TPG Inc. Q3 FY2025 earnings call

• Fundraising: Strong capital formation with $18 billion raised in Q3, year-to-date over $35 billion. Private equity raised $12.3B, credit $4.8B, real estate $2.1B. - Deployment: Record $15B deployed in Q3, with credit platform driving over half, private equity $4.6B, real estate $1.9B. - Client Trends: Institutional clients consolidating with TPG due to strong returns; increasing allocations to private credit; real estate seeing inflection points in demand.

Private Equity: Raised $12.3 billion aggregate in Q3, with $10.1 billion from the first close of flagship buyout funds TPG Capital X and Healthcare Partners III. Credit: Closed $4.8 billion of credit capital in Q3, with year-to-date credit capital raised nearly $12 billion and record credit dry powder over $16 billion. Real Estate: Final close for real estate credit strategy with $2.1 billion commitments, and deployed $1.9 billion in Q3.

• Fundraising: Expect robust 2026 fundraising, including new strategies in credit, private equity, real estate. - Deployment: Expect fourth quarter to be most active, with continued growth in various segments. - FRE Margin: Reiterates mid-40s exit for 2025, expects further expansion.

• Credit Market Concerns: Broader credit market concerns, but TPG's portfolios performing well with disciplined underwriting. - AI Impact: Uncertainties in AI disrupting certain software areas, but TPG has early investments and AI capabilities.

Q: Glenn Schorr on realizations and PRE.

A: Jack and Todd discuss monetization timing and PRE.

Q: Craig Siegenthaler on realizations potential.

A: Jack and Todd talk about intentional monetization and portfolio performance.

Q: Kenneth Worthington on AI risks and opportunities.

A: Todd discusses TPG's early AI investments and AI impact on portfolios.

Q: Alexander Blostein on credit growth and new products.

A: Jon and Jack talk about credit momentum, new products, and fundraising.

Q: Steven Chubak on FRE margin.

A: Jack discusses FRE margin guidance and expansion.

Q: Brian Bedell on fundraising outlook and transition infrastructure.

A: Jack talks about 2026 fundraising and transition infrastructure deployment.

Q: Michael Cyprys on inorganic activity.

A: Jon discusses TPG's inorganic activity and strategic opportunities.

Q: William Katz on wealth and capital markets growth.

A: Jack and Jon talk about wealth product expansion and capital markets growth.