Company Overview - TPG Inc. shares increased by 15.6% to close at $45.87, following a notable trading volume that exceeded typical levels, contrasting with an 18.4% loss over the previous four weeks [1] - The stock surge was influenced by a broader market rally, particularly due to President Trump's announcement of a 90-day tariff pause for non-retaliating nations, which positively impacted investor sentiment [2] Earnings Expectations - TPG Inc. is projected to report quarterly earnings of $0.54 per share, reflecting a year-over-year increase of 10.2% [2] - Expected revenues for TPG Inc. are $465.11 million, representing a 3.1% increase compared to the same quarter last year [2] Market Trends and Stock Performance - The consensus EPS estimate for TPG Inc. has remained unchanged over the last 30 days, indicating a lack of upward revisions in earnings estimates, which typically correlates with stock price movements [4] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [4] - TPG Inc. is part of the Zacks Financial - Investment Management industry, which includes Ares Management (ARES), whose stock also saw a 15.6% increase, closing at $142.37, despite a -13.9% return over the past month [4]

Core Viewpoint - TPG RE Finance Trust (NYSE: TRTX) has experienced a 12.8% increase over the past year, with its share price reaching $8.54, narrowing the gap to a book value of $11.27 per share [1] Group 1 - The equity market serves as a significant mechanism for wealth creation or destruction over the long term due to daily price fluctuations [1] - Pacifica Yield focuses on long-term wealth creation by targeting undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Core Insights - TPG Inc. has transitioned from a leading private equity firm to a fully diversified alternative asset manager with a total AUM of $246 billion and aims to double this figure [1] Company Overview - TPG Inc. is recognized for its rich history in private equity and has expanded its operations to encompass a broader range of alternative assets [1] Market Perspective - Joseph Jones, a professor with over fifteen years of market study experience, emphasizes portfolio construction from a dividend growth investor's viewpoint, although his insights are independent and do not reflect any employer's views [1]

