TPG(TPG) - 2025 Q2 - Quarterly Results

Financial Performance - Distributable Earnings for Q2 2025 increased by 26% year-over-year, with a record quarterly dividend declared[5] - Total revenues for Q2 2025 were $920.5 million, up from $744.2 million in Q2 2024, representing a 23.6% increase[21] - Net income for Q2 2025 was $30.1 million, compared to a net loss of $57.6 million in Q2 2024[22] - Total expenses for Q2 2025 were $890.1 million, up from $776.5 million in Q2 2024[21] - The company reported a significant increase in performance allocation compensation, rising to $233.4 million in Q2 2025 from $133.8 million in Q2 2024[21] - After-tax Distributable Earnings (DE) rose from $207 million in 2Q'24 to $268 million in 2Q'25, driven by realized performance allocations and FRE[35][36] - Net income for Q2 2025 YTD was $117,939, a recovery from a net loss of $57,578 in Q2 2024[128] Revenue and Earnings Metrics - Fee-Related Revenues (FRR) for Q2 2025 were $495 million, an 8% increase from $459 million in Q2 2024[24] - Fee-Related Earnings (FRE) attributable to TPG Inc. was $0.59 per share for Q2 2025, and $1.08 per share year-to-date[104] - After-tax Distributable Earnings (DE) attributable to TPG Inc. was $0.69 per share for Q2 2025, and $1.17 per share year-to-date[104] - Total GAAP performance for the three months ended June 30, 2025, was $335,789,000, with a realized amount of $351,546,000 on a Non-GAAP basis[96] Assets Under Management (AUM) - Assets Under Management (AUM) reached $261 billion, a 14% increase over the past twelve months[24] - The company’s Fee-Earning Assets Under Management (AUM) increased by 7% year-over-year, reaching $146 billion[65] - 2Q25 AUM increased by 14% year-over-year to $261.3 billion, driven by $36.4 billion in capital raised, including $5.8 billion in Rise Climate II and $2.9 billion in Credit Solutions III, partially offset by $23.4 billion in realizations[66] - Performance Eligible AUM totaled $220.0 billion, or 84% of total AUM, while Performance Generating AUM was $169.3 billion, or 65% of total AUM, at the end of 2Q25[82] Capital Raising and Investment - Capital raised in Q2 2025 totaled $11.3 billion, compared to $6.3 billion in Q2 2024[24] - The company raised a total of $36.4 billion in capital over the past twelve months, with significant contributions from various funds[84] - The capital raised in Q2 2025 was $11.303 billion, a substantial increase from $6.299 billion in Q2 2024, marking an 80% increase year-over-year[90] - Total capital invested of $10.377 billion in Q2 2025, compared to $7.615 billion in Q2 2024, representing a 36% increase[92] Expenses and Compensation - Fee-Related Expenses increased from $258 million in 2Q'24 to $276 million in 2Q'25, reflecting higher cash-based compensation and operating expenses[28] - Cash-based compensation and benefits for Q2 2025 YTD totaled $432,191, up from $191,486 in Q2 2024, indicating increased employee costs[128] - General, administrative, and other expenses for Q2 2025 YTD were $346,646, compared to $170,184 in Q2 2024, highlighting rising operational expenses[128] Dividend and Shareholder Returns - The company declared a quarterly dividend of $0.59 per share, payable on September 2, 2025[6] - The company plans to pay at least 85% of its Distributable Earnings as dividends, subject to board approval and business needs[139] - Future dividend payments are subject to the discretion of the board of directors and may be changed at any time[141] Performance Metrics and Non-GAAP Measures - Non-GAAP adjustments for the total performance allocations were $4,886 million as of March 31, 2025[98] - After-tax Distributable Earnings ("After-tax DE") is a non-GAAP performance measure reflecting earnings available for distribution after income taxes, differing from U.S. GAAP net income[143] - Fee-Related Earnings ("FRE") is used to evaluate business performance and is adjusted for certain expenses, providing insight into the ability to cover operational costs from fee revenues[154] Market and Investment Performance - The company’s market solutions segment contributed significantly to both capital raised and AUM growth, reflecting a strategic focus on this area[84] - Investment Appreciation represents fund appreciation for private equity and real estate funds, contributing to overall fund performance[158] - Realizations represent proceeds from investment dispositions, crucial for understanding cash flow and investment returns[165]