TPG Inc.
For the period ended Sep 30, 2025. Filed Nov 4, 2025.
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Sep 30, 2025 · Filed Nov 4, 2025
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Item 4. Controls and Procedures
Non-GAAP Financial Measures
Distributable Earnings. Distributable Earnings (“DE”) is used to assess performance and amounts potentially available for distributions to partners. DE is derived from and reconciled to, but not equivalent to, its most directly comparable U.S. GAAP measure of net income. DE differs from U.S. GAAP net income computed in accordance with U.S. GAAP in that it does not include (i) unrealized performance allocations and related compensation expense, (ii) unrealized investment income, (iii) equity-based compensation expense, (iv) amortization, (v) net income (loss) attributable to non-controlling interests in consolidated entities, or (vi) certain other items, such as contingent reserves.
While we believe that the inclusion or exclusion of the aforementioned U.S. GAAP income statement items provides investors with a meaningful indication of our core operating performance, the use of DE without consideration of the related U.S. GAAP measures is not adequate due to the adjustments described herein. This measure supplements U.S. GAAP net income and should be considered in addition to and not in lieu of the results of operations presented in accordance with U.S. GAAP discussed further under “—Key Components of our Results of Operations—Results of Operations” prepared in accordance with U.S. GAAP.
After-Tax Distributable Earnings. After-tax Distributable Earnings (“After-tax DE”) is a non-GAAP performance measure of our distributable earnings after reflecting the impact of income taxes. We use it to assess how income tax expense affects amounts available to be distributed to our Class A common stockholders and Common Unit holders. After-tax DE differs from U.S. GAAP net income computed in accordance with U.S. GAAP in that it does not include the items described in the definition of DE herein; however, unlike DE, it does reflect the impact of income taxes. Income taxes, for purposes of determining After-tax DE, represent the total U.S. GAAP income tax expense adjusted to include only the current tax expense (benefit) calculated on U.S. GAAP net income before income tax and includes the current payable under our Tax Receivable Agreement, which is recorded within due to affiliates and other liabilities in our Condensed Consolidated Statements of Financial Condition. Further, the current tax expense (benefit) utilized when determining After-tax DE reflects the benefit of deductions available to the Company on certain expense items that are excluded from the underlying calculation of DE, such as equity-based compensation charges. We believe that including the amount currently payable under the Tax Receivable Agreement and utilizing the current income tax expense (benefit), as described above, when determining After-tax DE is meaningful as it increases comparability between periods and more accurately reflects earnings that are available for distribution to shareholders.
We believe that while the inclusion or exclusion of the aforementioned U.S. GAAP income statement items provides investors with a meaningful indication of our core operating performance, the use of After-tax DE without consideration of the related U.S. GAAP measures is not adequate due to the adjustments described herein. This measure supplements U.S. GAAP net income and should be considered in addition to and not in lieu of the results of operations presented in accordance with U.S. GAAP discussed further under “—Key Components of our Results of Operations—Results of Operations.”
Fee-Related Earnings. Fee-Related Earnings (“FRE”) is a supplemental performance measure and is used to evaluate our business and make resource deployment and other operational decisions. FRE differs from net income computed in accordance with U.S. GAAP in that it adjusts for the items included in the calculation of DE and also adjusts to exclude (i) realized performance allocations and related compensation expense, (ii) realized investment income from investments and financial instruments, (iii) net interest (interest expense less interest income), (iv) depreciation, and (v) certain non-core income and expenses. We use FRE to measure the ability of our business to cover compensation and operating expenses from fee revenues other than capital allocation-based income. The use of FRE without consideration of the related U.S. GAAP measures is not adequate due to the adjustments described herein.
