Core Insights - TPG reported a significant increase in capital raised, reaching approximately $51 billion in 2025, a 70% increase from $30 billion in 2024, and deployed just over $50 billion during the same year [1][7] - The firm emphasized a strategic shift towards diversification, with private equity now representing about 50% of total assets under management (AUM), down from approximately 80% at the time of its IPO [6][8] - TPG's fee-related earnings margin improved by roughly 800 basis points since the IPO, reaching 45% in 2025, with expectations to increase to around 47% in 2026 [5][12] Fundraising and Deployment - TPG's fundraising activities in 2025 included a strong performance in credit, with fundraising exceeding $20 billion, and plans to market approximately 35 products in 2026 [11][10] - The firm anticipates another robust fundraising year in 2026, expecting to exceed $50 billion again [11][10] Profitability and Earnings - Fee-related revenue for TPG reached $2.1 billion in 2025, with fee-related earnings around $950 million, showing significant growth from just over $300 million at the time of the IPO [7][8] - The firm has maintained a steady realization pace, averaging about $25 billion per year over the past five years [14] Strategic Initiatives - TPG is focusing on expanding its private wealth and insurance channels, with a notable partnership with Jackson Financial that starts at $12 billion and can scale to $20 billion [15][16] - The firm is also exploring inorganic growth opportunities while scaling its newer businesses [10] Market Position and Future Outlook - TPG's strategic priorities include completing ongoing fundraising campaigns and expanding into new asset classes, with a focus on real estate, which is expected to contribute significantly in 2026 [13][10] - The firm has positioned itself as a consistent generator of distributions to paid-in capital (DPI), which is a key metric for limited partners [14]

Group 1 - The event is the 35th Annual U.S. Financial Services Conference hosted by BofA Securities [1] - Craig Siegenthaler is the North American Head of Diversified Financials at Bank of America and is introducing Jack Weingart [1] - Jack Weingart is the Chief Investment Officer of TPG and has been with the company since 2006 [2] Group 2 - Prior to his role as CIO, Jack Weingart was a co-managing partner at TPG Capital since 2017 [2] - He serves on the Board of Directors of Viking Holdings and has previously been on the Board of several private companies, including J. Crew, Chino, and Chobani [2]

TPG 2026 Conference Summary Company Overview - **Company**: TPG (NasdaqGS: TPG) - **Founded**: 1992, with roots in managing the Bass family office - **Public Listing**: Went public in 2022 - **Assets Under Management (AUM)**: Approximately $290 billion [4][6] Key Financial Highlights - **4Q 2025 Earnings**: Announced on February 10, 2026, with proactive communication to address market concerns [5] - **Capital Raised**: $51 billion in 2025, a 70% increase from $30 billion in 2024 [7][16] - **Investment Deployment**: Over $50 billion deployed in 2025 [7] - **Fee-Related Revenue (FRR)**: Grew to $2.1 billion; Free Cash Flow (FRE) increased to approximately $950 million from over $300 million at IPO [8] - **FRE Margin**: Expected to expand from 45% to 47% in 2026, with an 800 basis point increase since IPO [18] Growth Strategy - **Diversification of AUM**: Shift from 80% private equity at IPO to 50% currently, with growth in other asset classes such as private credit and real estate [10][11] - **Horizontal and Vertical Growth**: Focus on expanding existing businesses and entering new asset classes, including GP-Led Secondaries and hybrid solutions [12][13] - **Strategic Priorities for 2026**: Complete existing fundraises, scale new businesses, and expand private wealth and insurance channels [14][15] Fundraising Insights - **Product Diversification**: In 2025, TPG was in the market for about 25 products, expected to increase to 35 in 2026 [19] - **Credit Business**: Raised over $20 billion for credit businesses in 2025, with expectations for robust fundraising in 2026 [20] - **Real Estate Business**: Anticipated growth with at least four different real estate funds in 2026, supported by strong early dialogues with Limited Partners (LPs) [20] Realizations and Market Conditions - **Realization Strategy**: Averaged $25 billion in realizations annually over the past five years, with expectations for a pickup in 2026 due to stabilizing market conditions [21][22] Insurance Business Development - **Partnership with Jackson Financial**: Established a long-term investment management agreement, focusing on direct lending and investment-grade asset-backed finance [23][26] - **Expansion of Insurance Relationships**: Leveraging Angelo Gordon's capabilities to enhance offerings for insurance clients [24] Private Wealth Channel - **TPOP Launch**: Successfully raised about $1.5 billion since its launch, with plans to expand distribution partnerships [30][31] - **Future Products**: Introduction of a multi-strategy private credit interval fund and a non-traded REIT to broaden offerings [32] Credit Quality and Management - **Direct Lending Focus**: Twin Brook's direct lending strategy targets companies with $0-$25 million EBITDA, maintaining lower leverage levels [39] - **Credit Quality Assurance**: High credit quality with low pick rates, active management of risks associated with portfolio companies [40] Conclusion - TPG is positioned for continued growth through diversification, strategic partnerships, and a focus on expanding its asset management capabilities across various sectors, including private equity, credit, and real estate. The company aims to leverage its strong fundraising capabilities and enhance its offerings in the insurance and private wealth channels.

