Tpg Inc. · NASDAQ:TPG

Tpg — Q1 2025 Earnings Presentation

44 slides from Tpg's earnings presentation, May 7, 2025

  1. Slide 1: TPG Reports First Quarter 2025 Financial Results

    TPG Reports First Quarter 2025 Financial Results Quarter Ended March 31, 2025

  2. Slide 2: TPG Reports First Quarter 2025 Results

    TPG Reports First Quarter 2025 Results San Francisco and Fort Worth, Texas – May 7, 2025 – TPG Inc. (NASDAQ: TPG), a leading global alternative asset management firm, reported its unaudited first quarter 2025 results. TPG issued a full detailed presentation of its first quarter ended March 31, 2025

  3. Slide 3: Forward Looking Statements; No Offers; Non-GAAP Information

    TPG Reports First Quarter 2025 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,” “expects” and

  4. Slide 4: First Quarter 2025 Results

    First Quarter 2025 Results

  5. Slide 5: GAAP Statements of Operations (Unaudited)

    GAAP Statements of Operations (Unaudited) ▪ Net income of $88 million for 1Q’25 compared to 1Q’24 net loss of $9 million ▪ Net income attributable to TPG Inc. of $25 million for 1Q’25 compared to $16 million in 1Q’24 ($ in thousands, except share and per share amounts) 1Q’24 1Q’25 Revenues Fees and

  6. Slide 6: First Quarter and Last Twelve Months Highlights

    First Quarter and Last Twelve Months Highlights ▪ 1Q’25 FRR of $476 million increased 6% versus 1Q’24, with 1Q’25 FRE of $182 million and 1Q’25 After-tax DE of $187 million Non-GAAP Financial 1Q’24 1Q’25 1Q’24 LTM 1Q’25 LTM Measures Fee-Related Revenues (“FRR”) $451 $476 $1,523 $1,857 Fee-Related Ea

  7. Slide 7: Non-GAAP Financial Measures

    Non-GAAP Financial Measures ▪ 1Q’25 FRE remained largely flat compared to 1Q’24; FRE margin decreased from 40% in 1Q’24 to 38% in 1Q’25 ▪ After-tax DE of $187 million in 1Q’25, an increase from $181 million in 1Q’24, primarily driven by realized performance allocations, net, partially offset by an i

  8. Slide 8: Fee-Related Earnings

    Fee-Related Earnings ▪ 1Q’25 FRR increased 6% over 1Q’24 primarily driven by an increase in capital markets fees and management fees ▪ Fee-related expenses in 1Q’25 increased 10% over 1Q’24 ▪ FRE margin decreased from 40% in 1Q’24 to 38% in 1Q’25; 1Q’25 LTM FRE margin of 41% Fee-Related Earnings Man

  9. Slide 9: Distributable Earnings

    Distributable Earnings ▪ After-tax DE increased from $181 million in 1Q’24 to $187 million for 1Q’25, primarily driven by an increase in realized performance allocations, net After-Tax DE Distributable Earnings Mix ($M) $843 $187 4Q’24 1Q’25 $181 $678 8% 32% 68% 92% FRE All Other Sources of Pre-tax

  10. Slide 10: Realized Performance Allocations, Net

    Realized Performance Allocations, Net ▪ Realized performance allocations, net were $40 million in 1Q’25, primarily driven by TPG VII and TPG VIII in the Capital platform, Rise Climate I in the Impact platform, and MMDL IV in TPG AG Credit ▪ Realized performance allocations, net for 1Q’25 LTM were $2

  11. Slide 11: Net Accrued Performance

    Net Accrued Performance Investment 1Q’25 Net Accrued Performance Appreciation / (Depreciation) ($M) Platform 1Q’25 1Q’25 LTM $31 $7 Capital 3.4% 10.9% $61 Growth 2.1% 9.3% $80 Impact 0.7% 8.5% TPG Angelo Gordon TPG AG Credit 2.5% 12.5% TPG AG Real Estate 0.6% 2.6% $115 Total Real Estate 7.3% 12.5% $

  12. Slide 12: GAAP Balance Sheet (Unaudited)

    GAAP Balance Sheet (Unaudited) ▪ Cash and cash equivalents totaled $0.8 billion at the end of 1Q’25; borrowings of $180 million on the Senior Unsecured Revolving Credit Facility during 1Q’25 drove total debt obligations to $1.5 billion ▪ Investments increased $0.4 billion from $7.5 billion in 4Q’24

