TPG Is A Two-Time Loser on Time’s Worst Deals of the Year List

Time magazine has launched 100 “Top Ten” lists of 2008. The magazine is courting page views with its slideshow format (garnering 10 page views for each list instead of one), so to save you time, dear readers, I’ve pulled out all the private equity mentions.

Sadly, private equity did not make the Best Deals list, but it did score three “Worsties.”

The winners (er, losers) come as no surprise, although I could think of a few more deals to throw in the mix. I was surprised, however, that TPG and Apollo’s investment in Harrah’s made number three while TPG’s stinger on WaMu clocked in all the way at number nine.

The losers:

3. TPG and Apollo Management’s Buyout of Harrahs. Says Time:

By the summer, Apollo and TPG were writing down their $1.3 billion stakes by 20% to 25%, but the situation could already be much worse. One co-investor has written down the value of its equity investment by some 75%.

8. Bay Harbour Management’s purchase of Steve & Barry’s out of bankruptcy. The write-up doesn’t to mention that TA Associates owned the company prior to bankruptcy. Says Time:

In August, private-equity firm Bay Harbour Management and hedge fund York Capital Management gave the store a new lease on life, buying it out of bankruptcy for $168 million. Autumn sales, though, didn’t hold up. By November, Steve & Barry’s was going out of business for good.

9. TPG’s failed WaMu PIPE. Dan called it the worst deal in private equity history. The firm said it was “humbled” by the losses. Time calls it the ninth worst deal of 2008. More:

TPG put $1.3 billion of its own money on the line, fully understanding things might get worse before they got better. The terms of the deal ensured that TPG wouldn’t lose out if Washington Mutual had to go out and raise more money. What Bonderman and his colleagues weren’t anticipating was what happened in September.