Loading...
01/11 07:57
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary indicates strong financial performance with increased fee-related revenues and a significant rise in AUM. The acquisition of PepperTree is expected to be accretive, and management expresses confidence in fundraising campaigns. The Q&A highlights some uncertainties, but overall, the market strategy and financial health appear robust. Despite no share repurchase program, the dividend declaration supports positive sentiment. Given the market cap and the positive aspects of the report, a stock price increase of 2% to 8% is likely over the next two weeks.
GAAP net income $25,000,000, no year-over-year change mentioned.
After tax distributable earnings $187,000,000 or $0.48 per share, no year-over-year change mentioned.
Dividend per share $0.41 per share of Class A common stock, no year-over-year change mentioned.
Fee related revenues $476,000,000, increased due to building capital markets capabilities and integration of broker dealer.
Management fees $413,000,000, part of fee related revenues.
Transaction fees $54,000,000, part of fee related revenues.
Fee related earnings $182,000,000 with an FRE margin of 38%, consistent with previous guidance.
Realized performance allocations $40,000,000, primarily from partial monetizations of public positions.
Total assets under management $251,000,000,000, increased 12% year-over-year driven by capital raising and value creation.
Fee earning AUM $143,000,000,000, with $27,000,000,000 subject to fee earning growth.
Performance eligible AUM $212,000,000,000, with $162,000,000,000 currently generating performance fees.
Net accrued performance balance Exceeds $1,000,000,000 for the first time, indicating significant embedded earnings power.
Capital raised in the first quarter Nearly $6,000,000,000, including various funds.
Capital invested in the first quarter $7,300,000,000, no year-over-year change mentioned.
Dry powder for real estate platforms $13,000,000,000, evaluating interesting investments.
Total dry powder across the firm $57,000,000,000, strong position to take advantage of market opportunities.
Realized returns in TPG Growth Funds Approximately $1,800,000,000 year to date.
Acquisition of PepperTree Valued at approximately $660,000,000, expected to be accretive to fee related earnings and after tax distributable earnings per share.
PepperTree's AUM Manages nearly $8,000,000,000 of total AUM.
PepperTree's average fee rate 1.5% to 2%, consistent with comparably sized private equity oriented funds.
PepperTree's flagship fund growth Expected to grow by about $500,000,000 over the last few vintages.
TPOP Launch: TPG launched TPOP, a new perpetually offered private equity vehicle, with two of the largest wirehouses in the U.S. and plans to expand this offering internationally.
RISE Climate Fund: TPG's RISE Climate Fund has raised over 60% of its target, despite elongated fundraising timelines due to U.S. policy uncertainty.
TPG Sports Launch: TPG launched a new strategy, TPG Sports, in partnership with Rory McElroy, focusing on businesses driving the sports ecosystem.
Acquisition of PepperTree Capital Management: TPG agreed to acquire PepperTree Capital Management for approximately $660 million, expanding its digital infrastructure capabilities.
Strategic Partnership: TPG established its largest strategic partnership, representing over $4 billion of potential new capital across various investment strategies.
Capital Deployment: TPG invested $7.3 billion in capital during the first quarter, with a focus on proprietary opportunities and sectors like private equity and credit.
Credit Solutions: Twinbrook had $1.8 billion of gross originations in the first quarter, maintaining a steady pace of sponsor M&A activity.
Focus on Private Wealth: TPG is expanding its private wealth strategy, enhancing connectivity with wirehouse partners and launching new products to increase inflows.
Geographic Diversification: Clients are evaluating geographic diversification of investments due to U.S. policy uncertainties, leading TPG to explore opportunities in Europe and Asia.
Market Environment: Significant volatility due to tariffs and general policy uncertainty, leading to unusual market correlations and renewed fears of inflation.
Client Expectations: Clients are adjusting expectations around performance and liquidity, evaluating geographic diversification of investments.
Economic Growth: Concerns around slowing economic growth impacting overall deal volume across the industry.
