SAN FRANCISCO (CBS SF) — Private equity giant TPG Capital said Thursday it has fired one of its top executives, Bill McGlashan, following his indictment in the wide-ranging college admissions scandal. McGlashan indicated, however, that he had resigned before the notice of termination.
McGlashan was the co-founder and managing partner of the firm’s growth equity platform TPG Growth. He is widely known in Silicon Valley for backing socially conscious endeavors and seen as leading voice for ethical investing. McGlashan had already stepped down the boards of The Rise Fund – an impact investing group – and STX Entertainment, which he also co-founded.
Among the firms TPG Growth has invested in are Airbnb, Spotify, Uber and Vice Media.
“Bill McGlashan has been terminated for cause from his positions with TPG and Rise effective immediately,” said TPG 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.”
However, McGlashan disputed he was fired, saying he submitted his resignation before the termination notice, according to a press release from his representatives, which included a note from McGlashan to the TPG board.
My Dear Board Members:
Though it breaks my heart to write this, I feel it is now the right thing to resign from The Rise Fund and TPG Growth. The progress we have made is too important for you to be distracted by the issues I am facing personally. The work The Rise Fund is doing is critically important to the world. By stepping down, I hope that The Rise Fund and TPG Growth will be best set to continue their mission. The Rise Fund and TPG Growth are obviously much bigger than any single individual, and it is important you continue building incredible companies that deliver great returns and impact. 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.
It has been an absolute honor to work with all of you, and I am deeply grateful for the unique privilege I have had to start this work with you. I hope with all my heart for your great continued impact. I am going to focus on my family and comprehensively addressing the allegations, but I wish you all great success.
On Tuesday, TPG placed McGlashan on administrative leave following word of his indictment in the scandal involving well-heeled parents allegedly bribing and cheating their children’s way to admission into elite universities.
McGlashan, who lives in Mill Valley, is accused of bribing University of Southern California associate Athletic Director Donna Heinel to have his son admitted to USC, and of producing a fake athletic profile purporting to show his son played football.
He is also accused of paying 50,000 to a proctor to have his son’s ACT answers corrected and have an imposter take sections of the test in his son’s place, paying a total of $250,000 to get his son into USC.
McGlashan was arrested Tuesday at his Mill Valley home and posted a $1 million bond Wednesday. He had been with TPG since 2004.