Core Points - TPG Telecom reported a customer death linked to the inability to make emergency calls on its network due to outdated software on a Samsung device [1] Group 1 - The incident highlights potential risks associated with outdated software on devices used within the telecommunications network [1] - TPG Telecom's network failure to facilitate emergency calls raises concerns about service reliability and customer safety [1] - The company may face scrutiny regarding its network infrastructure and customer support in light of this incident [1]

Core Points - TPG RE Finance Trust, Inc. announced the closing of TRTX 2025-FL7, a $1.1 billion managed Commercial Real Estate Collateralized Loan Obligation [1] - The company placed approximately $957.0 million of investment grade securities with institutional investors [1] - The financing is provided on a non-mark-to-market, non-recourse basis [1] Financial Details - TRTX 2025-FL7 features a 30-month reinvestment period [1] - The advance rate for the CLO is set at 87.0% [1]

Core Insights - The article compares Federated Hermes (FHI) and TPG Inc. (TPG) to determine which stock offers better value opportunities for investors [1] Valuation Metrics - FHI has a Zacks Rank of 1 (Strong Buy), indicating a stronger earnings outlook compared to TPG, which has a Zacks Rank of 3 (Hold) [3] - FHI's forward P/E ratio is 10.32, significantly lower than TPG's forward P/E of 23.88 [5] - FHI's PEG ratio is 0.52, while TPG's PEG ratio is 1.04, suggesting FHI is more undervalued relative to its expected earnings growth [5] - FHI has a P/B ratio of 3.26 compared to TPG's P/B of 5.71, further indicating FHI's relative undervaluation [6] - FHI earns a Value grade of B, while TPG receives a Value grade of D, reinforcing FHI's position as the more attractive investment option [6]

Group 1 - The private-equity firm is planning to seek bids next month for its stake in XCL Education, a school operator in Southeast Asia [1]

Core Insights - TPG has reached a definitive agreement to acquire PTC's Kepware and ThingWorx businesses, aiming to enhance their growth and leadership in industrial connectivity and IoT solutions [1][2][7] - The transaction is expected to close in the first half of 2026, pending regulatory approvals and other conditions [4] Company Focus - PTC is shifting its focus towards its Intelligent Product Lifecycle vision, concentrating resources on core offerings such as CAD, PLM, ALM, and SLM, while leveraging AI and SaaS technologies [3][7] - The sale of Kepware and ThingWorx will allow PTC to better address customer challenges by optimizing product data utilization throughout the product lifecycle [3][7] Investment and Growth Potential - TPG plans to invest in the acquired businesses through its U.S. and European private equity platform, providing additional capital and expertise to accelerate growth [2][3] - The acquisition is seen as a generational opportunity to enhance manufacturing processes by bridging operational and information technology [3][7] Business Operations - Kepware serves as a communication platform that facilitates data exchange across various industries, including manufacturing and utilities, while ThingWorx is an IoT platform that enables remote device management and data analysis [3][7] - The partnership with TPG is expected to support the scaling and evolution of these software platforms to meet the changing needs of customers [3][7]

