text_combined: kharealumnicaltechedu article nytimescom sent kharealumnicaltechedu texas pacific addition multibillion dollar portfolio detailed actually invest promising new companies turnarounds knownow waaay small part 72b portfolio far rohit kharealumnicaltechedu texas pacific goes others fear spend august 25 2002 riva atlas edward wong one first calls david n siegel placed became chief executive beleaguered us airways last march seeking advice hammer leaner meaner business plan keep planes flying renegotiate costly contracts unions flipped files found number texas pacific group investment firm headed david bonderman former civil rights lawyer reputation fixing problem companies mr siegel top executive continental airlines watched texas pacifics partners turn investment 66 million airline made three years filed bankruptcy 1990 profit 600 million made nearly much stake america west filed bankruptcy 1992 search advice turned offer let texas pacific role us airways revival asked richard schifter texas pacific executive mr siegel reached june mr siegel called mr schifter days us airways announced plans file bankruptcy two weeks ago negotiated 550 million concessions unions texas pacific based fort worth san francisco agreed kick 100 million part 500 million loan keep company operating bankruptcy also agreed buy 200 million stock 38 percent company take 5 13 seats board us airways emerges bankruptcy unless another investor surfaces better offer one reasons interested folks said james coulter partner texas pacific interview bankruptcy filing arent many people around stomach knowledge delve airline industry texas pacific manages 8 billion thrives buying businesses one else wants mr coulter mr bonderman made names recession early 1990s investments continental america west firms hallmark take active hand shaping companies sometimes ousting poor managers tapping extensive network contacts talented replacements partners looking trouble last year alone texas pacific announced completed six acquisitions unloved industries like semiconductors reinsurance airlines last month announced plans buy burger king losing market share 226 billion also bidding bankgesellschaft berlin large troubled bank creative potentially lucrative deals could texas pacifics acquisition last november memc electronic materials semiconductor company 6 yes 6 cash also guarantee 150 million bank loan last years firms specialize leveraged buyouts use junk bonds bank loans borrowings buy take big stakes companies largely inactive falling stock prices made managements reluctant sell cheaply companies sale tangled finances face cash squeeze texas pacific different terrific environment said stephen schwarzman chief executive blackstone group also specializes buyouts mark attanasio managing director trust company west invested texas pacific said buyout firms want buy companies growing dont see many guys wanting take operational fixes like buyout firms texas pacific tries keep inner workings private partners rarely grant interviews web site perpetually construction mr bonderman mr coulter william price third founding partner declined interviewed article mr bonderman 59 known rumpled shirts bright patterned socks likes argyle socks tend fall around ankles said henry miller investment banker advises troubled companies early career washington lawyer mr bonderman argued case court wearing brown velvet suit texas pacific deal negotiated known obsessively staying touch even trekking places like pakistan nepal recently bhutan whenever see long unfamiliar phone number pop caller id know david calling said one investment banker often works mr bonderman mr bonderman made reputation 1980s chief investment officer robert bass texas oilman mr bonderman enriched mr bass second time making early bets industries like cable television taking stakes troubled companies like american savings loan seized government nearly decade mr bondermans picks earned average annual return 63 percent mr bass 1993 mr bonderman struck mr coulter former lehman brothers banker also worked mr bass teamed later year mr price veteran ge capital capital bain company consulting firm form texas pacific three men complementary skills investment bankers deal makers said mr bonderman master strategist mr coulter good structuring deals detailed management firms purchases mr price often recruits managers advises operational issues david much optimist much deal maker said greg brenneman former president continental jim much counterbalance david sit back ask tough questions approach investments little bit skeptically david end 1990s texas pacific well established deal making easily raised 45 billion pension funds investors early 2000 celebrate war chest firms partners rented san franciscos city hall hired b52s play party stock market began tumble texas pacific hesitated 17month stretch partners made deals checked biggest corporate blowups including adelphia xerox global crossing stayed away finding prices quality businesses untenable instead texas pacific began hastily exit existing investments taking 2 billion profits stretch started cash early cycle said mario giannini chief executive hamilton lane money management firm whose clients texas pacific investors good times late 1990s ideal texas pacific struggled find downtrodden companies needed help texas pacific manage spot diamonds rough revived oxford health plans health maintenance organization nearly collapsed mid1990s almost doubling money bringing new managers upgrading computer systems 1996 made 280 million investment ducati motor italian motorcycle maker whose profits since quadrupled texas pacific also stumbled usually bought top market texas pacifics 560 million investment j crew group clothing retailer paid steep price 10 times cash flow 1997 disappointment 1999 purchase bally shoe maker suffered lower demand luxury goods texas pacific also lost 100 million