SALEM, Ore. — Institutional investors are watching an Oregon investigation of possible conflicts of interest and ethical violations involving Texas Pacific Group, but so far the scrutiny hasn't affected their relationship with the private equity manager.
The investigation by the Oregon attorney general centers on a vote by the Oregon Investment Council, Tigard, that increased a commitment to TPG's latest fund to $300 million from $200 million. The vote came the same day the husband of a council member was contacted by TPG about a position on the board of a company that was to be part of the new TPG fund's portfolio.
So far, none of the investors in TPG's latest fund has expressed concern to the general partners, David Bonderman, a founding partner of San Francisco-based Texas Pacific Group, said in an interview. The $5.7 billion TPG Partners IV closed in January.
And in a preliminary legal opinion issued Sept. 29, the attorney general found no violation of law or policy, but launched a further investigation to "determine the facts and ascertain whether anyone engaged in prohibited conduct."
Pension fund officials said they are keeping an eye on the developments.
Nicholas Maiale, chairman of the $25 billion Pennsylvania State Employees Retirement System, Harrisburg, said he has directed legal counsel to monitor the situation. Pennsylvania has invested in TPG's last two funds, with a $75 million commitment to TPG IV.
At the $116 billion California State Teachers' Retirement System, Sacramento, staff "tracks these types of situations very closely," said spokeswoman Kirsten Macintyre. Still, she noted TPG is not on any kind of watch list. CalSTRS has $350 million committed to TPG IV.