Fee-Related Revenues. Fee-related revenues (“FRR”) is a component of FRE. Fee-related revenues is comprised of (i) management fees, (ii) fee-related performance revenues, (iii) transaction, monitoring and other fees, net, and (iv) other income. Fee-related performance revenues refers to incentive fees from perpetual capital vehicles that are: (i) measured and expected to be received on a recurring basis and (ii) not dependent on realization events from the underlying investments. Fee-related revenues differs from revenue computed in accordance with U.S. GAAP in that it excludes certain reimbursement expense arrangements. Refer to “—Reconciliation to U.S. GAAP Measures” to the comparable line items on the Condensed Consolidated Statements of Operations.
Fee-Related Expenses. Fee-related expenses is a component of FRE. Fee-related expenses differs from expenses computed in accordance with U.S. GAAP in that it is net of certain reimbursement arrangements and does not include performance allocation compensation. Fee-related expenses is used in management’s review of the business. Refer to “—Reconciliation to U.S. GAAP Measures” to the comparable line items on the Condensed Consolidated Statements of Operations.
Fee-related revenues and fee-related expenses are presented separately in our calculation of non-GAAP measures in order to better illustrate the profitability of our FRE. The use of fee-related revenues and FRE without consideration of the related U.S. GAAP measures is not adequate due to the adjustments described herein.
Our calculations of DE, FRE, fee-related revenues and fee-related expenses may differ from the calculations of other investment managers. As a result, these measures may not be comparable to similar measures presented by other investment managers.
The following table sets forth our total FRE and DE for the three and nine months ended September 30, 2025 and 2024:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| ($ in thousands) | ||||
| Management fees | $461,338 | $407,163 | $1,324,961 | $1,223,122 |
| Fee-related performance revenues | 7,340 | 5,557 | 20,309 | 13,917 |
| Transaction, monitoring and other fees, net | 38,097 | 43,153 | 126,905 | 111,454 |
| Other income | 2,621 | 3,969 | 8,604 | 21,553 |
| Fee-Related Revenues | 509,396 | 459,842 | 1,480,779 | 1,370,046 |
| Cash-based compensation and benefits, net | 185,504 | 174,514 | 553,398 | 520,943 |
| Fee-related performance compensation | 3,671 | 2,778 | 10,155 | 6,958 |
| Operating expenses, net | 95,220 | 91,783 | 291,146 | 267,743 |
| Fee-Related Expenses | 284,395 | 269,075 | 854,699 | 795,644 |
| Fee-Related Earnings | 225,001 | 190,767 | 626,080 | 574,402 |
| Realized performance allocations, net | 30,424 | 32,112 | 157,082 | 89,643 |
| Realized investment income and other, net | 2,688 | (2,529) | (6,990) | (5,934) |
| Depreciation expense | (5,213) | (5,045) | (15,320) | (15,382) |
| Interest expense, net | (23,226) | (9,118) | (54,923) | (26,777) |
| Distributable Earnings | 229,674 | 206,187 | 705,929 | 615,952 |
| Income taxes | (15,312) | (16,742) | (36,541) | (39,243) |
| After-Tax Distributable Earnings | $214,362 | $189,445 | $669,388 | $576,709 |
Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024
Fee-Related Revenues
Fee-related revenues increased $49.6 million, or 11%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The change was primarily due to additional management fees of $54.2 million and a $1.8 million increase in fee-related performance revenues, partially offset by a decrease in transaction, monitoring and other fees, net of $5.1 million.
The following table presents management fees in our platforms for the three months ended September 30, 2025 and 2024:
| Three Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| Capital | $137,341 | $121,415 |
| Growth | 49,234 | 45,944 |
| Impact | 68,287 | 48,618 |
| TPG Angelo Gordon | ||
| TPG AG Credit | 87,179 | 77,194 |
| TPG AG Real Estate | 49,518 | 49,877 |
| Real Estate | 36,810 | 36,001 |
| Market Solutions | 32,969 | 28,114 |
| Total Management Fees | $461,338 | $407,163 |
Management fees increased $54.2 million, or 13%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This change was primarily driven by higher management fees from our Impact, Capital, TPG AG Credit, Market Solutions and Growth platforms.
Management fees from our Capital platform increased $15.9 million during the three months ended September 30, 2025, primarily due to fees earned from TPG X, which was activated during the third quarter of 2025, partially offset by realizations in TPG VIII.
