Private equity and outsourced human resources are coming to the IPO market in the week ahead, with two IPOs slated to raise a combined $1.2 billion.
TPG (TPG) plans to raise $1.0 billion at a $9.3 billion market cap. TPG is among the top five global private equity firms by capital raised from 2015 to 2020, ending the most recent quarter with $109 billion in AUM across 17 active products. Its investing approach is focused around five platforms: Capital, Growth, Impact, Real Estate, and Market Solutions. A majority of the firm’s assets are illiquid and require fair value estimates, which could result in losses.
Justworks (JW) plans to raise $214 million at a $2.2 billion market cap. The founder-led company provides an outsourced human resources platform to over 8,000 small and medium-sized businesses. Its customer base is concentrated geographically, with over half of its worksite employees located in New York. Justworks has an established track record of growth and recently became profitable.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business | Deal Size Market Cap | Price Range Shares Filed | Top Bookrunners |
| Justworks (JW) New York, NY | $214M $2,210M | $29 - $32 7,000,000 | Goldman JP Morgan |
| Provides an outsourced payroll and human resources software platform to SMBs. | |||
| TPG (TPG) Fort Worth, TX | $1,000M $9,329M | $28 - $31 33,900,000 | JP Morgan Goldman |
| Global alternative asset manager. | |||
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IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 1/6/22, the Renaissance IPO Index was down 10.1% year-to-date, while the S&P 500 was down 1.4%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber Technologies (UBER) and Snowflake (SNOW). The Renaissance International IPO Index was down 4.9% year-to-date, while the ACWX was down 0.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Volvo Car Group and EQT Partners.