Acquisition and Integration - TPG Inc. completed the acquisition of Angelo Gordon on November 1, 2023, with results included in consolidated operations from November 1, 2023, to December 31, 2024[13]. - The company faces risks related to the integration of Angelo Gordon and achieving anticipated benefits from the acquisition[14]. - TPG Inc. completed the acquisition of Angelo Gordon for a total purchase price of $1,143.4 million, which included $740.7 million in cash at closing[949]. - The acquisition included 9.2 million vested Common Units valued at approximately $233.9 million and 43.8 million unvested Common Units considered compensatory under U.S. GAAP[952]. - As of the acquisition date, the total identifiable assets acquired amounted to $2,334.3 million, while total liabilities assumed were $1,392.6 million, resulting in goodwill of $205.9 million[954]. - The Earnout Payment could total up to $400.0 million, contingent on achieving certain fee-related revenue targets during the measurement period from January 1, 2026, to December 31, 2026[952]. Financial Performance - Total revenues for 2024 reached $3,500,082, a 46.6% increase from $2,389,911 in 2023[812]. - Total expenses rose to $3,578,323, reflecting a 51.5% increase compared to $2,363,803 in 2023[812]. - Net loss attributable to TPG Inc. was $76,915, compared to a net income of $23,385 in 2023[812]. - Basic net income (loss) per share for Class A common stock was $0.00, down from $0.89 in 2023[812]. - Diluted net income (loss) per share was $(0.42), compared to $(0.04) in 2023[812]. - TPG Inc. reported a net income of $23,483,000 for the year ended December 31, 2024, compared to a net loss of $76,915,000 in 2023[821]. - The total cash provided by operating activities for 2024 was $532,146,000, a decrease from $720,518,000 in 2023[821]. - TPG Inc. had cash, cash equivalents, and restricted cash of $821,192,000 at the end of 2024, up from $678,371,000 at the end of 2023[823]. - The company experienced a net cash used in financing activities of $344,860,000 in 2024, compared to $789,234,000 in 2023[821]. Compensation and Expenses - Cash-based compensation and benefits increased to $835,328, a 52.5% rise from $547,377 in 2023[812]. - Equity-based compensation surged to $1,006,312, up 53.5% from $654,922 in 2023[812]. - The company reported a significant increase in performance allocation compensation to $930,053,000 in 2024 from $591,676,000 in 2023[821]. - Management fees increased to $1,637,990 in 2024, up 37.8% from $1,187,947 in 2023[860]. - Performance allocations rose to $1,301,766 in 2024, a significant increase of 61.0% compared to $808,248 in 2023[860]. - Monitoring fees surged to $29,625 in 2024, a 172.0% increase from $10,866 in 2023[860]. - Transaction fees increased to $140,599 in 2024, up 41.4% from $99,427 in 2023[860]. - Incentive fees saw a rise to $33,032 in 2024, compared to $2,815 in 2023, marking a substantial increase[860]. Assets and Liabilities - Total assets increased to $10,535.1 million as of December 31, 2024, up from $9,369.7 million as of December 31, 2023[807]. - Total liabilities increased to $6,943.1 million as of December 31, 2024, compared to $6,008.5 million as of December 31, 2023[807]. - Accrued performance allocation compensation rose to $4,376.5 million as of December 31, 2024, from $4,096.1 million as of December 31, 2023[807]. - Additional paid-in-capital increased to $970.7 million as of December 31, 2024, compared to $613.5 million as of December 31, 2023[807]. - The balance of total equity at December 31, 2024, was $3,591,989,000, up from $3,361,134,000 at the end of 2023[819]. Market and Regulatory Environment - The company acknowledges potential risks from changes in the U.S. political and financial regulatory environment[16]. - TPG's management fees and performance allocations are primarily influenced by the fair value of investments, which can fluctuate due to market conditions[24]. - The company is subject to scrutiny from fund investors and regulators regarding ESG matters and evolving regulatory requirements[14]. - TPG's investment strategy includes expansion into new markets and businesses, which may involve new types of investors[14]. - The company has no obligation to publicly update forward-looking statements, which are subject to inherent uncertainties and risks[12]. Accounting and Reporting - The preparation of the Consolidated Financial Statements requires management to make estimates and assumptions that could materially affect reported amounts[832]. - The Company accounts for business combinations using the acquisition method, allocating purchase price to assets and liabilities based on fair values determined at the acquisition date[917]. - The Company recognizes interest and penalties related to unrecognized tax benefits as income tax expense within the consolidated financial statements[939]. - The total Purchase Price allocated to the fair value of assets acquired and liabilities assumed was $205.9 million recorded as goodwill, which is not tax-deductible[961]. - The fair value of identifiable intangible assets acquired totaled $547.5 million, with management contracts valued at $287,000 and contractual performance fee allocations at $199,000[962].

Financial Data and Key Metrics Changes - TPG reported GAAP net income of $13 million and after-tax distributable earnings of $261 million, equating to $0.62 per share of Class A common stock, marking a 27% increase year-over-year [7][45] - The company declared a dividend of $0.53 per share of Class A common stock, payable on March 7, 2025 [7] - Total assets under management (AUM) reached $246 billion, an 11% increase year-over-year, driven by $30 billion in capital raised and $19 billion in value creation [46] - After-tax distributable earnings for the full year totaled $837 million, a 43% increase compared to the previous year [45] Business Line Data and Key Metrics Changes - Private equity and infrastructure fundraising grew year-over-year, raising $14 billion in 2024 [18] - Credit strategies raised over $12 billion in 2024, exceeding the $10 billion target [52] - The capital markets revenue saw significant growth, driven by the integration of the broker-dealer across platforms [26] Market Data and Key Metrics Changes - The company deployed $33 billion in capital for the full year 2024, with $10 billion deployed in the fourth quarter alone [28] - Realizations totaled $23 billion for the year, a 50% increase from 2023 [36] - The private equity portfolio appreciated more than 3% in the fourth quarter and 10% over the last twelve months [49] Company Strategy and Development Direction - TPG aims to double its AUM to $500 billion over the next several years, focusing on organic growth, innovation, and potential inorganic opportunities [39][84] - The company is expanding its client relationships and distribution channels, particularly in private wealth [16][80] - TPG is actively evaluating inorganic opportunities to enhance scale and diversification, particularly in infrastructure and digital assets [17][78] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about significant capital raising in 2025, expecting to exceed 2024 levels [15][53] - The company anticipates growth in management fees driven by credit deployment and fundraising for climate and transition infrastructure funds [64] - Management highlighted the importance of maintaining a balance sheet-light model while exploring partnerships and growth opportunities [91][96] Other Important Information - TPG successfully integrated Angelo Gordon, realizing revenue synergies and business-building opportunities [12][58] - The company launched several new funds, including a climate transition infrastructure strategy and a dedicated mid-cap strategy focused on Asia [21][24] - TPG's capital markets business is expected to be a significant contributor to revenue growth over time [26] Q&A Session Summary Question: TPG's annual partners meeting and insurance opportunities - Management discussed five core growth drivers for doubling AUM, including growing core strategies, organic innovation, inorganic additions, wealth penetration, and insurance partnerships [72][84] Question: Importance of balance sheet light model in insurance opportunities - Management emphasized the importance of finding the right partner while maintaining a balance sheet-light model, focusing on quality growth [91][96] Question: Doubling AUM timeframe and organic vs. inorganic growth - Management indicated that doubling AUM could occur in several years, with a mix of organic and inorganic growth strategies contributing to this goal [106][108] Question: Impact of partnership with Intersect Power and RISE Climate - Management highlighted the significance of the partnership with Google and Intersect Power, indicating strong activity in the climate impact sector [130][132]

