TPG (TPG) is positioned to benefit from the disruption created by AI and software adoption, RBC Capital Markets said.

The investment firm said in a Thursday note that TPG has invested in AI since 2016, including early investments in noodle.ai and C3.ai and more recent stakes in OpenAI and Anthropic. TPG's software investing strategy focuses on companies with proprietary data, vertical systems of record, cybersecurity infrastructure and network effects.

The brokerage noted that about 74% of TPG's value creation in private equity has come from revenue growth and EBITDA margin expansion.

RBC said investors under-appreciate its disciplined track record, noting that TPG was a net seller during the 2020 to 2022 years with net sales totaling about $11 billion during peak valuations in software.

The firm maintained its outperform rating and $59 price target, saying the recent pullback tied to AI and software concerns has created an attractive entry point for the stock.

Shares of TPG were down more than 4% in Friday trading.

Price: 43.00, Change: -1.97, Percent Change: -4.37