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Dec 31, 2024
TPG Q4 2024 Earnings Report
Key Takeaways
TPG Inc. reported an increase in revenue for Q4 2024, reaching $1.08 billion, up from $983.1 million in Q4 2023. Net income declined to $11.1 million compared to $42.4 million in the prior-year quarter. Adjusted EPS decreased to $0.04 from $0.16 in Q4 2023. Fee-related earnings dropped to $190 million from $226 million, while after-tax distributable earnings increased to $261 million from $206 million. Assets under management (AUM) rose to $245.9 billion, reflecting an 11% year-over-year growth.
TPG
TPG
Forward Guidance
TPG expects continued AUM growth driven by strong fundraising and investment deployment but anticipates margin pressure from rising costs and competitive dynamics.
Positive Outlook
- Strong momentum in AUM growth, up 11% year-over-year.
- Increased after-tax distributable earnings, reaching $261 million.
- Stable capital raising activity at $8.8 billion in Q4 2024.
- Expansion in fee-related performance revenues due to investment gains.
- Continued integration of TPG AG expected to drive future synergies.
Challenges Ahead
- Decline in net income from $42.4 million to $11.1 million.
- Lower fee-related earnings due to increased compensation expenses.
- Operating profit margin reduced to 1.0% from 4.3%.
- Higher performance allocation compensation expenses affecting profitability.
- Increased debt obligations, rising to $1.28 billion from $945 million.