Slide 1: TPG Reports Fourth Quarter and Full Year 2024 Financial Results
TPG Reports Fourth Quarter and Full Year 2024 Financial Results Year Ended December 31, 2024
Slide 2: TPG Reports Fourth Quarter and Full Year 2024 Results
TPG Reports Fourth Quarter and Full Year 2024 Results San Francisco and Fort Worth, Texas – February 11, 2025 – TPG Inc. (NASDAQ: TPG), a leading global alternative asset management firm, reported its unaudited fourth quarter and full year 2024 results. TPG issued a full detailed presentation of its
Slide 3: Forward Looking Statements; No Offers; Non-GAAP Information
TPG Reports Fourth Quarter and Full Year 2024 Results Forward Looking Statements; No Offers; Non-GAAP Information This document may contain “forward-looking” statements. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,”
Slide 4: Fourth Quarter and Full Year 2024 Results
Fourth Quarter and Full Year 2024 Results
Slide 5: GAAP Statements of Operations (Unaudited)
GAAP Statements of Operations (Unaudited) ▪ Net income of $11 million for 4Q’24 compared to 4Q’23 net income of $42 million ▪ Net income attributable to TPG Inc. of $13 million for 4Q’24 compared to $13 million in 4Q’23 ($ in thousands, except share and per share amounts) 4Q’23 4Q’24 FY’23 FY’24 Rev
Slide 6: Fourth Quarter and Full Year Highlights
Fourth Quarter and Full Year Highlights ▪ 4Q’24 FRR of $461 million decreased 1% versus 4Q’23, with 4Q’24 FRE of $190 million and 4Q’24 After- tax DE of $261 million Non-GAAP Financial 4Q’23 4Q’24 FY’23 FY’24 Measures Fee-Related Revenues (“FRR”) $465 $461 $1,337 $1,831 Fee-Related Earnings (“FRE”)
Slide 7: Non-GAAP Financial Measures
Non-GAAP Financial Measures ▪ FRE decreased 16% from $226 million in 4Q’23 to $190 million in 4Q’24; FRE margin decreased from 49% in 4Q’23 to 41% in 4Q’24, largely driven by a decrease in catch-up management fees year-over-year and the inclusion of TPG AG for a full quarter ▪ After-tax DE of $261 m
Slide 8: Fee-Related Earnings
Fee-Related Earnings ▪ 4Q’24 FRR decreased 1% over 4Q’23 primarily driven by a decrease in capital markets fees, partially offset by an increase in fee-related performance revenues and management fees ▪ Fee-related expenses in 4Q’24 increased 14% over 4Q’23, primarily due to the addition of TPG AG f
Slide 9: Distributable Earnings
Distributable Earnings ▪ After-tax DE increased from $206 million in 4Q’23 to $261 million for 4Q’24, primarily driven by an increase in realized performance allocations, net After-Tax DE Distributable Earnings Mix ($M) $261 $837 3Q’24 4Q’24 $206 $585 7% 32% 93% 68% FRE All Other Sources of Pre-tax
Slide 10: Realized Performance Allocations, Net
Realized Performance Allocations, Net ▪ Realized performance allocations, net were $105 million in 4Q’24, primarily driven by TPG VIII in the Capital platform, Growth IV in the Growth platform, and MVP Fund in TPG AG Credit ▪ Realized performance allocations, net for FY’24 were $195 million, primari
Slide 11: Net Accrued Performance
Net Accrued Performance Investment 4Q’24 Net Accrued Performance Appreciation / (Depreciation) ($M) Platform 4Q’24 FY’24 $11 $9 Capital 3.6% 9.2% $71 Growth 3.9% 10.7% $73 Impact 2.5% 9.5% TPG AG TPG AG Credit 3.3% 13.4% $116 Total TPG AG Real Estate 0.6% 2.4% Real Estate 3.4% 9.8% $974 $468 Market
Slide 12: GAAP Balance Sheet (Unaudited)
