Spotlight

“David Bonderman must be steaming,” said Zachery Kouwe in the New York Post. Bonderman, the billionaire co-founder of TPG Capital (originally known as Texas Pacific Group), made a bold bet last April on Washington Mutual, investing $2 billion in the giant savings-and-loan and helping raise $5 billion from other investors. Now those investments are worthless, following WaMu’s collapse last week and the purchase of most of its banking operations by JPMorgan Chase. “Investors in TPG’s various funds will feel the most pain.”

TPG’s $2 billion was spread across six different funds, with a roster of investors that include the New York state and Washington state employee pension funds. But “it’s also a black eye for the high-profile Bonderman,” who has tarnished his reputation as an investor who can spot opportunity where others see only disaster. Known as a highflying socialite, Bonderman celebrated his 60th birthday with a $7 million party in Las Vegas featuring the Rolling Stones. This year’s birthday celebration likely will be a more restrained affair.