TPG Inc. Q1 FY2026 earnings call

TPG entered 2026 with strong momentum. AI has created opportunities in software, with software portfolio companies delivering strong results. Private credit portfolios are healthy with differentiated strategies. Quarter saw over $10 billion capital raised, over $14 billion deployed, nearly $9 billion realized. New businesses like TBG Sports, Advantage Direct Lending, TICA are being launched and scaled.

Fee-related earnings grew 36% year-over-year and exceeded $1 billion on an LTM basis for the first time. After-tax distributable earnings per share grew 46% compared to the first quarter of last year. Total AUM grew 22% to $306 billion. Capital formation, deployment, and realization activity each grew 75%, 96%, and 103% respectively.

Expect full-year 2026 FRE margin of 47%. Expect capital raising to exceed $50 billion this year. Private wealth inflows expected to continue growing.

Complex macro backdrop including AI disruption, private credit stress, geopolitical conflict creates market uncertainty. Market volatility may impact timing of realizations.

Q: Glenn Shore with Evercore asked about PE marks in the quarter.

A: Male Speaker 1 responded on broad-based valuation changes in PE.

Q: Alex Bloestein with Goldman Sachs asked about credit business positioning.

A: Response on credit solutions and asset-based finance.

Q: Craig Siegenthaler with Bank of America Securities asked about software P-Book and AI impact.

A: Todd responded on software investments and AI opportunities.

Q: Brian Bedell with Deutsche Bank asked about impact franchise.

A: Jim Coulter responded on climate impact business.

Q: Ken Worthington with J.P. Morgan asked about big deals translating to fees.

A: Jack responded on capital markets fees.

Q: Brian McKenna with Citizens asked about lower middle market direct lending.

A: John responded on institutional flows.

Q: Mike Brown with UBS asked about AI LLM companies in portfolio.

A: Response on AI-focused companies and exit strategy.

Q: Ben Budish with Barclays asked about fundraising cadence.

A: Response on real estate and private equity fundraising.

Q: Stephen Chubak with Wolf Research asked about AI risk across portfolio.

A: Response on AI exposure in portfolio.

Q: Arnaud Jablod with BNP Paribas asked about FRE margin guidance.

A: Response on FRE margin and operating leverage.

Q: Bart Dzarsky with RBC Capital Markets asked about fundraising client perspective.

A: Response on institutional relationships.

Q: Michael Sipris with Morgan Stanley asked about AI deployment in firm.

A: Response on AI use in productivity and services