TPG(TPG) - 2025 Q3 - Quarterly Results

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]