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.

Total Revenue

$1.08B

Previous year: $978M

+10.0%

EPS

$0.62

Previous year: $0.51

+21.6%

Assets Under Management

$246B

Previous year: $222B

+11.0%

Fee-Earning AUM

$141B

Previous year: $137B

+3.3%

Operating Profit Margin

Previous year: 4.3%

-76.7%

Cash and Equivalents

$808M

Previous year: $665M

+21.5%

Total Assets

$10.5B

Previous year: $9.37B

+12.4%

TPG Revenue

TPG EPS

TPG Revenue by Segment

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.