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Texas Pacific has great run with J Crew


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January 31, 2007

Texas Pacific has great run with J Crew

Steve Rosenbush

Private equity giant J Crew acquired apparel retailer J Crew for $390 million in 1997, according to market researcher Dealogic. Last year, J Crew sold 44% of the company to the public in an offering that valued the enterprise at $1.2 billion. Texas Pacific reduced its holdings in a secondary offering this week, but still retains a 36% stake in the company. The public portion of J Crew has a market cap of $2.1 billion. Texas Pacific made an astute move back in 1997 by hiring CEO Mickey Drexler away from The Gap. J Crew has prospered, so much so that Texas Pacific invested an additional $73 million in the operation last year. The Gap has been on the ropes and has ousted CEO Paul Pressler. A focus on strong management and long-term patient exit strategy have paid off for TPG.

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