  13. Slide 13: Non-GAAP Balance Sheet Highlights

    Non-GAAP Balance Sheet Highlights ▪ Cash and cash equivalents totaled $120 million at the end of 1Q’25 ▪ At the end of 1Q’25, our net debt(1) was $1.4 billion and our undrawn Senior Unsecured Revolving Credit Facility capacity was $1.0 billion ▪ Our borrowings primarily include Senior and Subordinat

  14. Slide 14: Operating Metrics

    Operating Metrics

  15. Slide 15: Assets Under Management and Fee Earning AUM

    Assets Under Management and Fee Earning AUM ▪ 1Q’25 AUM rose 12% over 1Q’24 to $250.6 billion, primarily driven by capital raised of $31.4 billion, including $5.5 billion in Rise Climate II within the Impact platform and $2.6 billion in Credit Solutions III within AG Credit, partially offset by real

  16. Slide 16: Assets Under Management and Fee Earning AUM Duration

    Assets Under Management and Fee Earning AUM Duration ▪ At the end of 1Q’25, 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 1Q’25, approximately 69% of our FAUM had a rem

  17. Slide 17: AUM Subject to Fee Earning Growth

    AUM Subject to Fee Earning Growth ▪ AUM Subject to Fee Earning Growth totaled $27.1 billion at the end of 1Q’25 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

  18. 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 $212.0 billion, or 85% of total AUM, at the end of 1Q’25 ▪ Performance Generating AUM refers to AUM that is currently producing p

  19. Slide 19: AUM Rollforward

    AUM Rollforward Three Months Ended March 31, 2025 TPG Angelo Gordon Real Market ($ in millions) Capital Growth Impact Credit Real Estate Estate Solutions Total AUM Balance as of Beginning of Period $ 74,408 $ 28,062 $ 26,569 $ 72,359 $ 18,674 $ 17,622 $ 8,179 $ 245,873 Capital Raised 1,046 814 1,722

  20. Slide 20: FAUM Rollforward

    FAUM Rollforward Three Months Ended March 31, 2025 TPG Angelo Gordon Real Market ($ in millions) Capital Growth Impact Credit Real Estate Estate Solutions Total FAUM Balance as of Beginning of Period $ 37,075 $ 12,334 $ 17,357 $ 43,005 $ 14,379 $ 11,759 $ 5,377 $ 141,286 (1) Fee Earning Capital Rais

  21. Slide 21: Other Operating Metrics

    Other Operating Metrics ▪ We have invested approximately $33.8 billion during the last twelve months with $57.0 billion of capital available for deployment at the end of 1Q’25 (All tables in $M) 1Q’24 1Q’25 Capital Raised 1Q’24 1Q’25 Available Capital 1Q’24 1Q’25 LTM LTM Capital $ 1,303 $ 1,046 $ 9,

  22. Slide 22: Supplemental Details

    Supplemental Details

  23. Slide 23: GAAP and Non-GAAP Performance Allocations

    GAAP and Non-GAAP Performance Allocations Three Months Ended March 31, 2025 GAAP Less: GAAP GAAP Less: Non-GAAP Non-GAAP (1) (2) ($ in thousands) Total Unrealized Realized Adjustments Realized Capital $ 243,889 $ 116,245 $ 127,644 $ 100,783 $ 26,861 Growth 74,196 51,091 23,105 23,105 — Impact 15,568

  24. Slide 24: GAAP and Non-GAAP Net Accrued Performance

    GAAP and Non-GAAP Net Accrued Performance As of December 31, 2024 TPG Angelo Gordon Real Market ($ in millions) Capital Growth Impact Credit Real Estate Estate Solutions Total GAAP Total $ 2,926 $ 1,589 $ 593 $ 364 $ 377 $ 64 $ 45 $ 5,958 Less: Excluded Assets(1) 45 230 — — — 8 — 283 (2) Less: Non-G

  25. Slide 25: Participating Shares Outstanding

    Participating Shares Outstanding Estimated Record Date (shares) 12/31/2024 Net Change 3/31/2025 Net Change 5/19/2025(1) TPG Inc. Diluted Shares Outstanding Class A common stock outstanding 109,211,355 14,340,896 123,552,251 44,664 123,596,915 Common Units exchangeable into Class A common stock 255,7

