TPG (TPG) investor relations material

Market environment and investment activity

• Macro volatility has increased, creating both challenges and opportunities for investment and origination.

• Deployment volume was up 74% year-over-year in Q1, with all asset classes showing growth; private equity saw over 100% increase.

• Investments are focused on customized, proprietary deals, often with structured partnerships and downside protections.

• Credit deployment rose 56% in Q1, and AUM in credit grew from $60B to $95B since the Angelo Gordon acquisition.

• Investment cycles remain steady at three to four years, with continued deal flow across major funds.

Exits and liquidity

• Exits require intentionality and centralized engagement due to unpredictable markets.

• $28B in LTM realizations and $9B in Q1, driven by structured deals with corporates and strategic exits.

• About half of flagship fund exits are to strategics, providing resilience; IPOs are used, especially in India, but take longer.

• Pipeline for liquidity in the second half is strong, with several businesses showing growth and inbound interest.

Fundraising and LP relations

• Capital raising is expected to exceed $50B this year, with a significant pickup in the second half.

• LPs are more selective, focusing on GPs with strong DPI and resilient strategies amid multiple compression.

• Success in raising new strategies, including $13B for new funds and strong institutional partnerships.

• Fundraising is now continuous due to a broader array of strategies and shorter fund cycles.

• Credit and real estate platforms are seeing significant growth, with expectations for further step-ups.