zilog semiconductor company favorite brands candy maker filed bankruptcy investments taken toll firms performance texas pacific still selling holdings two investment funds raised last decade first fund 720 million portfolio raised 1993 including investments made march 1997 return 40 percent according one texas pacific investor second fund 25 billion raised 1997 could return less half investor estimated since firm less time take profits investments stock market sank texas pacific sold many holdings second fund profits investments could rebound hoping example new management place j crew turn around economy rebounds case one competitor said returns look pretty good consider funds wont return capital investors weak economy throwing many companies trouble texas pacific seems poised repeat earlier success investor said exceptionally well said texas pacific distinct style formula relies talented selfsufficient managers restructure troubled companies preferring remain handsoff except surveillance boardroom necessary replaces managers less year continental emerged bankruptcy example mr bonderman watched frustration old friend robert r ferguson chief executive led edge another trip bankruptcy court continentals board mr bonderman chairman brought gordon bethune executive boeing october 1994 replaced mr ferguson chief executive mr bethune quickly toptobottom overhaul company considered great turnaround artist industry biggest conflict ive ever seen bob ferguson said clark onstad former general counsel federal aviation administration describing thinking mr bonderman known since 1982 braniff bankruptcy chose bethune longtime friend ferguson thought bethune would better job america west texas pacific initiated even extensive management overhaul time charge led mr coulter mr schifter directors w douglas parker current chief executive flew mr coulters home san francisco interview job chief financial officer talked hours mr parker said two men quickly realized somewhat kindred spirits board replaced senior managers america west except william franke chief executive stepped last september restructuring plan made airline profitable year half emerged bankruptcy august 1994 texas pacific owns 3 percent america west worth 337 million controlling shares group holds 50 percent votes passive investors said donald l sturm denver businessman serves continentals board mr bonderman mr price youre active money stake reputation stake overseeing managers worked successfully unions continental america west texas pacific good reputation labor one reason us airways interested texas pacific investment said chris chiames spokesman airline mr siegel wanted investor would labor friendly possible mr chiames said us airways still entertain bids fall marvin davis billionaire investor los angeles expressed interest texas pacifics investment burger king made goldman sachs bain capital announced two years discussions among texas pacifics partners chains franchisees even company owned diageo liquor company put sale said julian josephson chairman national franchisee association represents burger king franchisees liked say human component businesses buy mr josephson said many owners added dismissive labor burger king texas pacific also working executive knows burger kings chief executive john dasburg former chief executive northwest airlines met mr bonderman partners northwest bought stake continental 1998 unlike buyout firms texas pacific remains enamored technology industry despite failure many startups last two years focused semiconductor industry like airline industry highly cyclical far though results mixed firms 1996 acquisition paradyne corporation makes equipment highspeed internet connections huge success texas pacific split two took parts public late 1990s selling stakes 23 times investment much larger investment 400 million acquisition zilog chip maker 1998 made economic crisis asia caused chip prices plummet zilog filed bankruptcy last year texas pacific still hoping turnaround third company semiconductor acquired 16 billion three years ago invested 100 million last year latest gamble industry 6 deal memc may prove lucrative cost mailing payment eon based dsseldorf germany actually acquisition one executive close deal said texas pacific partners deal trust company west leonard green partners agreed guarantee 150 million revolving line credit texas pacific also assumed 900 million worth debt swapped stock company good job timing acquisition said nabeel gareeb companys chief executive noted last quarter memc reported first profit since fourth quarter 2000 texas pacifics interest airlines clearly sizable besides involvement continental america west us airways company plans buy gate gourmet catering business bankrupt swissair group two years ago texas pacific started webbased discount ticket service called hotwire put 75 million seed money persuaded six airlines invest said karl peterson chief executive hotwire instead asking consumers bid tickets priceline shows cheapest ticket web site reveal exact flight travel time sale contraction new economy undoubtedly hurt hotwire privately owned mr peterson said company still unprofitable texas pacific remains committed last spring mr peterson met mr bonderman aspen talk hotwire go snowboarding mr bonderman seemed perfectly willing accompany hotwire steep internet chute limits risk mr peterson discovered going mountain mr bonderman strapped helmet httpwwwnytimescom20020825businessyourmoney25texahtmlex1031278887ei1en05fca479b8bcee6b advertise information advertising email newsletters creative advertising opportunities new york times web please contact onlinesalesnytimescom visit online media kit httpwwwnytimescomadinfo general information nytimescom write helpnytimescom copyright 2002 new york times company httpxentcommailmanlistinfofork sun 25 aug 2002 083447 0400 edt nytimescom article texas pacific goes others fear spend