TPG: Weak Realizations Are Hiding A Much Stronger Fee Business
TPG Inc. is rated Buy with a $55 price target despite a decline from its 52-week high. Its fee-related earnings rose 43% and fee-earning AUM grew 24%, while weak realizations pressured the stock; roughly $51.7 billion of AUM is not yet generating full fees.
Why it matters — A TPG watcher would note that the company's fee business is growing strongly, with billions in AUM poised to generate full fees in the future.