Slide 1: TPG Reports Second Quarter 2024 Financial Results
TPG Reports Second Quarter 2024 Financial Results Quarter Ended June 30, 2024
Slide 2: TPG Reports Second Quarter 2024 Results
TPG Reports Second Quarter 2024 Results ▪ Total assets under management of $229 billion as of June 30, 2024, an increase of 65% compared to $139 billion as of June 30, 2023 ▪ GAAP net loss attributable to TPG Inc. of $14 million for the second quarter ended June 30, 2024, with basic net loss per sha
Slide 3: About TPG; Forward Looking Statements
TPG Reports Second Quarter 2024 Results About TPG TPG is a leading global alternative asset management firm, founded in San Francisco in 1992, with $229 billion of assets under management and investment and operational teams around the world. TPG invests across a broadly diversified set of strategie
Slide 4: Second Quarter 2024 Results
Second Quarter 2024 Results
Slide 5: GAAP Statements of Operations (Unaudited)
GAAP Statements of Operations (Unaudited) ▪ Net loss of $58 million for 2Q’24 compared to 2Q’23 net income of $40 million ▪ Net loss attributable to TPG Inc. of $14 million for 2Q’24 compared to net income of $27 million in 2Q’23 ($ in thousands, except share and per share amounts) 2Q’23 2Q’24 2Q’23
Slide 6: Second Quarter and Year to Date Highlights
Second Quarter and Year to Date Highlights ▪ 2Q’24 FRR of $459 million increased 61% versus 2Q’23, with 2Q’24 FRE of $201 million and 2Q’24 After- tax DE of $207 million Non-GAAP Financial 2Q’23 2Q’24 2Q’23 YTD 2Q’24 YTD Measures Fee-Related Revenues ("FRR") $286 $459 $551 $910 Fee-Related Earnings
Slide 7: Non-GAAP Financial Measures
Non-GAAP Financial Measures ▪ FRE increased 60% from $125 million in 2Q’23 to $201 million in 2Q’24; FRE margin stayed consistent in 2Q’24 compared to 2Q’23 at 44% ▪ After-tax DE of $207 million in 2Q’24, an increase from $96 million in 2Q’23, primarily driven by FRE and realized investment income a
Slide 8: Fee-Related Earnings
Fee-Related Earnings ▪ 2Q’24 FRR increased 61% over 2Q’23, primarily driven by TPG AG, an increase in capital markets fees, and catch-up management fees ▪ Fee-related expenses in 2Q’24 increased 61% over 2Q’23, primarily due to the addition of TPG AG ▪ FRE margin stayed consistent in 2Q’24 compared
Slide 9: Distributable Earnings
Distributable Earnings ▪ After-tax DE increased from $96 million in 2Q’23 to $207 million for 2Q’24, primarily due to an increase in Fee-Related Earnings and realized investment income and other, net After-Tax DE Distributable Earnings Mix ($M) $387 1Q’24 2Q’24 $207 4% 9% 96% 91% $96 $184 FRE All Ot
Slide 10: Realized Performance Allocations, Net
Realized Performance Allocations, Net ▪ Realized performance allocations, net were $26 million in 2Q’24, primarily driven by MMDL IV in TPG AG Credit, Rise Climate in the Impact platform, Growth Capital Partners I in TPG AG Real Estate, and TTAD I in the Growth platform ▪ Realized performance alloca
Slide 11: Net Accrued Performance
Net Accrued Performance Investment 2Q’24 Net Accrued Performance Appreciation / (Depreciation) ($M) Platform 2Q’24 2Q’24 YTD Capital 1.7% 3.2% $13 $17 Growth 1.9% 5.1% $86 Impact 2.7% 4.5% $79 TPG AG TPG AG Credit 2.7% 6.2% TPG AG Real Estate 0.2% 0.6% Total $419 Real Estate 0.9% 4.5% $103 $929 Mark
Slide 12: GAAP Balance Sheet (Unaudited)
GAAP Balance Sheet (Unaudited) ▪ Cash increased to $1.1 billion at the end of 2Q’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 $330 million at the end of 2Q’24 ▪ At the end of 2Q’24, our net debt(1) was $920 million and our undrawn Senior Unsecured Revolving Credit Facility capacity was $1.2 billion ▪ Our borrowings include Senior and Subordinated notes with a principal
Slide 14: Operating Metrics
Operating Metrics
Slide 15: Assets Under Management and Fee Earning AUM
Assets Under Management and Fee Earning AUM ▪ 2Q’24 AUM rose 65% over 2Q’23 to $229.0 billion, primarily driven by the acquisition of TPG AG in 4Q’23 ▪ Over the last twelve months capital raised totaled $23.2 billion, including $2.5 billion in TPG IX within the Capital platform and $2.1 billion in M
Slide 16: Assets Under Management and Fee Earning AUM Duration
Assets Under Management and Fee Earning AUM Duration ▪ At the end of 2Q’24, approximately 71% 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 2Q’24, approximately 66% 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 $25.4 billion at the end of 2Q’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 $198.0 billion, or 86% of total AUM, at the end of 2Q’24 ▪ Performance Generating AUM refers to AUM that is currently producing p
Slide 19: AUM Rollforward
