TPG Inc
For the period ended Sep 30, 2024. Filed Nov 4, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 4, 2024
TPG$46.50-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0001880661-24-000044
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-04.
0001880661-24-000054
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 223 previous paragraphs and 224 current paragraphs.
114 unchanged; 95 reworded; 15 added; 11 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
Product: Real Estate Credit
Current report
TPG RE Finance Trust, Inc.
Current report
TPG Real Estate Credit Opportunities
Current report
Product: GP-led Secondaries
Current report
The U.S. September labor report showed hiring accelerated during the month and that the labor weakness experienced over the summer was not as weak as initially thought, fueling hopes the economy would achieve a “soft landing”. The September labor report showed the economy added 254,000 payrolls during the month, and the unemployment rate ticked down to 4.1% from 4.2% the month prior.
Current report
Progress on inflation and strength in the labor market led the Federal Reserve to cut interest rates during the quarter for the first time since the onset of the COVID-19 pandemic in 2020. After holding target Federal Funds rate steady at 5.25%-5.50% at its July meeting, the Federal Reserve cut rates by 50 basis points during it September meeting, lowering the target Federal Funds range to 4.75%-5.00%. Quarterly projections released at the September meeting showed a narrow majority of Federal Reserve officials penciled in cuts that would lower rates by at least a quarter-point each at meetings to be held in November and December.
Current report
Equities posted healthy gains for the three months ended September 30, 2024, despite pronounced moments of volatility intra-quarter. In the U.S., the S&P 500, Nasdaq and Dow Jones rose 5.5%, 2.6% and 8.2%, respectively, during the quarter, as the economy remained on solid footing while the Federal Reserve began to cut interest rates. Interest rate sensitive sectors led the market higher, with Utilities, Real Estate and Industrials sectors recording gains of 18.5%, 16.3% and 11.2%, respectively, during the quarter. Technology and Communication Services, which were market leaders during the first half of the year, were relative laggards as the momentum of investors flocking stocks associated with AI slowed. Energy was the only sector in the negative for the quarter, falling (3.1%). Volatility in the U.S. equity market, as measured by the CBOE Volatility Index, was modestly higher for the three months ended September 30, 2024, ending the quarter at 16.7, up from 12.4 as of the end of the prior quarter. Global equities markets experienced similar trends to those in the United States, with the MSCI Europe Index rising 2.0%, the MSCI Asia Index rising 8.0%, booted by stimulus measures taken in China, and the MSCI World Index up 6.0%.
Current report
Management fees from our Capital platform decreased $15.4 million during the three months ended September 30, 2024. The change is primarily due to catch-up fees earned from Asia VIII and TPG IX during the three months ended September 30, 2023 and a decrease in the fee basis of TPG VII resulting from the realization of portfolio investments.
Current report
Management fees from our Impact platform decreased by $0.8 million during the three months ended September 30, 2024 compared to three months ended September 30, 2023.
Current report
Management fees from our Real Estate platform increased by $0.4 million during the three months ended September 30, 2024 compared to three months ended September 30, 2023.
Current report
Performance allocation income from our Capital platform was $154.2 million for the three months ended September 30, 2024 compared to losses of $90.7 million for the three months ended September 30, 2023. Performance allocation income for the three months ended September 30, 2024 was largely driven by gains of $74.5 million from TPG VIII, $37.9 million from TPG Healthcare Partners and $24.3 million from TPG VII, partially offset by losses of $27.1 million from Asia VI. Performance allocation losses for the three months ended September 30, 2023 were primarily attributable to losses of $36.4 million from TPG VIII, $31.6 million from Asia VII, $22.8 million from TPG VII and $21.5 million from THP I, partially offset by gains of $11.8 million from TPG IX.
Current report
Performance allocation losses from our Real Estate platform was $0.2 million for the three months ended September 30, 2024 compared to losses of $6.8 million for the three months ended September 30, 2023.
Current report
Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
Current report
Performance allocation income from our Capital platform was $308.0 million for the nine months ended September 30, 2024 compared to $273.8 million for the nine months ended September 30, 2023. Performance allocation income for the nine months ended September 30, 2024 was largely driven by gains of $171.2 million from TPG VII, $111.3 million from TPG VIII and $79.6 million from TPG IX, partially offset by losses of $75.0 million from Asia VII and $41.1 million from Asia VI. Performance allocation income for the nine months ended September 30, 2023 was primarily driven by gains of $187.4 million from TPG VIII, $38.0 million from TPG VII and $31.1 million from TPG AAF, offset by losses of $38.1 million from Asia VI.
Current report
Performance allocation income from our Impact platform was $100.0 million for the nine months ended September 30, 2024 compared to $128.2 million for the nine months ended September 30, 2023. Performance allocation income for the nine months ended September 30, 2024 was largely driven by gains of $47.9 million from Rise III and $44.5 million from Rise Climate I, partially offset by losses of $15.6 million from Rise I. Performance allocation income for the nine months ended September 30, 2023 was primarily driven by gains of $97.2 million from Rise Climate I and $40.3 million from Rise II.
Removed paragraphs (11)
Previous report
Product: TPG RE Finance Trust, Inc.
Previous report
Product: Private Markets Solutions
Previous report
U.S. employment data continued to show strength, with the economy adding 532,000 net payrolls over April, May and June. Unemployment remained relatively low during the second quarter, though rose slightly to 4.1% as of the June 2024 Labor Report, up from 3.8% as of the end of the first quarter of 2024.
