TPG (TPG) Q3 2024 earnings summary

Executive summary

• Assets under management reached $239 billion as of September 30, 2024, up 76% year-over-year, driven by the Angelo Gordon acquisition and strong capital raising across strategies.

• Fee-Related Earnings for Q3 2024 were $191 million, up 22% year-over-year, with a 41% margin.

• After-tax Distributable Earnings for Q3 2024 were $189 million ($0.45 per share), and a dividend of $0.38 per share was declared, payable December 2, 2024.

• Nearly $23 billion of capital was deployed, $16 billion realized, and over $21 billion raised in the first three quarters of 2024.

• TPG operates across six multi-strategy investment platforms, with significant expansion in credit and real estate via TPG Angelo Gordon.

Financial highlights

• Q3 2024 revenues rose 433% year-over-year to $855.4 million, driven by the Angelo Gordon acquisition and a 43% increase in fees.

• Net income attributable to TPG Inc. was $9 million for Q3 2024, down from $15 million in Q3 2023.

• Realized performance allocations in Q3 2024 were $32 million; net accrued performance balance rose to $975 million.

• Management fees for Q3 2024 increased 47% year-over-year to $410.8 million, primarily due to the Angelo Gordon acquisition.

• Expenses rose significantly, with cash-based compensation up 67% and equity-based compensation up 77% year-over-year, reflecting increased headcount and equity awards post-acquisition.

Outlook and guidance

• Management expects significant management fee growth and margin expansion in 2025, driven by new fund launches, increased deployment, and further integration benefits from the Angelo Gordon acquisition.

• Monetization activity and aggregate capital raising are anticipated to increase in 2025, with ~25 products in market.

• Forward-looking statements caution on risks related to integration, market conditions, and execution of business plans.