Financial Data and Key Metrics Changes - TPG reported GAAP net income attributable to TPG Inc. of $77 billion and after-tax distributable earnings of $304 million, or $0.71 per share of Class A common stock [3] - Full-year fee-related revenue reached $2.1 billion, including $628 million for the fourth quarter, which grew 36% year-over-year [29] - The company finished 2025 with $303 billion of total AUM, up 23% from 2024, driven by $51 billion of capital raised and $24 billion of value creation [34] Business Line Data and Key Metrics Changes - Software represents 11% of total AUM, with 18% in private equity and approximately 2% in credit [6] - The credit platform raised a record $21 billion of credit capital during the year, up 67% from 2024 [16] - Private equity fundraising grew over 80% to $28 billion in 2025, while overall industry fundraising for PE declined 11% [19] Market Data and Key Metrics Changes - The company ended 2025 with $72 billion of dry powder, representing 43% of fee-earning AUM [34] - The private equity strategies appreciated 3% in the fourth quarter and 11% over the last twelve months [36] - The credit platform also appreciated 3% in the quarter and 11% over the last twelve months [36] Company Strategy and Development Direction - TPG aims to continue driving outsized growth by scaling existing and newer strategies, deepening integration of capital markets capabilities, and selectively capitalizing on inorganic opportunities [27] - The company is focused on expanding its private wealth strategy and enhancing its insurance solutions business [11][41] - TPG plans to begin fundraising for several new funds in real estate and credit, indicating a multiyear period of growth [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of performance and the ability to maintain strong capital formation, expecting 2026 to exceed $50 billion in capital raising [39] - The company highlighted the importance of differentiating its offerings in the market, particularly in the lower middle market, which is less competitive than the upper middle market [50] - Management noted that the strong performance and disciplined investment approach position TPG well to capitalize on attractive investments [9] Other Important Information - TPG's new and emerging strategies attracted over $7 billion of commitments in 2025, underscoring the firm's ability to identify and scale high-potential opportunities [14] - The company reported a record FRE margin of 52% in the fourth quarter and a full-year FRE margin of 45%, reflecting significant capital markets revenue [32] Q&A Session Summary Question: Concerns about sustaining performance in direct lending - Management emphasized the unique dynamics of the lower middle market, where TPG operates as a primary lender with higher coverage ratios and disciplined lending practices [50][51] - They highlighted their rigorous monitoring processes and strong relationships with borrowers, which enhance their ability to value the portfolio accurately [52][54] Question: Inquiry about transaction fees and revenue outlook - Management noted that transaction fees in Q4 were driven by a broadening capital markets business and a significant increase in deployment activity [66] - They expect capital markets to be a long-term growth opportunity, despite some lumpiness in revenue [66] Question: Outlook for net deployment in credit - Management indicated that the credit business has seen substantial growth in capital formation and deployment, particularly in structured credit and new strategies like Advantage Direct Lending [78][79]

Core Insights - Mount Logan Capital Inc. declared a quarterly distribution of $0.03 per common share for Q4 2025, marking its first shareholder distribution as a US registrant [7] - The company reported Fee Related Earnings (FRE) of $9.2 million for the trailing twelve months ending September 30, 2025, and Spread Related Earnings (SRE) of $5.2 million for the same period [1][4] - The completion of the business combination with 180 Degree Capital Corp on September 12, 2025, has expanded Mount Logan's investment capabilities and strengthened its balance sheet [4][8] Financial Performance - Total revenue for the Asset Management segment was $9.1 million for Q3 2025, a 127% increase from Q3 2024, primarily driven by a $4.5 million gain from the acquisition of TURN [4] - The Insurance Solutions segment reported total net investment income of $17.0 million for Q3 2025, a decrease of 12% compared to Q3 2024, attributed to a decline in SOFR [4] - The company achieved a yield of 7.4% on its insurance investment portfolio for Q3 2025, with a yield of 7.9% when excluding certain funds [4] Segment Analysis - FRE for the Asset Management segment was $2.5 million for Q3 2025, with a total of $7.0 million for the nine months ended September 30, 2025 [4] - SRE for the Insurance Solutions segment was $1.1 million for the nine months ended September 30, 2025, down from $9.6 million in the prior year, due to lower investment income and higher funding costs [4][19] - The book value of the insurance segment increased to $134.1 million as of September 30, 2025, up from $126.5 million in Q3 2024 [4] Capital and Liquidity - Total capital of the company was $222.8 million as of September 30, 2025, an increase of $28.2 million from December 31, 2024 [10] - The Asset Management segment had $77.8 million in borrowings outstanding, while the Insurance Solutions segment reported $17.3 million in borrowings [25][26] - Total liquid assets for the Insurance Solutions segment were $770.4 million as of September 30, 2025, compared to $765.4 million at the end of 2024 [27]