Management fees from our Growth platform increased $3.3 million primarily due to Growth VI, which had additional capital raised in the last twelve months, resulting in fees earned from a larger commitment base during the three months ended September 30, 2025.
Management fees from our Impact platform increased $19.7 million during the three months ended September 30, 2025 compared to three months ended September 30, 2024 primarily due to fees earned from Rise Climate II, which was activated during the third quarter of 2024, partially offset by a step-down in the fee basis of Rise Climate I from committed capital to actively invested capital during the fourth quarter of 2024.
Management fees from TPG AG Credit increased $10.0 million during the three months ended September 30, 2025 compared to three months ended September 30, 2024 primarily due to fees earned from Credit Solutions III, which was activated during the third quarter of 2024, and increased deployment from MMDL Continuation I, MMDL V and Credit Solutions II as a result of new investments. These were partially offset by a decrease in fees from MMDL III as a result of realizations.
Management fees from TPG AG Real Estate decreased $0.4 million during the three months ended September 30, 2025 compared to three months ended September 30, 2024.
Management fees from our Real Estate platform increased $0.8 million during the three months ended September 30, 2025 compared to three months ended September 30, 2024.
Management fees from our Market Solutions platform increased $4.9 million during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to additional management fees from TPG Peppertree which was acquired in July 2025. This was partially offset by a decrease in catch-up fees in TGS I and a decrease in fees from TPEP as a result of lower fee-earning AUM.
Catch-up fees totaled $4.3 million during the three months ended September 30, 2025 and primarily consisted of $4.0 million for Rise Climate II.
Fee-Related Performance Revenues
The following table presents fee-related performance revenues for the three months ended September 30, 2025 and 2024:
| Three Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| TPG AG Credit | $7,340 | $5,557 |
| Total Fee-Related Performance Revenues | $7,340 | $5,557 |
Fee-related performance revenues increased $1.8 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to higher incentive fees from TCAP.
Transaction, Monitoring and Other Fees, Net
The following table presents transaction, monitoring and other fees, net in our platforms for the three months ended September 30, 2025 and 2024:
| Three Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| Capital | $1,406 | $1,274 |
| Growth | 284 | 297 |
| Impact | 2,393 | 1,848 |
| TPG Angelo Gordon | ||
| TPG AG Credit | 2,728 | 726 |
| TPG AG Real Estate | 137 | 267 |
| Real Estate | 466 | 19 |
| Market Solutions | 30,683 | 38,722 |
| Total Transaction, Monitoring and Other Fees, Net | $38,097 | $43,153 |
Transaction, monitoring and other fees, net decreased $5.1 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This change was primarily driven by our Market Solutions platform as a result of decreased capital markets activity among our portfolio companies involving our broker-dealer.
Other Income
Total other income decreased $1.3 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024.
Fee-Related Expenses
Fee-related expenses increased $15.3 million, or 6%, during the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This change was primarily due to increases in cash-based compensation and benefits, net of $11.0 million and operating expenses, net of $3.4 million.
Cash-Based Compensation and Benefits, Net
The following table presents cash-based compensation and benefits, net for the three months ended September 30, 2025 and 2024:
| Three Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| Salaries | $96,761 | $88,359 |
| Bonuses | 81,168 | 73,437 |
| Benefits and other | 35,531 | 37,232 |
| Reimbursements | (27,956) | (24,514) |
| Total Cash-Based Compensation and Benefits, Net | $185,504 | $174,514 |
Cash-based compensation and benefits, net increased $11.0 million, or 6%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This change was primarily due to higher salaries and bonuses resulting from an overall increase in headcount.
Fee-Related Performance Compensation
The following table presents fee-related performance compensation for the three months ended September 30, 2025 and 2024:
| Three Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| TPG AG Credit | $3,671 | $2,778 |
| Total Fee-related Performance Compensation | $3,671 | $2,778 |
Total fee-related performance compensation increased $0.9 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This was primarily attributable to the increase in fee-related performance revenues from TCAP that drives compensation attributable to our partners and professionals.
