TPG Operating Group II, L.P. 6.950% Fixed-Rate Junior Subordinated Notes due 2064 Q4 FY2024 earnings call

• Completed integration of Angelo Gordon and began realizing revenue synergies.
• Raised $30 billion in 2024, exceeding fundraising targets, with $14 billion in private equity/infrastructure and over $12 billion in credit.
• Achieved organic growth/innovation: raised ~$2B for Norworld GP-led secondary fund GGS, and $2B anchor commitments for RISE Climate Transition Infrastructure Fund.
• Deployed $33 billion and realized $23 billion across the firm in 2024.
• Q4 highlights: first close for Norville RISE Climate Transition Infrastructure Fund with $2B anchor commitments, closed $1.3B, and strong deployment in various strategies.
• Hosted global partner meeting discussing path to doubling AUM to $500B over several years.

TPG reported GAAP net income attributable to TPG Inc. of $13 million and after-tax distributable earnings of $261 million or $0.62 per share of Class A common stock in Q4 2024. In 2024, the firm raised $30 billion in capital formation, a 54% increase from 2023 on a pro forma basis. Private equity and infrastructure fundraising totaled $14 billion in 2024. Credit strategies raised over $12 billion in 2024, exceeding the $10 billion target. Real estate deployed over $2 billion in Q4 and $6 billion for the year. Monetizations reached $23 billion in 2024, a 50% increase from 2023 on a pro forma basis.

• Expect to raise significantly more capital in 2025 vs 2024, with flagship campaigns and newer strategies contributing.
• Actively expanding client relationships and pursuing large cross-firm strategic partnerships.
• Growing presence in private wealth and launching new evergreen private equity vehicle for retail channel.
• Evaluating inorganic opportunities to increase scale, origination, and diversification.

• Market volatility could impact investment performance and fundraising.
• Challenges in fully integrating acquisitions and realizing expected synergies.
• Regulatory changes in operating markets could affect operations and returns.

Q: Ken Worthington with JPMorgan asked about TPG's priorities for doubling AUM and where insurance fits A: Jon Winkelried responded about five core growth drivers: growing core, organic innovation, inorganic additions, wealth penetration, and insurance Q: Alex Blostein with Goldman Sachs asked about balance sheet light approach for insurance and partnerships A: Jon Winkelried discussed balance sheet considerations and ongoing partnerships with traditional firms Q: Michael Cyprys with Morgan Stanley asked about doubling AUM timeline and organic vs inorganic growth A: Jon Winkelried talked about time frame and drivers including fund growth, organic innovation, and wealth channel Q: Glenn Schorr with Evercore asked about FRE growth and capital raising A: Jon Winkelried and Jack Weingart discussed FRE growth dynamics and stair-step function of strategy growth Q: Brian Bedell with Deutsche Bank asked about impact of Intersect Power partnership A: James Coulter and Jack Weingart responded about the partnership's financial impact and co-invest vehicles Q: Arnaud Gidloth with BNP asked about Intersect economics and AUM/FAUM timing A: James Coulter and Jack Weingart responded about fund-level investment and co-invest vehicles Q: Dan Fannon with Jefferies asked about credit performance and integration growth outlook A: Jon Winkelried discussed ongoing integration and expansion of credit capabilities