Publicly traded private-equity firms have posted strong performance since the U.S. economy emerged from the coronavirus-driven downturn. Low interest rates have made borrowing cheap and prompted institutional investors to pour money into the asset class. Including dividends, shares of industry behemoth Blackstone have more than doubled in the past year alone.
Bankers said they are closely watching TPG’s IPO and how its stock trades Thursday to gauge the health of the 2022 IPO market. Earlier Wednesday, human-resources and payroll-software company Justworks Inc. said it was delaying its IPO, which was also set to start trading Thursday, citing market conditions.