Operating Expenses, Net
Operating expenses, net includes general and administrative expenses as well as reimbursements for professional services and travel expenses related to investment management and advisory services provided to TPG funds and monitoring services provided to our portfolio companies. Operating expenses, net increased $3.4 million, or 4%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This change was primarily due to an increase in IT expenses.
Realized Performance Allocations, Net
The following table presents realized performance allocations, net from our platforms for the three months ended September 30, 2025 and 2024:
| Three Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| Capital | $18,204 | $11,522 |
| Growth | 1,985 | 6,529 |
| Impact | — | 1,905 |
| TPG Angelo Gordon | ||
| TPG AG Credit | 6,505 | 8,081 |
| TPG AG Real Estate | 531 | 30 |
| Real Estate | — | 4,045 |
| Market Solutions | 3,199 | — |
| Total Realized Performance Allocations, Net | $30,424 | $32,112 |
Realized performance allocations, net of $30.4 million for the three months ended September 30, 2025 were generated primarily from realizations of $9.5 million from Asia VIII and $8.6 million from Asia VII in the Capital platform, $1.9 million from TTAD II in the Growth platform, and $2.0 million from MMDL V and $1.2 million from MMDL II in TPG AG Credit. The activity consisted of realizations sourced from portfolio companies including Samhwa Co., Ltd and Sai Life Sciences.
Realized performance allocations, net of $32.1 million for the three months ended September 30, 2024 were generated from realizations of $11.5 million from TPG VII in the Capital platform, $5.0 million from Growth IV in the Growth platform, and $2.4 million from MMDL IV in TPG AG Credit, and $4.0 million from TREP III in the Real Estate platform. The activity consisted of realizations sourced from portfolio companies including Viking Cruises and CLEAResult.
Realized Investment Income and Other, Net
The following table presents realized investment income and other, net for the three months ended September 30, 2025 and 2024:
| Three Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| Investments in funds | $26,230 | $5,873 |
| Non-core income (expense) | (23,542) | (8,402) |
| Total Realized Investment Income and Other, Net | $2,688 | $(2,529) |
The change in realized investment income and other, net of $5.2 million during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 is primarily due to realizations from certain investments in our funds, partially offset by an increase in our non-core expense. Our non-core activity includes expenses of $10.2 million related to our unoccupied lease space and $7.1 million for acquisition diligence activity for the three months ended September 30, 2025.
Depreciation
Depreciation expense increased $0.2 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024.
Interest Expense, Net
The following table presents interest expense, net for the three months ended September 30, 2025 and 2024:
| Three Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| Interest expense | $32,773 | $22,063 |
| Interest (income) | (9,547) | (12,945) |
| Interest Expense, Net | $23,226 | $9,118 |
Interest expense, net increased $14.1 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to an increase in outstanding principal balances on our debt obligations.
Distributable Earnings
The increase in DE for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 was primarily due to an increase in FRE, partially offset by an increase in interest expense.
Income taxes decreased $1.4 million, or 9%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily due to the utilization of excess tax deductions generated during the period ended March 31, 2025, lowering the quarter to date tax expense.
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Fee-Related Revenues
Fee-related revenues increased $110.7 million, or 8%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily due to additional management fees of $101.8 million and an increase in transaction, monitoring and other fees, net of $15.5 million, partially offset by a decrease in other income of $12.9 million.
The following table presents management fees in our platforms for the nine months ended September 30, 2025 and 2024:
| Nine Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| Capital | $362,719 | $397,095 |
| Growth | 181,974 | 125,303 |
| Impact | 198,404 | 144,803 |
| TPG Angelo Gordon | ||
| TPG AG Credit | 251,547 | 228,664 |
| TPG AG Real Estate | 159,351 | 154,348 |
| Real Estate | 107,390 | 105,627 |
| Market Solutions | 63,576 | 67,282 |
| Total Management Fees | $1,324,961 | $1,223,122 |
Management fees increased $101.8 million, or 8%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This change was primarily driven by higher management fees from our Growth and Impact platforms plus TPG AG Credit, partially offset by lower management fees from our Capital and Market Solutions platforms.