Core Viewpoint - TPG has agreed to acquire a majority stake in Sabre Industries from Blackstone, valuing the company at approximately $3.5 billion [1] Group 1: Transaction Details - The acquisition involves TPG purchasing the majority stake in Sabre Industries, a company focused on power infrastructure [1] - Blackstone will retain a significant minority stake in Sabre Industries following the transaction [1] Group 2: Company Overview - Sabre Industries operates primarily in the utility sector, producing components for power and communication infrastructure [1] - The company employs around 2,800 individuals [1]

Group 1 - TPG has agreed to acquire a majority stake in Sabre Industries from Blackstone, indicating a strategic move in the private markets sector [1] - The deal values the power infrastructure company at an undisclosed amount, highlighting the ongoing interest in energy and utility investments [1] - This acquisition reflects TPG's commitment to expanding its portfolio in the infrastructure space, particularly in power-related sectors [1]

Core Insights - TPG reported significant growth in fee-related earnings (FRE) and revenue, with FRE reaching $326 million in Q4 and $953 million for the full year, marking a 25% increase from 2024 [1]. - The firm achieved record fundraising of $51 billion in 2025, a 71% increase year-over-year, and total assets under management (AUM) grew to $303 billion, up 23% from the previous year [9][7]. - TPG's fourth-quarter transaction and monitoring fees surged to $122 million, more than tripling year-over-year, contributing to a full-year total of $249 million, reflecting a nearly 70% increase [2]. Financial Performance - Full-year fee-related revenue totaled $2.1 billion, with Q4 revenue at $628 million, representing a 36% year-over-year increase [3][8]. - The fourth-quarter management fees were $475 million, an 18% increase from the prior year, driven by growth in fee-earning assets and increased credit deployment [3]. - After-tax distributable earnings for Q4 were $304 million, equating to $0.71 per Class A share, with a dividend of $0.61 per share declared [4][8]. Fundraising and Deployment - TPG raised a record $21 billion in credit capital in 2025, a 67% increase from 2024, and launched TPG Advantage Direct Lending with an initial close of $875 million [6][11]. - The firm deployed a total of $52 billion in 2025, with Q4 investment activity reaching a record $19 billion, an 88% increase year-over-year [10][9]. - TPG's private equity fundraising grew over 80% to $28 billion, despite a decline in overall industry fundraising [13]. Strategic Initiatives - TPG is expanding its credit platform and has been selective in private equity exposure to software, considering potential disruptions from AI [6][15]. - The firm plans to invest $500 million in Jackson Financial, which is expected to close soon, increasing net debt to an anticipated $2.1 billion [21]. - Management is also working on expanding the private wealth product suite, including a multi-strategy credit interval fund and a non-traded REIT [22]. Market Outlook - TPG anticipates aggregate fundraising in 2026 to exceed $50 billion, with expectations for a major real estate fundraising cycle [19]. - The firm guided for a full-year 2026 FRE margin of approximately 47%, up from 45% in 2025 [20]. - Management highlighted the importance of diversification and a larger fundraising team in sustaining growth beyond 2025's record [19].

