TPG(US:TPG)2026-02-05 13:01Financial Performance - Net income for Q4 2025 was $282 million, a significant increase from $11 million in Q4 2024, with net income attributable to TPG Inc. at $77 million compared to $13 million in the same period [22]. - Total revenues for FY 2025 reached $4.67 billion, up from $3.50 billion in FY 2024, reflecting a growth of approximately 33.4% [21]. - The operating profit margin improved to 18.9% in Q4 2025, compared to 1.0% in Q4 2024 [23]. - Total expenses for FY 2025 were $4.09 billion, an increase from $3.58 billion in FY 2024 [21]. - Compensation and benefits expenses rose to $3.14 billion in FY 2025, compared to $2.77 billion in FY 2024 [21]. - Distributable earnings for Q4'25 were $336.2 million, contributing to a total of $1.04 billion for FY'25, showcasing strong cash generation capabilities [134]. - The company experienced a net loss from investment activities of $2.8 million for FY'25, indicating challenges in investment performance despite strong operational results [131]. Capital Management - TPG raised over $51 billion and deployed $52 billion in 2025, driving total assets under management (AUM) to more than $300 billion [5]. - The company has $72 billion in dry powder, positioning it well for future growth and market navigation [5]. - Available Capital at the end of 4Q'25 was $72.4 billion, reflecting a strong liquidity position [25]. - Approximately $51.9 billion was invested over the last twelve months, with $72.4 billion of capital available for deployment at the end of Q4 2025 [89]. - The company intends to pay at least 85% of its Distributable Earnings as dividends, subject to board discretion and business needs [143]. Asset Management - Total Assets Under Management (AUM) reached $303 billion, a 23% increase year-over-year [25]. - Fee-Earning AUM increased 20% from 4Q'24 to $170.1 billion, primarily due to fee-earning capital raised of $22.1 billion [64]. - Performance Eligible AUM totaled $254.3 billion, or 84% of total AUM, at the end of 4Q'25 [81]. - Performance Generating AUM totaled $208.8 billion, or 69% of total AUM, at the end of 4Q'25 [81]. - The potential fee-related revenue opportunity associated with AUM Not Yet Earning Fees and FAUM Subject to Step-Up is estimated at approximately $250 million annually [75]. Revenue Streams - Fee-Related Revenues for FY'25 are anticipated to be $2,109,255, rising from $461,410 in 4Q'24 to $628,476 in 4Q'25 [139]. - Fee-Related Earnings (FRE) rose 72% from $190 million in 4Q'24 to $326 million in 4Q'25, with a FRE margin increase from 41% to 52% [29]. - 4Q'25 Fee-Related Revenues (FRR) increased by 36% to $628 million compared to $461 million in 4Q'24 [25]. - Non-GAAP total revenue for Q4'25 was $1,280 million, compared to $1,193 million in Q3'25, indicating an increase of about 7.3% [98]. Dividends and Shareholder Returns - TPG declared a quarterly dividend of $0.61 per share of Class A common stock, payable on March 5, 2026 [6]. - The declared dividend for Q4'25 was $0.61 per share, with total dividends declared for FY'25 amounting to $2.06 per share [104]. - Total participating shares outstanding decreased from 400,086,112 on September 30, 2025, to 399,575,212 by December 31, 2025 [100]. Investment Performance - The company reported a total of $632.4 million in GAAP performance allocations for the three months ended December 31, 2025, with a realized amount of $238.0 million [95]. - Realizations for the full year 2025 totaled $23.4 billion, compared to $22.9 billion in FY'24, indicating a slight increase in capital returned to investors [91]. - The company reported an operating profit margin defined as U.S. GAAP net income divided by U.S. GAAP total revenue [173]. Corporate Developments - The acquisition of TPG Peppertree, effective July 1, 2025, is expected to enhance the company's market position and expand its asset management capabilities [86]. - The company’s reorganization included a corporate conversion of TPG Partners, LLC to a Delaware corporation named TPG Inc., in conjunction with the IPO [173]. - The reorganization will take effect on November 1, 2023, impacting future profit distributions [174].