Slide 1: TPG Reports First Quarter 2022 Financial Results
TPG Reports First Quarter 2022 Financial Results Quarter Ended March 31, 2022 Exhibit 99.2
Slide 2: First quarter 2022 results press release summary
GAAP net income attributable to TPG Inc. of $41 million for the first quarter ended March 31, 2022 Announced first dividend as a public company of $0.44 per share of Class A common stock for the first quarter of 2022 After-tax Distributable Earnings of $199 million (or $0.52 per share of Class A com
Slide 3: About TPG and Forward Looking Statements
TPG | TPG Reports First Quarter 2022 Financial Results About TPG TPG is a leading global alternative asset management firm founded in San Francisco in 1992 with $120 billion of assets under management and investment and operational teams in 12 offices globally. TPG invests across five multi-product
Slide 4: Reorganization and IPO basis of presentation
Prior to and in connection with our initial public offering (“IPO”), we completed certain transactions as part of a corporate reorganization (the “Reorganization”), which concluded with NASDAQ listing our Class A common stock on January 13, 2022. The Reorganization included certain transfers of econ
Slide 5: First Quarter 2022 Financial Results
First Quarter 2022 Financial Results
Slide 6: GAAP Statements of Operations
Net income was $163 million for 1Q’22, compared to $412 million in 1Q’21 on a pro forma basis Net income attributable to TPG Inc. was $41 million for 1Q’22, compared to $47 million in 1Q’21 on a pro forma basis TPG | GAAP Statements of Operations Note: Pro forma financial measures are on an adjusted
Slide 7: First Quarter and Last Twelve Months Highlights
TPG | First Quarter and Last Twelve Months Highlights Actual Non-GAAP Financial Measures ($M) Pro Forma Non-GAAP Financial Measures ($M) Operating Metrics ($B) 1Q’21 1Q’22 1Q’22 LTM Fee-Related Revenues (“FRR”) $193 $241 $915 Fee-Related Earnings (“FRE”) 34 92 237 Realized Performance Allocations, N
Slide 8: Non-GAAP Financial Measures
TPG | Non-GAAP Financial Measures Fee-Related Earnings increased 38% from $67 million in 1Q’21 on a pro forma basis to $92 million in 1Q’22, and amounted to $351 million for 1Q’22 LTM on a pro forma basis; margins increased from 34% during pro forma 1Q’21 to 38% during 1Q’22 Realized performance all
Slide 9: Fee-Related Earnings
1Q’22 Fee-Related Earnings grew 38% over pro forma 1Q’21 Fee-Related Revenues increased 24% in 1Q’22 over pro forma 1Q’21, driven by management fee growth of 31% stemming from an increase in Fee Earning AUM of 26%, primarily in the Impact and Real Estate platforms Fee-Related Expenses increased 16%
Slide 10: After-Tax Distributable Earnings
TPG | After-Tax Distributable Earnings After-tax Distributable Earnings more than tripled from $65 million in pro forma 1Q’21 to $199 million for 1Q’22, primarily from realized performance allocations, net from the Capital and Impact platforms, with additional expansion in Fee-Related Earnings which
Slide 11: Realized Performance Allocations, Net
Realized performance allocations, net were $122 million in 1Q’22, largely driven by TPG VII in the Capital platform, Rise I in the Impact platform, and TTAD I in the Growth platform Pro forma realized performance allocations, net for 1Q’22 LTM were $321 million driven by TPG VII in the Capital platf
Slide 12: Net Accrued Performance Allocations and Value Creation
TPG | Net Accrued Performance Allocations Value Creation 1Q’22 1Q’22 LTM Capital 10.8% 39.3% Growth 1.5% 22.9% Impact 0.7% 31.1% Real Estate 6.2% 25.6% Market Solutions 0.5% 16.7% Total 7.0% 32.9% Net Accrued Performance Allocations by Fund Vintage ($M) 4Q’21(1) 1Q’22 2016 & Prior $233 $198 2017 268
Slide 13: GAAP Balance Sheet (Unaudited)
TPG | GAAP Balance Sheet (Unaudited) On a pro forma basis, our investments increased $238 million, or 4%, from 4Q’21 to 1Q’22, mainly driven by value creation of 7% in 1Q’22 In 4Q’21 we effectuated certain aspects of the Reorganization with respect to assets transferred to RemainCo, including cash a
