6.29.2006
Texas Pacific Group Cashes in on Khakis - "Fat Pockets"
Who knew there could be so much money to be made in Khaki pants. Texas Pacific Group apparently saw the future as yesterday, J.Crew went public. Texas Pacific Group made about 5 times their $130 mm investment. This translates into $100 MM for the employees of TPG. As we say over here at PimpWiz, Fat Pockets.
According to the TheDeal.com:
The New York retailer went public Wednesday, June 28, and saw its shares soar more than 25%. The IPO, which had priced $3 over its target Tuesday at $20 per share, provides a windfall for TPG.
TPG will pocket about $180 million of that and reinvest $73.5 million in J. Crew common stock.
TPG initially invested $115 million to $125 million of equity in J. Crew in 1997 and made a follow-on loan of $10 million in 2003 when the company was struggling. In exchange for the debt, TPG will receive additional shares worth about $67 million after the IPO.
Including unrealized gains, TPG is showing more than a 425% gain on the $125 million to $135 million it invested over nine years.
A PimpWiz Exclusive