Core Viewpoint - The chief executive of the private markets firm identifies opportunities arising from current market turmoil [1] Group 1 - The firm is actively seeking to capitalize on the disruptions in the market [1] - The CEO believes that challenging market conditions can lead to unique investment prospects [1] - The firm is positioning itself to take advantage of potential undervalued assets during this period [1]

Financial Data and Key Metrics Changes - TPG reported GAAP net income attributable to TPG Inc. of $77 billion and after-tax distributable earnings of $304 million, or $0.71 per share of Class A common stock [4] - Full-year fee-related revenue reached $2.1 billion, including $628 million for the fourth quarter, which grew 36% year-over-year [31] - After-tax distributable earnings increased 17% year-over-year to $304 million, marking the highest level since becoming a public company [35] - Total AUM increased 23% year-over-year to $303 billion, driven by $51 billion of capital raised and $24 billion of value creation [35] Business Line Data and Key Metrics Changes - Software represents 11% of total AUM, with 18% in private equity and approximately 2% in credit [8] - The credit platform raised a record $21 billion during the year, up 67% from 2024, with a record $9 billion raised in the fourth quarter alone [17] - Private equity fundraising grew over 80% to $28 billion in 2025, while overall industry fundraising for PE declined 11% [20] - The real estate platform appreciated 9% in 2025, with $6 billion of capital deployed [25] Market Data and Key Metrics Changes - The company experienced double-digit value creation across nearly all platforms in 2025, with private equity strategies appreciating 11% over the last twelve months [37] - The credit platform also appreciated 11% over the last twelve months, maintaining strong credit quality with non-accruals just over 1% [38] - The real estate portfolios appreciated more than 9% for the year, driven by robust value creation in data center holdings and other sectors [39] Company Strategy and Development Direction - TPG aims to continue driving outsized growth by scaling existing and newer strategies, deepening integration of capital markets capabilities, and selectively capitalizing on inorganic opportunities [28] - The company is focused on expanding its private wealth strategy and enhancing its insurance solutions business, with a strategic partnership with Jackson Financial expected to close soon [12][42] - TPG plans to begin fundraising for several new funds in 2026, including TPG Real Estate's next fund and various Asia-focused funds [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's ability to sustain growth and deliver differentiated value for stakeholders, citing a strong performance in 2025 as a foundation for future success [47] - The company anticipates another robust year of capital formation in 2026, expecting aggregate capital raising to exceed $50 billion [41] - Management highlighted the importance of maintaining strong relationships with borrowers and sponsors to ensure credit quality and performance [50][54] Other Important Information - TPG's new and emerging strategies attracted over $7 billion of commitments in 2025, indicating effective identification and scaling of high-potential opportunities [16] - The company ended 2025 with $72 billion of dry powder, representing 43% of fee-earning AUM, positioning it well for future investments [35] Q&A Session Summary Question: Concerns about direct lending performance sustainability - Management acknowledged the market's skepticism regarding direct lending performance but emphasized the unique characteristics of their lower middle market focus, which differs from upper middle market dynamics [50][51] Question: Inquiry about transaction fees and revenue outlook - Management noted that transaction fees in Q4 were driven by increased deployment and diversification across various platforms, indicating a long-term growth opportunity in capital markets [65][66] Question: Outlook for net deployment in credit business - Management highlighted the significant growth in the credit business and the expected upward trend in deployment opportunities due to increased capital formation and synergies from the Angelo Gordon acquisition [76][77]