GAAP Balance Sheet (Unaudited) ▪ Cash increased to $0.8 billion at the end of 4Q’24 primarily resulting from the net proceeds of our Senior and Subordinated notes offerings after repaying the outstanding borrowings under our Senior Unsecured Revolving Credit Facility and Senior Unsecured Term Loan;
Slide 13: Non-GAAP Balance Sheet
Non-GAAP Balance Sheet ▪ Cash and cash equivalents totaled $147 million at the end of 4Q’24 ▪ At the end of 4Q’24, our net debt(1) was $1.2 billion and our undrawn Senior Unsecured Revolving Credit Facility capacity was $1.2 billion ▪ Our borrowings primarily include Senior and Subordinated notes wi
Slide 14: Operating Metrics
Operating Metrics
Slide 15: Assets Under Management and Fee Earning AUM
Assets Under Management and Fee Earning AUM ▪ 4Q’24 AUM rose 11% over 4Q’23 to $245.9 billion, primarily driven by capital raised of $30.1 billion, including $4.7 billion in Rise Climate II within the Impact platform and $2.2 billion in Credit Solutions III within TPG AG Credit, and net increases in
Slide 16: Assets Under Management and Fee Earning AUM Duration
Assets Under Management and Fee Earning AUM Duration ▪ At the end of 4Q’24, approximately 72% of our AUM and 70% of our FAUM were in perpetual or long-dated funds with a duration(1) of 10 or more years (prior to any available extensions) ▪ At the end of 4Q’24, approximately 68% of our FAUM had a rem
Slide 17: AUM Subject to Fee Earning Growth
AUM Subject to Fee Earning Growth ▪ AUM Subject to Fee Earning Growth totaled $28 billion at the end of 4Q’24 and includes AUM Not Yet Earning Fees (capital commitments that generate new management fees once deployed) and FAUM Subject to Step- Up (capital commitments that generate a higher rate of m
Slide 18: Performance Eligible and Generating AUM
Performance Eligible and Generating AUM ▪ Performance Eligible AUM refers to AUM that is currently producing, or may eventually produce, performance revenues, and totaled $209.3 billion, or 85% of total AUM, at the end of 4Q’24 ▪ Performance Generating AUM refers to AUM that is currently producing p
Slide 19: AUM Rollforward
AUM Rollforward Three Months Ended December 31, 2024 TPG Angelo Gordon Real Market ($ in millions) Capital Growth Impact Credit Real Estate Estate Solutions Total AUM Balance as of Beginning of Period $ 73,164 $ 27,254 $ 24,706 $ 69,898 $ 18,279 $ 17,109 $ 8,697 $ 239,107 Capital Raised 2,494 503 1,
Slide 20: FAUM Rollforward
FAUM Rollforward Three Months Ended December 31, 2024 TPG Angelo Gordon Real Market ($ in millions) Capital Growth Impact Credit Real Estate Estate Solutions Total FAUM Balance as of Beginning of Period $ 37,941 $ 12,358 $ 17,802 $ 42,091 $ 14,168 $ 11,649 $ 5,709 $ 141,718 Fee Earning Capital Raise
Slide 21: Other Operating Metrics
Other Operating Metrics ▪ We have invested approximately $32.9 billion during the last twelve months with $57.6 billion of capital available for deployment at the end of 4Q’24 (All tables in $M) Capital Raised 4Q’23 4Q’24 FY’23 FY’24 Available Capital 4Q’23 4Q’24 Capital $ 4,624 $ 2,494 $ 9,047 $ 5,
Slide 22: Supplemental Details
Supplemental Details
Slide 23: GAAP and Non-GAAP Performance Allocations
GAAP and Non-GAAP Performance Allocations Three Months Ended December 31, 2024 GAAP Less: GAAP GAAP Less: Non-GAAP Non-GAAP (1) (2) ($ in thousands) Total Unrealized Realized Adjustments Realized Capital $ 252,901 $ 88,990 $ 163,911 $ 129,404 $ 34,507 Growth 138,291 78,927 59,364 36,400 22,964 Impac
Slide 24: GAAP and Non-GAAP Net Accrued Performance
