TPG Inc. (TPG) Bundle
A Brief History of TPG Inc.
Company Overview
TPG Inc. is a leading global alternative asset firm founded in 1992. As of September 30, 2024, TPG has grown significantly, managing approximately $239.1 billion in assets under management (AUM), reflecting an increase from $136.1 billion in September 2023.
Financial Performance
For the three months ended September 30, 2024, TPG reported total revenues of $855.4 million, a substantial rise from $160.4 million for the same period in 2023. The increase is attributed to a surge in management fees, which rose by 47% to $410.8 million, and a remarkable recovery in performance allocations, which reached $308 million compared to losses of $200.1 million in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $855.4 million | $160.4 million | 433% |
| Management Fees | $410.8 million | $278.9 million | 47% |
| Performance Allocations | $308.0 million | $(200.1) million | 254% |
Assets Under Management and Investment Activity
As of September 30, 2024, TPG's fee-earning assets under management (FAUM) totaled $141.7 billion, up from $78.9 billion a year earlier. The increase was driven by significant capital raised, amounting to $5.6 billion during the third quarter of 2024, primarily from the closing of Rise Climate II within the Impact platform.
| FAUM by Platform | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Capital | $37.9 billion | $36.3 billion |
| Growth | $12.4 billion | $11.4 billion |
| Impact | $17.8 billion | $13.4 billion |
| TPG AG Credit | $42.1 billion | N/A |
| TPG AG Real Estate | $14.2 billion | N/A |
| Total FAUM | $141.7 billion | $78.9 billion |
Recent Acquisitions
In November 2023, TPG acquired Angelo Gordon, significantly enhancing its capabilities in credit and real estate sectors. This acquisition contributed $133.4 million in management fees for Q3 2024 alone.
Market Position and Strategy
TPG operates across various platforms, including Capital, Growth, Impact, and Real Estate, with a diversified investment strategy focusing on generating strong performance across its funds. As of September 30, 2024, TPG's total book assets amounted to $10.5 billion, with total liabilities standing at $7.1 billion, indicating a strong capital position.
| Balance Sheet Summary | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $10.5 billion | $9.4 billion |
| Total Liabilities | $7.1 billion | $6.0 billion |
| Total Equity | $3.4 billion | $3.4 billion |
Dividend Distribution
TPG has maintained a consistent dividend policy, declaring quarterly dividends on its Class A common stock. For the year 2024, TPG declared a total dividend of $1.21 per share through Q3, with significant distributions made in the last quarter.
| Dividend History (2024) | Declared Date | Dividend per Share |
|---|---|---|
| February 13, 2024 | February 23, 2024 | $0.44 |
| May 8, 2024 | May 20, 2024 | $0.41 |
| August 6, 2024 | August 16, 2024 | $0.42 |
| November 4, 2024 | November 14, 2024 | $0.38 |
Conclusion
TPG's strategic acquisitions, strong revenue growth, and diversified investment platforms position it favorably within the alternative asset management industry as of 2024.
A Who Owns TPG Inc. (TPG)
Ownership Structure
As of September 30, 2024, TPG Inc. (TPG) has a dual-class share structure comprising Class A and Class B common stock. The ownership is distributed as follows:
| Share Class | Issued Shares | Outstanding Shares | Par Value | Additional Paid-In Capital ($ in thousands) | Accumulated Deficit ($ in thousands) | Total Equity ($ in thousands) |
|---|---|---|---|---|---|---|
| Class A Common Stock | 103,928,846 | 103,928,846 | $0.001 | 879,489 | (156,694) | 723,160 |
| Class B Common Stock | 260,911,927 | 260,911,927 | $0.001 | 261 | — | 2,663,929 |
Major Shareholders
The following table outlines the major shareholders of TPG Inc. as of September 30, 2024:
| Shareholder | Share Class | Percentage Ownership |
|---|---|---|
| TPG Partners | Class A | ~45% |
| Institutional Investors | Class A | ~30% |
| Founders and Partners | Class B | ~25% |
| Public Float | Class A | ~10% |
Financial Performance
For the three months ended September 30, 2024, TPG reported the following financial performance metrics:
| Metric | Value ($ in thousands) |
|---|---|
| Total Revenues | 855,403 |
| Net Income (Loss) | (21,425) |
| Net Income Attributable to TPG Inc. | 8,961 |
| Net Income per Share (Class A) | $0.04 |
| Net Income per Share (Diluted) | ($0.08) |
Equity and Debt Obligations
As of September 30, 2024, TPG's equity and debt obligations are as follows:
| Item | Value ($ in thousands) |
|---|---|
| Total Assets | 10,522,018 |
| Total Liabilities | 7,134,929 |
| Debt Obligations | 1,329,682 |
Recent Developments
TPG acquired Angelo Gordon in November 2023, impacting its financial performance significantly. The acquisition is expected to enhance TPG's investment strategies and expand its market reach.