Financial Performance - Total revenues for Q3 2025 reached $1,223,517,000, a 43% increase from $855,403,000 in Q3 2024[20] - Net income for Q3 2025 was $199,230,000, compared to a net loss of $21,425,000 in Q3 2024[20] - The company reported a basic net income per share of $0.33 for Q3 2025, compared to $0.04 in Q3 2024[20] - TPG Inc. reported a net income of $107,474 thousand for the period, compared to a net loss of $98,512 thousand in the previous period[29] - For the nine months ended September 30, 2025, TPG Inc. reported a net income of $317,169, compared to a net loss of $88,009 in the same period of 2024[35] - Net income attributable to TPG Inc. for Q3 2025 was $69,518 thousand, compared to $10,277 thousand in Q3 2024; for the nine months ended September 30, 2025, net income was $101,123 thousand, a significant recovery from a loss of $11,508 thousand in the same period of 2024[144] Assets and Liabilities - Total assets increased to $13,019,723,000 as of September 30, 2025, up from $10,535,109,000 at the end of 2024, representing a 23.6% growth[16] - Total liabilities rose to $9,246,567,000 as of September 30, 2025, compared to $6,943,120,000 at the end of 2024, marking a 33.3% increase[16] - The company’s additional paid-in capital increased to $1,437,586,000 as of September 30, 2025, from $970,719,000 at the end of 2024, a growth of 48.1%[16] - Total equity increased to $2,807,888 thousand as of September 30, 2025, up from $2,781,977 thousand at the end of the previous year[29] - Total investments increased to $8,686,758 thousand as of September 30, 2025, up 15.8% from $7,503,281 thousand at the end of 2024[147] Cash Flow and Capital Management - Cash and cash equivalents increased to $1,080,304,000 from $808,017,000, reflecting a 33.5% rise[16] - Net cash provided by operating activities increased to $1,076,098, up from $720,220 in the prior year, reflecting a significant improvement in operational efficiency[35] - The company paid $977,718 in dividends/distributions, an increase from $626,509 in the prior year, indicating a commitment to returning value to shareholders[35] - The company incurred $20.4 million in acquisition-related costs during the nine months ended September 30, 2025, which were expensed[143] Acquisition and Investments - The company completed the acquisition of Peppertree, contributing to an increase in total equity to $3,773,156,000 as of September 30, 2025, up from $3,591,989,000 at the end of 2024[16] - The Company completed the acquisition of Peppertree Capital Management, Inc. on July 1, 2025, expanding its platform diversity in wireless communications towers[134] - Peppertree contributed revenues of $18.2 million and net income of $14.7 million for the period ended September 30, 2025[135] - The total purchase price for the acquisition was $389.6 million, consisting of $235.7 million in cash and $154.0 million in nonvoting Class A common stock[137] Compensation and Expenses - Total compensation and benefits expenses for Q3 2025 were $791,768,000, compared to $671,683,000 in Q3 2024, an increase of 17.9%[20] - Equity-based compensation expenses totaled $179,174 thousand for the period[29] - The company recorded management fee reductions of $5.8 million and $24.2 million for the three and nine months ended September 30, 2025, respectively[75] Tax and Deferred Assets - As of September 30, 2025, the Company recognized net deferred tax assets of $976.7 million, up from $436.0 million as of December 31, 2024[193] - The effective tax rate for the three months ended September 30, 2025, was 12.7%, compared to (184.0)% for the same period in 2024[197] Debt and Financing - The Company issued $500,000,000 in Senior Notes due 2036 with an interest rate of 5.375% per annum, maturing on January 15, 2036[182] - Total debt obligations as of September 30, 2025, amounted to $3,830,000,000, with a carrying value of $1,792,030,000[183] - The Company was in compliance with all covenants under its debt obligations as of September 30, 2025[186] Performance Metrics - Capital allocation-based income for Q3 2025 was $627,018,000, significantly up from $330,670,000 in Q3 2024, indicating a 89.5% increase[20] - Performance allocations for the three months ended September 30, 2025, were $592,932,000, compared to $307,953,000 in 2024, representing an increase of 93%[66] - The company reported a significant increase in performance allocation compensation to $951,562, up from $553,824, reflecting improved performance metrics[35] Geographic and Operational Focus - The primary geographic region for the company's investments is North America, where the majority of revenues from contracts with customers are generated[85] - The Company operates as a single segment, focusing on fee-based asset management services primarily in North America[128]

