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TPG(TPG) - 2024 Q4 - Annual Report
TPGTPG(TPG)2025-02-18 21:10
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Acquisition and Integration - TPG Inc. completed the acquisition of Angelo Gordon on November 1, 2023, with results included in consolidated operations from November 1, 2023, to December 31, 2024[13]. - The company faces risks related to the integration of Angelo Gordon and achieving anticipated benefits from the acquisition[14]. - TPG Inc. completed the acquisition of Angelo Gordon for a total purchase price of 1,143.4million,whichincluded1,143.4 million, which included 740.7 million in cash at closing[949]. - The acquisition included 9.2 million vested Common Units valued at approximately 233.9millionand43.8millionunvestedCommonUnitsconsideredcompensatoryunderU.S.GAAP[952].−Asoftheacquisitiondate,thetotalidentifiableassetsacquiredamountedto233.9 million and 43.8 million unvested Common Units considered compensatory under U.S. GAAP[952]. - As of the acquisition date, the total identifiable assets acquired amounted to 2,334.3 million, while total liabilities assumed were 1,392.6million,resultingingoodwillof1,392.6 million, resulting in goodwill of 205.9 million[954]. - The Earnout Payment could total up to 400.0million,contingentonachievingcertainfee−relatedrevenuetargetsduringthemeasurementperiodfromJanuary1,2026,toDecember31,2026[952].FinancialPerformance−Totalrevenuesfor2024reached400.0 million, contingent on achieving certain fee-related revenue targets during the measurement period from January 1, 2026, to December 31, 2026[952]. Financial Performance - Total revenues for 2024 reached 3,500,082, a 46.6% increase from 2,389,911in2023[812].−Totalexpensesroseto2,389,911 in 2023[812]. - Total expenses rose to 3,578,323, reflecting a 51.5% increase compared to 2,363,803in2023[812].−NetlossattributabletoTPGInc.was2,363,803 in 2023[812]. - Net loss attributable to TPG Inc. was 76,915, compared to a net income of 23,385in2023[812].−Basicnetincome(loss)pershareforClassAcommonstockwas23,385 in 2023[812]. - Basic net income (loss) per share for Class A common stock was 0.00, down from 0.89in2023[812].−Dilutednetincome(loss)persharewas0.89 in 2023[812]. - Diluted net income (loss) per share was (0.42), compared to (0.04)in2023[812].−TPGInc.reportedanetincomeof(0.04) in 2023[812]. - TPG Inc. reported a net income of 23,483,000 for the year ended December 31, 2024, compared to a net loss of 76,915,000in2023[821].−Thetotalcashprovidedbyoperatingactivitiesfor2024was76,915,000 in 2023[821]. - The total cash provided by operating activities for 2024 was 532,146,000, a decrease from 720,518,000in2023[821].−TPGInc.hadcash,cashequivalents,andrestrictedcashof720,518,000 in 2023[821]. - TPG Inc. had cash, cash equivalents, and restricted cash of 821,192,000 at the end of 2024, up from 678,371,000attheendof2023[823].−Thecompanyexperiencedanetcashusedinfinancingactivitiesof678,371,000 at the end of 2023[823]. - The company experienced a net cash used in financing activities of 344,860,000 in 2024, compared to 789,234,000in2023[821].CompensationandExpenses−Cash−basedcompensationandbenefitsincreasedto789,234,000 in 2023[821]. Compensation and Expenses - Cash-based compensation and benefits increased to 835,328, a 52.5% rise from 547,377in2023[812].−Equity−basedcompensationsurgedto547,377 in 2023[812]. - Equity-based compensation surged to 1,006,312, up 53.5% from 654,922in2023[812].−Thecompanyreportedasignificantincreaseinperformanceallocationcompensationto654,922 in 2023[812]. - The company reported a significant increase in performance allocation compensation to 930,053,000 in 2024 from 591,676,000in2023[821].−Managementfeesincreasedto591,676,000 in 2023[821]. - Management fees increased to 1,637,990 in 2024, up 37.8% from 1,187,947in2023[860].−Performanceallocationsroseto1,187,947 in 2023[860]. - Performance allocations rose to 1,301,766 in 2024, a significant increase of 61.0% compared to 808,248in2023[860].−Monitoringfeessurgedto808,248 in 2023[860]. - Monitoring fees surged to 29,625 in 2024, a 172.0% increase from 10,866in2023[860].