Slide 1: TPG Angelo Gordon Teach-In
TPG Angelo Gordon Teach-In November 2023 TPG HIGHLY CONFIDENTIAL — NOT FOR DISTRIBUTION
Slide 2: Important Notices
Important Notices This presentation is being provided by TPG Inc. (“TPG,” “we,” “our,” “us,” or the “Company”) solely for informational purposes for its public stockholders and analysts. To the maximum extent permitted by law, none of us or our affiliates, directors, officers, partners, employees, a
Slide 3: Important Notices (Cont’d)
Important Notices (Cont’d) Pro Forma Information Pro Forma Information - Acquisition Pro forma figures are on an adjusted basis, assuming the Acquisition occurred on January 1, 2022. Due to the Acquisitions, comparability of prior periods may be limited. The unaudited pro forma condensed combined fi
Slide 4: Welcome Remarks
Welcome Remarks
Slide 5: Presenter
Presenter Gary Stein Head of Investor Relations 5
Slide 6: Agenda
Agenda Topic Presenter(s) Title Welcome Remarks Gary Stein Head of Investor Relations Introduction & Transaction Overview Jon Winkelried Chief Executive Officer Integration Update Anilu Vazquez-Ubarri Chief Operating Officer TPG Angelo Gordon Overview Josh Baumgarten Co-Managing Partner of TPG AG an
Slide 7: Introduction & Transaction Overview
Introduction & Transaction Overview
Slide 8: Presenter
Presenter Jon Winkelried Chief Executive Officer 8
Slide 9: TPG is a Scaled, Global Alternative Asset Manager
TPG is a Scaled, Global Alternative Asset Manager Private Equity Credit Real Estate Market Solutions Capital Credit Solutions TPG Real Estate GP-Led Secondaries Asia Structured Credit & Specialty Finance TPG AG Real Estate Public Market Investing Growth Middle Market Direct Lending Real Estate Credi
Slide 10: Three Significant Levers of Growth at IPO
Three Significant Levers of Growth at IPO 1 2 3 Scale Existing Businesses New Adjacent Products Inorganic Growth • Raise highly visible • Grow platforms through • Expand into meaningful pipeline of next organic product innovation untapped whitespace in generation funds • Leverage existing insights c
Slide 11: Post-IPO, TPG Well-Positioned to Play Offense
Post-IPO, TPG Well-Positioned to Play Offense • Clean slate in attractive whitespaces Significant Untapped • Unencumbered by legacy assets or relationships Growth Potential • Natural extensions of existing business Enabled By Public Company Currency Balance Sheet Capital IPO proceeds and increased a
Slide 12: Growth Strategy Capitalizes on Significant Secular Trends
Growth Strategy Capitalizes on Significant Secular Trends 1 Limited partners want broader and deeper relationships across fewer fully-integrated Broad Industry solutions providers, driving strategic consolidation among managers to the highest Consolidation level in over a decade1 2 Accelerated Growt
Slide 13: LPs Consolidating Relationships Among Largest GPs
LPs Consolidating Relationships Among Largest GPs Top 300 GPs by Private Equity Fundraising1 “Top-of-the-House” Relationship Greater leverage with select GPs through Total private equity direct investment more strategic relationships capital raised over the previous 5 years $Trillions $3.13 Comprehe
Slide 14: Favorable Dynamics Driving Evolution of Private Credit
Favorable Dynamics Driving Evolution of Private Credit Private Debt AUM Forecast1 $Trillions 2020’s $2.8 Global pandemic, higher $2.5 interest rates, and $2.3 2010’s regional banking crisis $2.0 2008 – 2010 $1.8 Investors searching for higher returns during $1.6 Global Financial Crisis resulting ult
Slide 15: Retail and Insurance to Drive Next Leg of AUM Growth
Retail and Insurance to Drive Next Leg of AUM Growth Retail Insurance Estimated Global Alternatives AUM from Private Wealth1 Private Equity-Influenced U.S. Insurer AUM2 $Billions % $14T $1,000 Total AUM % share of U.S. Life 12% insurance industry assets $750 9% 12% CAGR $4T $500 6% 2022 2032E $250 3
Slide 16: Key Criteria for Evaluating Inorganic Growth Opportunities
Key Criteria for Evaluating Inorganic Growth Opportunities • Important and relevant player with sufficient scale in one or more key asset classes Breadth & Scale • Ability to drive additional growth and add meaningfully to investing ecosystem • Long-term track record of delivering strong risk-adjust
Slide 17: We Believe Angelo Gordon is an Optimal Strategic Fit for TPG
We Believe Angelo Gordon is an Optimal Strategic Fit for TPG $57 billion Credit platform marks a significant expansion at scale into the asset class, with multiple strategies purpose built to capitalize on the long-term secular trends in private credit $18 billion Real Estate platform broadens TPG’s
Slide 18: Furthers Position as a Total Solutions Provider
Furthers Position as a Total Solutions Provider $212 Billion of Total AUM Market Capital Growth Impact Credit Real Estate Real Estate Solutions Credit Solutions Scaled, Control-Oriented Growth Equity Private Equity Investing Structured Credit and Opportunistic and Differentiated Strategies Private E
Slide 19: Combined Solution Set Spans the Risk / Return Spectrum
Combined Solution Set Spans the Risk / Return Spectrum Return Profile Lower Higher Scaled PE and Buyouts Private Growth Equity Equity Impact Investing Credit Solutions Structured Credit & Specialty Finance Credit Middle Market Direct Lending Multi-Strategy Opportunistic Value Add Real Core Plus Esta