Financial Data and Key Metrics Changes - TPG reported GAAP net income attributable to TPG Inc. of $77 billion and after-tax distributable earnings of $304 million, or $0.71 per share of Class A common stock [4][35] - Full-year fee-related revenue reached $2.1 billion, including $628 million for the fourth quarter, which grew 36% year-over-year [31] - The company finished 2025 with $303 billion of total AUM, up 23% from 2024, driven by $51 billion of capital raised and $24 billion of value creation [35] Business Line Data and Key Metrics Changes - In credit, TPG raised a record $21 billion of credit capital during the year, up 67% from 2024, with a record $9 billion raised in the fourth quarter alone [17] - Private equity fundraising grew over 80% to $28 billion in 2025, while overall industry fundraising for PE declined 11% [20] - The real estate platform appreciated 9% in 2025, with $6 billion of capital deployed [25] Market Data and Key Metrics Changes - Software represents 11% of total AUM, with 18% in private equity and approximately 2% in credit [8] - The company ended 2025 with $72 billion of dry powder, representing 43% of fee-earning AUM [35] Company Strategy and Development Direction - TPG aims to continue driving outsized growth by scaling existing and newer strategies, deepening integration of capital markets capabilities, and selectively capitalizing on inorganic opportunities [28][29] - The company is focused on expanding its private wealth strategy and enhancing its insurance solutions business [12][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to sustain growth and deliver differentiated value for stakeholders, expecting 2026 to be another robust year of capital formation with aggregate capital raising expected to exceed $50 billion [40][41] - The company highlighted the importance of avoiding capital loss and managing exposures in the lending markets, particularly in the lower middle market [56] Other Important Information - TPG announced a long-term strategic partnership with Jackson Financial, which is expected to provide predictable fee revenue and enhance credit capabilities [12] - The company launched several new products in 2025, including Tika, a growth equity strategy, and Advantage Direct Lending, a new core middle market direct lending strategy [15] Q&A Session Questions and Answers Question: Concerns about direct lending performance sustainability - Management emphasized the differences between lower middle market lending and upper middle market lending, highlighting their unique position and rigorous monitoring of borrower performance [50][51][54] Question: Inquiry about transaction fees and revenue outlook - Management noted that transaction fees in Q4 were driven by increased deployment and diversification across various platforms, indicating a long-term growth opportunity in capital markets [66][67] Question: Outlook for net deployment in credit business - Management discussed the significant growth in credit capital and the synergies from the TPG and Angelo Gordon collaboration, which are expected to enhance deployment opportunities [78]

Financial Data and Key Metrics Changes - TPG reported GAAP net income attributable to TPG Inc. of $77 billion and after-tax distributable earnings of $304 million, or $0.71 per share of Class A common stock [3] - Full-year fee-related revenue reached $2.1 billion, including $628 million for the fourth quarter, which grew 36% year-over-year [29] - The company finished 2025 with $303 billion of total AUM, up 23% from 2024, driven by $51 billion of capital raised and $24 billion of value creation [34] Business Line Data and Key Metrics Changes - Software represents 11% of total AUM, with 18% in private equity and approximately 2% in credit [6] - The credit platform raised a record $21 billion of credit capital during the year, up 67% from 2024 [16] - Private equity fundraising grew over 80% to $28 billion in 2025, while overall industry fundraising for PE declined 11% [19] Market Data and Key Metrics Changes - The company ended 2025 with $72 billion of dry powder, representing 43% of fee-earning AUM [34] - The private equity strategies appreciated 3% in the fourth quarter and 11% over the last twelve months [36] - The credit platform also appreciated 3% in the quarter and 11% over the last twelve months [36] Company Strategy and Development Direction - TPG aims to continue driving outsized growth by scaling existing and newer strategies, deepening integration of capital markets capabilities, and selectively capitalizing on inorganic opportunities [27] - The company is focused on expanding its private wealth strategy and enhancing its insurance solutions business [11][41] - TPG plans to begin fundraising for several new funds in real estate and credit, indicating a multiyear period of growth [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of performance and the ability to maintain strong capital formation, expecting 2026 to exceed $50 billion in capital raising [39] - The company highlighted the importance of differentiating its offerings in the market, particularly in the lower middle market, which is less competitive than the upper middle market [50] - Management noted that the strong performance and disciplined investment approach position TPG well to capitalize on attractive investments [9] Other Important Information - TPG's new and emerging strategies attracted over $7 billion of commitments in 2025, underscoring the firm's ability to identify and scale high-potential opportunities [14] - The company reported a record FRE margin of 52% in the fourth quarter and a full-year FRE margin of 45%, reflecting significant capital markets revenue [32] Q&A Session Summary Question: Concerns about sustaining performance in direct lending - Management emphasized the unique dynamics of the lower middle market, where TPG operates as a primary lender with higher coverage ratios and disciplined lending practices [50][51] - They highlighted their rigorous monitoring processes and strong relationships with borrowers, which enhance their ability to value the portfolio accurately [52][54] Question: Inquiry about transaction fees and revenue outlook - Management noted that transaction fees in Q4 were driven by a broadening capital markets business and a significant increase in deployment activity [66] - They expect capital markets to be a long-term growth opportunity, despite some lumpiness in revenue [66] Question: Outlook for net deployment in credit - Management indicated that the credit business has seen substantial growth in capital formation and deployment, particularly in structured credit and new strategies like Advantage Direct Lending [78][79]