Slide 14: Non-GAAP Balance Sheet
TPG | Non-GAAP Balance Sheet 1Q’22 cash and cash equivalents of $583 million increased 141% over actual 4Q’21 largely driven by $391 million of net IPO proceeds Our borrowings include securitized notes with a principal amount of $250 million, which are backed by $498 million in pledged assets at 1Q’
Slide 15: Operating Metrics
Operating Metrics
Slide 16: Assets Under Management and Fee Earning AUM
TPG | Assets Under Management and Fee Earning AUM 1Q’22 AUM rose 26% over 1Q’21 to $120.4 billion, driven by value creation of 33% for the last twelve months and fundraising of $24.5 billion over the same period, which included $7.3 billion in Rise Climate within the Impact platform and $4.3 billion
Slide 17: FAUM by Remaining Duration
FAUM by Remaining Duration TPG | Assets Under Management and Fee Earning AUM Duration AUM by Duration at Inception Note: For the grouping of years on duration, 0-4 Years represents a term equal to 4 years or less; 5-9 Years represents a term greater than 4 and less than or equal to 9; 10+ Years repr
Slide 18: AUM Subject to Fee Earning Growth
AUM Subject to Fee Earning Growth totaled $8.9 billion at 1Q’22, and represents capital commitments that generate new management fees (AUM Not Yet Earning Fees) or generate a higher rate of management fees (FAUM Subject to Step-Up) when deployed AUM Not Yet Earning Fees and FAUM Subject to Step-Up r
Slide 19: AUM Rollforward
TPG | AUM Rollforward Note: For Market Solutions, capital raised in our SPAC vehicles represents funds raised in the SPAC IPO, including forward purchase agreements and private investment in public equity (PIPE) commitments, and realizations are considered to occur at business combination with a tar
Slide 20: FAUM Rollforward
TPG | FAUM Rollforward 1. Fee earning capital raised represents capital raised by our funds for which management fees calculated based on commitments were activated during the period. 2. Net change in actively invested capital includes capital invested during the period, net of return of capital dis
Slide 21: Other Operating Metrics
TPG | Other Operating Metrics Capital Raised 1Q’21 1Q’22 1Q’21 LTM 1Q’22 LTM Capital $481 $233 $1,683 $3,925 Growth 151 49 2,030 4,791 Impact 12 528 274 7,689 Real Estate 505 4,564 521 6,029 Market Solutions(1) 302 74 2,486 2,019 Total $1,451 $5,448 $6,994 $24,453 1Q’22 and the last twelve months sa
Slide 22: Supplemental Details
Supplemental Details
Slide 23: GAAP and Non-GAAP Performance Allocations
TPG | GAAP and Non-GAAP Performance Allocations 1. The TPG Operating Group Excluded entities’ performance allocations is not a component of net income attributable to TPG following the Reorganization; however, the TPG general partner entities continue to be consolidated by us. We transferred the rig
Slide 24: Net Income Per Share
TPG | Net Income Per Share Basic net income per share of $0.52 for 1Q’22 Diluted net income per share of $0.11 for 1Q’22 Note: Pro forma financial measures are on an adjusted basis, assuming the Reorganization and IPO occurred on January 1, 2020; see the Supplemental Details section of this presenta
Slide 25: After-Tax DE and Dividends Per Share
TPG | After-Tax DE and Dividends Per Share After-tax DE attributable to TPG Inc. of $0.52 per share for 1Q’22 Declared dividend of $0.44 per share for 1Q’22 on May 10, 2022, with a record date of May 20, 2022 and payable date of June 3, 2022 Note: Pro forma financial measures are on an adjusted basi
Slide 26: Fund Performance Metrics
TPG | Fund Performance Metrics Note: Past performance is not indicative of future results. See notes on the following pages. Investor ($ in millions, as of 3/31/22) Vintage Capital Capital Realized Unrealized Total Gross Gross Net Net Fund Year(1) Committed(2) Invested(3) Value(4) Value(5) Value(6)
Slide 27: Fund Performance Metrics (Cont'd)