−Transactionfeesincreasedto10,866 in 2023[860]. - Transaction fees increased to 140,599 in 2024, up 41.4% from 99,427in2023[860].−Incentivefeessawariseto99,427 in 2023[860]. - Incentive fees saw a rise to 33,032 in 2024, compared to 2,815in2023,markingasubstantialincrease[860].AssetsandLiabilities−Totalassetsincreasedto2,815 in 2023, marking a substantial increase[860]. Assets and Liabilities - Total assets increased to 10,535.1 million as of December 31, 2024, up from 9,369.7millionasofDecember31,2023[807].−Totalliabilitiesincreasedto9,369.7 million as of December 31, 2023[807]. - Total liabilities increased to 6,943.1 million as of December 31, 2024, compared to 6,008.5millionasofDecember31,2023[807].−Accruedperformanceallocationcompensationroseto6,008.5 million as of December 31, 2023[807]. - Accrued performance allocation compensation rose to 4,376.5 million as of December 31, 2024, from 4,096.1millionasofDecember31,2023[807].−Additionalpaid−in−capitalincreasedto4,096.1 million as of December 31, 2023[807]. - Additional paid-in-capital increased to 970.7 million as of December 31, 2024, compared to 613.5millionasofDecember31,2023[807].−ThebalanceoftotalequityatDecember31,2024,was613.5 million as of December 31, 2023[807]. - The balance of total equity at December 31, 2024, was 3,591,989,000, up from 3,361,134,000attheendof2023[819].MarketandRegulatoryEnvironment−ThecompanyacknowledgespotentialrisksfromchangesintheU.S.politicalandfinancialregulatoryenvironment[16].−TPG′smanagementfeesandperformanceallocationsareprimarilyinfluencedbythefairvalueofinvestments,whichcanfluctuateduetomarketconditions[24].−ThecompanyissubjecttoscrutinyfromfundinvestorsandregulatorsregardingESGmattersandevolvingregulatoryrequirements[14].−TPG′sinvestmentstrategyincludesexpansionintonewmarketsandbusinesses,whichmayinvolvenewtypesofinvestors[14].−Thecompanyhasnoobligationtopubliclyupdateforward−lookingstatements,whicharesubjecttoinherentuncertaintiesandrisks[12].AccountingandReporting−ThepreparationoftheConsolidatedFinancialStatementsrequiresmanagementtomakeestimatesandassumptionsthatcouldmateriallyaffectreportedamounts[832].−TheCompanyaccountsforbusinesscombinationsusingtheacquisitionmethod,allocatingpurchasepricetoassetsandliabilitiesbasedonfairvaluesdeterminedattheacquisitiondate[917].−TheCompanyrecognizesinterestandpenaltiesrelatedtounrecognizedtaxbenefitsasincometaxexpensewithintheconsolidatedfinancialstatements[939].−ThetotalPurchasePriceallocatedtothefairvalueofassetsacquiredandliabilitiesassumedwas3,361,134,000 at the end of 2023[819]. Market and Regulatory Environment - The company acknowledges potential risks from changes in the U.S. political and financial regulatory environment[16]. - TPG's management fees and performance allocations are primarily influenced by the fair value of investments, which can fluctuate due to market conditions[24]. - The company is subject to scrutiny from fund investors and regulators regarding ESG matters and evolving regulatory requirements[14]. - TPG's investment strategy includes expansion into new markets and businesses, which may involve new types of investors[14]. - The company has no obligation to publicly update forward-looking statements, which are subject to inherent uncertainties and risks[12]. Accounting and Reporting - The preparation of the Consolidated Financial Statements requires management to make estimates and assumptions that could materially affect reported amounts[832]. - The Company accounts for business combinations using the acquisition method, allocating purchase price to assets and liabilities based on fair values determined at the acquisition date[917]. - The Company recognizes interest and penalties related to unrecognized tax benefits as income tax expense within the consolidated financial statements[939]. - The total Purchase Price allocated to the fair value of assets acquired and liabilities assumed was 205.9 million recorded as goodwill, which is not tax-deductible[961]. - The fair value of identifiable intangible assets acquired totaled 547.5million,withmanagementcontractsvaluedat547.5 million, with management contracts valued at 287,000 and contractual performance fee allocations at $199,000[962].