The fallout from the college admissions scandal has begun. On Thursday, Bill McGlashan, a managing partner at TPG Growth, the venture arm of private equity firm TPG, announced he was stepping down. At the same time TPG released a statement saying they were terminating him. McGlashan also stepped down from the board of TPG-backed movie studio STX Entertainment.
This outcome was inevitable. McGlashan stands accused by federal authorities of bribing college officials to admit his son into USC, under fraudulent pretenses. It would be impossible for him to remain on company boards or with TPG when he stands the chance of ending up in prison.
There is the irony that McGlashan is also a co-founder of the Rise Fund, which seeks to make ethically minded investments to improve society. But there are also business implications here. McGlashan was a big supporter of STX, which just raised another $700 million in a round led by TPG. What will become of the studio now without one of its biggest cheerleaders?