GAAP and Non-GAAP Net Accrued Performance As of September 30, 2024 TPG Angelo Gordon Real Market ($ in millions) Capital Growth Impact Credit Real Estate Estate Solutions Total GAAP Total $ 2,834 $ 1,569 $ 558 $ 461 $ 435 $ 55 $ 63 $ 5,975 Less: Excluded Assets(1) 44 236 — — — 10 — 290 (2) Less: Non
Slide 25: Participating Shares Outstanding
Participating Shares Outstanding Estimated Record Date (shares) 9/30/2024 Net Change 12/31/2024 Net Change 2/21/2025(1) TPG Inc. Diluted Shares Outstanding Class A common stock outstanding 103,928,846 5,282,509 109,211,355 4,502,806 113,714,161 Common Units exchangeable into Class A common stock 260
Slide 26: FRE, After-Tax DE, and Dividends Per Class A Common Stock
FRE, After-Tax DE, and Dividends Per Class A Common Stock ▪ FRE attributable to TPG Inc. of $0.51 per share for 4Q’24 and $2.09 per share for FY’24 ▪ After-tax DE attributable to TPG Inc. of $0.62 per share for 4Q’24, and $2.05 per share for FY’24 ▪ Declared dividend of $0.53 per share for 4Q’24 on
Slide 27: Equity-Based Compensation Summary
Equity-Based Compensation Summary ▪ Equity-based compensation related to TPG Inc. Ordinary Service Awards totaled $28 million in 4Q’24; the total unrecognized compensation expense related to these Ordinary Service Awards amounted to $260 million at the end of 4Q’24, and is expected to be recognized
Slide 28: Fund Performance Metrics
Fund Performance Metrics ($ in millions, as of 12/31/24) Vintage Capital Capital Realized Unrealized Total Gross Gross Net Net Fund Year(1) Committed(2) Invested(3) Value(4) Value(5) Value(6) IRR(7) MoM(7) IRR(8) MoM(9) Platform: Capital Capital Funds Air Partners 1993 $ 64 $ 64 $ 697 $ — $ 697 81%
Slide 29: Fund Performance Metrics (Cont'd)
Fund Performance Metrics (Cont’d) ($ in millions, as of 12/31/24) Vintage Capital Capital Realized Unrealized Total Gross Gross Net Net Fund Year(1) Committed(2) Invested(3) Value(4) Value(5) Value(6) IRR(7) MoM(7) IRR(8) MoM(9) Platform: Growth Growth Funds STAR 2007 $ 1,264 $ 1,259 $ 1,895 $ — $ 1
Slide 30: Fund Performance Metrics (Cont'd)
Fund Performance Metrics (Cont’d) ($ in millions, as of 12/31/24) Vintage Capital Capital Realized Unrealized Total Gross Gross Net Net Fund Year(1) Committed(2) Invested(3) Value(4) Value(5) Value(6) IRR(7) MoM(7) IRR(8) MoM(9) Platform: Real Estate TPG Real Estate Partners TREP II 2014 $ 2,065 $ 2
Slide 31: Fund Performance Metrics (Cont'd)
Fund Performance Metrics (Cont’d) ($ in millions, as of 12/31/24) Vintage Capital Capital Realized Unrealized Total Gross Gross Net Net Fund Year(1) Committed(2) Invested(3) Value(4) Value(5) Value(6) IRR(7) MoM(7) IRR(8) MoM(9) Structured Credit & Specialty Finance ABC Fund I 2021 $ 1,005 $ 864 $ 9
Slide 32: Fund Performance Metrics (Cont'd)
Fund Performance Metrics (Cont’d) ($ in millions, as of 12/31/24) Vintage Capital Capital Realized Unrealized Total Gross Gross Net Net Fund Year(1) Committed(2) Invested(3) Value(4) Value(5) Value(6) IRR(7) MoM(7) IRR(8) MoM(9) Asia Real Estate Asia Realty Asia Realty I 2006 $ 526 $ 506 $ 645 $ — $
Slide 33: Significant Perpetual Funds
Significant Perpetual Funds ($ in millions, as of 12/31/24) Vintage Total (1) Fund Year AUM Return(10) Platform: Market Solutions TPEP Long/Short(15) 2013 $ 1,350 138% TPEP Long Only (16) 2019 969 59% Platform: TPG Angelo Gordon Credit Solutions Corporate Credit Opportunities(17) 1988 346 10% Struct
Slide 34: Fund Performance Metrics Notes