Slide 20: Key Takeaways from Today
Key Takeaways from Today • 55% increase in AUM1 and 44% increase in FRR2 TPG is now significantly more scaled 1 and diversified across asset classes • Differentiated capabilities across private equity and real estate, and the addition of a multi-strategy credit platform • Differentiated investing st
Slide 21: Integration Update
Integration Update
Slide 22: Presenter
Presenter Anilu Vazquez-Ubarri Chief Operating Officer 22
Slide 23: Goals for TPG-Angelo Gordon Integration
Goals for TPG-Angelo Gordon Integration 1 2 3 Integration Develop a Identify growth Operational Goals “one firm” culture opportunities readiness Team Seven Working Groups Integration Communications, People & Culture, Capital Formation, Responsible Compliance, Business Integration, Services, and Real
Slide 24: Significant and Comprehensive Firmwide Progress
Significant and Comprehensive Firmwide Progress Completed In Progress Strategic • Prioritized and developed execution plans for revenue • Execute on new business initiatives, Initiatives synergy opportunities to pursue post-close including LP engagement • New global organizational structure and repo
Slide 25: TPG Angelo Gordon Overview
TPG Angelo Gordon Overview
Slide 26: Presenter
Presenter Josh Baumgarten Co-Managing Partner of TPG AG and Head of TPG AG Credit 26
Slide 27: TPG Angelo Gordon’s Strategic Fit within TPG
TPG Angelo Gordon’s Strategic Fit within TPG Scale and Shared Expanded Common Complementary Diversification Intellectual Capital Capital Base Currency Cultures Expanded set of Fundamental, Minimal LP overlap, Culture of high Ability to investment strategies asset-level orientation opportunity to dri
Slide 28: TPG Angelo Gordon: A Snapshot
TPG Angelo Gordon: A Snapshot A Scaled Leader in Credit and Real Estate $76 Billion 35 Years AUM Delivering strong Diversified credit and risk-adjusted returns real estate investing platform 1988 Year Founded 700+ Employees Scalable Fundamental Investment Infrastructure 236 Professionals Poised to d
Slide 29: Opportunistic Growth in our First 30 Years
Opportunistic Growth in our First 30 Years… Inception Organic Multi-Strategy Platform Development & Heritage 1993 – 2016 Distressed CLOs Whole Loans Performing Commercial Residential & Middle Market Credit Arbitrage Credit Real Estate Debt Consumer Debt Direct Lending 1988 1998 2006 2008 2014 1993 2
Slide 30: Strategic Platform Alignment to Drive Scale
Strategic Platform Alignment to Drive Scale Positioning for the Next Era of TPG Angelo Gordon 2017 – Present Align for Infrastructure Strategic TPG Acquires Succession Plan Growth Build-Out Client Focus Angelo Gordon • Josh Baumgarten and • Credit Solutions Platform: • Significant investment to • In
Slide 31: Diversified Product Set Across Credit and Real Estate
Diversified Product Set Across Credit and Real Estate Structured Credit & Middle Market Credit Solutions CLOs Global Real Estate Specialty Finance Direct Lending All-weather, solutions-based Public and private Senior secured direct lender capital pursuing equity-like opportunities across to private
Slide 32: Strong Track Record of Delivering for our Clients
Strong Track Record of Delivering for our Clients Inception-to-Date IRR TPG AG Credit – Closed End TPG AG Real Estate – Closed End Gross IRR Net IRR Gross IRR Net IRR 18% 18% 18% 15% 15% 15% 15% 14% 14% 14% 13% 13% 12% 11% 11% 10% 10% 9% Credit Structured Credit Middle Market Essential U.S. Realty C
Slide 33: Meaningful Asset Growth at the Product Level
Meaningful Asset Growth at the Product Level Assets Under Management $Billions Credit Solutions Middle Market Asia Real Estate Structured Credit & Direct Lending Specialty Finance $20B $13B $5B $15B 1.4x $11B 5.0x 5.0x 6.5x $1B $2B $4B 2017 3Q23 2017 3Q23 2017 3Q23 2017 3Q23 33
Slide 34: Platform Alignment Driving Substantial Step Up in AUM
Platform Alignment Driving Substantial Step Up in AUM Assets Under Management Fee Earning AUM TPG AG Credit TPG AG Real Estate TPG AG Credit TPG AG Real Estate $76B $52B $18B $13B 2.1x 2.3x $37B $23B $10B $57B $7B $38B $27B $17B 2017 3Q23 2017 3Q23 $11 Billion $8 Billion AUM Not Yet Earning Fees FAU
Slide 35: Fund Scaling Paradigm
Fund Scaling Paradigm Evolution of Strategy Fund Scaling Average Fund Size of Average of Top 3 Funds1 Top 10 Commitments2 $2.9B $291M Win Large, Strategic LP Mandates 2.1x Aligning Platform Construction 3.1x from “Trades” to “Platforms” $141M $925M Base LP Demand Strong Performance and Consistent Tr
Slide 36: TPG Angelo Gordon Positioned to Accelerate Scale
TPG Angelo Gordon Positioned to Accelerate Scale Evolution of Strategy Fund Scaling Accelerate Scaling of Average Fund Size of Average of Institutionally Sized Funds Top 3 Funds1 Top 10 Commitments2 Win Large, Strategic LP Mandates Aligning Platform Construction from “Trades” to “Platforms” $2.9B $2
Slide 37: Core Products Poised to Continue Scaling
Core Products Poised to Continue Scaling AUM ($M) per Investment Professional Credit Solutions Middle Market Direct Lending Structured Credit & Specialty Finance $530M $476M $257M 1.1x $416M 2.5x 5.4x $104M $99M 2017 3Q23 2017 3Q23 2017 3Q23 Highly scalable upper-tier Scale to capitalize on more 1 L
Slide 38: Clear Runway to Expand and Deepen LP Relationships
