Slide 1: TPG Reports Third Quarter 2024 Financial Results
TPG Reports Third Quarter 2024 Financial Results Quarter Ended September 30, 2024
Slide 2: TPG Reports Third Quarter 2024 Results
TPG Reports Third Quarter 2024 Results ▪ Total assets under management of $239 billion as of September 30, 2024, an increase of 76% compared to $136 billion as of September 30, 2023 ▪ GAAP net income attributable to TPG Inc. of $9 million for the third quarter ended September 30, 2024, with basic ne
Slide 3: About TPG; Forward Looking Statements
TPG Reports Third Quarter 2024 Results About TPG TPG is a leading global alternative asset management firm, founded in San Francisco in 1992, with $239 billion of assets under management and investment and operational teams around the world. TPG invests across a broadly diversified set of strategies
Slide 4: Third Quarter 2024 Results
Third Quarter 2024 Results s i Rs So
Slide 5: GAAP Statements of Operations (Unaudited)
GAAP Statements of Operations (Unaudited) ▪ Net loss of $21 million for 3Q’24 compared to 3Q’23 net loss of $95 million ▪ Net income attributable to TPG Inc. of $9 million for 3Q’24 compared to net income attributable to TPG Inc. of $15 million in 3Q’23 ($ in thousands, except share and per share am
Slide 6: Third Quarter and Year to Date Highlights
Third Quarter and Year to Date Highlights ▪ 3Q’24 FRR of $460 million increased 43% versus 3Q’23, with 3Q’24 FRE of $191 million and 3Q’24 After- tax DE of $189 million Non-GAAP Financial 3Q’23 3Q’24 3Q’23 YTD 3Q’24 YTD Measures Fee-Related Revenues ("FRR") $321 $460 $873 $1,370 Fee-Related Earnings
Slide 7: Non-GAAP Financial Measures
Non-GAAP Financial Measures ▪ FRE increased 22% from $156 million in 3Q’23 to $191 million in 3Q’24; FRE margin decreased from 49% in 3Q’23 to 41% in 3Q’24, largely driven by the inclusion of TPG AG and a decrease in catch-up management fees year-over-year ▪ After-tax DE of $189 million in 3Q’24, a
Slide 8: Fee-Related Earnings
Fee-Related Earnings ▪ 3Q’24 FRR increased 43% over 3Q’23, primarily driven by TPG AG and an increase in capital markets fees ▪ Fee-related expenses in 3Q’24 increased 63% over 3Q’23, primarily due to the addition of TPG AG ▪ FRE margin decreased from 49% in 3Q’23 to 41% in 3Q’24, largely driven by
Slide 9: Distributable Earnings
Distributable Earnings ▪ After-tax DE decreased from $196 million in 3Q’23 to $189 million for 3Q’24, primarily driven by an increase in interest expense, net and lower realized performance allocations, net, partially offset by an increase in FRE After-Tax DE Distributable Earnings Mix ($M) $577 2Q’
Slide 10: Realized Performance Allocations, Net
Realized Performance Allocations, Net ▪ Realized performance allocations, net were $32 million in 3Q’24, primarily driven by TPG VII in the Capital platform, Growth IV in the Growth platform, TREP III in the Real Estate platform, and MMDL IV in TPG AG Credit ▪ Realized performance allocations, net f
Slide 11: Net Accrued Performance
Net Accrued Performance Investment 3Q’24 Net Accrued Performance Appreciation / (Depreciation) ($M) Platform 3Q’24 3Q’24 YTD Capital 2.5% 5.7% $13 $53 Growth 1.9% 7.0% $83 Impact 2.9% 7.3% TPG AG $92 TPG AG Credit 3.4% 9.7% TPG AG Real Estate 1.5% 2.0% Total $419 Real Estate 2.0% 6.6% $975 (1) Marke
Slide 12: GAAP Balance Sheet (Unaudited)
GAAP Balance Sheet (Unaudited) ▪ Cash increased to $1.2 billion at the end of 3Q’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 $261 million at the end of 3Q’24 ▪ At the end of 3Q’24, our net debt(1) was $1.1 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 ▪ 3Q’24 AUM rose 76% over 3Q’23 to $239.1 billion, primarily driven by the acquisition of TPG AG in 4Q’23 ▪ Over the last twelve months capital raised totaled $30.2 billion, including $4.4 billion in Rise Climate II within the Impact platform, $2.1 billion
Slide 16: AUM and Fee Earning AUM Duration
Assets Under Management and Fee Earning AUM Duration ▪ At the end of 3Q’24, approximately 72% of our AUM and 71% 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 3Q’24, approximately 67% 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 $25.9 billion at the end of 3Q’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
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 $205.2 billion, or 86% of total AUM, at the end of 3Q’24 ▪ Performance Generating AUM refers to AUM that is currently producing p
Slide 19: AUM Rollforward
AUM Rollforward ▪ AUM increased $10.1 billion, or 4%, during 3Q’24 and $103.0 billion, or 76%, over the last twelve months ▪ The AUM change in 3Q’24 was primarily driven by capital raised of $10.4 billion and net increases in investment value and other of $5.9 billion, partially offset by realizatio
Slide 20: FAUM Rollforward
FAUM Rollforward ▪ FAUM increased $4.7 billion, or 3%, during 3Q’24 with fee earning capital raised of $5.6 billion partially offset by outflows of $0.5 billion ▪ In the last twelve months FAUM increased 80%; outside the Acquisition, this increase was primarily driven by fee earning capital raised o
