2023 has been a year of transitions. In the markets, we have seen a transition away from a decade defined by low interest rates, significant liquidity, and sustained growth. Within our sector, advances in generative AI and mass adoption of ChatGPT inched us closer to what will likely be the next platform shift in technology. While it will take time for the effects to fully materialize, we believe – like the cloud and its predecessors – that AI will shape the ways we live and work for years to come.

Three decades of experience has taught us that with change comes opportunity. As the high valuations we experienced in the COVID era returned to historical averages, we simultaneously transitioned from net sellers to net buyers, with the past 12 months representing an incredibly active investment period for our team.

In 2023, we invested $5B in five new companies that represent $12B in aggregate enterprise value. This activity includes partnering with leading corporations and fellow investors to carve out and establish two, newly independent companies, and executing a take-private transaction that represents one of the largest in the firm’s recent history. These companies are leaders in some of our key thematic areas including cybersecurity, infrastructure, and vertical market software, and are at the forefront of driving innovation in these categories:

• New Relic’s observability platform ingests 3 billion data points per minute, helping engineers monitor, debug, and improve software in real time
• Forcepoint G2CI is the largest provider of government security software, working with all branches of the U.S. military
  
• Nextech serves more than 16,000 physicians and 5,550 practices across ophthalmology, orthopedics, plastic surgery, and med spa
• Elite's financial management software powers the business of more than 500 major law firms 
• Denodo provides customers a comprehensive platform for logically integrating, managing, and delivering distributed data

This year, our portfolio companies launched and enhanced new products that harness the power of AI to increase efficiency of workflows, simplify user experience, and protect against new and increasingly sophisticated threats. They welcomed new team members, and received various recognitions for their leadership in product, innovation, and culture. We’re extremely proud of this dynamic group of companies and look forward to partnering with them in the years ahead.

2023 also saw exciting developments to our team and platform. Flavio Porciani, Aaron Matto, and Mike Kostow joined the firm, bringing distinct regional, investment, and operations expertise to our team, and Arun Agarwal and Art Heidrich were promoted to Partner. We also welcomed new senior advisors who previously served as portfolio company CEOs and bring exceptional leadership and domain expertise to our platform. In April, we announced the closing of TPG Tech Adjacencies II, which through its flexible mandate allows us to function as an all-weather partner to high-quality tech companies, meeting their needs across market cycles.

Finding ways to increase connectivity among our community is always top of mind, and this year, we held our Software CEO Summit. The forum provided past and present leaders from across our ecosystem the chance to connect, share learnings, and exchange perspectives on the opportunities and challenges for software companies today. 

To cap off an exciting year, we’re pleased to share that TPG was once again nominated for Private Equity International’s Technology PE Firm of the Year. The winner is determined through public vote, which you can cast here. You can see a full list of TPG's nominations on LinkedIn. We hope you will support us!

We end the year with deep gratitude for our investors, partners, team, and community, and with excitement for the opportunities this evolving industry will surely generate in the year ahead.

Happy Holidays!

TPG Nominated for PEI's 2023 Technology Private Equity Firm of the Year