Clear Runway to Expand and Deepen LP Relationships Total Commitments in Active Funds1 Capital Formation Opportunity Set 6% 4% 3% • <10% overlap between TPG and TPG AG 7% LPs 8% By 10% 39% 9% 42% LP Type • Only ~15% overlap of Sovereign Wealth 10% 9% Funds, ~25% overlap of Pensions 13% 16% 26% Sovere
Slide 39: TPG Angelo Gordon’s Product Highlights Ahead
TPG Angelo Gordon’s Product Highlights Ahead 1 2 3 4 Positioned for the Partnership Cycle Tested, tenured Disciplined, yet Largest Secular Tailwinds Philosophy teams investing Nimble and Flexible in Private Credit together for decades Investing Approach Growing LP Asset Cycle Agnostic Bias towards C
Slide 40: TPG Angelo Gordon Leadership & Today’s Speakers
TPG Angelo Gordon Leadership & Today’s Speakers Today’s Speakers Josh Baumgarten Adam Schwartz Co-Managing Partner and Co-Managing Partner and Head of TPG AG Credit Head of TPG AG Global Real Estate Corporate Credit Structured Global Real Estate Middle Market Multi- Credit & Specialty Net Lease Cred
Slide 41: TPG Angelo Gordon Credit
TPG Angelo Gordon Credit
Slide 42: Middle Market Direct Lending
Middle Market Direct Lending
Slide 43: Presenters
Presenters Trevor Clark Drew Guyette Kim Trick Head of Middle Market Co-Chief Credit Officer, Co-Chief Credit Officer, Direct Lending Middle Market Direct Lending Middle Market Direct Lending 43
Slide 44: Middle Market Direct Lending: Key Highlights
Middle Market Direct Lending: Key Highlights 1 2 3 4 Market Disciplined Experienced Positioned Leading Approach Team to Scale Few competitors of scale Diversification by client, Proven ability to deploy Expand our capital base focused on the borrower, sector and and manage capital and leverage curre
Slide 45: Middle Market Direct Lending: Overview
Middle Market Direct Lending: Overview Platform Structure $19.8B $32B Various Fund Structures AUM Cumulative Investments Business made to date1 AG Direct Lending AG Direct Lending Development Customized Funds Evergreen Company Vehicles (Closed-End Funds) (Private Funds) (Public, Non-traded) 15% 11%
Slide 46: Middle Market Direct Lending: Market Differentiation
Middle Market Direct Lending: Market Differentiation Key Platform Metrics 100% 100% 0% 0.02% Senior Secured Floating Rate Covenant-Lite Annualized First Lien1 Loans Loss Rate2 $24M 43% 96% Weighted Weighted Average Administrative Average EBITDA Loan-to-Value3 Agent or Co-Lead4 Financial Risk Differe
Slide 47: Middle Market Direct Lending: Summary
Middle Market Direct Lending: Summary Strategy Overview Core Tenets of Investment Strategy ▪ Established: 2014 Non-Cyclical Healthcare Leadership Role in Industries & Focus Specialization Credit Facilities ▪ Geographic Focus: North America on Stability ▪ Investment Mandate: Source, underwrite, and a
Slide 48: Middle Market Direct Lending: Investment Approach
Middle Market Direct Lending: Investment Approach Sourcing1 High Degree of Selectivity Cumulative Deals Received % of Deals Closed Total deals 11,300+ 11,300 + 20.0 % in the pipeline 10,369 18.0 % Unique 8,912 16.0 % 5,100+ deals reviewed 14.0 % 7,335 6,356 12.0 % Unique sponsors 895+ 10.0 % providi
Slide 49: Middle Market Direct Lending: Investment Approach
Middle Market Direct Lending: Investment Approach Industry Focus1 Active Portfolio Management2 13% Direct Access to Borrower via Administrative Agent Role 3% 3% 32% 3% Real-Time Analysis of Borrower’s Liquidity for every 3% Revolver draw 3% 4% ~4-6 Portfolio Accounts Per Underwriter allows for 3% 5%
Slide 50: Middle Market Direct Lending: Growth Opportunities
Middle Market Direct Lending: Growth Opportunities Growth Drivers TPG Partnership Opportunities Installed embedded growth with significant excess origination within lower middle market Core Expansion ~$17.5B of Asset Lower Middle Commitments Market Growth Move up-market with existing borrowers ~$9.5
Slide 51: Structured Credit & Specialty Finance
Structured Credit & Specialty Finance
Slide 52: Presenter
Presenter T.J. Durkin Head of Structured Credit & Specialty Finance 52
Slide 53: Structured Credit & Specialty Finance: Key Highlights
Structured Credit & Specialty Finance: Key Highlights 1 2 3 4 Significant Differentiated Accelerating Ready to Complex Market Competitive LP Demand Scale Moat Opportunity to Deep bench with long Resembles direct Fully built, generate alpha tenure and “public lending specialized and private” footprin
Slide 54: Structured Credit & Specialty Finance: Overview
Structured Credit & Specialty Finance: Overview Platform Structure $14.8B 13+ years Liquid Credit Private Credit Track record in Asset Based Customized AUM Private Credit AG Mortgage Value AG Asset Based Vehicles Partners Credit Fund (“MVP”) (“ABC”) Separately Managed Investment Grade ABC Evergreen
Slide 55: Structured Credit & Specialty Finance: Large Addressable Market
Structured Credit & Specialty Finance: Large Addressable Market Structured Credit as a Percentage of U.S. Nonfinancial Credit1 Total U.S. Fixed Income Assets2 Total U.S. Fixed Consumer US Treasuries Munis Income: $48.6 trillion Credit (exc. Bills) 8% 12% Corporate 41% Securitized Business Credit Pro
Slide 56: Structured Credit & Specialty Finance: Impact of Bank Retrenchment