Fund Performance Metrics Notes “NM” signifies that the relevant data would not be meaningful. Performance metrics are generally deemed “NM” when, among other reasons, there has been limited time since initial investment. Performance metrics generally exclude amounts attributable to the fund’s genera
Slide 35: Fund Performance Metrics Notes (Cont'd)
Fund Performance Metrics Notes (Cont’d) 13) Japanese-Yen denominated fund. Commitments, Capital Invested and Realized Value are calculated using the exchange rate at the end of the quarter in which the relevant commitment was made or transaction occurred, as applicable. 14) Includes Euro denominated
Slide 36: GAAP Statements of Operations Expanded (Unaudited)
GAAP Statements of Operations Expanded (Unaudited) ($ in thousands) 4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 FY’24 Revenues Fees and other $ 529,903 $ 512,295 $ 522,800 $ 524,733 $ 527,248 $ 2,087,076 Capital allocation-based income (loss) 453,234 311,776 221,394 330,670 549,166 1,413,006 Total revenues 983,13
Slide 37: Non-GAAP Financial Measures Expanded
Non-GAAP Financial Measures Expanded ($ in thousands) 4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 FY’24 Fee-Related Revenues Management fees $ 395,608 $ 402,684 $ 413,275 $ 407,163 $ 402,588 $ 1,625,710 Fee-related performance revenues 1,642 3,875 4,485 5,557 19,116 33,032 Transaction, monitoring and other fees,
Slide 38: Reconciliations and Disclosures
Reconciliations and Disclosures
Slide 39: GAAP to Non-GAAP Financial Measures Reconciliation
GAAP to Non-GAAP Financial Measures Reconciliation ($ in thousands) 4Q’23 1Q’24 2Q’24 3Q’24 4Q’24 FY’24 GAAP Revenue $ 983,137 $ 824,071 $ 744,194 $ 855,403 $ 1,076,414 $ 3,500,082 Capital-allocation based income (453,234) (311,776) (221,394) (330,670) (549,166) (1,413,006) Expense reimbursements (5
Slide 40: GAAP to Non-GAAP Balance Sheet Reconciliation
GAAP to Non-GAAP Balance Sheet Reconciliation ($ in thousands) 4Q’23 4Q’24 ($ in thousands) 4Q’23 4Q’24 Total GAAP Assets $ 9,369,672 $ 10,535,109 Total GAAP Liabilities $ 6,008,538 $ 6,943,120 Impact of other consolidated entities Impact of other consolidated entities Cash and cash equivalents (559
Slide 41: Additional Information
Additional Information Dividend Policy Our current intention is to pay holders of our Class A common stock and nonvoting Class A common stock a quarterly dividend representing at least 85% of TPG Inc.’s share of distributable earnings attributable to the TPG Operating Group, subject to adjustment as
Slide 42: Definitions
Definitions Acquisition refers to the Company’s acquisition of Angelo Gordon and certain of its affiliates (collectively, “Angelo Gordon” or “AG,” and after the Acquisition, “TPG Angelo Gordon” or “TPG AG”). After-tax Distributable Earnings (“After-tax DE”) is a non-GAAP performance measure of our d
Slide 43: Definitions (Cont'd)
Definitions (Cont’d) Distributable Earnings (“DE”) is used to assess performance and amounts potentially available for distributions to partners. DE is derived from and reconciled to, but not equivalent to, its most directly comparable U.S. GAAP measure of net income. DE differs from U.S. GAAP net i
Slide 44: Definitions (Cont'd)
Definitions (Cont’d) Operating profit margin is defined as U.S. GAAP net income divided by U.S. GAAP total revenue. Performance Eligible AUM refers to the AUM that is currently, or may eventually, produce performance allocations or fee-related performance revenues. All funds for which we are entitle