Previous report
Despite the progress on inflation, levels remain above the Federal Reserve’s target of 2.0%. The central bank has kept rates restrictive in response, electing to hold Federal Funds rates steady at 5.25% - 5.50% at both meetings during the second quarter of 2024. The Federal Reserve has now held rates steady for seven consecutive meetings, though the latest progress on inflation has increased expectations that a rate cut could occur at the Federal Reserve’s July or September meetings. Other global central banks have already elected to reduce rates, with the European Central Bank lowering its key interest rate during the quarter to 3.75% from 4.0%, its first rate cut in almost five years.
Previous report
Major U.S. equity indices were mixed during the three months ended June 30, 2024, with a high degree of underlying dispersion from a sector and size perspective. The S&P 500 and Nasdaq gained 3.9% and 8.3% respectively, while the Dow Jones fell (1.7%). The S&P 500 and Nasdaq were boosted by the significant outperformance of mega-cap technology stocks such as NVIDIA Corp. and Apple Inc., which gained 36.7% and 22.8% during the quarter, respectively. Information Technology and Communication Services were broadly the top performing S&P sectors during the quarter, gaining 13.6% and 9.1%. Materials, Industrials and Energy were relative laggards, falling (4.9%), (3.3%) and (3.2%), respectively. Small-cap stocks were also laggards, with the Russell 2000 index falling (3.6%). Volatility, as measured by the CBOE Volatility Index, was relatively unchanged for the three months ending June 30, 2024, ending the quarter at 12.4, down from 13.0 as of the end of the prior quarter.
Previous report
Performance allocation income from our Capital platform was $86.0 million for the three months ended June 30, 2024 compared to $130.8 million for the three months ended June 30, 2023. Performance allocation income for the three months ended June 30, 2024 was largely driven by gains of $148.7 million from TPG VII, $13.3 million from TPG IX and $10.4 million from Asia VI, partially offset by losses of $36.9 million from Asia VII and $36.9 million from TPG VIII. Performance allocation income for the three months ended June 30, 2023 was led by gains of 104.8 million from TPG VIII, 31.5 million from Asia VII and $13.7 million from THP I, offset by losses of $43.1 million from Asia VI.
Previous report
Performance allocation losses of $15.2 million from our Real Estate platform were primarily due to a loss from TREP III during the three months ended June 30, 2024 compared to a loss of $4.7 million during the three months ended June 30, 2023.
Previous report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Previous report
Management fees from our Impact platform decreased $3.3 million, primarily attributable to Rise III due to catch-up fees earned during the six months ended June 30, 2023, offset by additional fees from TPG Next, which was activated during the fourth quarter of 2023.
Previous report
Performance allocation income from our Capital platform was $153.9 million for the six months ended June 30, 2024 compared to $364.5 million for the six months ended June 30, 2023. Performance allocation income for the six months ended June 30, 2024 was largely driven by gains of $146.9 million from TPG VII, $58.8 million from TPG IX and $36.8 million from TPG VIII, partially offset by losses of $88.3 million from Asia VII and $18.7 million from THP I. Performance allocation income for the six months ended June 30, 2023 was led by gains of $223.8 million from TPG VIII and $60.8 million from TPG VII.
Previous report
Performance allocation income from our Impact platform was $59.0 million for the six months ended June 30, 2024 compared to $121.2 million for the six months ended June 30, 2023. Performance allocation income for the six months ended June 30, 2024 was largely driven by gains of $36.7 million from Rise Climate and $28.9 million from Rise III, partially offset by losses of $9.8 million from Rise. Performance allocation income for the six months ended June 30, 2023 was led by gains of $100.9 million from Rise Climate and $35.3 million from Rise II.
Reworded paragraphs (95)
Previous wording
TPG is a leading global alternative asset manager with $229.0 billion in assets under management (“AUM”) as of June 30, 2024. We have built our firm through years of successful innovation and growth, and believe that we have delivered attractive risk-adjusted returns to our clients and established a premier investment business focused on the fastest-growing segments of the alternative asset management industry. We believe our distinctive business approach and diversified array of innovative investment platforms position us well to continue generating highly profitable, sustainable growth.
Current wording
TPG is a leading global alternative asset manager with $239.1 billion in assets under management (“AUM”) as of September 30, 2024. We have built our firm through years of successful innovation and growth, and believe that we have delivered attractive risk-adjusted returns to our clients and established a premier investment business focused on the fastest-growing segments of the alternative asset management industry. We believe our distinctive business approach and diversified array of innovative investment platforms position us well to continue generating highly profitable, sustainable growth.
Previous wording
TPG Capital is our North America and Europe-focused private equity investing business, with $42.6 billion in assets under management as of June 30, 2024. TPG Capital employs a sector-driven, highly thematic approach to sourcing and primarily seeks to invest in traditional buyouts, transformational deals such as corporate carve-outs and large-scale growth equity transactions. We invest in market leaders with fundamentally strong business models that are expected to benefit from long-term secular growth trends. We also seek to help our portfolio companies accelerate their growth under our ownership through a variety of operational improvements, such as by leveraging our human capital team to upgrade or enhance our management teams and boards, and by investing in organic and inorganic growth.
Current wording
TPG Capital is our North America and Europe-focused private equity investing business, with $43.4 billion in assets under management as of September 30, 2024. TPG Capital employs a sector-driven, highly thematic approach to sourcing and primarily seeks to invest in traditional buyouts, transformational deals such as corporate carve-outs and large-scale growth equity transactions. We invest in market leaders with fundamentally strong business models that are expected to benefit from long-term secular growth trends. We also seek to help our portfolio companies accelerate their growth under our ownership through a variety of operational improvements, such as by leveraging our human capital team to upgrade or enhance our management teams and boards, and by investing in organic and inorganic growth.