TPG | Fund Performance Metrics (Cont’d) Note: Past performance is not indicative of future results. See notes on the following pages. Investor ($ in millions, as of 3/31/22) Vintage Capital Capital Realized Unrealized Total Gross Gross Net Net Fund Year(1) Committed(2) Invested(3) Value(4) Value(5)
Slide 28: Fund Performance Metrics (Cont'd)
TPG | Fund Performance Metrics (Cont’d) Note: Past performance is not indicative of future results. See notes on the following pages. Investor ($ in millions, as of 3/31/22) Vintage Capital Capital Realized Unrealized Total Gross Gross Net Net Fund Year(1) Committed(2) Invested(3) Value(4) Value(5)
Slide 29: Fund Performance Metrics Notes
TPG | Fund Performance Metrics Notes 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 th
Slide 30: Fund Performance Metrics Notes (Cont'd)
TPG | Fund Performance Metrics Notes (Cont’d) Net IRR represents the compound annualized return rate (i.e., the implied discount rate) of a fund, which is calculated using investor cash flows in the fund, including cash received from capital called from investors, cash distributed to investors and t
Slide 31: Fund Performance Metrics Notes (Cont'd)
TPG | Fund Performance Metrics Notes (Cont’d) As of March 31, 2022, TPEP Long/Short had estimated inception-to-date gross returns of 150% and net returns of 111%. These performance estimates represent the composite performance of TPG Public Equity Partners, LP and TPG Public Equity Partners Master F
Slide 32: GAAP Statements of Operations Expanded
TPG | GAAP Statements of Operations Expanded Note: Due to the Reorganization in 1Q’22, comparability of prior periods may be limited. ($ in thousands) 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 Revenues Fees and other $210,155 $195,052 $279,908 $292,789 $ 273,005 Capital allocation-based income 994,578 1,986,011
Slide 33: GAAP Statements of Operations Pro Forma Adjustments
TPG | GAAP Statements of Operations Pro Forma Adjustments See notes on the following pages. ($ in thousands) 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 Revenues Fees and other $5,730 $5,620 $5,507 $3,950 $- (3) Capital allocation-based income 660 (6,804) 4,938 (7,447) - (1) Total revenues 6,390 (1,184) 10,445 (3
Slide 34: Pro Forma GAAP Statements of Operations Expanded
TPG | Pro Forma GAAP Statements of Operations Expanded See notes on the following pages. ($ in thousands) 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 Pro Forma Revenues Fees and other $215,885 $200,672 $285,415 $296,739 $273,005 Capital allocation-based income 995,238 1,979,207 236,294 779,091 837,705 Total reven
Slide 35: Pro Forma GAAP Statements of Operations Notes
TPG | Pro Forma GAAP Statements of Operations Notes Notes to the Unaudited Pro Forma Condensed Consolidated Statement of Operations and Other Data This adjustment relates to Excluded Assets and is made up of the following components: Impact of changes in economics of certain TPG general partner inte
Slide 36: Pro Forma GAAP Statements of Operations Notes (Cont'd)
TPG | Pro Forma GAAP Statements of Operations Notes (Cont’d) Notes to the Unaudited Pro Forma Condensed Consolidated Statement of Operations and Other Data continued Our current partners hold restricted indirect interests in Common Units through TPG Partner Holdings and indirect economic interests i
Slide 37: Pro Forma GAAP Statements of Operations Notes (Cont'd)
TPG | Pro Forma GAAP Statements of Operations Notes (Cont’d) Notes to the Unaudited Pro Forma Condensed Consolidated Statement of Operations and Other Data continued Prior to the IPO, TPG held Common Units representing 78.1% of the Common Units and 100% of the interests in certain intermediate holdi
Slide 38: Non-GAAP Financial Measures Expanded
TPG | Non-GAAP Financial Measures Expanded Note: Due to the Reorganization in 1Q’22, comparability of prior periods may be limited. See the Reconciliations and Disclosures section of this presentation for a full reconciliation between GAAP and Non-GAAP Financial Measures. ($ in thousands) 1Q'21 2Q'2