Structured Credit & Specialty Finance: Impact of Bank Retrenchment Global Banks Regional Banks Other Commercial Other Commercial & Industrial 15% 21% & Industrial 17% 25% Auto 4% Card Auto 14 Banks 6% 4,186 Banks 6% ~$6 Trillion ~$5 Trillion Total Assets CRE Total Assets Card 11% Home 12% Lending CR
Slide 57: Structured Credit & Specialty Finance: Key Platform Differentiators
Structured Credit & Specialty Finance: Key Platform Differentiators Public and Private Market Presence Broad Skill Set SECURITIES ILLIQUIDS Trading Proprietary RMBS Direct origination Expertise Sourcing Channels CMBS Asset purchases Integrated Consumer & Other ABS Residential Whole Loans Investment
Slide 58: Structured Credit & Specialty Finance: Key Platform Differentiators
Structured Credit & Specialty Finance: Key Platform Differentiators Private Market Opportunity: Financing Gap Broad Footprint & Flexible Deployment Our broad footprint and flexible approach creates opportunities to finance debt capital needs in “gaps” that are not covered by traditional market parti
Slide 59: Asset Based Credit (Private Credit): Summary
Asset Based Credit (Private Credit): Summary Product Overview Key Metrics ▪ Established: 2010 (strategy), 2023 (Fund I) ▪ Investment Mandate: diversified specialty private credit strategy Strategy $5.3B+ 98% (2010) Invested Cost Net DPI on Overall targeting high income and capital appreciation acros
Slide 60: Mortgage Value Partners (Liquid Credit): Summary
Mortgage Value Partners (Liquid Credit): Summary Product Overview Key Return Metrics ▪ Established: 2009 $5.9B $2.7B ▪ Investment Mandate: multi-asset, liquid structured credit portfolio AUM NAV that seeks to deliver a diversifying source of income and total return vs. major risk asset and hedge fun
Slide 61: Structured Credit & Specialty Finance: Growth Opportunities
Structured Credit & Specialty Finance: Growth Opportunities Growth Inflection Point Current & Future Growth Drivers Highly scalable platform with competitive moat well positioned for industry tailwinds Accelerated pullback Existing secular of banks from growth trends for non-EBITDA lending instituti
Slide 62: Credit Solutions
Credit Solutions
Slide 63: Presenter
Presenter Ryan Mollett Global Head of Credit Solutions 63
Slide 64: Credit Solutions: Key Highlights
Credit Solutions: Key Highlights 1 2 3 4 Equity-Like Partnership Sector Specialist All Weather Returns + Philosophy Model Solutions Downside Protection Creative solutions Rigid, PE-style diligence, Not cyclical, Current yield of credit provider, flexible capital embedded in sector highly scalable, l
Slide 65: Credit Solutions: Overview
Credit Solutions: Overview Platform1 Structure $10.6B $19.0B $2.8B 4 Complementary Fund Series Commitments Cumulative Investments Capital Credit WIP Financing Raised made to date2 Distributed3 Commingled Commingled Commingled Closed-End Open-End Bespoke Closed-End AG Credit AG CSF AG Corporate 18% 1
Slide 66: Credit Solutions: Key Differentiators
Credit Solutions: Key Differentiators Solutions-Based Approach Credit Solutions: Call of Choice2 “Angelo Gordon approached our company with a creative financing solution that was tailored to our specific objectives … we appreciate that Angelo Gordon listened to our specific needs and acted as truste
Slide 67: Credit Solutions: Our Investment Playbook
Credit Solutions: Our Investment Playbook Rigorous Upfront Sector Approach to Drive Favorable Outcomes1 • Scaled team of sector specialists: embedded within ecosystems to identify opportunities with management teams, capital structures, credit documents Do The Work in Advance • Established “spider w
Slide 68: Credit Solutions: Product Summary
Credit Solutions: Product Summary Product Overview1 Key Metrics ▪ Vintage Series: 2019, 2021 AG Credit AG Credit ▪ Fund Structure: Draw-down; 3-year investment period, 2-year Solutions Fund Solutions Fund II harvest period Vintage 2019 2021 ▪ Investment Style: Opportunistic, stressed and special sit
Slide 69: CSF (Annex) Dislocation & Corporate Credit Opportunities: Product Summary
CSF (Annex) Dislocation & Corporate Credit Opportunities: Product Summary CSF (Annex) Dislocation Corporate Credit Opportunities ▪ Vintage Series: 2020, 2022 ▪ Fund Structure: Open-ended evergreen ▪ Fund Structure: Draw-down; 1-year investment period ▪ Investment Style: Opportunistic liquid public c
Slide 70: Essential Housing: Product Summary
Essential Housing: Product Summary Product Overview Public Homebuilders Pivot to an Asset Light Model ▪ Vintage Series: 2020, 2021 Trading Multiple (TEV / Total Book Value)1 ▪ Description: Proprietary business platform that provides homebuilders with off-balance-sheet financing for short-duration As
Slide 71: Credit Solutions: Growth Opportunities
Credit Solutions: Growth Opportunities Significant Fund Growth1 Future Growth Drivers Credit Solutions Essential Housing Hybrid Solutions $3.1B SMAs Essential Housing $2.5B 1.7x CSF Annex Dislocation $1.8B ~$7.6B of Credit Solutions Capital Raised 3.9x SMAs ~$4.0B of Essential Housing Fund II Capita
Slide 72: Credit Solutions: Growth Opportunities
Credit Solutions: Growth Opportunities TPG Partnership Opportunities Accelerating Capital Formation 1 Flagship Credit Solutions, Essential Housing Sector-Based Collaboration 2 Sourcing ideas across TPG platforms and teams Future Expansion of New Products 3 TPG Hybrid Solutions 72