TPG Reports Fourth Quarter and Full Year 2024 Financial Results Year Ended December 31, 2024 TPG Reports Fourth Quarter and Full Year 2024 Results San Francisco and Fort Worth, Texas – February 11, 2025 – TPG Inc. (NASDAQ: TPG), a leading global alternative asset management firm, reported its unaudited fourth quarter and full year 2024 results. TPG issued a full detailed presentation of its fourth quarter and full year ended December 31, 2024 results, which can be viewed through the Investor Relations secti ...

Group 1 - TPG Inc. reported quarterly earnings of $0.62 per share, exceeding the Zacks Consensus Estimate of $0.52 per share, and showing an increase from $0.51 per share a year ago, representing an earnings surprise of 19.23% [1] - The company posted revenues of $461.41 million for the quarter ended December 2024, which was a slight miss compared to the Zacks Consensus Estimate by 0.49%, and a decrease from $464.73 million year-over-year [2] - TPG Inc. has surpassed consensus EPS estimates three times over the last four quarters, while also topping consensus revenue estimates three times in the same period [2] Group 2 - The stock has underperformed the market, losing about 0.7% since the beginning of the year, while the S&P 500 has gained 3.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $483.79 million, and for the current fiscal year, it is $2.50 on revenues of $2.09 billion [7] - The Zacks Industry Rank for Financial - Investment Management is currently in the bottom 23% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - TPG reported total revenues of $1,076.4 million for Q4 2024, an increase from $983.1 million in Q4 2023, representing a growth of 9.5%[11] - Net income for Q4 2024 was $11.1 million, a decrease from $42.4 million in Q4 2023, reflecting a decline of 73.9%[12] - Fee-Related Revenues (FRR) for Q4 2024 were $461 million, down 1% from $465 million in Q4 2023[13] - Fee-Related Earnings (FRE) decreased by 16% from $226 million in Q4 2023 to $190 million in Q4 2024, with a FRE margin of 41%[16] - After-tax Distributable Earnings (DE) increased from $206 million in Q4 2023 to $261 million in Q4 2024, a growth of 26.7%[20] - TPG's operating profit margin was 1.0% for Q4 2024, down from 4.3% in Q4 2023[11] - Total revenues for Q1 2024 were $824,071, a decrease of 16.2% compared to Q4 2023's $983,137[80] - Net income attributable to TPG Inc. for Q1 2024 was $15,519, compared to a net loss of $13,977 in Q2 2024[80] - After-tax Distributable Earnings for Q1 2024 were $180,625, compared to $205,647 in Q4 2023, reflecting a decrease of 12.2%[81] Assets Under Management (AUM) - Total Assets Under Management (AUM) reached $246 billion, up 11% year-over-year[13] - Assets Under Management (AUM) rose 11% year-over-year to $245.9 billion in 4Q'24, driven by capital raised of $4.7 billion in Rise Climate II[41] - Performance Eligible AUM totaled $209.3 billion, representing 85% of total AUM at the end of 4Q'24[50] - Performance Generating AUM was $163.4 billion, accounting for 66% of total AUM at the end of 4Q'24[50] - AUM Subject to Fee Earning Growth was $28 billion, estimated to generate approximately $167 million in annual revenue[47] - FAUM (Funds Under Management) decreased to $37,075 million as of December 31, 2024, down from $37,941 million at the beginning of the period, representing a decline of approximately 2.3%[53] Capital and Investments - Capital raised remained stable at $8.8 billion for both Q4 2023 and Q4 2024[13] - Approximately $32.9 billion was invested during the last twelve months, with $57.6 billion available for deployment at the end of Q4 2024[55] - Total capital invested for fiscal year 2024 was $32,944 million, down from $22,217 million in fiscal year 2023, indicating a significant increase of 48%[57] - The company raised $5,513 million in fee-earning capital for the fiscal year 2024, a decrease of 39.5% compared to $9,047 million in fiscal year 2023[56] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.53 per share, payable on March 7, 2025[3] - FRE attributable to TPG Inc. was $0.51 per share for 4Q'24 and $2.09 per share for FY'24[68] - Declared dividend of $0.53 per share for 4Q'24, totaling $1.74 per share for FY'24[68] - The company plans to maintain a dividend policy of at least 85% of earnings attributable to the TPG Operating Group, subject to board discretion[85] Performance Metrics - Realized performance allocations, net were $105 million in 4Q'24, primarily driven by the TF platform and Growth IV in the Growth platform[25] - For FY'24, realized performance allocations, net totaled $195 million, mainly from TI in the Capital platform and Rise Climate I in the Impact platform[25] - 4Q'24 net accrued performance for the Capital platform was 3.6%, while the Growth platform achieved 3.9%[26] - Total equity-based compensation related to TPG Inc. Ordinary Service Awards was $28 million, with an unrecognized compensation expense of $238.4 million at the end of 4Q'24[69] Acquisitions and Strategic Initiatives - The acquisition of Angelo Gordon is expected to enhance TPG's growth and operational capabilities moving forward[7] - The acquisition of Angelo Gordon is expected to enhance the company's asset management capabilities and expand its market presence[87] Financial Structure and Metrics - Total GAAP Assets as of Q4 2023 were $9,369,672, with a projected increase to $10,535,109 by Q4 2024[84] - Total participating shares outstanding include Class A shares and TPG Operating Group Common Units, reflecting the equity structure of the company[109] - Cash and cash equivalents reached $0.8 billion at the end of 4Q'24, following net proceeds from subordinated notes offerings[34]

