TPG(US:TPG)2025-02-18 21:10Acquisition 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].