TPG(TPG) - 2024 Q4 - Annual Results

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]