TPG (TPG) Q3 2024 earnings summary

Executive summary

• Assets under management reached $239.1 billion as of September 30, 2024, up 76% year-over-year, driven by the Angelo Gordon acquisition and strong capital raising across strategies.

• Reported GAAP net income attributable to the company of $9 million for Q3 2024, with basic EPS of $0.04.

• Fee-Related Earnings for Q3 2024 were $191 million, up 22% year-over-year, with a 41% margin.

• After-tax Distributable Earnings totaled $189 million ($0.45 per share) for Q3 2024, and a dividend of $0.38 per share was declared, payable December 2, 2024.

• Nearly $23 billion deployed, $16 billion realized, and over $21 billion raised across strategies in the first three quarters of 2024.

Financial highlights

• Q3 2024 revenues rose 433% year-over-year to $855.4 million, driven by a 43% increase in fees and other revenues and a 261% increase in capital allocation-based income.

• Performance-eligible AUM totaled $205 billion, with $161 billion currently generating performance fees.

• Net accrued performance balance increased to $975 million at quarter end.

• Fee-earning AUM (FAUM) rose 80% year-over-year to $141.7 billion.

• Management fees for Q3 2024 increased 47% year-over-year to $410.8 million, primarily due to the Angelo Gordon acquisition.

Outlook and guidance

• Management expects significant management fee growth in 2025, driven by new fund launches, increased deployment, and continued integration benefits from Angelo Gordon.

• FRE margin expected to approach mid-40s% by end of 2025, with further scaling anticipated in subsequent years.

• Aggregate capital raising is expected to increase significantly in 2025, with about 25 products in the market.

• Forward-looking statements caution on risks related to integration, market conditions, and execution of business plans.

• Additional non-core expenses of $25 million for IT integration and $40–$50 million per year for overlapping lease expense through 2026.