Alternative asset management firm, TPG (NASDAQ: TPG) will acquire Angelo Gordan, an alternative investment firm focused on credit and real estate investing in a cash and stock deal valued at around $2.7 billion. This is based on TPG’s share price as of May 12, 2023, and includes an “estimated $970 million in cash and up to 62.5 million common units of the TPG Operating Group and restricted stock units of TPG, in each case, subject to certain adjustments.”
The acquisition also includes an “earnout based on Angelo Gordon’s future financial performance, valued at up to $400 million.” The acquisition is expected to close in the fourth quarter of 2023. The transaction is expected to be accretive to TPG Shareholders on fee-related earnings (FRE) and after-tax distributable earnings per share in 2024.
In addition, TPG also announced its Q1 results with after-tax distributable earnings of $0.24 per share of Class A common stock but missed analysts’ estimates of $0.33 per share. The company announced fee-related earnings of $99 million in Q1 with revenues of $311.5 million, up by 14.1% year-over-year and surpassing consensus estimates of $279.31 million.
Analysts are cautiously optimistic about TPG stock with a Moderate Buy consensus rating based on three Buys and eight Holds.