AUM Rollforward ▪ AUM increased 2% during 2Q’24 and $90.3 billion, or 65%, over the last twelve months ▪ The AUM change in 2Q’24 was primarily driven by capital raised of $6.3 billion and net increases in investment value and other of $5.1 billion, partially offset by realizations totaling $5.4 bill
Slide 20: FAUM Rollforward
FAUM Rollforward ▪ FAUM held steady in 2Q’24, with fee earning capital raised of $1.4 billion, offset by outflows of $0.6 billion and net change in investment activity totaling $0.6 billion ▪ In the last twelve months FAUM increased 74%; outside the Acquisition, this increase was primarily driven by
Slide 21: Other Operating Metrics
Other Operating Metrics ▪ We have invested approximately $31.2 billion during the last twelve months with $53.2 billion of capital available for deployment at the end of 2Q’24 (All tables in $M) 2Q’23 2Q’24 Capital Raised 2Q’23 2Q’24 Available Capital 2Q’23 2Q’24 YTD YTD Capital $ 622 $ 888 $ 1,645
Slide 22: Supplemental Details
Supplemental Details
Slide 23: GAAP and Non-GAAP Performance Allocations
GAAP and Non-GAAP Performance Allocations Three Months Ended June 30, 2024 GAAP Less: GAAP GAAP Less: Non-GAAP Non-GAAP (1) (2) ($ in thousands) Total Unrealized Realized Adjustments Realized Capital $ 84,025 $ 84,025 $ — $ — $ — Growth 42,975 29,169 13,806 10,901 2,905 Impact 38,309 18,036 20,273 1
Slide 24: GAAP and Non-GAAP Net Accrued Performance
GAAP and Non-GAAP Net Accrued Performance As of March 31, 2024 TPG Angelo Gordon Real Market ($ in millions) Capital Growth Impact Credit Real Estate Estate Solutions Total GAAP Total $ 2,667 $ 1,526 $ 508 $ 388 $ 488 $ 102 $ 76 $ 5,755 Less: Excluded Assets(1) 61 285 — — — 17 — 363 (2) Less: Non-GA
Slide 25: Participating Shares Outstanding
Participating Shares Outstanding Estimated Record Date (shares) 3/31/2024 Net Change 6/30/2024 Net Change 8/16/2024(1) TPG Inc. Diluted Shares Outstanding Class A common stock outstanding 100,726,778 2,086,558 102,813,336 58,393 102,871,729 Common Units exchangeable into Class A common stock 263,952
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 $0.55 per share for 2Q’24 and $1.05 per share for 2Q’24 YTD ▪ After-tax DE attributable to TPG Inc. of $0.49 per share for 2Q’24, and $0.98 per share for 2Q’24 YTD ▪ Declared dividend of $0.42 per share for 2
Slide 27: Equity-Based Compensation Summary
Equity-Based Compensation Summary ▪ Equity-based compensation related to TPG Inc. Ordinary Service Awards totaled $21 million in 2Q’24; the total unrecognized compensation expense related to these Awards amounted to $220 million at the end of 2Q’24, and is expected to be recognized over the next 2.7
Slide 28: Fund Performance Metrics
Fund Performance Metrics ($ in millions, as of 6/30/24) 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 6/30/24) 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 $ 1,865 $ 39 $ 1
Slide 30: Fund Performance Metrics (Cont'd)
Fund Performance Metrics (Cont’d) ($ in millions, as of 6/30/24) 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 6/30/24) 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 $ 54 $
Slide 32: Fund Performance Metrics (Cont'd)
Fund Performance Metrics (Cont’d) ($ in millions, as of 6/30/24) 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 6/30/24) Vintage Total (1) Fund Year AUM Return(10) Platform: Market Solutions TPEP Long/Short(15) 2013 $ 1,802 122% TPEP Long Only (16) 2013 1,209 39% Platform: TPG Angelo Gordon Credit Solutions Corporate Credit Opportunities(17) 1988 331 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) 2Q’23 3Q’23 4Q’23 1Q’24 2Q’24 2Q’24 YTD 2Q’24 LTM Revenues Fees and other $ 327,103 $ 366,149 $ 529,903 $ 512,295 $ 522,800 $ 1,035,095 $ 1,931,147 Capital allocation-based income (loss) 276,171 (205,794) 453,234 311,776 221,394 533
Slide 37: Non-GAAP Financial Measures Expanded
Non-GAAP Financial Measures Expanded ($ in thousands) 2Q’23 3Q’23 4Q’23 1Q’24 2Q’24 2Q’24 YTD 2Q’24 LTM Fee-Related Revenues Management fees $ 256,612 $ 278,503 $ 395,608 $ 402,684 $ 413,275 $ 815,959 $ 1,490,070 Fee-related performance revenues — — 1,642 3,875 4,485 8,360 10,002 Transaction, monito
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) 2Q’23 3Q’23 4Q’23 1Q’24 2Q’24 2Q’24 YTD 2Q’24 LTM GAAP Revenue $ 603,274 $ 160,355 $ 983,137 $ 824,071 $ 744,194 $ 1,568,265 $ 2,711,757 Capital-allocation based income (276,171) 205,794 (453,234) (311,776) (221,394) (533,170) (780,
Slide 40: GAAP to Non-GAAP Balance Sheet Reconciliation
GAAP to Non-GAAP Balance Sheet Reconciliation ($ in thousands) 4Q’23 2Q’24 ($ in thousands) 4Q’23 2Q’24 Total GAAP Assets $ 9,369,672 $ 10,071,258 Total GAAP Liabilities $ 6,008,538 $ 6,765,042 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