As the fallout continues from the bribery scandal involving several elite U.S. universities, Bill McGlashan has resigned from TPG and The Rise Fund, its $2 billion impact-investment platform he co-founded with U2’s Bono, Richard Branson and others.
TPG is the majority owner of CAA, the Hollywood uber-agency for which it paid $225 million in equity for a majority stake in 2014. TPG also helped launch STX Entertainment among other Hollywood entities. McGlashan stepped down from the STX board on Wednesday.
McGlashan, who founded and was managing partner of TPG Growth, had been put on administrative leave by parent company TPG after he was among 50 people indicted for their part in a nationwide college bribery scam. The FBI indictments were announced Tuesday.
McGlashan, who also has invested in such Silicon Valley giants as Uber and Airbnb, is charged with trying to game the system to get his son admitted to USC. He faces counts of conspiracy to commit mail fraud and honest services mail fraud.
The exec is among a group of 33 parents who collectively paid millions in bribes to coaches at such top schools as UCLA, USC, Yale, Georgetown and Stanford so their children could gain admission as recruited athletes – even if they weren’t. Felicity Huffman, Lori Loughlin and Loughlin’s fashion designer husband Mossimo Giannulli also among those named in the indictments.
Here is McGlashan’s resignation memo:
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.
With my best regards and love,