Case Interview Questions #00098: Your client Texas Pacific Group (TPG) is one of the largest private equity investment firms in the US, focused on leveraged buyout, growth capital and leveraged recapitalization investments. TPG also manages investment funds specializing in growth capital, venture capital, public equity, and debt investments. The firm invests in a broad range of industries including consumer/retail, media and telecommunications, industrials, technology, travel/leisure and health care.
Recently, TPG got interested in airline and baby food industry, but limited amount of available cash allows investment in only one industry. The CEO of TPG has hired your consulting team. He wants you to compare the airline industry with the baby food industry. In which would you advise TPG to invest their money?
This is a classic industry attractiveness analysis case question. Use Porter’s Five Forces framework, or even better,