TPG announced that the founder of its social impact fund is out due to his role in the college admissions scandal, according to Bloomberg.
Bill McGlashan founded and led TPG’s The Rise Fund II LP, which provided funding to such matured startups as Uber, Spotify and Airbnb. The fund specialized in social impact investments, and oversees more than $13 billion in assets.
McGlashan is one of several wealthy and prominent parents caught in a far-reaching scheme to put the children of participating parents in choice schools using illegal payments to the school’s staff through an intermediary. The US Government said the parents collectively paid $25 million in bribes in the last eight years. McGlashan, according to the official complaint, discussed paying $250,000 to get his son into the University of Southern California.
In separate statements, TPG claims it fired McGlashan, while he himself said he resigned from his position at the Fund.
“Bill McGlashan has been terminated for cause from his positions with TPG and Rise effective immediately,” said a TPG spokesman in a statement provided to Bloomberg. “After reviewing the allegations of personal misconduct in the criminal complaint, we believe the behavior describes to be inexcusable and antithetical to the values of our entire organization.”
Addressing board members Thursday, he said he resigned and apologized for “this very difficult situation [that] may interfere with the work to which I have devoted my life.”
Jim Coulter, the co-head of the Fund, will take over McGlashan’s responsibilities. TPG is allowing investors to pull money from the social fund in response to the revelations.