The Securities and Exchange Commission has initiated cease-and-desist proceedings against TPG Capital Advisors LLC stemming from inadequate disclosures involving a breach of fiduciary duty.
TPG Capital, without admitting or denying the findings, agreed to settle and pay a $3 million fine and about $9.8 million in disgorgement and prejudgment interest.
According to the regulator, from at least April 2013 through April 2015, TPG Capital terminated certain portfolio company monitoring agreements and accelerated the payment of future monitoring fees pursuant to the agreements. In doing so, the company failed to disclose to its funds, and to the funds' limited partners prior to their commitment of capital, that it may accelerate future monitoring fees upon termination of the monitoring agreements.
Additionally, the company also failed to adopt and implement written policies and procedures reasonably designed to prevent violations of the Advisers Act arising from the conflicts of interest associated with its undisclosed receipt of fees, the SEC said.