What Makes TPG (TPG) a Compelling Bet?

In its Q2 2026 capitalist letter, Vulcan Value Partners highlighted TPG Inc. (NASDAQ:TPG), a caller summation to the firm's small‑cap strategy. TPG Inc. (NASDAQ:TPG) is simply a US-based alternate plus absorption company. On July 29, 2026, TPG Inc. (NASDAQ:TPG) closed astatine $42.16 per share. One-month instrumentality of TPG Inc. (NASDAQ:TPG) was -0.20%, and its shares mislaid 24.45% implicit the past 52 weeks. TPG Inc. (NASDAQ:TPG) has a marketplace capitalization of $16.20 billion.

Vulcan Value Partners stated the pursuing regarding TPG Inc. (NASDAQ:TPG) successful its Q2 2026 capitalist update:

"We purchased 2 positions during the quarter: Badger Meter Inc. and TPG Inc. (NASDAQ:TPG). TPG is an alternate plus manager with a large estimation and way record. We person been pursuing this concern since their IPO successful 2022. We bought TPG successful our ample headdress strategy successful the archetypal 4th of past twelvemonth during a marketplace overreaction caused by the tariff tantrums. Their beardown returns combined with their quality to consistently instrumentality superior to LPs person acceptable them up good to proceed to outperform the industry. TPG's interest earning AUM and FRE grew 23% and 36% respectively successful Q126. That is coming disconnected a twelvemonth successful which TPG grew interest earning AUM and interest related net 21% and 25% respectively. Despite these beardown results, the banal has declined astir 35% twelvemonth to day owed to AI disruption fears astir its bundle investments. We presumption its banal terms diminution arsenic different marketplace overreaction.

TPG's bundle vulnerability is astir $34 cardinal and represents astir 11% of its full assets nether management. TPG has been investing successful bundle for years and has a precise beardown way record. Their flagship buyout fund, TPG VII, which was started successful 2015, invested successful respective bundle companies. They sold each of their holdings successful that money by the extremity of 2021 astatine precise bully valuations. Subsequent funds person had the payment of learnings from those palmy exits. The concern play for their newer funds has had the unsocial payment of occurring during the play that AI was becoming much visible. We judge that TPG volition person immoderate losers, but successful the aggregate, the maturation successful worth instauration from the winners is going to much than offset the laggards. Like us, TPG is focused connected identifying businesses with sustainable competitory advantages. We judge that they person allocated superior intelligently crossed their portfolios, including software. Some of the competitory advantages they look for see proprietary information implicit nationalist data, transaction processing wherever precision is ngo critical, and vertical marketplace software. Factory automation is an illustration of vertical software. We expect different beardown twelvemonth of maturation successful 2026 and are thrilled with the accidental to bargain this outstanding, well-managed concern with specified an unthinkable borderline of safety."