Management fees from our Capital platform decreased $34.4 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The change is primarily due to catch-up fees in Asia VIII during the nine months ended September 30, 2024 and a decrease in fees resulting from realizations in TPG VIII and TPG VII, partially offset by fees earned from TPG X during the nine months ended September 30, 2025, which activated during the third quarter of 2025.
Management fees from our Growth platform increased $56.7 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to catch-up fees earned from subsequent closings of Growth VI during the nine months ended September 30, 2025.
Management fees from our Impact platform increased $53.6 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to catch-up fees earned from Rise Climate II during the nine months ended September 30, 2025, which was activated during the third quarter of 2024, partially offset by a step-down in fee basis of Rise Climate I from committed capital to actively invested capital during the fourth quarter of 2024.
Management fees from TPG AG Credit increased $22.9 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to deployment in MMDL V and MMDL Evergreen plus Credit Solutions III, which was activated during the third quarter of 2024. These were partially offset by a decrease in fees from MMDL III as a result of realizations.
Management fees from TPG AG Real Estate increased $5.0 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to catch-up fees earned from Europe Realty IV during the nine months ended September 30, 2025. This was partially offset by Realty IX as the fund ceased paying fees in the second quarter of 2025 and a decrease in fees from Net Lease Realty III as a result of realizations during the nine months ended September 30, 2025.
Management fees from our Real Estate platform increased $1.8 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
Management fees from our Market Solutions platform decreased $3.7 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily as a result of a decrease in TPEP’s fee-earning AUM and catch-up fees from TGS I and NewQuest V, partially offset by additional management fees from TPG Peppertree which was acquired in July 2025.
Catch-up management fees totaled $51.8 million during the nine months ended September 30, 2025 and primarily consisted of $34.8 million for Growth VI, $8.9 million for Europe Realty IV, and $5.7 million for Rise Climate II.
Fee-Related Performance Revenues
The following table presents fee-related performance revenues for the nine months ended September 30, 2025 and 2024:
| Nine Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| TPG AG Credit | $20,309 | $13,917 |
| Total Fee-Related Performance Revenues | $20,309 | $13,917 |
Fee-related performance revenues increased $6.4 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to higher incentive fees from TCAP.
Transaction, Monitoring and Other Fees, Net
The following table presents transaction, monitoring and other fees, net in our platforms for the nine months ended September 30, 2025 and 2024:
| Nine Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| Capital | $4,432 | $4,128 |
| Growth | 977 | 734 |
| Impact | 6,333 | 4,563 |
| TPG Angelo Gordon | ||
| TPG AG Credit | 6,237 | 2,232 |
| TPG AG Real Estate | 2,160 | 1,993 |
| Real Estate | 947 | 19 |
| Market Solutions | 105,819 | 97,785 |
| Total Transaction, Monitoring and Other Fees, Net | $126,905 | $111,454 |
Transaction, monitoring and other fees, net increased $15.5 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This change was primarily driven by a $8.0 million increase in our Market Solutions platform as a result of capital markets activity among our portfolio companies involving our broker-dealer.
Other Income
Total other income decreased $12.9 million, or 60%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to lower income from our former affiliate. As of April 2024, the contracts to provide services to such party have ended.
Fee-Related Expenses
Fee-related expenses increased $59.1 million, or 7%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily comprised of higher compensation and benefits, net of $32.5 million and an increase in operating expenses, net of $23.4 million.
Cash-Based Compensation and Benefits, Net
The following table presents cash-based compensation and benefits, net for the nine months ended September 30, 2025 and 2024:
| Nine Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| Salaries | $282,049 | $262,542 |
| Bonuses | 238,590 | 224,515 |
| Benefits and other | 116,104 | 102,195 |
| Reimbursements | (83,345) | (68,309) |
| Total Cash-Based Compensation and Benefits, Net | $553,398 | $520,943 |
Total cash-based compensation and benefits, net increased $32.5 million, or 6%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This change was primarily due to higher salaries and bonuses resulting from an overall increase in headcount, partially offset by an increase in reimbursements.
