TPG Reports Strong Third Quarter Earnings for 2024

TPG (NASDAQ: TPG), a leading global alternative asset firm, announced a GAAP net income of $9 million and after-tax distributable earnings of $189 million, or $0.45 per share for its Class A common stock in the third quarter of 2024. The company declared a dividend of $0.38 per share, payable on December 2, 2024, to shareholders of record as of November 14, 2024. TPG's total assets under management (AUM) reached $239 billion, marking a 76% increase year-over-year.

Key Takeaways

• TPG reported a GAAP net income of $9 million for Q3 2024.
• After-tax distributable earnings totaled $189 million, equating to $0.45 per share.
• A dividend of $0.38 per share will be issued on December 2, 2024.
• The firm deployed $23 billion of capital year-to-date, with $8.6 billion in Q3 alone.
• TPG's AUM increased to $239 billion, a 76% year-over-year rise.
• Significant transactions included the acquisition of DIRECTV and plans to acquire EchoStar's DISH business.
• TPG anticipates strong fundraising in 2024, projecting over $12 billion in credit strategies.

Company Outlook

• TPG aims to launch the TPG Private Equity Opportunities (TPOP) vehicle early next year.
• The firm expects to accelerate management fee growth in 2025, driven by increased fee-related revenue from recent transactions.
• A strong pipeline of bespoke financing opportunities, especially in credit, is anticipated.

Market Highlights

• Bullish: TPG's integrated approach and strong client engagement underscore strategic positioning in the market.
• Bearish: Specific timelines for achieving a FRE margin above 50% were not provided.

InvestingPro Insights

According to InvestingPro, TPG's robust performance aligns with significant AUM growth and earnings capabilities. Despite impressive achievements, the high P/E Ratio of 522.36 indicates elevated growth expectations from investors.

Summary

TPG's third quarter results for 2024 show strong financial performance with substantial capital deployment and growth in AUM, reinforcing investor confidence and strategic market positioning.