Financial Data and Key Metrics Changes - TPG reported GAAP net income attributable to TPG Inc. of $15 million and after-tax distributable earnings of $268 million, or $0.69 per share of Class A common stock, marking a 30% increase year-over-year [5][29] - The company declared a dividend of $0.59 per share of Class A common stock, to be paid on September 2, 2025 [5] - Total assets under management (AUM) reached $261 billion, up 14% year-over-year, driven by $36 billion of capital raised and $21 billion of value creation [27] Business Line Data and Key Metrics Changes - Fundraising grew nearly 80% year-over-year to $11.3 billion, with deployment increasing 36% to $10.4 billion and realizations growing more than 20% to $6.5 billion [7][22] - In private equity, TPG Growth six exceeded its $4 billion target, raising a total of $4.8 billion, a 35% increase over the previous fund [9] - In credit, TPG raised a record $5.4 billion across its strategies during the second quarter [11] Market Data and Key Metrics Changes - The company saw strong early support for its second GP Solutions Fund, which is expected to be significantly larger than its predecessor [10] - Insurance contributed nearly 30% of the credit capital raised in the second quarter, primarily through structured credit and credit solution strategies [13] - The company ended the quarter with record dry powder of $63 billion, representing 43% of fee-earning AUM [21] Company Strategy and Development Direction - TPG is focused on expanding its credit platform and enhancing its capital markets capabilities, which are expected to grow alongside the firm's overall transactional activity [77][78] - The company is actively evaluating broader strategic partnerships and inorganic opportunities within the insurance channel [14] - TPG aims to increase its presence in private wealth and insurance, with TPOP and TCAP providing a strong foundation for growth [24][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the private equity asset class as a return driver for institutional accounts, despite broader market challenges [45][61] - The company anticipates a breakout year in 2025 for credit fundraising, driven by strong demand and a robust pipeline [13][24] - Management expects to see a growing pipeline of attractive investment opportunities in real estate, particularly in high-quality assets [21] Other Important Information - TPG completed the acquisition of PepperTree, which is expected to enhance its digital infrastructure strategy [7] - The company has upsized its revolving credit facility from $1.2 billion to $1.75 billion to support growth initiatives [30] - TPG's private equity portfolio appreciated 2% in the quarter and 11% over the last twelve months, indicating strong performance across its investments [31] Q&A Session Summary Question: Insights on Private Equity Performance - Management noted that TPG's performance differs from broader market trends, with strong growth in commitments from existing LPs and new relationships being established globally [44][48] Question: Insurance Strategy and Balance Sheet Considerations - Management emphasized the importance of maintaining FRE centricity and being cautious about assuming liabilities in insurance transactions, focusing on partnerships to enhance distribution capabilities [52][54] Question: Fund Size Expectations and Management Fees - Management indicated that the first close of $9 billion is a strong start, with expectations for continued growth in fund sizes and management fees as new funds are activated [60][64] Question: Capital Markets Growth Potential - Management highlighted the ongoing build-out of capital markets capabilities, which are expected to grow in correlation with the firm's overall growth and transactional activity [76][79] Question: Retail Opportunity and TPOP Expansion - Management discussed plans to broaden distribution for TPOP and the development of new products in credit and real assets, with a focus on expanding into the RIA market [82][85]

Financial Data and Key Metrics Changes - TPG reported GAAP net income of $25 million and after-tax distributable earnings of $187 million, equating to $0.48 per share of Class A common stock [5][30] - The company declared a dividend of $0.41 per share of Class A common stock, payable on June 2, 2025 [5] - Total assets under management increased by 12% year-over-year to $251 billion, driven by $31 billion in capital raising and $20 billion in value creation [30] Business Line Data and Key Metrics Changes - Fee-related revenues for Q1 were $476 million, including $413 million from management fees and $54 million from transaction fees [28] - Fee-related earnings totaled $182 million with a margin of 38%, with expectations for margin expansion in the latter half of the year [29] - Realized performance allocations were $40 million, primarily from partial monetizations of public positions [29] Market Data and Key Metrics Changes - The company raised nearly $6 billion during Q1 across various platforms, including significant contributions from the RISE Climate Fund and the Global South initiative [36] - The private equity portfolio experienced revenue growth of approximately 18% over the last twelve months, outperforming the broader market [34] Company Strategy and Development Direction - TPG announced the acquisition of PepperTree Capital Management, enhancing its capabilities in digital infrastructure, particularly in wireless communication towers [6][39] - The company is focused on expanding its private wealth strategy, including launching TPOP, a new private equity vehicle [15][17] - TPG aims to leverage