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.”
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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.