Previous wording
TPG was one of the first alternative asset management firms to establish a dedicated Asia franchise and began investing in the region in 1994. Currently, TPG Asia focuses on pursuing investments in the Asia-Pacific region, including Australia, India, Korea and Southeast Asia, with $21.9 billion in assets under management as of June 30, 2024. Our distributed regional footprint has provided a foundation for us to pursue highly attractive investing opportunities in the region with both new and existing products and strategies. We invest through a variety of transaction structures, including through partnerships with large corporations and families.
Current wording
TPG was one of the first alternative asset management firms to establish a dedicated Asia franchise and began investing in the region in 1994. Currently, TPG Asia focuses on pursuing investments in the Asia-Pacific region, including Australia, India, Korea and Southeast Asia, with $22.2 billion in assets under management as of September 30, 2024. Our distributed regional footprint has provided a foundation for us to pursue highly attractive investing opportunities in the region with both new and existing products and strategies. We invest through a variety of transaction structures, including through partnerships with large corporations and families.
Previous wording
TPG Growth is our dedicated growth equity and middle market investing product, with $17.6 billion in assets under management as of June 30, 2024. TPG Growth seeks to make growth buyout and growth equity investments, primarily in North America and India.
Current wording
TPG Growth is our dedicated growth equity and middle market investing product, with $18.1 billion in assets under management as of September 30, 2024. TPG Growth seeks to make growth buyout and growth equity investments, primarily in North America and India.
Previous wording
TPG Tech Adjacencies, or “TTAD”, with $6.5 billion in assets under management as of June 30, 2024, is a product we developed organically to pursue minority and/or structured investments in internet, software, digital media and other technology sectors. Specifically, TTAD aims to provide flexible capital for founders, employees and early investors seeking liquidity, as well as primary structured equity solutions for companies looking for additional, creative capital for growth.
Current wording
TPG Tech Adjacencies, or “TTAD”, with $6.7 billion in assets under management as of September 30, 2024, is a product we developed organically to pursue minority and/or structured investments in internet, software, digital media and other technology sectors. Specifically, TTAD aims to provide flexible capital for founders, employees and early investors seeking liquidity, as well as primary structured equity solutions for companies looking for additional, creative capital for growth.
Previous wording
The Rise Funds are our dedicated vehicles for investing in companies that generate a demonstrable and significant positive societal impact alongside business performance and strong returns, with $9.0 billion in assets under management as of June 30, 2024. The Rise Fund’s core areas of focus include climate and conservation, education, financial inclusion, food and agriculture, healthcare and impact services, and invest globally.
Current wording
The Rise Funds are our dedicated vehicles for investing in companies that generate a demonstrable and significant positive societal impact alongside business performance and strong returns, with $9.3 billion in assets under management as of September 30, 2024. The Rise Funds’ core areas of focus include climate and conservation, education, financial inclusion, food and agriculture, healthcare and impact services, and they invest globally.
Previous wording
Launched in 2021, TPG Rise Climate is our dedicated climate impact investing product, which has raised $7.3 billion in total commitments. TPG Rise Climate pursues climate-related investments that benefit from the diverse skills of TPG’s investing professionals, the strategic relationships developed across TPG’s existing portfolio of climate-focused companies, and a global network of executives and advisors. TPG Rise Climate takes a broad-based approach to investment types, from growth equity to value-added infrastructure, and focuses on climate solutions in thematic areas including clean electrons, clean molecules and materials and negative emissions.
Current wording
Launched in 2021, TPG Rise Climate is our dedicated climate impact investing product, which has raised $11.9 billion in total commitments. TPG Rise Climate pursues climate-related investments that benefit from the diverse skills of TPG’s investing professionals, the strategic relationships developed across TPG’s existing portfolio of climate-focused companies, and a global network of executives and advisors. TPG Rise Climate takes a broad-based approach to investment types, from growth equity to value-added infrastructure, and focuses on climate solutions in thematic areas including clean electrons, clean molecules and materials and negative emissions.
Previous wording
The following table presents certain data about our TPG AG Credit platform as of June 30, 2024 (dollars in billions):
Current wording
The following table presents certain data about our TPG AG Credit as of September 30, 2024 (dollars in billions):
Previous wording
TPG AG Credit Solutions, with $14.9 billion in assets under management as of June 30, 2024, invests in stressed, distressed and special situation corporate credit opportunities, primarily in North America and Europe, and can dynamically pivot between the public and private markets. TPG AG Credit Solutions employs what we believe to be a differentiated, solutions-based approach that is capable of being executed in any market environment. TPG AG Credit Solutions seeks to align with companies, financial sponsors and business owners and to use its structuring skill and flexible capital base to create bespoke, bilaterally-negotiated financing transactions that help resolve complex and idiosyncratic financial challenges. TPG AG Credit Solutions funds may also opportunistically invest in securities acquired at what the investment team believes are discounted prices relative to their intrinsic value and offer the potential for contractual income and/or price appreciation. TPG AG Credit Solutions invests through the Credit Solutions and Essential Housing closed-ended funds, as well as the Corporate Credit Opportunities open-ended fund.