Slide 73: TPG Angelo Gordon Real Estate
TPG Angelo Gordon Real Estate
Slide 74: Presenters
Presenters Adam Schwartz Avi Banyasz Co-Managing Partner of TPG AG and Co-Head of TPG Real Estate Head of TPG AG Global Real Estate 74
Slide 75: TPG AG Real Estate: Key Highlights
TPG AG Real Estate: Key Highlights 1 2 3 4 5 Nimble & Cycle Long-Tenured Multi-Strategy Combined TPG Diversified Tested Team Firm + AG Platform Approach 30-year track record of Tenured leadership with Proprietary sourcing Credit DNA provides [] 1+1=3 generating consistent average 17 years network an
Slide 76: TPG AG Global Real Estate Platform: Overview
TPG AG Global Real Estate Platform: Overview Platform Structure $18B $7B 4 Products AUM Combined Available Capital U.S. Europe Asia Net Lease 860+ $51B+ Purchase Price Transactions Since Inception AG XI: 2022 AG Europe IV: 2023 Asia V: 2022 AG NETL V: 2023 AG X AG Europe III AG NETL IV 49% 105% Asia
Slide 77: TPG AG Global Real Estate Platform: Platform Development
TPG AG Global Real Estate Platform: Platform Development $18B Total Real Estate AUM Europe Real Estate $4B AUM Net Lease Europe Real Estate $2B AUM Net Lease Net Lease Asia Real Estate $5B AUM Asia Real Estate Asia Real Estate U.S. Real Estate U.S. Real Estate U.S. Real Estate U.S. Real Estate $7B A
Slide 78: TPG AG Global Real Estate Platform: Investment Approach
TPG AG Global Real Estate Platform: Investment Approach Three Principles of Investing AG Operating Partner Network Focus on value- Real estate is an Capital preservation creation at the inefficient, is paramount property level local business Value-Add Spectrum Diversification across the spectrum of
Slide 79: TPG + TPG AG Combined Real Estate: Platform Overview
TPG + TPG AG Combined Real Estate: Platform Overview Real Estate AUM Complementary Overlap U.S. Europe Asia Net Lease $18B $18B Average $25-50M $150M+1 11% Check Size 18% 30% Investment PE-Style Single Property Style Platform Building 21% 82% Sourcing Operating Partner Centralized Approach Network 3
Slide 80: TPG Real Estate Platform: Overview
TPG Real Estate Platform: Overview Platform and Strategy Structure $18B 53 4 Products Platform AUM Dedicated Investment Professionals1 TPG Real Estate TPG Real Estate TPG Real Estate TPG RE Finance Thematic Credit TPGRE employs a research and data-driven approach Partners Advantage Opportunities Tru
Slide 81: TPG + TPG AG Combined Real Estate: Team Collaboration
TPG + TPG AG Combined Real Estate: Team Collaboration Significant Flywheel as a Combined Platform Sector Regional Insights Insights Complementary Platforms Cross Platform Sourcing Advantage Negotiating Capital + Power Markets Leverage Minimal Overlap of LP Relationships Portfolio LP Ability to Meani
Slide 82: Presenters
Presenters Reid Liffmann Matt Jackson Head of TPG AG Co-Portfolio Manager of U.S. Real Estate TPG AG U.S. Real Estate 82
Slide 83: U.S. Real Estate: Product Summary
U.S. Real Estate: Product Summary Product Overview Key Metrics and Selected Investments1 ▪ Established: 1993 $7.0B 112% ▪ Geographic Focus: Primarily U.S.; 20% allowed for non-U.S. AUM Gross DPI / 107% Net DPI ▪ Investment Mandate: Invest across entire non-core, value-add spectrum; middle market app
Slide 84: U.S. Real Estate: Sourcing Differentiation
U.S. Real Estate: Sourcing Differentiation Sourcing Network Investment Approach West East 90+ U.S. operating partners 25+ partners 25+ partners aligned with investment team Midwest 5+ partners South Vast majority of deal flow 25+ partners sourced off-market Dedicated regional Operating partner offic
Slide 85: U.S. Real Estate: Flexible Mandate
U.S. Real Estate: Flexible Mandate Nimble and Flexible Ability to invest across Diversified and Thematic portfolio entire non-core opportunistic construction with real estate spectrum across property sectors, bottom-up sourcing geographies and risk profiles U.S. Diversification by Property Type1 U.S
Slide 86: Presenter
Presenter Anuj Mittal Head of TPG AG Europe Real Estate 86
Slide 87: Europe Real Estate: Product Summary
Europe Real Estate: Product Summary Product Overview Key Metrics and Selected Investments ▪ Established: 2009 $3.7B 82% ▪ Geographic Focus: U.K., Western Europe and Nordics AUM Gross DPI / 70% Net DPI ▪ Investment Mandate: Invest across the capital structure in a broad range of value-added risk oppo
Slide 88: Europe Real Estate: Key Differentiators
Europe Real Estate: Key Differentiators Scaled Pan-European Presence Long-Tenured Localized Sourcing Multi-Faceted Competitive Leadership Network & Engine Approach Positioning Sourcing amidst dislocation: partnership with TPG AG Scarcity of Pan-European 50 Operating Partners credit teams Senior Lead
Slide 89: Europe Real Estate: Key Differentiators
Europe Real Estate: Key Differentiators Flexible Fund Strategy Fund III Diversification1 6% 1% United Kingdom 8% Germany Bottom-up sourcing and execution Netherlands 10% 44% Spain Geography Italy 11% Ireland France 19% Shift to competitive risk-adjusted opportunities as market conditions change 17%
Slide 90: Presenter
Presenter Wilson Leung Head of TPG AG Asia Real Estate 90
Slide 91: Asia Real Estate: Product Summary
