What do the terms ‘assets under management’ (AUM) and revenue tell us when comparing TPG and Carlyle Group?

AUM shows the total market value of client assets a firm manages for investment purposes, indicating scale and potential fee income. Revenue reflects actual earnings over a period. In this comparison, TPG’s AUM growth signals expanding scale, while Carlyle reports higher revenue and net income, suggesting different earnings drivers regardless of AUM size.

How does beta influence risk perception for the two stocks?

Beta measures a stock’s sensitivity to market moves. A higher beta implies greater volatility than the market. Here, TPG has a beta around 1.53 and Carlyle around 2.0, suggesting Carlyle may swing more with market conditions and potentially experience larger price movements.

What does a ‘Buy’ rating from analysts imply in this context, and how should it be interpreted with the given pros and cons?

A ‘Buy’ rating suggests analysts expect the stock to appreciate or outperform peers. When paired with mixed results—such as earnings misses for TPG or macro risks for Carlyle—it indicates potential upside is possible but contingent on execution, market conditions, and sector dynamics.

How can one compare growth potential between TPG and Carlyle based on the provided data?

Growth potential can be inferred from AUM growth, revenue trends, and consensus targets. TPG shows 20% AUM growth and a modest price target upside, while Carlyle shows higher revenue and a ~7% upside target with dividend income. Investors may weigh scale versus profitability and capital return.

What role do dividends play in a stock’s total return, in the Carlyle context?

Dividends add to total return beyond price appreciation. Carlyle’s dividend yield near 2.4% enhances income for investors, potentially supporting returns even if price movements are modest. This contrasts with value driven by growth indicators alone.

Why might long-term price forecasts show wide variability for both stocks?

Forecasts reflect uncertain macro conditions, sector cyclicality, and execution risk. For private equity groups, earnings visibility depends on fundraising cycles, realised investments, and regulatory changes, leading to divergent price projections and confidence levels.

What market risks should investors consider with a higher beta stock like Carlyle compared to TPG?

Higher beta indicates greater sensitivity to market swings. Carlyle’s beta around 2.0 implies amplified moves with market conditions, potentially increasing drawdown risk in downturns while offering more upside potential in rallies relative to TPG’s lower beta.

How does geographic footprint influence a private equity firm’s market opportunities?

A broader global presence, like Carlyle’s 29 offices across five continents, can diversify deal flow, fundraising, and regulatory exposure, potentially reducing concentration risk and expanding cross-border opportunities compared with firms with more regional focus.

What is the significance of quarterly earnings versus long-term growth in evaluating these two stocks?

Quarterly results reveal near-term performance and execution but can be volatile. Long-term growth angles focus on scalable operations, fund performance, and capital deployment strategies, offering a more stable perspective on potential compound growth for each firm.

How should an investor use the provided data to structure a simple comparison checklist?

Create a checklist: (1) compare AUM growth and revenue trends, (2) note beta and implied risk, (3) review analyst ratings and price targets, (4) consider dividends and total return potential, (5) assess geographic reach and market cyclicality. This frames a neutral evaluation.

What limitations should readers acknowledge when using this comparison?

The data are a snapshot with potential biases from analyst forecasts and recent results. Projections may not reflect future regulatory changes, macro shifts, or company-specific events. Use this as an educational reference, not financial advice.

TPG vs Carlyle

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Dave and Buster's operates large-format entertainment and dining complexes where guests play games, watch sports, and eat, with a model that requires ongoing capital to refresh the experience, while M...

Comparison Snapshot

Key Financial Metrics

TPG

Metric

CG

$14.96B

Market Cap

$17.12B

80.92%

Potential Profit

45.29%

Buy

Analyst Rating

Buy

Investment Analysis

TPG

Pros

TPG's assets under management grew 20% year-over-year to $286 billion, reflecting strong investment performance and market positioning.
The company has expanded its investment capabilities organically, notably through the Treco acquisition which targets real estate credit with attractive risk-adjusted returns.
Analysts hold a consensus 'Buy' rating with an average price target suggesting moderate upside potential around 5-7% over the next year.

Considerations

TPG recently missed earnings and revenue forecasts in Q3 2025, with EPS and revenue below analyst expectations, leading to significant stock price declines.
Its stock shows a beta of 1.53, indicating a volatility 53% greater than the S&P 500, which exposes investors to above-average market risk.
Long-term price forecasts show wide variability, reflecting market uncertainty and execution risk in realizing projected growth.

Carlyle

CG

Pros

The Carlyle Group has higher revenue and net income compared to TPG, with $5.53 billion in revenue and $1.26 billion net income, indicating strong profitability.
It benefits from a broader global presence with operations in over 29 offices across five continents, supporting diversified growth opportunities.
Analysts maintain a 'Buy' rating consensus with a 12-month price target implying approximately 7% upside potential and a dividend yield near 2.4%.

Considerations

Carlyle's stock exhibits higher volatility with a beta around 2.0, doubling market risk compared to the S&P 500 benchmark.
The firm operates in a highly cyclical private equity market, which can affect earnings visibility and capital raise execution amid economic cycles.
Investor returns may face headwinds from ongoing macroeconomic uncertainties and regulatory scrutiny affecting the finance sector globally.

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TPG vs Carlyle

Comparison Snapshot

Investment Analysis

TPG

Pros

Considerations

Carlyle

Pros

Considerations

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About TPG and Carlyle

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Frequently asked questions

Comparison Snapshot

About TPG and Carlyle