TPG (TPG) Goldman Sachs 2024 U.S. Financial Services Conference summary

Business momentum and market environment

• Assets under management reached $240 billion following the Angelo Gordon acquisition, with strong acceleration in fundraising, deployment, and realization KPIs in 2024 and momentum building into 2025.

• Deal activity increased ahead of the industry, driven by corporate carve-outs and partnerships, with 8 of the last 13 buyout deals in this category.

• Liquidity and tight credit spreads have enabled more deal financing, with pent-up demand for capital return to LPs and creative capital structure solutions.

• 60% of deal activity is proprietary, with expectations of lower policy rates and easing regulatory headwinds supporting a bullish outlook.

• Inflationary pressures remain a concern due to trade and labor policies, potentially impacting the market.

Fundraising and capital flows

• Raised over $21 billion in the first three quarters of 2024, with 25 strategies in the market and strong LP engagement globally.

• Notable shift in capital sourcing: increased flows from the Middle East and Asia, while North America faces allocation pressure, especially in private equity.

• Private credit is attracting capital as an alternative to public credit, with institutional flows favoring structured and opportunistic credit solutions.

• Real estate deployment rebounded in 2024, with increased activity and a focus on real estate credit due to reduced liquidity from traditional providers.

• The industry is increasingly bifurcated, with leading platforms consolidating LP relationships.

Impact and climate strategies

• On track to raise $10 billion for climate and Global South initiatives, with $6 billion already committed to the second climate fund and $2 billion to transition infrastructure.

• Climate strategy now includes both private equity and infrastructure, with a growing focus on climate credit as the next adjacency.

• The fourth Rise Impact Private Equity Fund will launch fundraising in early 2025, targeting a similar or slightly larger size than the current fund.

• Potential changes to the Inflation Reduction Act could affect tax benefits, but core drivers like energy demand, independence, and job creation in red states support continued investment.

• Recent partnerships, such as a $20 billion clean energy initiative with Google and Intersect Power, and digital metering in Germany, highlight scalable, resilient impact investments.