Current wording
TPG AG Credit Solutions, with $16.5 billion in assets under management as of September 30, 2024, invests in stressed, distressed and special situation corporate credit opportunities, primarily in North America and Europe, and can dynamically pivot between the public and private markets. TPG AG Credit Solutions employs what we believe to be a differentiated, solutions-based approach that is capable of being executed in any market environment. TPG AG Credit Solutions seeks to align with companies, financial sponsors and business owners and to use its structuring skill and flexible capital base to create bespoke, bilaterally-negotiated financing transactions that help resolve complex and idiosyncratic financial challenges. TPG AG Credit Solutions funds may also opportunistically invest in securities acquired at what the investment team believes are discounted prices relative to their intrinsic value and offer the potential for contractual income and/or price appreciation. TPG AG Credit Solutions invests through the Credit Solutions and Essential Housing closed-ended funds, as well as the Corporate Credit Opportunities open-ended fund.
Previous wording
TPG AG Structured Credit & Specialty Finance focuses on major non-corporate credit sectors, including consumer, residential and commercial real estate, and specialty lending markets, and also has substantial CLO debt and equity investing capabilities. TPG AG Structured Credit & Specialty Finance invests through a variety of vehicles including the Mortgage Value Partners Fund open-ended hedge fund, the Asset Based Credit closed-ended fund, separately managed accounts (“SMAs”) and AG Mortgage Investment Trust, Inc. (NYSE: MITT) (“MITT”), which is an externally-managed, publicly traded residential mortgage real estate investment trust. As of June 30, 2024, TPG AG Structured Credit & Specialty Finance had $17.6 billion in assets under management.
Current wording
TPG AG Structured Credit & Specialty Finance focuses on major non-corporate credit sectors, including consumer, residential and commercial real estate, and specialty lending markets, and also has substantial CLO debt and equity investing capabilities. TPG AG Structured Credit & Specialty Finance invests through a variety of vehicles including the Mortgage Value Partners Fund open-ended hedge fund, the Asset Based Credit closed-ended fund, separately managed accounts (“SMAs”) and AG Mortgage Investment Trust, Inc. (NYSE: MITT) (“MITT”), which is an externally-managed, publicly traded residential mortgage real estate investment trust. As of September 30, 2024, TPG AG Structured Credit & Specialty Finance had $17.9 billion in assets under management.
Previous wording
TPG AG Middle Market Direct Lending (“MMDL”) and TPG Twin Brook Capital Partners focus on sourcing, underwriting and actively managing a diversified portfolio of lower middle market, senior secured loans, including revolvers and first lien debt, and seek to deliver stable and attractive returns while minimizing volatility and protecting the downside. As a direct lender to private equity backed lower middle market companies primarily with $25 million of EBITDA or less, the product focuses on sourcing differentiated opportunities from our long-standing and diverse set of sponsor relationships. TPG AG Middle Market Direct Lending includes the MMDL closed-ended fund series and evergreen vehicle and SMAs, as well as a public, non-traded business development company (“BDC”), AG Twin Brook Capital Income Fund (“TCAP”). As of June 30, 2024, TPG AG Middle Market Direct Lending had $24.3 billion in assets under management.
Current wording
TPG AG Middle Market Direct Lending (“MMDL”) and TPG Twin Brook Capital Partners focus on sourcing, underwriting and actively managing a diversified portfolio of lower middle market, senior secured loans, including revolvers and first lien debt, and seek to deliver stable and attractive returns while minimizing volatility and protecting the downside. As a direct lender to private equity backed lower middle market companies primarily with $25 million of EBITDA or less, the product focuses on sourcing differentiated opportunities from our long-standing and diverse set of sponsor relationships. TPG AG Middle Market Direct Lending includes the MMDL closed-ended fund series and evergreen vehicle and SMAs, as well as a public, non-traded business development company (“BDC”), TPG Twin Brook Capital Income Fund (“TCAP”). As of September 30, 2024, TPG AG Middle Market Direct Lending had $25.0 billion in assets under management.
Previous wording
TPG AG CLOs, with $8.4 billion in assets under management as of June 30, 2024 invests predominantly in non-investment grade senior secured bank loans. TPG AG CLO platform is Global with investment teams in both New York and London. TPG AG U.S. CLOs invest in U.S. dollar-denominated broadly syndicated loans, and our Euro CLOs invest in Euro-denominated loans and secured bonds. Our Global platform allows us to provide our investors with diversification across industries and geographies as we construct well diversified, liquid portfolios that are actively traded. TPG AG CLOs include performing credit bespoke vehicles, CLO funds and direct investment in the tranches of Northwoods CLOs.
Current wording
TPG AG CLOs, with $8.2 billion in assets under management as of September 30, 2024 invests predominantly in non-investment grade senior secured bank loans. TPG AG CLO platform is global with investment teams in both New York and London. TPG AG U.S. CLOs invest in U.S. dollar-denominated broadly syndicated loans, and our Euro CLOs invest in Euro-denominated loans and secured bonds. Our global platform allows us to provide our investors with diversification across industries and geographies as we construct well diversified, liquid portfolios that are actively traded. TPG AG CLOs include performing credit bespoke vehicles, CLO funds and direct investment in the tranches of Northwoods CLOs.
Previous wording
TPG AG Multi-Strategy, with $2.2 billion in assets under management as of June 30, 2024, invests across the breadth of TPG AG Credit, with a geographic focus in the United States and Western Europe. TPG AG Multi-Strategy offers actively managed co-mingled funds, including the Super Fund, in addition to bespoke vehicles and various multi-strategy credit funds of one. These funds invest in public and private investment opportunities sourced from across TPG AG Credit, as well as arbitrage strategies, including convertible arbitrage and merger arbitrage. TPG AG Multi-Strategy funds invest in, among other products, corporate loans and bonds, residential, consumer and asset-based loans and securities, hybrid instruments and derivative securities, including currency and interest rate hedges.
