the FBI in an alleged scheme to get students into elite colleges.
McGlashan, who joined the firm in 2004, is the founder and managing partner of TPG Growth, which makes investments in growth equity and middle-market buyouts. He's also cofounder and CEO of the Rise Fund, an investment fund focused on companies trying to tackle social and environmental issues.
A TPG spokesperson said on Thursday that McGlashan was "terminated for cause" in a statement:
After reviewing the allegations of personal misconduct in the criminal complaint, we believe the behavior described to be inexcusable and antithetical to the values of our entire organization. As we stated in the previous announcement of Mr. McGlashan’s administrative leave, Jim Coulter will take over managing partner responsibilities for TPG Growth and Rise.
In an email to board members, McGlashan said he resigned.
The progress we have made is too important for you to be distracted by the issues I am facing personally ... I am deeply sorry this very difficult situation may interfere with the work to which I have devoted my life. As you can imagine, my primary concern at this point is for my family. I will also be focused on addressing the allegations that have been presented, and there are aspects of the story that have yet to emerge that I wish I could share. It is essential however that this process happens apart from The Rise Fund and TPG Growth.
TPG is seeking to raise up to $3.5 billion for the second Rise fund, according to documents from the New Jersey Division of Investment, which earmarked $125 million for the vehicle. The firm is allowing investors who already committed to the fund the chance to "reaffirm their commitment," a source familiar with the process said. Bloomberg first reported that investors could pull their money. The firm lowered its target raise to up to $3 billion in December, according to a source.
Investors are reportedly wary of future funds: Bloomberg said that longtime investor New Mexico State Investment Council would more closely scrutinize TPG's next growth fund.
According to court documents, McGlashan had discussions with an unnamed person who participated in the scheme, dubbed "CW-1" in the indictment; CW-1 created "a fake football profile using Photoshop software" so that McGlashan's son could be enlisted as a "purported football recruit."
TPG has more than $100 billion in assets, with the growth fund holding $13.2 billion in assets, according to the company's website.