Financial Data and Key Metrics Changes - TPG reported GAAP net income attributable to TPG Inc. of $67 million and after-tax attributable earnings of $214 million or $0.53 per share of Class A common stock [4] - The company declared a dividend of $0.45 per share of Class A common stock, payable on December 1, 2025 [4] - Total assets under management (AUM) grew 20% year over year to $286 billion, driven by $44 billion of capital raised and $24 billion of value creation [26] - Fee-earning AUM increased 15% year over year to $163 billion [26] - Management fees grew to $461 million in the third quarter, with quarterly fee-related earnings of $225 million [28] Business Line Data and Key Metrics Changes - Total AUM grew 20% year over year, with quarterly fee-related earnings increasing 18% [5] - In private equity, TPG raised $12.3 billion across strategies, primarily driven by $10.1 billion raised in the first close for flagship buyout funds [7] - Credit AUM not earning fees stood at nearly $11 billion, representing over $100 million of annual revenue opportunity expected to flow into management fees over time [9] - In real estate, TPG held the final close for its inaugural real estate credit strategy, exceeding its initial target by more than 35% [10] Market Data and Key Metrics Changes - TPG raised a near-record $18 billion of capital in the third quarter, up 60% from the second quarter and 75% year over year [6] - Year to date, TPG has raised over $35 billion of capital, exceeding the full year 2024 fundraising [7] - Credit AUM has grown 23% year over year, making it one of the fastest-growing areas within the firm [23] Company Strategy and Development Direction - TPG is focused on expanding its credit platform and launching new products, with a robust fundraising outlook for 2026 [42] - The company aims to capitalize on market dislocation to acquire high-quality assets and is well-positioned to play offense in real estate [23] - TPG is increasing its penetration in private wealth and insurance distribution channels, with significant growth in capital from insurance clients [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundraising momentum and the ability to outperform in private equity fundraising relative to the broader market [8] - The company is optimistic about the liquidity environment and has a number of assets being explored for liquidity [54] - Management noted that the underlying health of credit portfolios remains strong despite recent market concerns [33] Other Important Information - TPG's dry powder has grown to a record $73 billion, representing a strategic asset for sourcing investment opportunities [27] - The company has maintained a disciplined approach to credit underwriting, resulting in low annualized loss ratios across its credit platforms [16] Q&A Session Summary Question: How does the realization pipeline look given the age and timing of funds? - Management clarified that the vintage refers to the fund itself, not the underlying portfolio companies, and expressed confidence in the liquidity prospects [48][50] Question: What is the potential for realizations in the current IPO and M&A environment? - Management indicated that they do not forecast realizations but are focused on selling companies at the right time, with a strong portfolio performance as a leading indicator [57][61] Question: Are there risks in the investment portfolio due to AI disruptions? - Management stated that they have been early investors in AI and view it as an opportunity rather than a threat, with a focus on vertical market software and cybersecurity [64][70] Question: How is the credit business evolving and what are the growth drivers? - Management highlighted the multi-strategy approach of the credit platform and the increasing engagement with insurance clients as key growth drivers [75][78]

Financial Performance - TPG reported a net income of $199 million for Q3 2025, compared to a net loss of $21 million in Q3 2024[16] - Net income attributable to TPG Inc was $67 million for Q3 2025, compared to $9 million in Q3 2024[16] - After-tax Distributable Earnings (DE) increased from $189 million in Q3 2024 to $214 million in Q3 2025, primarily driven by Fee-Related Earnings (FRE)[27] - Fee-Related Earnings (FRE) increased 18% from $191 million in Q3 2024 to $225 million in Q3 2025, with the FRE margin increasing from 41% to 44%[22] - The company declared a dividend of $045 per share of Class A common stock, payable on December 1, 2025[5] Assets Under Management (AUM) - Total Assets Under Management (AUM) reached $2864 billion, up 20% in the last twelve months[17] - Fee-Earning Assets Under Management (FAUM) totaled $1630 billion, up 15% over the same period[17] - Capital raised in Q3 2025 amounted to $181 billion, compared to $104 billion in Q3 2024[17] - Capital invested in Q3 2025 was $149 billion, an increase of over 70% year-over-year[4] Fund Performance - Realized performance allocations, net were $30 million in Q3 2025, primarily driven by Asia VIII and Asia VII in the Capital platform, MMDL V and MMDL II in TPG AG Credit, and TTAD II in the Growth platform[32] - Realized performance allocations, net for Q3 2025 YTD were $157 million, primarily driven by TPG VII, TPG VIII, Asia VIII, and Asia VII in the Capital platform, Growth IV in the Growth platform, and Rise Climate I in the Impact platform[32]

Core Viewpoint - TPG Inc. reported quarterly earnings of $0.53 per share, missing the Zacks Consensus Estimate of $0.55 per share, but showing an increase from $0.45 per share a year ago, indicating a mixed performance in earnings expectations [1][2]. Financial Performance - TPG Inc. posted revenues of $509.4 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.10% and showing an increase from $459.84 million year-over-year [2]. - Over the last four quarters, TPG has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2]. Stock Performance - TPG Inc. shares have declined approximately 12.8% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [3]. - The current Zacks Rank for TPG Inc. is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.73 on revenues of $550.61 million, and for the current fiscal year, it is $2.45 on revenues of $2.01 billion [7]. - The trend of estimate revisions for TPG Inc. was mixed ahead of the earnings release, which may change following the recent report [6]. Industry Context - The Financial - Investment Management industry, to which TPG belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8].