Current wording
TPG AG Multi-Strategy, with $2.3 billion in assets under management as of September 30, 2024, invests across the breadth of TPG AG Credit, with a geographic focus in the United States and Western Europe. TPG AG Multi-Strategy offers actively managed co-mingled funds, including the Super Fund, in addition to bespoke vehicles and various multi-strategy credit funds of one. These funds invest in public and private investment opportunities sourced from across TPG AG Credit, as well as arbitrage strategies, including convertible arbitrage and merger arbitrage. TPG AG Multi-Strategy funds invest in, among other products, corporate loans and bonds, residential, consumer and asset-based loans and securities, hybrid instruments and derivative securities, including currency and interest rate hedges.
Previous wording
The following table presents certain data about our TPG AG Real Estate platform as of June 30, 2024 (dollars in billions):
Current wording
The following table presents certain data about our TPG AG Real Estate as of September 30, 2024 (dollars in billions):
Previous wording
TPG AG U.S. Real Estate, with $6.5 billion in assets under management as of June 30, 2024, manages assets across various product sectors and has been active in many of the major U.S. real estate markets. TPG AG U.S. Real Estate focuses on purchasing what we believe to be underperforming and undervalued real estate assets, where we then execute an active asset management strategy to reposition and stabilize the properties. TPG AG U.S. Real Estate is diversified across property sectors, with a thematic portfolio construction focused on rental residential, industrial, self-storage, life science, student housing and medical office, among other sectors.
Current wording
TPG AG U.S. Real Estate, with $6.3 billion in assets under management as of September 30, 2024, manages assets across various product sectors and has been active in many of the major U.S. real estate markets. TPG AG U.S. Real Estate focuses on purchasing what we believe to be underperforming and undervalued real estate assets, where we then execute an active asset management strategy to reposition and stabilize the properties. TPG AG U.S. Real Estate is diversified across property sectors, with a thematic portfolio construction focused on rental residential, industrial, self-storage, life science, student housing and medical office, among other sectors.
Previous wording
TPG AG Asia Real Estate, with $5.1 billion in assets under management as of June 30, 2024, manages assets across Asia, with investments primarily in Japan, South Korea, Hong Kong, China and Singapore. TPG AG Asia Real Estate focuses on capitalizing on opportunistic investments primarily created through situations such as a lack of real estate expertise, illiquidity or distress. The TPG AG Asia Real Estate portfolio includes office, industrial, residential, hotel, retail, life science and other asset types.
Current wording
TPG AG Asia Real Estate, with $5.3 billion in assets under management as of September 30, 2024, manages assets across Asia, with investments primarily in Japan, South Korea, Hong Kong, China and Singapore. TPG AG Asia Real Estate focuses on capitalizing on opportunistic investments primarily created through situations such as a lack of real estate expertise, illiquidity or distress. The TPG AG Asia Real Estate portfolio includes office, industrial, residential, hotel, retail, life science and other asset types.
Previous wording
TPG AG Europe Real Estate, with $4.5 billion in assets under management as of June 30, 2024, manages assets across Europe, with investments primarily located in major cities in Western Europe and the United Kingdom. TPG AG Europe Real Estate focuses on sub-performing and distressed real estate assets. The TPG AG Europe Real Estate portfolio includes industrial, residential, office, hotel, retail, student housing, self-storage and other asset types.
Current wording
TPG AG Europe Real Estate, with $4.7 billion in assets under management as of September 30, 2024, manages assets across Europe, with investments primarily located in major cities in Western Europe and the United Kingdom. TPG AG Europe Real Estate focuses on sub-performing and distressed real estate assets. The TPG AG Europe Real Estate portfolio includes industrial, residential, office, hotel, retail, student housing, self-storage and other asset types.
Previous wording
TPG AG Net Lease, with $2.2 billion in assets under management as of June 30, 2024, focuses on single tenant commercial real estate, generally leased to non-investment grade tenants, largely acquired in simultaneous sale-leaseback transactions. TPG AG Net Lease primarily purchases existing facilities that are integral to the ongoing operations of the tenants, such as a company’s manufacturing plant or distribution centers. TPG AG Net Lease manages assets primarily located within the United States, with certain assets in the United Kingdom, Western Europe, Canada and Mexico.
Current wording
TPG AG Net Lease, with $2.1 billion in assets under management as of September 30, 2024, focuses on single tenant commercial real estate, generally leased to non-investment grade tenants, largely acquired in simultaneous sale-leaseback transactions. TPG AG Net Lease primarily purchases existing facilities that are integral to the ongoing operations of the tenants, such as a company’s manufacturing plant or distribution centers. TPG AG Net Lease manages assets primarily located within the United States, with certain assets in the United Kingdom, Western Europe, Canada and Mexico.
Previous wording
We established our TPG real estate investing practice in 2009 to pursue real estate investments systematically and at significant scale. We invest in real estate through four primary products: (1) TPG Real Estate Partners, (2) TPG Real Estate Thematic Advantage Core-Plus, (3) TPG RE Finance Trust, Inc., and (4) TPG Real Estate Credit Opportunities.
Current wording
We established our TPG real estate investing practice in 2009 to pursue real estate investments systematically and at significant scale. We invest in real estate through three primary products: (1) TPG Real Estate Partners, (2) TPG Real Estate Thematic Advantage Core-Plus and (3) Real Estate Credit.
