To IPO or not to IPO? That is the evergreen TPG question. It looks like this time might be the one for the US private equity giant who’s rumored to have locked in JPMorgan Chase (JPM) and Goldman Sachs (GS) as underwriters for a planned IPO. TPG is one of the great titans in the private equity (PE) industry, among Carlyle Group (CG), KKR (KKR), and Blackstone (BX), with roughly $100b in assets under management (AUM) — and the last remaining that’s still privately-held.
The firm’s been flirting with an IPO for about three months now — and with news that other private equity firms like Bridgepoint Group (BPT) and Blue Owl Capital (OWL) went public recently and saw rallying prices, TPG might be getting FOMO on the gains that come from the public markets. The rumored listing values TPG at $10b — and, if all goes well, we could see a ticker up by the end of the year.
why it matters
Investing in PE shares is like investing in a bunch of different stocks through just one – firms like Blackstone hold over 200 companies in their portfolio so it’s no surprise that its shares have rallied by 90% this year alone. If TPG does go ahead, it provides investors with access to a large and diversified portfolio underneath that one ticker.