Fee-Related Performance Compensation
The following table presents fee-related performance compensation for the nine months ended September 30, 2025 and 2024:
| Nine Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| TPG AG Credit | $10,155 | $6,958 |
| Total Fee-related Performance Compensation | $10,155 | $6,958 |
Total fee-related performance compensation increased $3.2 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This was primarily attributable to the increase in fee-related performance revenues from TCAP that drives compensation attributable to our partners and professionals.
Operating Expenses, Net
Operating expenses, net includes general and administrative expenses as well as reimbursements for professional services and travel expenses related to investment management and advisory services provided to TPG funds and monitoring services provided to our portfolio companies. Operating expenses, net increased $23.4 million, or 9%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This change was primarily due to an increase in professional fees.
Realized Performance Allocations, Net
The following table presents realized performance allocations, net from our platforms for the nine months ended September 30, 2025 and 2024:
| Nine Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| Capital | $76,189 | $29,795 |
| Growth | 44,727 | 9,434 |
| Impact | 4,534 | 17,801 |
| TPG Angelo Gordon | ||
| TPG AG Credit | 24,807 | 23,551 |
| TPG AG Real Estate | 1,533 | 4,116 |
| Real Estate | 2,093 | 4,946 |
| Market Solutions | 3,199 | — |
| Total Realized Performance Allocations, Net | $157,082 | $89,643 |
Realized performance allocations, net of $157.1 million for the nine months ended September 30, 2025 were largely generated from realizations of $48.0 million from TPG VII and $9.8 million from TPG VIII in the Capital platform, $41.7 million from Growth IV in the Growth platform, $4.5 million from Rise Climate I in the Impact platform, $4.2 million from MMDL V, $4.0 million from MMDL IV and $3.9 million from Credit Solutions II in TPG AG Credit and $2.1 million from TREP III in the Real Estate platform. The activity consisted of realizations sourced from portfolio companies including Viking Cruises, Crunch Fitness, DirecTV, Q-Centrix and Nextracker.
Realized performance allocations, net of $89.6 million for the nine months ended September 30, 2024 were largely generated from realizations of $13.9 million from TPG VIII, $11.5 million from TPG VII and $3.9 million from Asia VII in the Capital platform, $5.0 million from Growth IV and $2.9 million from TTAD I in the Growth platform, $17.8 million from Rise Climate I in the Impact platform, $10.4 million from MMDL IV in TPG AG Credit, $3.9 million from Growth Capital Partners I in TPG AG Real Estate and $4.9 million from TREP III in the Real Estate platform. The activity consisted of realizations sourced from portfolio companies including Nextracker, DirecTV, Viking Cruises, CLEAResult and Singlife.
Realized Investment Income and Other, Net
The following table presents realized investment income and other, net for the nine months ended September 30, 2025 and 2024:
| Nine Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| Investments in funds | $65,235 | $19,288 |
| Non-core income (expense) | (72,225) | (25,222) |
| Total Realized Investment Income and Other, Net | $(6,990) | $(5,934) |
The decrease in realized investment income and other, net of $1.1 million during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 resulted primarily from an increase in our non-core expense partially offset by realizations from certain investments in our funds. Our non-core activity includes expenses of $30.1 million related to our unoccupied lease space and $24.9 million for acquisition diligence activity during the nine months ended September 30, 2025.
Depreciation
Depreciation expense decreased $0.1 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.
Interest Expense, Net
The following table presents interest expense, net for the nine months ended September 30, 2025 and 2024:
| Nine Months Ended September 30, | ||
|---|---|---|
| 2025 | 2024 | |
| ($ in thousands) | ||
| Interest expense | $82,148 | $64,617 |
| Interest (income) | (27,225) | (37,840) |
| Interest Expense, Net | $54,923 | $26,777 |
Interest expense, net increased $28.1 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to an increase in outstanding principal balances on our debt obligations.