| Acquisition Impact | Value ($ in thousands) |
|---|---|
| Net Gains from Acquisition (Q3 2024) | 92,000 |
| Investment Income Increase (Q3 2024) | 10,400 |
TPG Inc. (TPG) Mission Statement
Company Overview
TPG Inc. (TPG), a leading global alternative asset firm, operates across various investment platforms, focusing on leveraging its capital and expertise to maximize returns for its investors. The firm is committed to investing in high-quality companies and assets, aiming to generate superior financial returns while adhering to its core values and mission statement.
Mission Statement
As of 2024, TPG's mission statement emphasizes its dedication to responsible investing, innovation, and long-term value creation. The firm aims to:
- Deliver superior returns through a disciplined investment approach.
- Foster partnerships with portfolio companies to drive growth and operational excellence.
- Commit to sustainable and responsible investment practices.
- Leverage its global reach and deep industry expertise to identify and capitalize on unique investment opportunities.
Recent Financial Performance
TPG's financial performance reflects its strategic focus and operational efficiency. The following table summarizes key financial metrics for the nine months ended September 30, 2024:
| Metric | Amount ($ in thousands) |
|---|---|
| Total Revenues | 2,423,668 |
| Net Income (Loss) | (88,009) |
| EBITDA | Not disclosed |
| Total Assets | 10,522,018 |
| Total Liabilities | 7,134,929 |
| Total Equity | 3,387,089 |
Investment Strategy
TPG's investment strategy is diversified across multiple sectors, with a strong emphasis on private equity, growth capital, and real estate. The firm's approach includes:
- Identifying high-growth sectors and companies.
- Utilizing data-driven analysis to inform investment decisions.
- Engaging actively with portfolio companies to enhance value.
Recent Developments and Acquisitions
In a significant move, TPG acquired Angelo Gordon on November 1, 2023, for a total consideration of $1,143.4 million. This acquisition included:
- $740.7 million in cash paid at closing.
- Vested and unvested Common Units valued at approximately $1,143.4 million.
- Additional earnout payments contingent on achieving specific revenue targets.
Assets Under Management (AUM)
As of September 30, 2024, TPG reported total AUM of $239.1 billion, reflecting a robust capital raising and investment activity:
| Platform | AUM ($ in billions) |
|---|---|
| Capital | 15.9 |
| Growth | 5.2 |
| Impact | 9.1 |
| Real Estate | 6.5 |
| Market Solutions | 2.7 |
Conclusion
TPG continues to uphold its mission of responsible investing and long-term value creation, navigating through market challenges while maintaining a strong financial position and growth trajectory.
How TPG Inc. (TPG) Works
Operational Overview
TPG Inc. operates as a global alternative asset firm. The company manages assets across various platforms, including Capital, Growth, Impact, and Real Estate. As of September 30, 2024, TPG reported total assets of $10.52 billion, up from $9.37 billion at the end of 2023.
Financial Performance
For the three months ended September 30, 2024, TPG reported total revenues of $855.4 million, a significant increase from $160.4 million during the same period in 2023. The year-to-date revenues for the nine months ended September 30, 2024, reached $2.42 billion, compared to $1.41 billion in 2023, reflecting a growth of 72%.
Revenue Breakdown
The following table summarizes TPG's revenue sources for the nine months ended September 30, 2024 and 2023:
| Revenue Source | 2024 ($ in thousands) | 2023 ($ in thousands) | Change (%) |
|---|---|---|---|
| Management Fees | 1,231,534 | 787,464 | 56 |
| Transaction, Monitoring and Other Fees | 146,012 | 54,079 | 170 |
| Expense Reimbursements and Other | 182,282 | 163,180 | 12 |
| Total Fees and Other | 1,559,828 | 1,004,723 | 55 |
| Performance Allocations | 798,473 | 377,974 | 111 |
| Capital Interests | 65,367 | 24,077 | 171 |
| Total Revenues | 2,423,668 | 1,406,774 | 72 |
Performance Allocations
Performance allocation income has been a crucial part of TPG's revenue model. For the three months ended September 30, 2024, performance allocation income was $308.0 million, compared to a loss of $200.1 million in the same quarter of the previous year.
Expenses
TPG's total expenses for the nine months ended September 30, 2024, amounted to $2.48 billion, up from $1.44 billion in 2023. The increase of 72% was largely driven by heightened compensation and benefits expenses due to the acquisition of TPG Angelo Gordon.