Asia Real Estate: Product Summary Product Overview Key Metrics and Selected Investments ▪ Established: 2005 $5.4B 99% ▪ Geographic Focus: Asia, with strong emphasis on Japan, South Korea, AUM Gross DPI / 91% Net DPI China, Hong Kong and Singapore ▪ Investment Mandate: Emphasize an opportunistic appr
Slide 92: Asia Real Estate: Key Differentiators
Asia Real Estate: Key Differentiators Competitive Positioning Fund IV Diversification1 5%3% Japan Complicated and Large Opportunity with 11% China Closed Market Few Experienced GPs Korea Geography 54% Hong Kong Fewer overall players, 27% Singapore Significant barriers to entry leading choice for LPs
Slide 93: Asia Real Estate: Ability to Scale
Asia Real Estate: Ability to Scale Capital Raised by Fund Series ($M) $2,254 >2.5x $1,315 $847 $616 $526 Fund I Fund II Fund III Fund IV Fund V and Japan Value-Add1 2006 2010 2015 2018 2022-2023 Note: Includes GP and affiliate commitments. 1. Fund V and Japan Value-Add are actively fundraising. Capi
Slide 94: Presenter
Presenter Gordon Whiting Head of TPG AG Net Lease 94
Slide 95: Net Lease: Product Summary
Net Lease: Product Summary Product Overview Key Metrics and Selected Investments ▪ Established: 2006 $1.9B 104% 53% ▪ Geographic Focus: Primarily U.S.; 25% allowed for non-North AUM Gross DPI / Average Leverage America 80% Net DPI since inception2 ▪ Investment Mandate: Invest primarily in single ten
Slide 96: Net Lease: Investment Approach
Net Lease: Investment Approach Key Differentiators Contractual Rent Increases1 In-house credit teams, 5% Target Tenants • Below Investment grade diligent assessment > 3% 65% 2-3% • Annual rent increases & Rigid Lease Terms Downside protection covenants < 2% • 15 – 25 year terms Enhanced landlord 6%
Slide 97: Global Real Estate Platform: Growth Opportunities
Global Real Estate Platform: Growth Opportunities Organic growth in successor Expansion into Ancillary co-investment flagship fund size lower cost of capital vehicles or target SMAs Note: There can be no assurance any expected growth opportunities will ultimately be achieved. 97
Slide 98: Financial Overview
Financial Overview
Slide 99: Presenter
Presenter Jack Weingart Chief Financial Officer 99
Slide 100: Executing Across Organic and Inorganic Growth Opportunities
Executing Across Organic and Inorganic Growth Opportunities Growth Levers at the Time of IPO 1 Scale Existing Business Flagship Supercycle Near targets despite challenging market Secondaries Successfully established, plan to scale 2 Organic Innovation Real Estate Credit Successfully established, pla
Slide 101: TPG Progress Since IPO – Last Two Years
TPG Progress Since IPO – Last Two Years TPG Standalone LTM September 20211 LTM September 2023 AUM $109 +25% $136 $Billions FAUM $59 +33% $79 $Billions Management Fees $675 +53% $1,033 $Millions FRR $Millions $837 +41% $1,180 FRE $311 +67% $520 $Millions FRE Margin 37% +680bps 44% % Note: See the Rec
Slide 102: Transaction Overview
Transaction Overview Key Terms Bolsters FRE Growth Engine • 61.4 million total Common Units of • Additional $52 billion of fee earning AUM TPG Operating Group and restricted • 44% increase in Fee-Related Revenues1 and 24% increase in Fee-Related Earnings1 stock units of TPG • Diversifies revenue str
Slide 103: Sources & Uses
Sources & Uses Sources Uses Sources $Millions Uses $Millions TPG Equity1 $1,731 TPG Equity Issued at Close $1,731 Cash from TPG Balance Sheet $263 Cash to Escrow at Close $103 Revolver Draw $470 Cash to AG Founders and Partners $630 Contingent Cash Holdback $150 Contingent Cash Holdback $150 Total S
Slide 104: Pro Forma Balance Sheet and Liquidity
Pro Forma Balance Sheet and Liquidity Debt and Liquidity Profile $Millions As of: 9/30/23 PF 9/30/20231 Interest Rate Maturity Date Cash & Cash Equivalents $647 $171 $1.2 Billion Revolver2 -- $470 SOFR + 110 September 2028 Secured Debt $250 $250 5.21% June 20383 Unsecured Debt $200 $200 SOFR + 110 M
Slide 105: Share Count Impact
Share Count Impact Diluted Share Count Common Units & RSUs Issued to AG Parties Shares 3Q’23 AG Issuance PF 3Q’23 TPG Inc. Diluted Shares Outstanding • Common Units Class A common shares outstanding 80,587,371 -- 80,587,371 − Transfer Restrictions 22% to o No units may be sold or transferred during
Slide 106: Pro Forma Stock Based Compensation
Pro Forma Stock Based Compensation Unrecognized Remaining Category Pro Forma Units Outstanding Compensation Expense ($M) Recognition Period1 Legacy Equity and Other IPO-Related Awards2 N/A $1,123.5 2.0 - 5.0 years AG Transaction Units3 N/A $1,085.7 5.0 years TPG Inc. IPO-Related RSUs4,5 9,422,548 $1
Slide 107: Strategic Acquisition Reinforces Our Business Model
Strategic Acquisition Reinforces Our Business Model Profitable Balance Sheet FRE Centricity Diversification Growth Light Continued prioritization of FRE, consistent with existing structure Meaningful margin expansion Aligns with capital-light approach, Provides additional revenue opportunity, driven
Slide 108: Angelo Gordon Adds Significant Scale to TPG
Angelo Gordon Adds Significant Scale to TPG Six Months Ended June 30, 2023 Fee Related Revenues Fee Related Earnings After-Tax Distributable Earnings $Millions $Millions $Millions +44% $245 $796 +24% $56 $280 +17% $551 $225 $32 $216 $184 TPG AG 1 PF Non-GAAP TPG AG 2 PF Non-GAAP TPG AG 3 PF Non-GAAP
Slide 109: Increased Diversification Across Asset Classes
