This private-equity giant stands to benefit from major investments in private credit, real estate, and digital infrastructure. By Dan Victor

   -- TPG is generating strong growth across its alternative investments 
      platform, which is poised to continue benefiting from a favorable 
      economic backdrop. 
 
   -- The recent acquisition of Peppertree Capital Management strengthens the 
      firm's exposure to transformative technologies and high growth digital 
      infrastructure. 
 
   -- A plan to double assets under management through a diversified deal 
      pipeline makes TPG stock a compelling total return investment 
      opportunity. 

Alternative-asset manager TPG is leveraging its distinctive thematic investing approach in areas like healthcare and technology to capitalize on significant growth opportunities.

From its early 1990s origins as a boutique private-equity shop, TPG has evolved into a global industry powerhouse with $258 billion in assets under management, more than doubling that amount since it went public in January 2022. Despite some volatility at the start of 2025, the stock has performed well in recent years and remains a good bet for investors, given the company's expanding platform and a resilient economic landscape.

Today, TPG's strategy encompasses a broad range of investment vehicles, with a focus on long-term value creation. It also has an impressive record of portfolio returns, including early investments in companies such as Airbnb, Spotify Technology, and Uber Technologies.

The firm is also known for pioneering institutional-scale impact investing with the Rise Fund in 2016. Since then, TPG's sustainable-investing Impact Platform has grown into the largest of its kind. Notwithstanding the Trump administration's efforts to roll back certain ESG-focused regulations, TPG is actively securing commitments for its latest Rise IV fund.

Perhaps TPG's most significant strategic move to broaden its capabilities was its acquisition of credit and real estate investment firm Angelo Gordon in November 2023. The deal integrated Angelo Gordon's $74 billion in assets at the time, marking a new era for TPG's diversification and bringing substantial new growth drivers through credit products such as leveraged loans, structured credit offerings, and direct lending.

CEO Jon Winkelried is confident the firm is just getting started. In a conference call with analysts earlier this year, he outlined an ambitious goal to again double TPG's assets under management to $500 billion over the next several years. This plan begins with an effort to " raise significantly more" capital annually than the $30 billion secured in 2024.

That is an encouraging runway for shareholders, where the larger asset base is expected to translate into higher fee-related revenue and earnings, which can boost the stock.

As of the quarter ended March 31, TPG's assets under management stood at $251 billion, representing a 12% increase year over year. Its after-tax distributable earnings over the trailing 12 months totaled $843 million, marking a 24% rise compared with the same period in 2024, capturing both robust investment performance and increased realized gains.

Notable portfolio selldowns this year include a $1.3 billion share sale in cruise line operator Viking Holdings along with a $600 million sale in the fitness club brand Life Time Group Holdings. TPG has frequently cited its ability to successfully exit investments as a "point of differentiation and strength," while the private-equity industry at large grapples with a more challenging period for realizations.

At the same time, the firm remains active building out its portfolio. Earlier this month, TPG completed its acquisition of Peppertree Capital Management, a firm recognized as the largest pure-play specialist in digital infrastructure investing in the U.S., with $7.8 billion in assets under management.

The move significantly broadens TPG's presence in critical communications technology, leveraging Peppertree's deep expertise and established portfolio, covering more than 10,000 wireless communication infrastructure assets, including cell towers, related spectrum licenses, and fiber networks. More important, TPG is poised to benefit from major secular tailwinds, where themes like 5G, the Internet of Things, and burgeoning artificial-intelligence demands are creating a surge in wireless data consumption.

In many ways, the Peppertree deal precisely solidifies the bullish case for TPG. The company is positioned to benefit from a favorable investing environment across its platform, with its exposure to growth-focused strategies offering long-term upside.

Compared with its private-equity peers, TPG stands out by demonstrating the agility to execute bold strategic moves akin to a specialized private-equity firm. Simultaneously, it is well-diversified in areas such as credit and real estate, supporting predictable fee revenue streams crucial for navigating shifting market conditions. That combination could prove potent if interest rates fall, allowing TPG to deploy its $57 billion of available capital into new high-conviction ideas.

TPG is trading at approximately 27 times its consensus full-year earnings per share of $2.04, according to analyst estimates. While at a premium to the broader market, its price/earnings ratio remains below larger peers like Ares Management, Blackstone, and KKR, which collectively average an earnings multiple above 30.

The comparison becomes even more compelling when looking into 2026. Wells Fargo Securities analyst Michael Brown estimates TPG's earnings per share will accelerate to $2.95, implying a one-year forward P/E of 19.5. Previewing TPG's upcoming second-quarter earnings report, set for Aug. 6, the analyst noted that "momentum remains solid" with regards to fund-raising for the second quarter and into the third, suggesting the near-term stock price movement may hinge on management commentary.

Despite its strengths, TPG isn't immune to broader market forces. A scenario in which a sustained economic downturn curtails the operational performance of its portfolio companies, or causes credit spreads to widen significantly, could derail the stock.

Overall, TPG represents a compelling option for investors seeking to access high-growth private markets via a proven, high-quality industry leader. With an attractive 2.9% dividend yield and capital-appreciation potential, TPG certainly deserves a spot in your portfolio.

The Technical View

Shares of TPG are sitting just above a bullish inverse head and shoulders pivot of $52.50, which suggests it could rally to $65.00. The price could accelerate higher once it breaks above the 200-day moving average at $57.22. -- Doug Busch

Write to Dan Victor at dan.victor@barrons.com

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July 25, 2025 21:30 ET (01:30 GMT)

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