TPG (TPG) Q2 2024 earnings summary

Executive summary

• Total assets under management (AUM) reached $229 billion as of June 30, 2024, up 65% year-over-year, driven by organic growth and the Angelo Gordon acquisition.

• Fee-Related Earnings (FRE) for Q2 2024 were $201 million, up 60% year-over-year, with a margin of 44%.

• After-tax Distributable Earnings for Q2 2024 were $207 million ($0.49 per share), more than doubling from the prior year.

• GAAP net loss attributable to the company was $14 million for Q2 2024, compared to net income in Q2 2023, primarily due to higher compensation and amortization expenses.

• A quarterly dividend of $0.42 per share was declared, payable August 30, 2024.

Financial highlights

• Fee-earning AUM rose 74% year-over-year to $137 billion.

• Fee-related revenue was $459 million, up 61% year-over-year, with organic growth of 13%.

• Management fees increased 60% year-over-year to $413.3 million in Q2 2024, mainly from the addition of Angelo Gordon.

• Available capital stood at $53.2 billion at quarter-end.

• Cash and cash equivalents (GAAP) increased to $1.1 billion, with total debt obligations at $1.2 billion.

Outlook and guidance

• Management expects continued growth in management fees and fee-related earnings, supported by strong fundraising and deployment across platforms.

• Full-year FRE margin expected to exceed 40% in 2024 and expand in 2025, targeting a return to 45% as scale increases.

• Credit fundraising expected to exceed $10 billion for 2024, more than doubling 2023 levels.

• Private equity and infrastructure fundraising in 2024 expected to surpass 2023’s $12.8 billion.

• Next flagship private equity fundraise anticipated in the first half of 2025.