Core Viewpoint - TPG Inc. is anticipated to report a year-over-year increase in earnings despite a slight decline in revenues for the quarter ended December 2024, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus estimate for TPG's quarterly earnings is $0.52 per share, reflecting a year-over-year increase of 2%, while revenues are projected to be $463.68 million, a decrease of 0.2% from the previous year [3]. - The consensus EPS estimate has been revised down by 1.12% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that TPG has a negative Earnings ESP of -0.32%, suggesting that analysts have become less optimistic about the company's earnings [10][11]. - TPG currently holds a Zacks Rank of 3 (Hold), making it challenging to predict a beat on the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, TPG met the expected earnings of $0.45 per share, resulting in no surprise [12]. - Over the past four quarters, TPG has surpassed consensus EPS estimates three times [13]. Industry Comparison - In the Zacks Financial - Investment Management industry, Blue Owl Capital Inc. is expected to report earnings of $0.21 per share for the same quarter, representing a year-over-year increase of 16.7%, with revenues projected to rise by 24.4% to $614.74 million [17]. - Blue Owl Capital's consensus EPS estimate has been revised down by 2.5% in the last 30 days, and it also has a negative Earnings ESP of -0.82%, indicating a similar cautious outlook as TPG [18].

Group 1 - TPG is in advanced talks to acquire Crown Castle's fiber business for $8 billion [1] - Private equity firms have been actively investing in fiber and digital infrastructure companies to support expansion efforts [2] - The deal for the fiber and wireless assets is expected to be announced in the coming weeks, but no final decision has been made [4] Group 2 - The potential sale would allow Crown Castle to concentrate on its core towers business, which includes over 40,000 towers in the U.S. as of September 30, 2024 [5] - Crown Castle's shares have declined by 6% in the past six months, while the industry has grown by 1.7% [6]