Slide 39: Non-GAAP Financial Measures Adjustments
TPG | Non-GAAP Financial Measures Adjustments See notes on the following pages. ($ in thousands) 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 1Q'22 LTM Fee-Related Revenues Management Fees $- $- $- $- $- $- Transaction, monitoring and other fees, net - - - - - - Other Income 1,431 3,216 3,395 (758) - 5,853 (1) Fee
Slide 40: Pro Forma Non-GAAP Financial Measures Expanded
TPG | Pro Forma Non-GAAP Financial Measures Expanded See notes on the following pages. ($ in thousands) 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 1Q'22 LTM Pro Forma Fee-Related Revenues Management Fees $154,229 $155,265 $206,994 $201,877 $202,731 $766,867 Transaction, monitoring and other fees, net 26,122 9,04
Slide 41: Pro Forma Non-GAAP Financial Measures Notes
TPG | Pro Forma Non-GAAP Financial Measures Notes Notes to the Unaudited Quarterly Pro Forma Non-GAAP Financial Measures The difference in other income between non-GAAP and pro forma non-GAAP financial measures is attributable to: (i) removing the other income associated with the other investments t
Slide 42: Reconciliations and Disclosures
Reconciliations and Disclosures
Slide 43: GAAP to Non-GAAP Financial Measures Reconciliation
TPG | GAAP to Non-GAAP Financial Measures Reconciliation ($ in thousands) 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 1Q'22 LTM GAAP Revenue $1,204,733 $2,181,063 $511,264 $1,079,327 $1,110,710 $4,882,363 Capital-allocation Income (994,578) (1,986,011) (231,356) (786,538) (837,704) (3,841,609) Expense Reimburseme
Slide 44: GAAP to Non-GAAP Balance Sheet Reconciliation
TPG | GAAP to Non-GAAP Balance Sheet Reconciliation ($ in thousands) 4Q'21 1Q'22 ($ in thousands) 4Q'21 1Q'22 Total GAAP Assets $8,962,013 $9,664,327 Total GAAP Liabilities $1,700,572 $5,238,986 Impact of consolidated TPG Funds and Public SPACs Impact of consolidated TPG Funds and Public SPACs Cash
Slide 45: 4Q'21 Pro Forma GAAP Balance Sheet
TPG | 4Q’21 Pro Forma GAAP Balance Sheet See notes on the following pages. ($ in thousands) TPG Group Holdings Historical 4Q'21 Reorganization and Other Transaction Adjustments Offering Transaction Adjustments TPG Inc. Pro Forma 4Q'21 Assets Cash and cash equivalents $972,729 $(27,200) $431,217 $1,3
Slide 46: 4Q'21 Pro Forma GAAP Balance Sheet Notes
TPG | 4Q’21 Pro Forma GAAP Balance Sheet Notes Notes to the Unaudited Pro Forma Condensed Consolidated GAAP Balance Sheet Measures as of December 31, 2021 The TPG Operating Group transferred to RemainCo certain performance allocation economic entitlements from certain of the TPG general partner enti
Slide 47: 4Q'21 Pro Forma GAAP Balance Sheet Notes (Cont'd)
TPG | 4Q’21 Pro Forma GAAP Balance Sheet Notes (Cont’d) Notes to the Unaudited Pro Forma Condensed Consolidated GAAP Balance Sheet Measures as of December 31, 2021 continued In connection with the IPO, we entered into the Tax Receivable Agreement with certain of our pre-IPO owners that provides for
Slide 48: 4Q'21 Pro Forma Non-GAAP Balance Sheet and Notes
TPG | 4Q’21 Pro Forma Non-GAAP Balance Sheet and Notes Notes to the Unaudited Pro Forma Condensed Consolidated Non-GAAP Balance Sheet Measures as of December 31, 2021 The difference between non-GAAP and pro forma non-GAAP balance sheet measures relates to the transfer of Excluded Assets, which consi
Slide 49: Additional Information: Dividend Policy
TPG | 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 adjustm
Slide 50: Definitions
TPG | Definitions After-tax Distributable Earnings (“After-tax DE”) 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 stock holders
Slide 51: Definitions (Cont'd)
TPG | Definitions (Cont’d) Fee-Related Earnings (“FRE”) is a supplemental performance measure and is used to evaluate our business and make resource deployment and other operational decisions. FRE differs from net income computed in accordance with GAAP in that it adjusts for the items included in t