Slide 1: TPG Reports First Quarter 2024 Financial Results
TPG Reports First Quarter 2024 Financial Results Quarter Ended March 31, 2024
Slide 2: TPG Reports First Quarter 2024 Results
TPG Reports First Quarter 2024 Results ▪ Total assets under management of $224 billion as of March 31, 2024, an increase of 63% compared to $137 billion as of March 31, 2023 ▪ GAAP net income attributable to TPG Inc. of $16 million for the first quarter ended March 31, 2024, with basic net income pe
Slide 3: About TPG; Forward Looking Statements
TPG Reports First Quarter 2024 Results About TPG TPG is a leading global alternative asset management firm, founded in San Francisco in 1992, with $224 billion of assets under management and investment and operational teams around the world. TPG invests across a broadly diversified set of strategies
Slide 4: First Quarter 2024 Results
First Quarter 2024 Results
Slide 5: GAAP Statements of Operations (Unaudited)
GAAP Statements of Operations (Unaudited) ▪ Net loss of $9 million for 1Q’24 compared to 1Q’23 net income of $36 million ▪ Net income attributable to TPG Inc. of $16 million for 1Q’24 compared to net income of $25 million in 1Q’23 ($ in thousands, except share and per share amounts) 1Q’23 1Q’24 Reve
Slide 6: First Quarter and Last Twelve Months Highlights
First Quarter and Last Twelve Months Highlights ▪ 1Q’24 FRR of $451 million increased 70% versus 1Q’23, with 1Q’24 FRE of $182 million and 1Q’24 After- tax DE of $181 million Non-GAAP Financial 1Q’23 1Q’24 1Q’23 LTM 1Q’24 LTM Measures Fee-Related Revenues ("FRR") $265 $451 $1,111 $1,523 Fee-Related
Slide 7: Non-GAAP Financial Measures
Non-GAAP Financial Measures ▪ FRE increased 84% from $99 million in 1Q’23 to $182 million in 1Q’24; FRE margin increased to 40% in 1Q’24 compared to 37% in 1Q’23 ▪ After-tax DE of $181 million in 1Q’24, an increase from $88 million in 1Q’23, primarily driven by FRE and realized performance allocatio
Slide 8: Fee-Related Earnings
Fee-Related Earnings ▪ 1Q’24 FRR increased 70% over 1Q’23, primarily driven by TPG AG, an increase in capital markets fees, and catch-up management fees ▪ Fee-Related Expenses in 1Q’24 increased 62% over 1Q’23, primarily due to the addition of TPG AG ▪ 1Q’24 FRE margin of 40%, an increase from 37% i
Slide 9: Distributable Earnings
Distributable Earnings ▪ After-tax DE increased from $88 million in 1Q’23 to $181 million for 1Q’24, primarily due to an increase in Fee-Related Earnings and realized performance allocations, net After-Tax DE Distributable Earnings Mix ($M) $181 $678 4Q’23 1Q’24 $589 4% $88 105% 96% FRE All Other So
Slide 10: Realized Performance Allocations, Net
Realized Performance Allocations, Net ▪ Realized performance allocations, net were $32 million in 1Q’24, primarily driven by TPG VIII and Asia VII in the Capital platform, Rise Climate in the Impact platform, and MMDL III in TPG AG Credit ▪ Realized performance allocations, net for 1Q’24 LTM were $1
Slide 11: Net Accrued Performance
Net Accrued Performance Investment 1Q’24 Net Accrued Performance Appreciation / (Depreciation) ($M) Platform 1Q’24 1Q’24 LTM(1) Capital 1.6% 6.2% $17 $23 $93 Growth 3.2% 7.8% Impact 1.9% 11.7% TPG AG $76 TPG AG Credit 3.4% 15.0% TPG AG Real Estate 0.4% 1.0% Total $405 Real Estate 3.6% 1.0% $915 $100
Slide 12: GAAP Balance Sheet (Unaudited)
