TPG's (TPG) upcoming sell-side educational briefing on Thursday will provide clarity and data regarding its strategy and approach in the current tech market, which is timely given the company's stock drop-off of 30% on AI and software-related concerns, RBC Capital Markets said in a Tuesday note.

The firm bolstered its AI expertise by hiring an advisory chair and three key AI-related personnel, and has been proactive in the sector with its investments in OpenAI and Anthropic, RBC analysts said. They also noted that TPG was a net seller in tech from 2020 to 2022, when valuations were 20x enterprise value-to-sales, which have plunged to 5x currently.

In the investor briefing, TPG will outline its strategy to tech investing, details on their plan for AI and software-themed funds, and how it its integrating AI into its investment process and operations, according to the note.

Among RBC's covered alternative asset managers, TPG has the largest slice of assets under management in software at 11%, but the analysts highlighted the firm's expertise in the sector, noting its long-term track record and strong performance across core private equity strategies.

Price: 44.78, Change: +0.42, Percent Change: +0.95