Private equity faces an exit problem in Europe as bigger deals beckon

Written by Emily J. Thompson, Senior Investment Analyst

TPG-1.06%

Source: Reuters

Updated: Dec 20 2024

0mins

Source: Reuters

Private Equity Caution: European private equity funds are being cautious about acquisitions, focusing on exit strategies due to challenges in selling larger assets and a decline in the number of bidders for private equity-backed companies.
Market Trends and IPOs: While large transactions are expected to continue, particularly in the U.S., many firms are considering IPOs as an exit route due to a lack of M&A opportunities, with signs of recovery in equity capital markets allowing for potential share sales.

TPG

$62.35+Infinity%1D

Analyst Views on TPG

Wall Street analysts forecast TPG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TPG is 70.10 USD with a low forecast of 55.00 USD and a high forecast of 82.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

10 Analyst Rating

7 Buy

3 Hold

0 Sell

Moderate Buy

Current: 63.020

Low

55.00

Averages

70.10

High

82.00

Current: 63.020

Low

55.00

Averages

70.10

High

82.00

Evercore ISI

In Line

maintain

$55 -> $62

2026-01-22

New

Reason

Evercore ISI

Price Target

$55 -> $62

AI Analysis

2026-01-22

New

maintain

In Line

Reason

Evercore ISI raised the firm's price target on TPG to $62 from $55 and keeps an In Line rating on the shares. 2026 is off to a better start for alternative asset managers, with stocks up about 3% year-to-date as the sector navigates a tricky landscape, the analyst tells investors in a preview for the group. Realizations are expected to be weaker in Q4, but there's optimism for strong monetizations in 2026 due to a favorable capital markets environment, the analyst added.

Wolfe Research

NULL

Outperform

upgrade

$71 -> $80

2026-01-07

Reason

Wolfe Research

Price Target

$71 -> $80

2026-01-07

upgrade

NULL

Outperform

Reason

Wolfe Research raised the firm's price target on TPG to $80 from $71 and keeps an Outperform rating on the shares as part of the firm's Top 10 Themes for 2026 note on the Banks, Brokers, and Alternative Managers. Heading into 2026, the firm notes Retail Brokers and Alts are its favorite subsectors.

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Goldman Sachs

Alexander Blostein

maintain

$70 -> $80

2026-01-06

Reason

Goldman Sachs

Alexander Blostein

Price Target

$70 -> $80

2026-01-06

maintain

Reason

Goldman Sachs analyst Alexander Blostein raised the firm's price target on TPG to $80 from $70 and keeps a Buy rating on the shares. Goldman Sachs is broadly positive on its Capital Markets coverage into 2026, with Alternative and Traditional managers presenting the most compelling upside, followed by Brokers and Trust Banks, the analyst tells investors in a research note. The firm expects Capital Markets recovery to gain steam across M&A and Equity Capital Markets.

UBS

NULL -> Buy

initiated

$82

2025-12-11

Reason

UBS

Price Target

$82

2025-12-11

initiated

NULL -> Buy

Reason

UBS assumed coverage of TPG with a Buy rating and $82 price target, noting strong sector fundamentals across 20 U.S. asset managers and brokers despite more mixed views on valuations and consensus expectations.The outlook favors undervalued growth, disciplined capital allocation, and firms positioned for margin expansion, while secular tailwinds support wealth brokers and independent investment banks whose robust earnings growth appears partly priced in, the analyst tells investors in a research note.

About TPG

TPG Inc. is an alternative asset management company. The Company invests in a diversified set of strategies, including private equity, impact, credit, real estate, and market solutions. It consists of multi-strategy investment platforms: Capital, Growth, Impact, TPG Angelo Gordon, Real Estate, and Market Solutions. Its Capital platform focuses on control-oriented private equity investments. Its Capital platform products include TPG Capital, and TPG Healthcare Partners. Its Growth platform products include TPG Growth and TPG Digital Media. Its Impact platform products include The Rise Funds and TPG NEXT. Its TPG Angelo Gordon platform products include TPG AG Credit Solutions and TPG AG Net Lease. Its Real Estate platform products include TPG Real Estate Partners and Real Estate Credit. Its Market Solutions products include Public Market Investing and Capital Markets. Its TPG Peppertree focuses on wireless communications towers and related critical communications assets.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.