Increased Diversification Across Asset Classes 3Q’23 Assets Under Management 1H’23 Fee Related Revenues TPG Standalone Pro Forma Combined TPG Standalone Pro Forma Combined Other Other Market 5% 3% Solutions Market Real Solutions Credit 6% Credit Capital Estate Capital 9% 19% 27% 28% 14% 32% Real Cap
Slide 110: Key Drivers of TPG AG’s Revenue Model
Key Drivers of TPG AG’s Revenue Model TPG AG Credit TPG AG Real Estate AUM / FAUM ▪ $57 billion / $38 billion ▪ $18 billion / $13 billion ▪ Management fees ▪ Management fees − Fees earned on committed and net funded capital − Fees earned on invested capital or cost basis of assets (scaled based on c
Slide 111: TPG AG Credit Revenue Models
TPG AG Credit Revenue Models Credit Solutions Structured Credit Middle Market Direct Lending AUM / FAUM ▪ $13 billion / $9 billion ▪ $15 billion / $6 billion ▪ $20 billion / $14 billion ▪ Management fees ▪ Management fees ▪ Management fees − Fees earned on invested capital − Fees earned on invested
Slide 112: TPG AG Has Significant Shadow Fee Earning AUM
TPG AG Has Significant Shadow Fee Earning AUM TPG AG AUM Not Yet Earning Fees TPG AG FAUM Subject to Fee Step-Up $Billions $Billions $11.1 By Remaining Duration By Remaining Duration Real Estate $7.6 3% $3.2 2% 8% Real Estate 21% $2.6 26% Credit $11.1B $7.6B $7.9 64% Credit $5.0 76% 3Q'23 AUM 3Q'23
Slide 113: TPG AG Performance Allocation Algorithm
TPG AG Performance Allocation Algorithm TPG AG YTD Pro Forma Net Accrued Performance1 Key Drivers $Millions 1 • Generation of Net Accrued Performance Reflects 20% allocation of net accrued performance to TPG Common Unit holders − Carry generated based on the performance of certain $22 $164 AG Credit
Slide 114: TPG AG Pro Forma Net Accrued Performance by Type
TPG AG Pro Forma Net Accrued Performance by Type By Waterfall Type By Remaining Duration 1H’23 Pro Forma Net Accrued Performance1 1H’23 Pro Forma Net Accrued Performance1 American Capital Subject to Periodic Redemption Other 3% 3% 4% 5-9 Years Hybrid 8% 10% $164M $164M European 0-4 Years 83% 89% 1.
Slide 115: Comparison of American and European Waterfalls
Comparison of American and European Waterfalls American-Style Funds European-Style Funds Hybrid-Style Funds Distributions Waterfall ▪ Investment-by-investment ▪ Aggregate fund level ▪ Aggregate fund level ▪ Distributions can be made to the GP as ▪ Distributions can only be made to the GP ▪ Capital d
Slide 116: TPG AG Historical Fundraising Cadence
TPG AG Historical Fundraising Cadence Major Fund Complexes in the Market Since 2018 Denotes 2018 2019 2020 2021 2022 2023 2024 perpetual vehicle 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Credit Solutions Corporate Credit Opportunities Essential Housing TPG AG Credit Ass
Slide 117: TPG AG 2024 Fundraising Pipeline
TPG AG 2024 Fundraising Pipeline Credit Real Estate Structured Credit Middle Market Credit Solutions Multi-Strategy & Specialty Finance Direct Lending • Credit Solutions • Whole Loan SMAs • Middle Market Direct • U.S. Realty Lending • Essential Housing • Asia Realty Closed End • Credit Solutions SMA
Slide 118: Consolidated TPG Financial Metrics as of September 30, 2023
Consolidated TPG Financial Metrics as of September 30, 2023 LTM 3Q’23 TPG Angelo Gordon Pro Forma TPG AUM $136 $76 $212 $Billions FAUM $79 $52 $130 $Billions Management Fees $1,033 $4831 $1,516 $Millions FRR $1,180 $4941 $1,673 $Millions FRE Margin 44% Mid-20’s 37 – 38% % 1. Includes $1.5 million re
Slide 119: 2024 Outlook
2024 Outlook 4Q’23 and FY2023 Reporting Expectations Financial Guidance • We expect to provide the following information in our • 2024 Fundraising Outlook 4Q’23 financial results (February 2024) − Expect Credit fundraising to exceed $10 billion − GAAP and non-GAAP consolidated results will reflect −
Slide 120: Strategic Outlook & Closing Remarks
Strategic Outlook & Closing Remarks
Slide 121: Presenter
Presenter Jon Winkelried Chief Executive Officer 121
Slide 122: Vectors for Organic Growth
Vectors for Organic Growth TPG/AG Combination Creates Substantial Opportunities for Synergistic Growth Scale Existing Products Drive Capital Markets Flows Innovate New Products Expanding our capital base through highly Bringing TPG Broker Dealer’s capabilities to AG funds Launching new products that
Slide 123: Potential Organic Product Innovations
Potential Organic Product Innovations Focused on Several Organic Opportunities that Sit at the Intersection of Our Expertise Market Opportunity Differentiated Angle Upcoming Debt Maturities by Year ($B)1 TPG Capital High-Yield Bonds Leveraged Loans Hybrid Solutions TPG AG Credit Solutions $858 TPG T
Slide 124: TPG is a Scaled, Global Alternative Asset Manager
TPG is a Scaled, Global Alternative Asset Manager Private Equity Credit Real Estate Market Solutions Capital Credit Solutions TPG Real Estate GP-Led Secondaries Asia Structured Credit & Specialty Finance TPG AG Real Estate Public Market Investing Growth Middle Market Direct Lending Real Estate Credi
Slide 125: Reconciliations and Disclosures
Reconciliations and Disclosures
Slide 126: Reconciliations: AG (H1’23)
Reconciliations: AG (H1’23) Six Months Ended June 30, 2023 AG Pro Forma Fee-Related Revenues $000s AG Fee-Related Earnings $000s AG Pro Forma Fee Related Earnings $000s AG Pro Forma GAAP Revenue 396,400 AG GAAP Comprehensive Income (Loss) 28,249 AG Pro Forma GAAP Net Income (Loss) (120,335) Net (inc
