Analyst Brennan Hawken of BMO Capital maintained a Buy rating on TPG, with a price target of $65.00.
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Brennan Hawken has given his Buy rating due to a combination of factors tied to TPG’s new strategic partnership with Jackson Financial and the resulting earnings visibility. He views the 10-year investment management agreement, with automatic extensions and a clear ramp of Jackson assets under management, as a meaningful and durable enhancement to TPG’s credit platform. The contractual minimum management fee and potential for higher blended economics provide attractive, predictable fee revenue, which Hawken expects to be accretive to fee-related earnings by late 2026 and to distributable earnings the following year.
Additionally, Hawken highlights the strong alignment created by TPG’s equity investment in Jackson and the potential issuance of additional TPG shares if assets scale to $20 billion, which incentivizes both parties to grow the mandate. He believes the partnership leverages TPG’s existing credit, asset-backed finance, and direct lending infrastructure, supporting high incremental margins without requiring heavy new investment. Combined with TPG’s broader strengths in fundraising, product expansion, and brand, he concludes that this agreement underpins durable, high-quality earnings growth, justifying a Buy rating despite acknowledged concentration and thematic risks in the business model.
In another report released yesterday, Goldman Sachs also maintained a Buy rating on the stock with a $80.00 price target.