Previous wording
TPG Real Estate Partners (“TREP”), with $11.2 billion in assets under management as of June 30, 2024, focuses on acquiring and building platforms, which we believe creates more efficient operating structures and ultimately results in scaled investments that may trade at premium entity-level pricing in excess of the net asset value of individual properties. TREP utilizes a distinct theme-based strategy for sourcing and executing proprietary investments and, over time, many of these themes have aligned with TPG’s broader thematic sector expertise, particularly those pertaining to the healthcare and technology sectors.
Current wording
TPG Real Estate Partners (“TREP”), with $11.0 billion in assets under management as of September 30, 2024, focuses on acquiring and building platforms, which we believe creates more efficient operating structures and ultimately results in scaled investments that may trade at premium entity-level pricing in excess of the net asset value of individual properties. TREP utilizes a distinct theme-based strategy for sourcing and executing proprietary investments and, over time, many of these themes have aligned with TPG’s broader thematic sector expertise, particularly those pertaining to the healthcare and technology sectors.
Previous wording
TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX”) is externally managed by an affiliate of TPG and directly originates, acquires and manages commercial mortgage loans and other commercial real estate-related debt instruments in North America for its balance sheet. The platform’s objective is to provide attractive risk-adjusted returns to its stockholders over time through cash distributions. As of June 30, 2024, the TRTX loan investment portfolio consisted of 48 first mortgage loans (or interests therein) and total loan commitments of $3.3 billion.
Current wording
TPG RE Finance Trust, Inc. (NYSE: TRTX) (“TRTX”) is externally managed by an affiliate of TPG and directly originates, acquires and manages commercial mortgage loans and other commercial real estate-related debt instruments in North America for its balance sheet. The platform’s objective is to provide attractive risk-adjusted returns to its stockholders over time through cash distributions. As of September 30, 2024, the TRTX loan investment portfolio consisted of 48 first mortgage loans (or interests therein) and total loan commitments of $3.4 billion.
Previous wording
TPG Public Equities (“TPEP”) seeks to generate superior risk-adjusted returns through deep, fundamental private equity-style research in the public markets. TPEP is not siloed from our private investment businesses from an information perspective, which allows TPEP to collaborate with sector-focused teams across the rest of our firm and leverage TPG’s full intellectual capital and resources. TPEP manages a $1.8 billion long / short fund and a $1.2 billion long-only fund as of June 30, 2024, both of which are managed with broad, opportunistic mandates.
Current wording
TPG Public Equities (“TPEP”) seeks to generate superior risk-adjusted returns through deep, fundamental private equity-style research in the public markets. TPEP is not siloed from our private investment businesses from an information perspective, which allows TPEP to collaborate with sector-focused teams across the rest of our firm and leverage TPG’s full intellectual capital and resources. TPEP manages a $1.6 billion long / short fund and a $1.0 billion long-only fund as of September 30, 2024, both of which are managed with broad, opportunistic mandates.
Previous wording
Through our capital markets activities, we generate underwriting, placement, arrangement, structuring and advisory fee revenue. In the three and six months ended June 30, 2024, our capital markets business drove $46.7 million and $92.9 million in transaction revenue, respectively. In the three and six months ended June 30, 2023, our capital markets business drove $17.2 million and $22.5 million in transaction revenue, respectively. We believe that the high margin profile of our business coupled with our consistent ability to deliver superior financing outcomes drives significant value to our portfolio companies and our stockholders.
Current wording
Through our capital markets activities, we generate underwriting, placement, arrangement, structuring and advisory fee revenue. In the three and nine months ended September 30, 2024, our capital markets business drove $53.1 million and $146.0 million in transaction revenue, respectively. In the three and nine months ended September 30, 2023, our capital markets business drove $31.6 million and $54.1 million in transaction revenue, respectively. We believe that the high margin profile of our business coupled with our consistent ability to deliver superior financing outcomes drives significant value to our portfolio companies and our stockholders.
Previous wording
Our business is affected by a variety of factors, including financial markets and economic and political conditions. Changes in global economic conditions and regulatory or other governmental policies or actions can materially affect the values of funds managed by TPG, as well as our ability to source attractive investments and deploy the capital that we have raised. However, we believe our disciplined investment philosophy across our diversified investment platforms and our shared investment themes focusing on attractive and resilient sectors of the global economy has historically contributed to the stability of our performance throughout market cycles.
Current wording
Changes in global economic conditions and regulatory or other governmental policies or actions can materially affect the values of funds managed by TPG, as well as our ability to source attractive investments and deploy the capital that we have raised. However, we believe our disciplined investment philosophy across our diversified investment platforms and our shared investment themes focusing on attractive and resilient sectors of the global economy has historically contributed to the stability of our performance throughout market cycles.
Previous wording
The U.S. market environment was constructive and relatively stable during the three months ended June 30, 2024, as the domestic economy remained on solid footing while inflationary pressures moderately eased.
Current wording
The U.S. market environment remained relatively constructive during the three months ended September 30, 2024, as inflationary pressures eased, the Federal Reserve began its long-awaited rate cutting cycle and economic data showed the domestic economy remained on relatively stable footing.
Previous wording
Inflationary pressures largely eased during the quarter, despite continued economic growth and a strong labor market. The latest reading of the U.S. Consumer Price Index (“CPI”) showed prices increased 3.3% over the prior twelve months, a slower rate of growth than the 3.5% level observed as of the end of the first quarter of 2024. Similarly core CPI, which excludes food and energy, fell to 3.4% annual growth as of the latest reading, down from 3.8% as of the end of the first quarter.
