TPG breaks off talks over stake sale

US private equity firm TPG has broken off talks to sell a stake in itself to investors including Kuwait’s sovereign wealth fund and two California state pension funds.

According to people familiar with the matter, the talks had spanned two years and broke down over valuing TPG, which has also given up thoughts of an initial public offering, at least for the time being.

TPG had hoped to be valued in line with rivals such as Blackstone, which sold shares to the public in 2007. Potential investors including the Kuwait Investment Authority (KIA), the California Public Employees’ Retirement System and the California State Teachers’ Retirement System resisted the notion that 2007 valuations were still relevant.