TPG(US:TPG)2025-11-04 17:00Financial Data and Key Metrics Changes - TPG reported GAAP net income attributable to TPG Inc. of $67 million and after-tax attributable earnings of $214 million or $0.53 per share of Class A common stock [4] - The company declared a dividend of $0.45 per share of Class A common stock, payable on December 1, 2025 [4] - Total assets under management (AUM) grew 20% year over year to $286 billion, driven by $44 billion of capital raised and $24 billion of value creation [26] - Fee-earning AUM increased 15% year over year to $163 billion [26] - Management fees grew to $461 million in the third quarter, with quarterly fee-related earnings of $225 million [28] Business Line Data and Key Metrics Changes - Total AUM grew 20% year over year, with quarterly fee-related earnings increasing 18% [5] - In private equity, TPG raised $12.3 billion across strategies, primarily driven by $10.1 billion raised in the first close for flagship buyout funds [7] - Credit AUM not earning fees stood at nearly $11 billion, representing over $100 million of annual revenue opportunity expected to flow into management fees over time [9] - In real estate, TPG held the final close for its inaugural real estate credit strategy, exceeding its initial target by more than 35% [10] Market Data and Key Metrics Changes - TPG raised a near-record $18 billion of capital in the third quarter, up 60% from the second quarter and 75% year over year [6] - Year to date, TPG has raised over $35 billion of capital, exceeding the full year 2024 fundraising [7] - Credit AUM has grown 23% year over year, making it one of the fastest-growing areas within the firm [23] Company Strategy and Development Direction - TPG is focused on expanding its credit platform and launching new products, with a robust fundraising outlook for 2026 [42] - The company aims to capitalize on market dislocation to acquire high-quality assets and is well-positioned to play offense in real estate [23] - TPG is increasing its penetration in private wealth and insurance distribution channels, with significant growth in capital from insurance clients [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundraising momentum and the ability to outperform in private equity fundraising relative to the broader market [8] - The company is optimistic about the liquidity environment and has a number of assets being explored for liquidity [54] - Management noted that the underlying health of credit portfolios remains strong despite recent market concerns [33] Other Important Information - TPG's dry powder has grown to a record $73 billion, representing a strategic asset for sourcing investment opportunities [27] - The company has maintained a disciplined approach to credit underwriting, resulting in low annualized loss ratios across its credit platforms [16] Q&A Session Summary Question: How does the realization pipeline look given the age and timing of funds? - Management clarified that the vintage refers to the fund itself, not the underlying portfolio companies, and expressed confidence in the liquidity prospects [48][50] Question: What is the potential for realizations in the current IPO and M&A environment? - Management indicated that they do not forecast realizations but are focused on selling companies at the right time, with a strong portfolio performance as a leading indicator [57][61] Question: Are there risks in the investment portfolio due to AI disruptions? - Management stated that they have been early investors in AI and view it as an opportunity rather than a threat, with a focus on vertical market software and cybersecurity [64][70] Question: How is the credit business evolving and what are the growth drivers? - Management highlighted the multi-strategy approach of the credit platform and the increasing engagement with insurance clients as key growth drivers [75][78]