GAAP Balance Sheet (Unaudited) ▪ Cash increased to $1.1 billion at the end of 1Q’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 of $291 million at the end of 1Q’24 ▪ At the end of 1Q’24, our net debt(1) was $959 million and our undrawn Senior Unsecured Revolving Credit Facility capacity was $1.2 billion(2) ▪ Our borrowings include Senior and Subordinated notes with a princip
Slide 14: Operating Metrics
Operating Metrics
Slide 15: Assets Under Management and Fee Earning AUM
Assets Under Management and Fee Earning AUM ▪ 1Q’24 AUM rose 63% over 1Q’23 to $223.6 billion, primarily driven by the inclusion of TPG AG following the Acquisition ▪ Over the last twelve months, capital raised totaled $18.4 billion, including $2.7 billion in TPG IX and $1.6 billion in THP II within
Slide 16: Assets Under Management and Fee Earning AUM Duration
Assets Under Management and Fee Earning AUM Duration ▪ At the end of 1Q’24, approximately 72% of our AUM and 70% of our FAUM was in perpetual or long-dated funds with a duration(1) of 10 or more years (prior to any available extensions) ▪ At the end of 1Q’24, approximately 64% of our FAUM had a rema
Slide 17: AUM Subject to Fee Earning Growth
AUM Subject to Fee Earning Growth ▪ AUM Subject to Fee Earning Growth totaled $25.0 billion at the end of 1Q’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 $192.9 billion, or 86% of total AUM, at the end of 1Q’24 ▪ Performance Generating AUM refers to AUM that is currently producing p
Slide 19: AUM Rollforward
AUM Rollforward ▪ AUM increased 1% during 1Q’24 and $86.5 billion, or 63%, over the last twelve months ▪ The AUM change in 1Q’24 was primarily driven by capital raised of $4.7 billion and net increases in investment value of $2.6 billion, partially offset by realizations totaling $4.9 billion ▪ AUM
Slide 20: FAUM Rollforward
FAUM Rollforward ▪ FAUM remained relatively flat in 1Q’24, with fee earning capital raised of $1.5 billion, offset by reductions in fee bases of certain funds totaling $0.5 billion and outflows of $0.4 billion ▪ In the last twelve months FAUM increased 74%, primarily driven by the Acquisition and fe
Slide 21: Other Operating Metrics
Other Operating Metrics ▪ At the end of 1Q’24, we had $51.2 billion of capital available for deployment; we have invested approximately $26.4 billion during the last twelve months (All tables in $M) 1Q’23 1Q’24 Capital Raised 1Q’23 1Q’24 Available Capital 1Q’23 1Q’24 LTM LTM Capital $ 1,023 $ 1,303
Slide 22: Supplemental Details
Supplemental Details
Slide 23: GAAP and Non-GAAP Performance Allocations
GAAP and Non-GAAP Performance Allocations Three Months Ended March 31, 2024 GAAP Less: GAAP GAAP Less: Non-GAAP Non-GAAP (1) (2) ($ in thousands) Total Unrealized Realized Adjustments Realized Capital $ 70,574 $ (16,331) $ 86,905 $ 68,632 $ 18,273 Growth 106,621 106,621 — — — Impact 20,729 (34,315)
Slide 24: GAAP and Non-GAAP Net Accrued Performance
GAAP and Non-GAAP Net Accrued Performance As of December 31, 2023 TPG Angelo Gordon Real Market ($ in millions) Capital Growth Impact Credit Real Estate Estate Solutions Total GAAP Total $ 2,683 $ 1,420 $ 542 $ 294 $ 510 $ 125 $ 91 $ 5,665 Less: Excluded Assets(1) 59 268 — — — 67 — 394 (2) Less: Non
Slide 25: Participating Shares Outstanding
Participating Shares Outstanding ▪ In February 2024 we issued 17,704,987 shares of Class A common stock to certain holders of Common Units in exchange for an equal number of their Common Units Estimated Record Date (shares) 12/31/2023 Net Change 3/31/2024 Net Change 5/20/2024(1) TPG Inc. Diluted Sha