Distributable Earnings
The increase in DE for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was primarily due to higher realized performance allocations, net and FRE.
Income taxes decreased $2.7 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 primarily due to tax deductions in connection with restricted stock unit settlements during the period.
Reconciliation to U.S. GAAP Measures
The following tables reconcile the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP to non-GAAP financial measures for the three and nine months ended September 30, 2025 and 2024:
Revenue
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| ($ in thousands) | ||||
| GAAP Revenue | $1,223,517 | $855,403 | $3,178,930 | $2,423,668 |
| Capital-allocation based income | (627,018) | (330,670) | (1,469,902) | (863,840) |
| Expense reimbursements | (76,087) | (62,652) | (202,142) | (158,546) |
| Investment income and other | (11,016) | (2,239) | (26,107) | (31,236) |
| Fee-Related Revenues | $509,396 | $459,842 | $1,480,779 | $1,370,046 |
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| ($ in thousands) | ||||
| GAAP Expenses | $1,031,323 | $867,134 | $2,869,314 | $2,480,077 |
| Depreciation and amortization expense | (41,035) | (32,400) | (103,225) | (97,444) |
| Interest expense | (32,322) | (21,789) | (81,690) | (64,413) |
| Expense reimbursements | (76,087) | (62,652) | (202,142) | (158,546) |
| Performance allocation compensation | (419,420) | (223,637) | (951,562) | (553,824) |
| Equity-based compensation | (158,382) | (242,405) | (573,836) | (697,855) |
| Acquisition success fee | (4,000) | — | (4,000) | — |
| Non-core expenses and other | (15,682) | (15,176) | (98,160) | (112,351) |
| Fee-Related Expenses | $284,395 | $269,075 | $854,699 | $795,644 |
Net Income
| Three Months Ended September 30, | Nine Months Ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| ($ in thousands) | ||||
| Net income (loss) | $199,230 | $(21,425) | $317,169 | $(88,009) |
| Net income attributable to other non-controlling interests | (97,715) | (3,117) | (218,284) | (47,320) |
| Amortization expense | 33,111 | 24,003 | 79,807 | 72,005 |
| Equity-based compensation | 160,133 | 243,287 | 585,175 | 694,628 |
| Unrealized performance allocations, net | (84,419) | (46,395) | (116,903) | (84,293) |
| Unrealized investment income | 28,439 | (11,525) | 30,059 | (37,096) |
| Income taxes | 13,594 | (2,863) | 7,985 | 1,544 |
| Acquisition success fee | 4,000 | — | 4,000 | — |
| Non-recurring and other | (42,011) | 7,480 | (19,620) | 65,250 |
| After-tax Distributable Earnings | $214,362 | $189,445 | $669,388 | $576,709 |
| Income taxes | 15,312 | 16,742 | 36,541 | 39,243 |
| Distributable Earnings | $229,674 | $206,187 | $705,929 | $615,952 |
| Realized performance allocations, net | (30,424) | (32,112) | (157,082) | (89,643) |
| Realized investment income and other, net | (2,688) | 2,529 | 6,990 | 5,934 |
| Depreciation expense | 5,213 | 5,045 | 15,320 | 15,382 |
| Interest expense, net | 23,226 | 9,118 | 54,923 | 26,777 |
| Fee-Related Earnings | $225,001 | $190,767 | $626,080 | $574,402 |
Net Accrued Performance
| September 30, 2025 | December 31, 2024 | |
|---|---|---|
| ($ in thousands) | ||
| GAAP Investments | $8,686,758 | $7,503,281 |
| Equity method and other investments | (1,772,762) | (1,545,202) |
| Accrued performance allocation compensation | (5,042,995) | (4,376,523) |
| Impact of other consolidated entities | (678,389) | (607,989) |
| Net Accrued Performance | $1,192,612 | $973,567 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.