TPG Launches New Initiative to Seed Diverse Investors and Entrepreneurs ”Dallas Innovates
TPG, a global alternative asset company based in Fort Worth and San Francisco, has announced a new brand initiative that aims to support the next generation of diverse talent.
Called TPG NEXT, the program will provide growth capital and resources to seed, support and scale under-represented investors and entrepreneurs. This includes women, people of color, and LGBTQ + people.
The intention is to introduce flexible new avenues for the strategic capital that is needed to develop, launch and propel diverse-led businesses. TPG says it hopes to enable more people to become capital distributors, creating a “positive ripple effect” across the industry.
Overall, TPG NEXT aims to be a way to reshape and expand the alternatives market.
“There is a self-selection bias in the market that fundamentally disadvantages diverse talent,” TPG co-CEO Jon Winkelried said in a statement. “These structural dynamics will continue unless we strive to step outside of our traditional circles and invest behind different people, ideas and networks.”
Winkelried believes that TPG NEXT will help broaden the “traditionally narrow path to success” in the investment industry. By providing the right mix of capital, operating resources and expertise, TPG sees a way to create a differentiated category of diversified investments.
The TPG NEXT initiative will be overseen by Justin Nunez, Business Unit Partner of TPG Public Equity Partners, and Liz Stiverson, Director and Chief of Staff of the Executive Office of TPG. Nunez and Stiverson will work with a group of executive sponsors including Winkelried, Jim Coulter, Kelvin Davis and Anilu Vazquez-Ubarri.
The launch builds on the company’s commitment to diversity, equity and inclusion. Founded in 1992, TPG manages over $ 91 billion in assets and offices in Beijing, Fort Worth, Hong Kong, London, Luxembourg, Melbourne, Mumbai, New York, San Francisco, Seoul, Singapore and Washington, DC.
But within the vast global company and its ecosystem, there is a mission to drive lasting, long-term change in the industry.
Over the past three years, TPG has made a series of improvements to its recruitment and talent management processes. It has also invested in health and family benefits for parents, women and LGBTQ + employees.
For example, in 2017, TPG launched an initiative to increase gender diversity on the boards of its portfolio companies, a move that led its portfolio companies to add more than 100 female directors. At the end of 2019, TPG expanded this effort to include race, ethnicity, and sexual orientation.
With the introduction of TPG NEXT comes several new investments and partnerships which, along with Harlem Capital, a diversity-focused venture capital firm, form the initiative’s inaugural portfolio.
In 2019, TPG made a strategic non-controlling investment in Harlem Capital which provided it with working capital and access to its resources. By the end of the year, Harlem Capital had closed its inaugural fund with more than $ 40 million in capital commitments.
Also part of TPG NEXT, the partner company of the LandSpire group and has made a strategic minority investment in VamosVentures.
LandSpire Group is a black-owned real estate company focused on investment and development in secondary markets in the United States. Its co-founders, Josh Childress and Justin Davis, and in-house legal counsel, Treana Allen, will join the TPG real estate team for the next year as TPG NEXT’s first investor-in-residence.
Upon completion of the residency, TPG will make a strategic investment in LandSpire and its flagship fund scheduled to launch in 2022.
Founded in 2016 by investor and entrepreneur Marcos Gonzalez, VamosVentures is an early stage venture capital firm that invests in businesses led by diverse teams, with a particular focus on the Latinx community. To help the business grow and scale, TPG will provide VamosVentures with access to additional working capital and operating resources.
In addition to seed commitments, TPG has partnered with the National Association of Investment Companies (NAIC), the largest network of alternative asset managers owned by various owners. The organizations say they share a commitment to tackling industry pipeline challenges and plan to collaborate on organized events, training and engagement opportunities.
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