Capital Raising and Deployment - TPG raised more than $18 billion in capital during Q3 2025, marking a successful first close in private equity funds and strong credit fundraising[5] - Nearly $15 billion was deployed in Q3 2025, representing an increase of over 70% year-over-year[5] - Capital raised in 3Q25 amounted to $18.1 million, up from $10.4 million in 3Q24, contributing to a year-to-date total of $35.3 million[25] - The company invested approximately $42.9 billion over the last twelve months, with $72.9 billion of capital available for deployment at the end of Q3 2025[95] - The company has approximately $72.9 billion of capital available for deployment as of the end of 3Q'25, an increase from $58.4 billion at the end of 3Q'24[98] Financial Performance - Total revenues for Q3 2025 were $1.22 billion, up from $855 million in Q3 2024, reflecting a year-over-year growth of approximately 43%[21] - Net income for Q3 2025 was $199 million, compared to a net loss of $21 million in Q3 2024[22] - Net income attributable to TPG Inc. was $67 million for Q3 2025, compared to $9 million in Q3 2024[22] - The operating profit margin improved to 16.3% in Q3 2025, up from a negative margin of 2.5% in Q3 2024[23] - Total expenses for Q3 2025 were $1.03 billion in Q3 2025, an increase from $867 million in Q3 2024[21] Earnings and Dividends - TPG declared a quarterly dividend of $0.45 per share of Class A common stock, payable on December 1, 2025[6] - Fee-Related Earnings (FRE) rose 18% from $191 million in 3Q24 to $225 million in 3Q25, with a FRE margin improvement from 41% to 44%[29] - After-tax Distributable Earnings (DE) increased from $189 million in 3Q24 to $214 million in 3Q25, primarily driven by higher FRE[38] - After-tax distributable earnings for Q3 2025 were reported at $214,362, compared to $189,445 in 3Q24, reflecting a year-over-year increase of approximately 13.1%[147] Assets Under Management (AUM) - TPG manages $286 billion in assets, investing across various strategies including private equity, credit, and real estate[8] - Total Assets Under Management (AUM) reached $286 billion, reflecting a 20% increase year-over-year[25] - Fee-Earning Assets Under Management (FAUM) grew by 15% to $163 billion compared to $141.7 billion in 3Q24[25] - Performance Eligible AUM reached $242.0 billion, accounting for 84% of total AUM, while Performance Generating AUM was $188.9 billion, or 66% of total AUM[87] Investment Performance - The TPG VII fund reported a total value of $24,896 million, achieving a net IRR of 19% and a gross multiple of 2.4x[117] - TPG IX fund had a total value of $13,238 million, with a net IRR of 25% and a gross multiple of 1.4x[117] - The Asia Funds collectively reported a total value of $34,416 million, with a net IRR of 14% and a gross multiple of 2.0x[120] - TPG AAF fund reported a total value of $2,720 million, with a net IRR of 37% and a gross multiple of 2.1x[119] Market Solutions and Segment Performance - TPG Angelo Gordon's credit segment reported capital of $16,256 million in 3Q'25, up from $11,937 million in 3Q'24, reflecting a growth of 36%[98] - Market Solutions segment capital increased to $4,151 million in 3Q'25 from $2,739 million in 3Q'24, marking a growth of 51.7%[98] - The company’s market solutions segment raised $380 million in capital during the three months ended September 30, 2025, compared to $1.101 billion in the same period last year, reflecting a decrease in this segment[96] Realizations and Investment Returns - Realizations for the three months ended September 30, 2025, totaled $7.766 billion, compared to $2.554 billion in the previous quarter, indicating a significant increase in investment returns[89] - Realizations in 3Q'25 amounted to $2,554 million, up from $1,238 million in 3Q'24, representing a growth of 106.5%[98] - Changes in investment value and other factors contributed an increase of $8.799 billion to AUM during the three months ended September 30, 2025[89] Corporate Developments - The company plans to include amounts from TPG Peppertree starting July 1, 2025, following the acquisition[26] - The acquisition of Peppertree Capital Management was completed on July 1, enhancing the company's investment capabilities[154] - The reorganization will take effect on November 1, 2023, impacting the TPG Operating Group partnerships and their respective consolidated subsidiaries[182]