its strong client relationships to drive capital formation and strategic partnerships across various asset classes [14][82] Management's Comments on Operating Environment and Future Outlook - Management noted a dramatic shift in the market environment, with increased volatility and concerns around inflation and economic growth [8][10] - Despite these challenges, TPG remains confident in its investment strategy and expects to raise significantly more capital in 2025 compared to 2024 [11][37] - The company anticipates continued strong performance in its credit platform and expects to see an increase in private financing opportunities due to market dislocation [22][24] Other Important Information - TPG's real estate portfolio appreciated by 7% in Q1 and nearly 13% over the last twelve months, supported by positive leasing trends [35] - The company has $57 billion of total dry powder across the firm, positioning it well to capitalize on investment opportunities in a volatile market [24] Q&A Session Summary Question: Follow-up on the private wealth channel and expected flow contribution from TPOP and TCAP - Management highlighted that increasing the private wealth business is a strategic priority, with $525 million raised in Q1 and expectations for TPOP to start generating inflows in June [52][54] Question: Inquiry about transaction and other fees and the build-out of capital markets capabilities - Management indicated that capital markets capabilities are about 75% built out, with Q1 performance reflecting broad-based use across transaction closings and refinancing activities [60][62] Question: Concerns regarding private equity fundraising in the current market environment - Management expressed confidence in fundraising efforts, noting strong performance and return of capital, which differentiates TPG from competitors [68][72]

Financial Data and Key Metrics Changes - TPG reported GAAP net income of $25 million and after-tax distributable earnings of $187 million, equating to $0.48 per share of Class A common stock [4] - The company declared a dividend of $0.41 per share of Class A common stock, payable on June 2, 2025 [4] - Total assets under management increased by 12% year-over-year to $251 billion, driven by $31 billion in capital raising and $20 billion in value creation [29] - Fee-related revenues for Q1 were $476 million, including $413 million from management fees and $54 million from transaction fees [27] Business Line Data and Key Metrics Changes - In private equity, TPG's portfolios achieved approximately 18% revenue growth over the last twelve months, with minimal direct exposure to tariffs for about 90% of the fair value [31][32] - The credit platform, particularly Twinbrook, had less than 3% of its portfolio exposed to tariffs, with a stable average interest coverage ratio of approximately 2x [33] - TPG's real estate portfolio appreciated by 7% in Q1 and nearly 13% over the last twelve months, supported by positive leasing and occupancy trends [34] Market Data and Key Metrics Changes - The market environment has shifted dramatically, with renewed fears of inflation and concerns about slowing economic growth impacting investor sentiment [6] - Despite a volatile environment, TPG expects to raise significantly more capital in 2025 compared to 2024, driven by strong client engagement and strategic partnerships [10][36] Company Strategy and Development Direction - TPG announced the acquisition of PepperTree Capital Management, enhancing its capabilities in the digital infrastructure space, particularly in wireless communication towers [5][38] - The company is focused on expanding its private wealth strategy, including launching new products like TPOP, which is expected to attract significant inflows [14][52] - TPG aims to leverage its strong client relationships and differentiated investment performance to capture more capital across various platforms [13][80] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are adjusting their expectations around performance and liquidity, seeking geographic diversification in their investments [7] - The leadership team remains confident in the quality of TPG's portfolio and is actively looking to deploy capital despite market fluctuations [8][10] - Management anticipates that periods of dislocation will create attractive investment opportunities, with $57 billion of total dry powder available across the firm [22] Other Important Information - TPG's private wealth strategy has seen significant progress, raising $525 million in Q1 2025, more than double the amount raised in 2023 [52] - The company has established a strategic partnership representing over $4 billion of potential new capital, enhancing its investment strategies [13] Q&A Session Summary Question: Expected flow contribution from TPOP and TCAP - Management highlighted that increasing the private wealth business is a strategic priority, with TPOP expected to launch in June 2025 and contribute to inflows [51][52] Question: Transaction and other fees increase - Management explained that the capital markets capabilities are still being built out, with Q1 performance reflecting broad-based use of the capital markets team across transactions [58][60] Question: Confidence in private equity fundraising - Management expressed confidence in fundraising efforts, noting strong performance and client relationships that differentiate TPG from competitors [66][70] Question: Broadening credit strategies - Management discussed growth opportunities in the credit space, particularly through the Twinbrook platform, which is expected to capture more borrowers as they scale [84][88]