TPG(US:TPG)2022-05-14 20:17Financial Data and Key Metrics Changes - As of March 31, total assets under management (AUM) exceeded $120 billion, reflecting a 6% increase quarter-over-quarter and a 26% increase year-over-year [11] - GAAP net income for Q1 was $163 million, with fee-related revenues of $241 million and fee-related earnings (FRE) of $92 million, representing a 38% growth compared to the pro forma year-ago quarter [37][39] - The company announced a quarterly cash dividend of $0.44 per share, representing 85% of after-tax distributable earnings [13][42] Business Line Data and Key Metrics Changes - The Capital platform had $57 billion in total AUM, with a value accretion of 11% during the quarter [16] - The Growth platform reported total AUM of $22 billion, with value creation of 1.5% in Q1 and 23% over the last 12 months [20] - The Impact platform had total AUM of $14 billion, with value creation of 1% in Q1 and 31% for the last 12 months [25] - The Real Estate platform ended Q1 with $18 billion in total AUM, increasing over 40% from the prior quarter [27] - The Market Solutions platform had $10 billion in total AUM, focusing on various public and private market strategies [29] Market Data and Key Metrics Changes - The geopolitical and economic landscape remains uncertain, influenced by the conflict in Ukraine, high inflation rates, and rising interest rates [14] - The company has a substantial amount of committed but uncalled capital available for investment, totaling $30 billion as of March 31 [15] Company Strategy and Development Direction - The company is focused on adhering to its investment strategy amid a volatile environment, proactively monetizing investments and returning capital to limited partners [14][15] - The company aims to diversify its product offerings and is in dialogue regarding potential M&A opportunities to grow its platform [54][55] - The company emphasizes retaining and recruiting talent as a strategic focus, with a recent promotion program highlighting diversity [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and investment approach, noting that the current market reset presents new investment opportunities at more attractive valuations [15][60] - The company remains optimistic about growth in AUM and FRE due to ongoing fundraising campaigns [44] Other Important Information - The company raised $5 billion during the quarter, driven by strong demand for its opportunistic real estate fund [11][39] - The Rise Climate Fund closed at its hard cap of $7.3 billion, with over $2 billion already committed to catalyze climate action [25][40] Q&A Session Summary Question: Impact of fundraising timing and over-allocated verticals - Management noted that the traditional U.S. pension fund market is most over-allocated, affecting fundraising timing, but they expect growth in international segments [48][50] Question: Interest in M&A and market valuations - Management confirmed ongoing interest in diversifying the product base through M&A, while being cautious about valuation adjustments in the current market [54][55] Question: Valuation framework in volatile markets - Management expressed confidence in their growth and transformation investing strategy, noting that historical performance has been strong following public market resets [60][62] Question: Future monetization and performance allocations - Management indicated expectations for at least $125 million of additional performance allocations in future quarters, with ongoing monetization activity [66] Question: Building out the Impact platform - Management sees substantial opportunities to expand the Rise platform, with strong demand for impact-related investing [71][73] Question: Real estate platform growth - Management highlighted the successful raise of their opportunistic real estate fund and the potential for growth in the real estate sector amid inflationary pressures [104][105]