Fundraising Challenges: Fundraising campaigns may elongate as clients manage through periods of disruption.
Regulatory Issues: Policy uncertainty in the U.S. affecting climate-related fundraising timelines.
Supply Chain Risks: Minimal first-order risk from tariffs assessed across investments, but ongoing uncertainty may persist.
Credit Market Conditions: Increased demand for bespoke capital solutions due to heightened uncertainty and less receptivity from traditional capital sources.
Real Estate Market: Market volatility and uncertainty around interest rates and potential recession creating actionable investment opportunities.
Investment Strategy: Focus on sectors with strong secular growth and limited reliance on physical goods to mitigate risks.
Global Investment Opportunities: Increased interest in geographic diversification, particularly in markets outside the U.S. where growth is more stable.
Acquisition of PepperTree Capital Management: TPG announced the acquisition of PepperTree Capital Management, a specialized digital infrastructure manager focusing on wireless communication towers. This acquisition aims to leverage TPG's expertise in communications and expand into the digital infrastructure space.
Capital Formation Efforts: TPG expects to raise significantly more capital in 2025 than in 2024, despite a volatile environment. They have over $3 billion in discrete credit mandates expected to close soon and are launching new funds, including TPG Capital and Health Care Partners.
Private Wealth Strategy: TPG is focused on expanding its private wealth strategy, including launching TPOP, a new private equity vehicle, and enhancing its product offerings for the RIA channel.
Strategic Partnerships: TPG established the largest strategic partnership in its history, representing over $4 billion of potential new capital across various investment strategies.
Deployment of Capital: TPG invested $7.3 billion in the first quarter and is seeing strong deal flow across its platforms, particularly in proprietary opportunities.
Fee Related Earnings (FRE) Margin: TPG expects FRE margin expansion in the back half of the year, aiming for a margin in the mid-40s by year-end.
Fundraising Expectations: Despite elongated fundraising campaigns, TPG anticipates raising significantly more capital in 2025, driven by various strategic initiatives and strong client engagement.
Realized Performance Allocations: TPG reported $40 million in realized performance allocations in Q1, with expectations for continued monetization opportunities.
Total Assets Under Management (AUM): TPG finished Q1 with $251 billion in total AUM, a 12% year-over-year increase, driven by capital raising and value creation.
Dry Powder: TPG has $57 billion of total dry powder across the firm, positioning it well to capitalize on market opportunities.
Declared Dividend: $0.41 per share of Class A common stock, payable on 06/02/2025 to holders of record as of 05/19/2025.
Share Repurchase Program: None
The company reported strong financial metrics with significant fundraising and realizations, alongside positive portfolio appreciation. The Q&A section highlighted management's strategic focus on AI and credit growth, indicating optimism. However, some uncertainty remains due to the lack of specific forecasts for realizations and detailed guidance on FRE margins. Given the market cap of $4.2 billion, the stock is likely to react positively, but not excessively, resulting in a 'Positive' sentiment rating.
The earnings call shows strong financial performance with revenue and EBITDA growth, positive sentiment from strategic partnerships, and optimistic guidance on margin expansion and capital deployment. The Q&A highlights management's confidence in fund growth and strategic initiatives like TPOP and cross-platform partnerships. Despite some unclear responses on margin specifics, the overall sentiment is positive, with a focus on expanding capabilities and partnerships. The market cap suggests moderate stock price movement, but the positive factors outweigh potential concerns, predicting a 2% to 8% stock price increase.
The earnings call summary indicates strong financial performance with increased fee-related revenues and a significant rise in AUM. The acquisition of PepperTree is expected to be accretive, and management expresses confidence in fundraising campaigns. The Q&A highlights some uncertainties, but overall, the market strategy and financial health appear robust. Despite no share repurchase program, the dividend declaration supports positive sentiment. Given the market cap and the positive aspects of the report, a stock price increase of 2% to 8% is likely over the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
