TPG (TPG) investor relations material

Key earnings and performance highlights

• Achieved a breakout year with $51 billion in capital raised, a 70% increase from the prior year, and deployed over $50 billion in investments.

• FRE grew to $950 million, with Q4 being the strongest quarter and a record for the firm.

• FRE margin expanded to 45% last year, with a target of 47% for the current year.

• Real estate business expected to be a major new fundraising driver, with at least four funds in the market this year.

• Consistent realization track record, averaging $25 billion annually over five years, with expectations for a pickup if market conditions stabilize.

Growth strategy and diversification

• AUM composition shifted from 80% private equity at IPO to about 50% now, reflecting rapid growth in credit, real estate, and infrastructure.

• Growth is increasingly diversified, with less reliance on flagship funds and more on new asset classes and products.

• Horizontal (new asset classes) and vertical (expanding existing businesses) growth pursued both organically and inorganically.

• Channel growth includes expanding insurance and private wealth businesses.

• Strategic priorities for 2026 focus on scaling existing businesses, completing current fundraises, and expanding distribution partnerships.

Fundraising and product innovation

• Expecting another robust fundraising year, targeting over $50 billion, with more products in the market (35 vs. 25 last year).

• Real estate and credit are key areas of fundraising growth, with strong LP support for new real estate funds.

• Continued focus on fund-over-fund growth and launching new products, including private credit and real estate vehicles for private wealth clients.