Current wording
Inflation showed continued signs of moderating during the third quarter of 2024, progressing steadily towards the Federal Reserve’s long-term target of 2.0%. The September reading of the U.S. Consumer Price Index (“CPI”) showed prices increased 2.5% over the prior twelve months, a slower rate of growth than the 3.0% level observed as of the end of the second quarter of 2024. Similarly core CPI, which excludes food and energy, fell to 3.2% annual growth as of the latest reading, down from 3.3% as of the end of the second quarter.
Previous wording
U.S. Treasury yields slightly rose during the second quarter of 2024, with moves more pronounced towards the longer end of the curve. Yields on the 10-Year Treasury rose approximately 20 basis points relative to the end of the first quarter of 2024, closing the quarter at 4.40%. 2-Year Treasury yields rose approximately 13 basis points, ending the quarter at 4.76%.
Current wording
U.S. Treasury yields fell relatively sharply during the third quarter of 2024, with moves more pronounced towards the shorter end of the curve. Yields on the 10-Year Treasury fell 65 basis points relative to the end of the second quarter of 2024, closing the quarter at 3.88%. 2-Year Treasury yields fell approximately 111 basis points, ending the quarter at 3.64%. The 2-Year / 10-Year Treasury split normalized, with yields on the 10-Year Treasury eclipsing those of the 2-Year Treasury in September for the first time since 2022.
Previous wording
In corporate credit markets, both U.S. and European high yield generated positive performance in the second quarter of 2024. According to J.P. Morgan data, U.S. high yield gained 1.2% and the European market returned 1.5% during the three-month period. In the United States, high yield bond spreads widened by 8 basis points to 351 basis points, while in Europe, high yield spreads tightened 14 basis points to end the quarter at 416 basis points. In the United States, default activity was muted during the quarter, resulting in the high yield default rate declining from 2.6% to 1.7%, though in Europe, the high yield default increased modestly from 2.6% to 2.8%. Additionally, the J.P. Morgan U.S. Leveraged Loan Index posted a 1.92% return, and the J.P. Morgan European Leveraged Loan Index posted a 2.37% return for the second quarter of 2024. From a spread and yield basis, the US Leveraged Loan Index ended the quarter at a yield of 8.78% and 464 basis point spread, while the European Leverage Loan Index ended the quarter at a yield of 8.07% and 511 basis point spread.
Current wording
In corporate credit markets, both U.S. and European high yield generated positive performance in the third quarter of 2024. According to J.P. Morgan data, U.S. high yield gained 5.3% and the European market returned 3.3% during the three-month period. In the United States, high yield bond spreads tightened by 6 basis points to 345 basis points, approaching post-GFC lows, while in Europe, high yield spreads widened 9 basis points to end the quarter at 425 basis points. The high yield default rate, measured on a trailing twelve-month basis, declined modestly from 1.8% to 1.6% in the United States and from 2.8% to 2.7% in Europe. Additionally, the J.P. Morgan U.S. Leveraged Loan Index posted a 2.04% return, and the J.P. Morgan European Leveraged Loan Index posted a 1.93% return for the third quarter of 2024. From a spread and yield basis, the US Leveraged Loan Index ended the quarter at a yield of 7.75% and 452 basis point spread, while the European Leverage Loan Index ended the quarter at a yield of 7.19% and 493 basis point spread.
Previous wording
•$16.3 million paid during the six months ended June 30, 2024 to the sellers of Angelo Gordon as a result of post close net working capital adjustments;
Current wording
•$16.3 million paid during the nine months ended September 30, 2024 to the sellers of Angelo Gordon as a result of post close net working capital adjustments;
Previous wording
Fees and other revenues increased by $195.7 million, or 60%, during the three months ended June 30, 2024, compared to the three months ended June 30, 2023. This change resulted from a $154.8 million increase in management fees, a $29.5 million increase in transaction, monitoring and other fees, net, and a $11.4 million increase in expense reimbursements and other.
Current wording
Fees and other revenues increased by $158.6 million, or 43%, during the three months ended September 30, 2024, compared to the three months ended September 30, 2023. This change resulted from a $131.8 million increase in management fees, a $21.5 million increase in transaction, monitoring and other fees and a $5.3 million increase in expense reimbursements and other.
Previous wording
Management Fees. Management fees, increased by $154.8 million, or 60%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023.
Current wording
Management Fees. Management fees increased by $131.8 million, or 47%, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023.
Previous wording
This change was primarily driven by the addition of $134.7 million in management fees from TPG Angelo Gordon, acquired in November 2023. During the three months ended June 30, 2024, we recorded $82.3 million in fees from TPG AG Credit, largely driven by MVP Fund, MMDL IV and Credit Solutions II, and $52.5 million from TPG AG Real Estate, largely driven by the Europe Realty IV, Realty Value XI, Realty Value X and Asia Realty V.
Current wording
This change was primarily driven by the addition of $133.4 million in management fees from TPG Angelo Gordon, acquired in November 2023. During the three months ended September 30, 2024, we recognized $83.5 million in fees from TPG AG Credit, largely driven by MVP Fund, MMDL IV and Credit Solutions II, and $49.9 million from TPG AG Real Estate, largely driven by the Realty Value XI, Realty Value X, Asia Realty V and Net Lease Realty IV.
Previous wording
Management fees from our Growth platform increased $1.9 million mainly due to increases from Growth VI, which was activated during the fourth quarter of 2023, partially offset by a decrease in fees from Growth V, which primarily resulted from a step down in fee basis from committed to invested capital during the first quarter of 2024.
Current wording
Management fees from our Growth platform increased $6.9 million primarily due to increases from Growth VI, which was activated during the fourth quarter of 2023, partially offset by a decrease in fees from Growth V as a result of a step down in fee basis from committed to invested capital during the first quarter of 2024.