Slide 21: Other Operating Metrics
Other Operating Metrics ▪ We have invested approximately $34.3 billion during the last twelve months with $58.4 billion of capital available for deployment at the end of 3Q’24 (All tables in $M) 3Q’23 3Q’24 Capital Raised 3Q’23 3Q’24 Available Capital 3Q’23 3Q’24 YTD YTD Capital $ 2,778 $ 827 $ 4,42
Slide 22: Supplemental Details
Supplemental Details
Slide 23: GAAP and Non-GAAP Performance Allocations
GAAP and Non-GAAP Performance Allocations Three Months Ended September 30, 2024 GAAP Less: GAAP GAAP Less: Non-GAAP Non-GAAP (1) (2) ($ in thousands) Total Unrealized Realized Adjustments Realized Capital $ 134,862 $ 80,113 $ 54,749 $ 43,227 $ 11,522 Growth 44,467 13,414 31,053 24,524 6,529 Impact 4
Slide 24: GAAP and Non-GAAP Net Accrued Performance
GAAP and Non-GAAP Net Accrued Performance As of June 30, 2024 TPG Angelo Gordon Real Market ($ in millions) Capital Growth Impact Credit Real Estate Estate Solutions Total GAAP Total $ 2,750 $ 1,556 $ 526 $ 395 $ 450 $ 79 $ 66 $ 5,822 Less: Excluded Assets(1) 59 266 — — — 14 — 339 (2) Less: Non-GAAP
Slide 25: Participating Shares Outstanding
Participating Shares Outstanding Estimated Record Date (shares) 6/30/2024 Net Change 9/30/2024 Net Change 11/14/2024(1) TPG Inc. Diluted Shares Outstanding Class A common stock outstanding 102,813,336 1,115,510 103,928,846 127,084 104,055,930 Common Units exchangeable into Class A common stock 261,9
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 $0.52 per share for 3Q’24 and $1.57 per share for 3Q’24 YTD ▪ After-tax DE attributable to TPG Inc. of $0.45 per share for 3Q’24, and $1.43 per share for 3Q’24 YTD ▪ Declared dividend of $0.38 per share for 3
Slide 27: Equity-Based Compensation Summary
Equity-Based Compensation Summary ▪ Equity-based compensation related to TPG Inc. Ordinary Service Awards totaled $24 million in 3Q’24; the total unrecognized compensation expense related to these Ordinary Service Awards amounted to $235 million at the end of 3Q’24, and is expected to be recognized
Slide 28: Fund Performance Metrics
Fund Performance Metrics ($ in millions, as of 9/30/24) 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% 1
Slide 29: Fund Performance Metrics (Cont'd)
Fund Performance Metrics (Cont’d) ($ in millions, as of 9/30/24) 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 $ 1,893 $ 2 $ 1,
Slide 30: Fund Performance Metrics (Cont'd)
Fund Performance Metrics (Cont’d) ($ in millions, as of 9/30/24) 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 9/30/24) 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 2021 $ 1,005 $ 864 $ 69 $
Slide 32: Fund Performance Metrics (Cont'd)
Fund Performance Metrics (Cont’d) ($ in millions, as of 9/30/24) 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 9/30/24) Vintage Total (1) Fund Year AUM Return(10) Platform: Market Solutions TPEP Long/Short(15) 2013 $ 1,559 127% TPEP Long Only (16) 2019 1,024 49% Platform: TPG Angelo Gordon Credit Solutions Corporate Credit Opportunities(17) 1988 377 10% Struc
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) 3Q’23 4Q’23 1Q’24 2Q’24 3Q’24 3Q’24 YTD 3Q’24 LTM Revenues Fees and other $ 366,149 $ 529,903 $ 512,295 $ 522,800 $ 524,733 $ 1,559,828 $ 2,089,731 Capital allocation-based income (loss) (205,794) 453,234 311,776 221,394 330,670 863
Slide 37: Non-GAAP Financial Measures Expanded
Non-GAAP Financial Measures Expanded ($ in thousands) 3Q’23 4Q’23 1Q’24 2Q’24 3Q’24 3Q’24 YTD 3Q’24 LTM Fee-Related Revenues Management fees $ 278,503 $ 395,608 $ 402,684 $ 413,275 $ 407,163 $ 1,223,122 $ 1,618,730 Fee-related performance revenues — 1,642 3,875 4,485 5,557 13,917 15,559 Transaction,
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) 3Q’23 4Q’23 1Q’24 2Q’24 3Q’24 3Q’24 YTD 3Q’24 LTM GAAP Revenue $ 160,355 $ 983,137 $ 824,071 $ 744,194 $ 855,403 $ 2,423,668 $ 3,406,805 Capital-allocation based income 205,794 (453,234) (311,776) (221,394) (330,670) (863,840) (1,31
Slide 40: GAAP to Non-GAAP Balance Sheet Reconciliation
GAAP to Non-GAAP Balance Sheet Reconciliation ($ in thousands) 4Q’23 3Q’24 ($ in thousands) 4Q’23 3Q’24 Total GAAP Assets $ 9,369,672 $ 10,522,018 Total GAAP Liabilities $ 6,008,538 $ 7,134,929 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) Capital raised is the aggregate amount of subscriptions and capital raised by our investment funds and co-investment vehicles during a given period, as well as the senior and subordinated notes issued through our CLOs and equity raised through our perpetual vehicles. We believe
Slide 44: Definitions (Cont'd)
Definitions (Cont’d) Net accrued performance represents both unrealized and undistributed performance allocations and fee-related performance revenues resulting from our general partner interests in investment funds that we manage. We believe this measure is useful to investors as it provides additi