TPG's Bill McGlashan Placed on Leave After Being Charged in College Cheating Scheme
The private equity firm's managing partner also has been removed from the board of STX Entertainment.
Private equity investment firm TPG has placed Bill McGlashan on indefinite administrative leave after the TPG Growth managing partner was charged as one of more than 40 defendants in a massive college admissions scandal.
"As a result of the charges of personal misconduct against Bill McGlashan, we have placed Mr. McGlashan on indefinite administrative leave effective immediately," read a Tuesday statement from TPG. "Jim Coulter, co-CEO of TPG, will be interim managing partner of TPG Growth and The Rise Fund. Mr. Coulter will, in partnership with the organization's executive team, lead all investment work for both going forward."
McGlashan is one of 33 parents charged with conspiracy to commit mail and wire fraud; the list of names also includes actresses Felicity Huffman and Lori Loughlin. According to the criminal complaint, filed Monday, McGlashan donated $50,000 to Key Worldwide Foundation, the college prep service at the center of the scandal, in exchange for arranging for his son to take the ACT entrance exam at a facility controlled by KWF, who would later correct his test answers. The FBI also recorded him in phone conversations discussing falsifying athletic profiles so that his son would be admitted to USC as a recruit.
In 2007, McGlashan founded TPG's growth equity and middle-market investment arm TPG Growth, through which he co-founded and sits on the board of directors of Evolution Media Capital, the investment bank co-created by TPG and its portfolio company CAA. He also co-founded and serves as CEO of The Rise Fund, an investment fund that focuses on social and environmental impact.
As co-founder of STX Entertainment, he also sat on that company's board, until a Wednesday morning internal memo from STX founder, chairman and CEO Robert Simonds. "As you may know, our board member, Bill McGlashan, has been placed on administrative leave at TPG and will be stepping down from our board," the memo read. "This has absolutely nothing to do with his involvement with STX. Please know that TPG remains fully committed to our success. David Bonderman (co-founder of TPG) and Mike Stone continue to sit on our Board and TPG will fill Bill's board seat in the next few days."
March 13, 2:43 p.m. Added McGlashan's removal from the STX board.