William E. (“Bill”) McGlashan, Jr., founder and managing partner of one of the most prolific growth equity investors in India, TPG Growth, has been asked to go on an indefinite leave, due to charges involving a US college fraud scheme. McGlashan, 55, is also co-founder and chief executive of The Rise Fund, which is TPG Growth's global social-impact entity.
A TPG spokesperson said, “As a result of the charges of personal misconduct against McGlashan, we have placed him on indefinite leave immediately.”
McGlashan was among the 50 persons charged for attempting to secure US college admissions for children of wealthy Americans.
For the time being, TPG said Jim Coulter, co-chief executive of TPG, would be interim managing partner of TPG Growth and The Rise Fund.
McGlashan founded TPG Growth in 2007 to make smaller growth equity investments in emerging markets. In 2017, he co-founded The Rise Fund. Indian industrialist Anand Mahindra joined The Rise Fund board in April 2017.
Before TPG, McGlashan had been an entrepreneur and was known for founding email service company Critical Path. He is a co-founder of STX Entertainment, which makes films. The media company has announced that McGlashan has stepped down from its board.
McGlashan’s suspension comes months after The Rise Fund’s plan to raise a second social-impact fund of size $3.5 billion. The fund had received initial commitments from limited partners including New Jersey State Investment Council, a report by publication Private Equity International said last year.
Both TPG Growth and The Rise Fund have been active investors in India. The Rise Fund’s most recent investment came in January in content platform The Better India.
In India, The Rise Fund also owns a stake in Hyderabad-headquartered Dodla Dairy Ltd, where it pumped in Rs 321 crore, to mark its first Indian investment in May 2017. In the same year, it made an investment in Mumbai-based school management services provider Leadership Boulevard Pvt. Ltd.
In June 2018, The Rise Fund invested in Fourth Partner Energy, a renewable power services company that focuses on building and financing solar rooftop projects.
TPG was also attempting to add Abraaj’s $1 billion Growth Markets Health Fund to its Rise Fund last year.