What Happened?

A number of stocks fell in the afternoon session after investors kept pricing in higher borrowing costs from the Federal Reserve’s recent rate hike and the lasting pressure that tighter policy puts on private-market dealmaking and exits. According to Morningstar, elevated policy rates create headwinds for private equity firms by lifting floating-rate interest expense and worsening exit bottlenecks. More expensive leverage can slow deal activity and make portfolio-company sales harder to complete at attractive prices, reducing distributions back to limited partners. That hangover from the Fed’s tightening move continues to weigh on publicly traded PE managers and related capital-markets names as the market reassesses how durable higher funding costs will be for leveraged deal flow.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Asset Management company TPG (NASDAQ: TPG) fell 4.6%. Is now the time to buy TPG? Access our full analysis report here, it’s free.
• Custody Bank company StepStone Group (NASDAQ: STEP) fell 3.5%. Is now the time to buy StepStone Group? Access our full analysis report here, it’s free.
• Custody Bank company Ridgepost Capital (NYSE: RPC) fell 4.6%. Is now the time to buy Ridgepost Capital? Access our full analysis report here, it’s free.
• Investment Banking & Brokerage company Perella Weinberg (NASDAQ: PWP) fell 3.1%. Is now the time to buy Perella Weinberg? Access our full analysis report here, it’s free.
• Investment Banking & Brokerage company Lazard (NYSE: LAZ) fell 3.5%. Is now the time to buy Lazard? Access our full analysis report here, it’s free.

Zooming In On TPG (TPG)

TPG’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 4 months ago when the stock dropped 4.8% on the news that Switzerland's Partners Group disclosed it had capped quarterly redemptions on its $8.6 billion Global Value SICAV private equity fund, as withdrawal requests surged. Partners Group shares fell approximately 17% in Zurich, their biggest intraday drop on record. The contagion spread immediately: Blackstone fell more than 5%, KKR dropped more than 5%, Ares Management lost approximately 4%, and Blue Owl Capital declined nearly 5%. A separate $31.3 billion Cliffwater private credit fund reported that 17% of investors requested withdrawals in the quarter, also capped at 5%. Partners Group's CEO attributed the pressure to "macroeconomic shifts and geopolitical uncertainty" rather than underlying fund performance. But with Apollo and BlackRock also reported to have capped redemptions recently, the liquidity question across the private markets complex was no longer isolated.

TPG is down 33.7% since the beginning of the year, and at $43.61 per share, it is trading 37.4% below its 52-week high of $69.66 from January 2026. Investors who bought $1,000 worth of TPG’s shares at the IPO in January 2022 would now be looking at an investment worth $1,283.

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