TPG(US:TPG)2023-02-23 16:00Financial Performance - Total revenues for the year ended December 31, 2022, were $2,002,887, a decrease of 59.8% from $4,976,387 in 2021[802] - Total expenses increased to $1,944,799 in 2022, compared to $916,566 in 2021, reflecting a significant rise of 112.4%[802] - Net loss for the year was $56,235, a stark contrast to the net income of $4,655,997 in 2021[802] - Net income attributable to TPG Group Holdings prior to Reorganization and IPO was $5,256 in 2022, down from $2,025,754 in 2021[802] - Basic net income per share for Class A common stock was $1.10 in 2022, while diluted net income per share was $(0.19)[802] - Investment income (loss) totaled $(81,840) in 2022, a significant decline from $605,214 in 2021[802] - The company reported a total capital allocation-based income of $756,252 in 2022, down from $3,998,483 in 2021[802] - For the year ended December 31, 2022, TPG Inc. reported a net loss of $56.24 million compared to a net income of $4.66 billion in 2021[809] - Net cash provided by operating activities for 2022 was $1.38 billion, a decrease from $1.47 billion in 2021[810] - Total revenues for the year ended December 31, 2022, were $2,002,887,000, a decrease from $4,976,387,000 in 2021[844] - Net income for the year ended December 31, 2022, was $3,982,646 thousand, a significant decrease of 83.2% compared to $23,737,916 thousand in 2021[959] Assets and Liabilities - As of December 31, 2022, TPG Inc. reported total assets of $7,941.7 million, a decrease from $8,962.0 million as of December 31, 2021[800] - Total liabilities increased significantly to $4,202.2 million in 2022 from $1,700.6 million in 2021[800] - TPG Inc. has a total equity of $3,085.9 million as of December 31, 2022, down from $6,261.4 million in 2021[800] - Total assets increased to $78,079,182 thousand in 2022 from $67,268,493 thousand in 2021, representing a growth of approximately 16.9%[959] - Total liabilities rose to $14,299,814 thousand in 2022, up from $11,499,817 thousand in 2021, indicating an increase of about 24.3%[959] Investment Performance - A hypothetical 10% decline in the fair value of investments would result in a decrease of performance allocations totaling $1,137.6 million[777] - An immediate 10% decline in the fair value of investments would lead to a decrease in investment income totaling $62.8 million[778] - The company reported a decrease in investments, which totaled $5,329.9 million in 2022 compared to $6,109.0 million in 2021[800] - The company recorded net losses from investment activities of $110,131,000 for the year ended December 31, 2022, compared to net gains of $353,219,000 in 2021[945] - As of December 31, 2022, total investments were valued at $5,329,868,000, a decrease from $6,109,046,000 in 2021[945] Compensation and Expenses - Compensation and benefits totaled $1,517,966 in 2022, up from $579,698 in 2021, marking a 161.5% increase[802] - Interest expense increased to $21,612 in 2022 from $16,291 in 2021, reflecting a rise of 32.5%[802] - The company incurred equity-based compensation of $627.71 million in 2022, compared to no such expenses in 2021[809] - Management fees increased to $931,291,000 in 2022 from $731,974,000 in 2021, reflecting a growth of approximately 27.2%[844] - Performance allocations significantly decreased to $720,106,000 in 2022 from $3,792,861,000 in 2021, representing a decline of about 81.0%[844] Risks and Regulatory Matters - The company faces risks related to dependence on senior leadership and the ability to attract and retain key professionals[13] - The performance of the company's funds is subject to variability, impacting revenue, earnings, and cash flow[13] - The company is exposed to regulatory scrutiny regarding ESG matters, which could affect its operations[13] - The company has a significant reliance on its investment strategies and the performance of portfolio companies, particularly those based outside the United States[13] - The company is exposed to risks related to derivative contracts, including warrants and FPAs, which may affect financial performance[961] Market and Economic Factors - If the USD strengthened 10% against all foreign currencies, performance allocations would decrease by $294.9 million and net gains from investments would decrease by $17.9 million[779] - An estimated increase of approximately $2.0 million in annual interest expense is expected if interest rates rise by one percentage point[780] Corporate Structure and Governance - The company’s management fees are influenced by changes in the net asset value (NAV) of its funds[776] - The company’s structure as a holding company may expose it to complex provisions of U.S. federal tax law[13] - The Company operates in a single reportable segment, collaborating across product lines with a unified expense pool[922] Acquisitions and Investments - TPG made an acquisition of NewQuest in 2021 for $24.82 million, with no similar acquisitions reported in 2022[809] - The Company completed the acquisition of NewQuest Holdings for $38.0 million, increasing its ownership to 66.7%[933] - The fair value of the pre-existing 33.3% investment in NewQuest was estimated at approximately $155.4 million, resulting in a pre-tax gain of $95.0 million[934] - The consideration for the acquisition included $5.0 million in cash, contingent consideration valued at $8.4 million, and equity interests valued at $24.6 million[935] - The Company completed the acquisition of the remaining 33.3% interest in NQ Manager in January 2022, resulting in a reallocation of equity of $33.6 million[942]