  26. 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 $0.49 per share for 1Q’25 and $2.08 per share for 1Q’25 LTM ▪ After-tax DE attributable to TPG Inc. of $0.48 per share for 1Q’25, and $2.04 per share for 1Q’25 LTM ▪ Declared dividend of $0.41 per share for 1

  27. Slide 27: Equity-Based Compensation Summary

    Equity-Based Compensation Summary ▪ Equity-based compensation related to TPG Inc. Ordinary Service Awards totaled $43 million in 1Q’25; the total unrecognized compensation expense related to these Ordinary Service Awards amounted to $419 million at the end of 1Q’25, and is expected to be recognized

  28. Slide 28: Fund Performance Metrics

    Fund Performance Metrics ($ in millions, as of 3/31/25) 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

  29. Slide 29: Fund Performance Metrics (Cont’d)

    Fund Performance Metrics (Cont’d) ($ in millions, as of 3/31/25) 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,

  30. Slide 30: Fund Performance Metrics (Cont’d)

    Fund Performance Metrics (Cont’d) ($ in millions, as of 3/31/25) 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,

  31. Slide 31: Fund Performance Metrics (Cont’d)

    Fund Performance Metrics (Cont’d) ($ in millions, as of 3/31/25) 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 $ 904 $ 11

  32. Slide 32: Fund Performance Metrics (Cont’d)

    Fund Performance Metrics (Cont’d) ($ in millions, as of 3/31/25) 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 $ — $

  33. Slide 33: Significant Perpetual Funds

    Significant Perpetual Funds ($ in millions, as of 3/31/25) Vintage Total Fund Year(1) AUM Return(10) Platform: Market Solutions TPEP Long/Short(15) 2013 $ 1,150 140% TPEP Long Only (16) 2019 817 53% Platform: TPG Angelo Gordon Credit Solutions Corporate Credit Opportunities(17) 1988 323 10% Structur

  34. 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

  35. 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

  36. Slide 36: GAAP Statements of Operations Expanded (Unaudited)

    GAAP Statements of Operations Expanded (Unaudited) ($ in thousands) 1Q’24 2Q’24 3Q’24 4Q’24 1Q’25 1Q’25 LTM Revenues Fees and other $ 512,295 $ 522,800 $ 524,733 $ 527,248 $ 543,455 $ 2,118,236 Capital allocation-based income 311,776 221,394 330,670 549,166 491,421 1,592,651 Total revenues 824,071 7

  37. Slide 37: Non-GAAP Financial Measures Expanded

    Non-GAAP Financial Measures Expanded ($ in thousands) 1Q’24 2Q’24 3Q’24 4Q’24 1Q’25 1Q’25 LTM Fee-Related Revenues Management fees $ 402,684 $ 413,275 $ 407,163 $ 402,588 $ 413,160 $ 1,636,186 Fee-related performance revenues 3,875 4,485 5,557 19,116 6,201 35,358 Transaction, monitoring and other fe

  38. Slide 38: Reconciliations and Disclosures

    Reconciliations and Disclosures

  39. Slide 39: GAAP to Non-GAAP Financial Measures Reconciliation

    GAAP to Non-GAAP Financial Measures Reconciliation ($ in thousands) 1Q’24 2Q’24 3Q’24 4Q’24 1Q’25 1Q’25 LTM GAAP Revenue $ 824,071 $ 744,194 $ 855,403 $ 1,076,414 $ 1,034,876 $ 3,710,887 Capital-allocation based income (311,776) (221,394) (330,670) (549,166) (491,421) (1,592,651) Expense reimburseme

  40. Slide 40: GAAP to Non-GAAP Balance Sheet Highlights Reconciliation

    GAAP to Non-GAAP Balance Sheet Highlights Reconciliation ($ in thousands) 4Q’24 1Q’25 Cash and cash equivalents - GAAP $ 808,017 $ 821,971 Impact of other consolidated entities (660,961) (702,125) Cash and cash equivalents - Non-GAAP 147,056 119,846 GAAP Investments 7,503,281 7,906,088 Equity method

  41. 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

  42. 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

  43. 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

  44. 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

TPG — Q1 2025 Earnings Presentation on 6ix