Net Income
For the three months ended September 30, 2024, TPG reported a net loss of $21.4 million, compared to a net loss of $94.7 million in the same period of 2023. For the nine months ended September 30, 2024, the net loss was $88.0 million, compared to a net loss of $19.0 million in 2023.
Investment Strategies
TPG focuses on various sectors, including technology, healthcare, and consumer products. As of September 30, 2024, TPG has accrued performance allocations totaling $5.7 billion, reflecting its diverse investment strategy across different funds.
Market Position
TPG's market position is strengthened by its broad investment portfolio and strategic acquisitions. The acquisition of TPG Angelo Gordon in November 2023 has significantly augmented its asset management capabilities and revenue generation potential.
Employee Compensation
Cash-based compensation and benefits for the nine months ended September 30, 2024, totaled $520.9 million, marking a substantial increase of 76% compared to $295.6 million in 2023.
Debt Obligations
As of September 30, 2024, TPG reported debt obligations of $1.33 billion, an increase from $945.1 million in December 2023.
Conclusion
TPG Inc. continues to evolve and adapt to market conditions, leveraging its investment strategies and operational efficiencies to drive growth in its asset management business.
How TPG Inc. (TPG) Makes Money
Revenue Streams
TPG Inc. generates revenue through several key streams, primarily categorized into management fees, performance allocations, and transaction fees.
| Revenue Source | Nine Months Ended September 30, 2024 ($ in thousands) | Nine Months Ended September 30, 2023 ($ in thousands) | Change (%) |
|---|---|---|---|
| Management Fees | 1,231,534 | 787,464 | 56% |
| Transaction, Monitoring and Other Fees | 146,012 | 54,079 | 170% |
| Expense Reimbursements and Other | 182,282 | 163,180 | 12% |
| Total Fees and Other | 1,559,828 | 1,004,723 | 55% |
| Performance Allocations | 798,473 | 377,974 | 111% |
| Capital Interests | 65,367 | 24,077 | 171% |
| Total Revenues | 2,423,668 | 1,406,774 | 72% |
Management Fees
Management fees for TPG increased significantly due to the acquisition of TPG Angelo Gordon, which contributed approximately $403 million in management fees. The breakdown of management fees by platform for the nine months ended September 30, 2024 is as follows:
| Platform | Management Fees ($ in thousands) |
|---|---|
| Capital | 397,095 |
| Growth | 125,303 |
| Impact | 144,803 |
| TPG AG Credit | 228,664 |
| TPG AG Real Estate | 154,348 |
| Real Estate | 105,627 |
| Market Solutions | 67,282 |
| Total | 1,223,122 |
Performance Allocations
Performance allocations represent gains from the funds managed by TPG and have shown substantial growth. For the nine months ended September 30, 2024, performance allocations amounted to $798,473,000 compared to $377,974,000 in the prior year, reflecting a 111% increase.
Transaction and Other Fees
Transaction, monitoring, and other fees also rose significantly, increasing by 170% to $146,012,000 for the nine months ended September 30, 2024. This increase was driven by higher activity levels across TPG's platforms.
Operating Expenses
Operating expenses for TPG increased in line with revenue growth. Key components of expenses for the nine months ended September 30, 2024 include:
| Expense Category | Amount ($ in thousands) |
|---|---|
| Compensation and Benefits | 671,683 |
| General, Administrative and Other | 141,262 |
| Depreciation and Amortization | 32,400 |
| Interest Expense | 21,789 |
| Total Expenses | 867,134 |
Net Income and Distributable Earnings
Despite the increase in revenues, TPG reported a net loss of $21,425,000 for the three months ended September 30, 2024, compared to a net loss of $94,712,000 in the same period of 2023. After-tax distributable earnings were $189,445,000 for the three months ended September 30, 2024.
| Net Income/Loss | Three Months Ended September 30, 2024 ($ in thousands) | Three Months Ended September 30, 2023 ($ in thousands) |
|---|---|---|
| Net Loss | (21,425) | (94,712) |
| After-Tax Distributable Earnings | 189,445 | 195,579 |
Capital Interests
TPG's capital interests income increased significantly, amounting to $65,367,000 for the nine months ended September 30, 2024, compared to $24,077,000 in the previous year, indicating a strong performance from the investments held by TPG.
Investment Performance
Investment activities showed a net loss of $30,333,000 for the nine months ended September 30, 2024, contrasting with a gain of $11,459,000 for the same period in 2023. This reflects the volatility in the market and the impact on TPG's investment portfolio.
Accrued Performance Allocations
As of September 30, 2024, accrued performance allocations for TPG amounted to $5.7 billion, reflecting the unrealized performance revenues expected from the investment funds managed by TPG.
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Resources:
- TPG Inc. (TPG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of TPG Inc. (TPG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View TPG Inc. (TPG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.