Slide 127: Reconciliations: TPG (H1’23)
Reconciliations: TPG (H1’23) Six Months Ended June 30, 2023 TPG Fee-Related Revenues $000s TPG Fee-Related Earnings $000s TPG GAAP Revenue 1,246,419 TPG Net Income 75,685 Net (income) attributable to redeemable interests in Public SPACs (6,896) Capital - allocation based income (607,845) Net (income
Slide 128: Reconciliations: TPG + AG (H1’23)
Reconciliations: TPG + AG (H1’23) Six Months Ended June 30, 2023 Total Pro Forma Fee-Related Earnings $000s Total Pro Forma GAAP Net Income (loss) (91,516) Net income (loss) attributable to redeemable equity in Public SPACs (6,896) Net income attributable to other non-controlling interests (67,288)
Slide 129: Reconciliations: TPG (Q3’21 LTM)
Reconciliations: TPG (Q3’21 LTM) Twelve Months Ended September 30, 2021 TPG Pro Forma Fee-Related Revenues $000s TPG Pro Forma Fee-Related Earnings $000s TPG Pro Forma GAAP Net Income 1,566,566 TPG Pro Forma GAAP Revenue 5,449,632 Pro Forma Adjustments1 3,399,434 Capital-allocation based income (4,5
Slide 130: Reconciliations: TPG (Q3’23 LTM)
Reconciliations: TPG (Q3’23 LTM) Twelve Months Ended September 30, 2023 TPG Fee-Related Revenues $000s TPG Fee-Related Earnings $000s TPG GAAP Revenue 1,846,109 Net Income (28,775) Net (income) loss attributable to redeemable interests in Public SPACs (14,006) Capital-allocation based income (491,20
Slide 131: Reconciliations: AG
Reconciliations: AG Twelve Months Ended September 30, 2023 Accrued Performance June 30, 2023 September 30, 2023 AG Pro Forma Fee-Related Revenues $000s Net Accrued Performance $000s $000s Pro Forma GAAP Revenue 767,534 Accrued Performance GAAP Total 820,162 767,169 Capital-allocation based income (1
Slide 132: TPG AG: Select Credit Fund Performance Metrics
TPG AG: Select Credit Fund Performance Metrics The following table reflects the performance of certain of TPG AG’s significant commitment-based credit funds: ($Millions, as of September 30, 2023) Capital Capital Unrealized Investor Net 1 2 3 4 5 6 7 7 8 9 Fund Vintage Year Committed Invested Realize
Slide 133: TPG AG: Select Real Estate Fund Performance Metrics
TPG AG: Select Real Estate Fund Performance Metrics The following table reflects the performance of certain of TPG AG’s significant commitment-based real estate funds: ($Millions, as of September 30, 2023) Capital Capital Unrealized Investor Net 1 Fund Vintage Year Committed2 Invested 3 Realized Val
Slide 134: TPG AG: Select Real Estate Fund Performance Metrics (Cont’d)
TPG AG: Select Real Estate Fund Performance Metrics (Cont’d) The following table reflects the performance of certain of TPG AG’s significant commitment-based real estate funds: ($Millions, as of September 30, 2023) Capital Capital Unrealized Investor Net 1 2 3 4 5 6 7 7 8 9 Fund Vintage Year Committ
Slide 135: TPG AG: Select Perpetual Fund Performance Metrics
TPG AG: Select Perpetual Fund Performance Metrics The following table reflects the performance of certain of TPG AG’s significant perpetual funds: ($Millions, as of September 30, 2023) Fund Vintage Year1 AUM Total Return10 TPG AG Perpetual Credit Solutions 15 Corporate Credit Opportunities 1988 299
Slide 136: Fund Performance Metrics Notes
Fund Performance Metrics Notes 1) Vintage Year, with respect to an investment or group of investments, as applicable, represents the year such investment, or the first investment in such a group, was initially consummated by the fund. For follow-on investments, Vintage Year represents the year that
Slide 137: Fund Performance Metrics Notes (Cont’d)
Fund Performance Metrics Notes (Cont’d) 7) Gross IRR and Gross MoM are calculated by adjusting Net IRR and Investor Net MoM to generally approximate investor performance metrics excluding management fees, fund expenses (other than interest expense and other fees arising from amounts borrowed under t
Slide 138: Fund Performance Metrics Notes (Cont’d)
Fund Performance Metrics Notes (Cont’d) 10) Performance is from inception for each fund. Net performance data represent results for investors (excluding amounts attributable to the fund's general partner, certain classes/series with special fee arrangements, its affiliated entities and “friends of t
Slide 139: Metric Definition Notes
Metric Definition Notes After-tax Distributable Earnings (“After-tax DE”) of TPG is a non-GAAP performance measure of our distributable earnings after reflecting the impact of income taxes. We use it to assess how income tax expense affects amounts available to be distributed to our Class A common s
Slide 140: Metric Definition Notes
Metric Definition Notes Capital Raised for TPG AG is the aggregate amount of subscriptions and capital raised by TPG AG’s investment funds and co-investment vehicles during a given period, as well as the senior and subordinated notes issued through the firm’s CLOs. We believe this measure is useful
Slide 141: Metric Definition Notes
Metric Definition Notes Investor Net MoM, with respect to a TPG AG fund, represents the multiple-of-money on contributions to the fund by investors. Investor Net MoM is calculated as the sum of cash distributed to investors and the investors’ ending capital balances as of the quarter end, divided by