Previous wording
Management fees from our Market Solutions platform increased $5.0 million primarily due to NewQuest V as a result of additional fee earning capital raised during the last twelve months ended June 30, 2024.
Current wording
Management fees from our Market Solutions platform increased $7.3 million, primarily from TGS as a result of additional fee earning capital raised during the three months ended September 30, 2024, partially offset by a decrease in fees from TPEP as a result of a decrease in fee earning AUM.
Previous wording
Certain management fees totaling $24.7 million earned during the three months ended June 30, 2024 were considered catch-up fees as a result of additional capital commitments from limited partners. Catch-up fees primarily consisted of $9.7 million for Asia VIII, which was activated in the third quarter of 2022.
Current wording
Certain management fees totaling $15.0 million earned during the three months ended September 30, 2024 were considered catch-up fees as a result of additional capital commitments from limited partners. Catch-up fees primarily consisted of $10.3 million for TGS, which had its final close during the three months ended September 30, 2024.
Previous wording
Transaction, Monitoring and Other Fees, Net. Transaction, monitoring and other fees, net increased by $70.4 million for the six months ended June 30, 2024 compared to the six months ended June 30, 2023. This change was primarily driven by a $56.5 million increase in our Market Solutions platform as a result of increased capital markets activity among our portfolio companies involving our broker-dealer.
Current wording
Transaction, Monitoring and Other Fees. Transaction, monitoring and other fees increased by $21.5 million, or 68%, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. This change was primarily driven by a $10.1 million increase in our Market Solutions platform as a result of increased capital markets activity among our portfolio companies involving our broker-dealer. In addition, fee-related performance revenues increased by $5.6 million for the three months ended September 30, 2024 related to TCAP which was acquired as part of the acquisition of TPG Angelo Gordon in November 2023.
Previous wording
Expense Reimbursements and Other. Expense reimbursements and other increased by $11.4 million, or 22%, for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. This change was primarily driven by the addition of expense reimbursements from TPG Angelo Gordon, which was acquired in November 2023.
Current wording
Expense Reimbursements and Other. Expense reimbursements and other increased by $5.3 million, or 9%, for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. This change was primarily due to the acquisition of TPG Angelo Gordon in November 2023.
Previous wording
Performance Allocations. Performance allocations decreased by $61.5 million, or 23% for the three months ended June 30, 2024 compared to the three months ended June 30, 2023. Realized performance allocations gains for the three months ended June 30, 2024 and 2023 totaled $134.2 million and $31.6 million, respectively. Unrealized performance allocation gains for the three months ended June 30, 2024 and 2023 totaled $66.7 million and $230.8 million respectively.
Current wording
Performance Allocations. Performance allocations increased by $508.0 million for the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Realized performance allocation gains for the three months ended September 30, 2024 and 2023 totaled $159.1 million and $249.0 million, respectively. Unrealized performance allocation gains for the three months ended September 30, 2024 totaled $148.9 million. Unrealized performance allocation losses for the three months ended September 30, 2023 totaled $449.1 million.
Previous wording
Performance allocation income was $200.9 million for three months ended June 30, 2024 compared to $262.3 million for three months ended June 30, 2023. This change was primarily driven by lower performance allocations from our Capital and Market Solutions platforms during the three months ended June 30, 2024 compared to the three months ended June 30, 2023, partially offset by the acquisition of TPG Angelo Gordon in November 2023, which contributed $60.7 million of net gains during the three months ended June 30, 2024.
Current wording
Performance allocation income was $308.0 million for three months ended September 30, 2024 compared to losses of $200.1 million for three months ended September 30, 2023. This change was primarily driven by higher performance allocations from our Capital, Growth and Impact platforms during the three months ended September 30, 2024 compared to the three months ended September 30, 2023, and by the acquisition of TPG Angelo Gordon in November 2023, which contributed $92.0 million of net gains during the three months ended September 30, 2024.
Previous wording
Performance allocation income from our Growth platform was $151.0 million for the six months ended June 30, 2024 compared to $74.8 million for the six months ended June 30, 2023. Performance allocation income for the six months ended June 30, 2024 was primarily driven by $60.2 million from Growth IV, $55.1 million from TTAD II and $45.0 million from Growth V. Performance allocation income for the six months ended June 30, 2023 was led by gains of $41.5 million from Growth V and $33.3 million from Growth IV.
Current wording
Performance allocation income from our Growth platform was $75.4 million for the three months ended September 30, 2024 compared to losses of $27.5 million for the three months ended September 30, 2023. Performance allocation income for the three months ended September 30, 2024 was primarily driven by $42.0 million from Growth IV, $33.0 million from Growth V and $7.0 million from TTAD II, partially offset by losses of $11.5 million from Growth III. Performance allocation losses for the three months ended September 30, 2023 were primarily attributable to losses of $16.1 million from TTAD I and $7.8 million from Growth III.
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Previous report — wording carried elsewhere
Product: TPG Real Estate Credit Opportunities
Previous report — wording carried elsewhere
Management fees from our Capital platform increased $20.3 million during the three months ended June 30, 2024. Fee earning capital raised during the last twelve months ended June 30, 2024 resulted in additional fees from Asia VIII, THP II and TPG IX, partially offset by Asia VI resulting from fee credits applied during the three months ended June 30, 2024.
Previous report — wording carried elsewhere
Total equity decreased $54.9 million, primarily due to the payments of dividends and distributions to our Class A common stockholders and to holders of non-controlling interests in subsidiaries.