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 $0.50 per share for 1Q’24 and $2.06 per share for 1Q’24 LTM ▪ After-tax DE attributable to TPG Inc. of $0.49 per share for 1Q’24, and $1.82 per share for 1Q’24 LTM ▪ Declared dividend of $0.41 per share for 1
Slide 27: Equity-Based Compensation Summary
Equity-Based Compensation Summary ▪ Equity-based compensation related to TPG Inc. Ordinary Service Awards totaled $21 million in 1Q’24; the total unrecognized compensation expense related to these Awards amounted to $228 million at the end of 1Q’24, and is expected to be recognized over the next 2.9
Slide 28: Fund Performance Metrics
Fund Performance Metrics ($ in millions, as of 3/31/24) 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% 1
Slide 29: Fund Performance Metrics (Cont’d)
Fund Performance Metrics (Cont’d) ($ in millions, as of 3/31/24) 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 $ 1,865 $ 40 $ 1
Slide 30: Fund Performance Metrics (Cont’d)
Fund Performance Metrics (Cont’d) ($ in millions, as of 3/31/24) 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 DASA RE 2012 $ 1,078 $ 57
Slide 31: Fund Performance Metrics (Cont’d)
Fund Performance Metrics (Cont’d) ($ in millions, as of 3/31/24) 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 2021 $ 1,005 $ 754 $ 40 $
Slide 32: Fund Performance Metrics (Cont’d)
Fund Performance Metrics (Cont’d) ($ in millions, as of 3/31/24) 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 3/31/24) Vintage Total (1) Fund Year AUM Return(10) Platform: Market Solutions TPEP Long/Short(15) 2013 $ 1,942 168% TPEP Long Only (16) 2013 1,347 43% Platform: TPG Angelo Gordon Credit Solutions Corporate Credit Opportunities(17) 1988 313 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) 12) Each Middle Market Direct Lending fund is comprised of four vehicles: onshore levered, onshore unlevered, offshore levered and offshore unlevered. Capital Committed, Capital Invested, Realized Value, Unrealized Value and Total Value for each fund are prese
Slide 36: GAAP Statements of Operations Expanded (Unaudited)
GAAP Statements of Operations Expanded (Unaudited) ($ in thousands) 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 1Q’24 LTM Revenues Fees and other $ 311,471 $ 327,103 $ 366,149 $ 529,903 $ 512,295 $ 1,735,450 Capital allocation-based income (loss) 331,674 276,171 (205,794) 453,234 311,776 835,387 Total revenues 64
Slide 37: Non-GAAP Financial Measures Expanded
Non-GAAP Financial Measures Expanded ($ in thousands) 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 1Q’24 LTM Fee-Related Revenues Management fees $ 247,998 $ 256,612 $ 278,503 $ 395,608 $ 402,684 $ 1,333,407 Fee-related performance revenues — — — 1,642 3,875 5,517 Transaction, monitoring and other fees, net 4,672
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) 1Q’23 2Q’23 3Q’23 4Q’23 1Q’24 1Q’24 LTM GAAP Revenue $ 643,145 $ 603,274 $ 160,355 $ 983,137 $ 824,071 $ 2,570,837 Capital-allocation based income (331,674) (276,171) 205,794 (453,234) (311,776) (835,387) Expense reimbursements (44,
Slide 40: GAAP to Non-GAAP Balance Sheet Reconciliation
GAAP to Non-GAAP Balance Sheet Reconciliation ($ in thousands) 4Q’23 1Q’24 ($ in thousands) 4Q’23 1Q’24 Total GAAP Assets $ 9,369,672 $ 9,939,449 Total GAAP Liabilities $ 6,008,538 $ 6,643,131 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) 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