TPG - Earnings call transcript Q1 2022

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Operator

Good morning, and welcome to the TPG's First Quarter 2022 Earnings Conference Call. Currently all callers have been placed in a listen-only mode and following management's prepared remarks, the call will be opened up for your questions. [Operator Instructions] Please be advised that today's call is being recorded. Please go to TPG's IR website to obtain earnings materials. I will now turn the call over to Gary Stein, Head of Investor Relations at TPG. you. Thank

begin. may You

Gary Stein

Welcome first operator. call. XXXX to Thanks, quarter our earnings Great.

me Winkelried, Financial Weingart, Jon morning Officer. Executive Joining are Jack Chief this Officer; and Chief

In morning's and will Coulter; available for Co-Founder, Sisitsky, addition, portion also be Chairman of Q&A President, this are us our Todd Jim with here the our Executive call. and and

cause presenting that release from future statements earnings Within call and factors update to statements that forward-looking We measures, GAAP helpful was completed and pro are the measures, to the Before to prior I'd historic to like these forma we law. immediately include financial believe refer for IPO. for we filings and Please remind investors measures GAAP to reorganization earnings forma not statements. pro details SEC actual may the reflecting and non-GAAP TPG's events through and forward-looking could results to on it's revise refer and differ during that non-GAAP TPG guarantee release analysts and except any begin, TPG's obligation by our the release, discussion for performance. TPG's earnings information. to materially results you as required structure, please go-forward lens undertakes that this no our understand XXXX or or of do

to offer fund. of to business. nothing performance nearest earnings in on that solicitation call Officer. the like on this purchase management Jon Executive sell the offer believes that in of TPG's turn Chief call non-GAAP are reconciled be I'd on to call assessing is We now an a release, measures or also TPG in the over the non-GAAP interest Winkelried, available figures Please will an constitutes financial any certain an discussing measures website. note the GAAP relevant to which to Company's this These are

Jon Winkelried

and morning, everyone. good Gary, Thanks,

I'll to the at earnings weeks spoke keep prepared Since hosted brief. end in about today's we turn financial a our January, to take the discuss and and going touch call more our your our first on with then highlights we IPO I'll over then business. questions. relatively you Jack we're we'll on of remarks our Following across to detail six public just recent results, our provide performance March. call ago, few

five assets XX, activity. March by which and of increased more a of performance As quarter had realization offset raised versus during continued fund, the driven billion significant combination the We a last our our XX investment XX% fourth billion opportunistic $XXX under was estate over we the X% months. total raised partially during $XX quarter and last the than by year-over-year. first This of $X strong billion invested billion platforms, we quarter, pace and for growth of demand XX prior by across $XX in the real billion months. We primarily driven fundraising management, $X strong and

XX% our billion earnings earnings. after-tax exit first is in quarter significant of will dividend. XX% dividend of share per distributable for valuations. we approximately XX XX $X nearly X%. and for Adjusting events, connection announced have for signed In X/X these morning, value the on TPG's aggregate, our A common first been release creation this some of generated value months. of value agreements of attributable cash more Jack detail would quarterly provide quarter our stock, the realization the realizations our Class QX billion quarter. during to with representing the investments In had the over $XX X% also and at quarter We creation the Approximately last the the creation in of last months $X.XX

number a that landscape a spoke rates when more driven As rising remains environment significant of interest U.S. geopolitical factors, four-year rate economic first a and the reached macro time decade. ago, conflict a mortgage ongoing that in in rate to and six a up U.S. than tragic has X% has weeks high inflation we Ukraine, global the including for due you with discussed highly we the uncertain

operating volatile across adhere continuing our organization investment-led environment, an in platforms. As are and strategy this rigorous our we to approach to all

of have monetizing shaped managing our and been capital anticipating onset been partners. investments limited the significant We markets, has and We've we've our and expectation have been portfolios. proactively funds of this choppier our returned how investing amounts to

XX the capital market than active and opportunities us investment invested. deployment, time current last capital is of returned competitive reset a we more growing as such in The when is a range there presenting very months, of Over SPACs. we with opportunities materially period have, capital of actionable during fewer our at are a and valuations, of more sources pipeline IPOs interesting fact, at

backdrop few a but the in had to We platform, committed our like XX. AUM mind, billion of quarter. I'd of end as some total are largest invest, have fortunate billion spend to the capital starting you minutes through substantial highlights first uncalled across which of March Capital, amount a $XX business, available this our $XX of With walking with to at

Our funds had the Capital quarter. accretion value during XX% of

value for Adjusting creation quarter As market sectors X%, portfolio despite earnings approximately environment. our this creation several and distinct volatile minute I the Capital for our to value in a value revenue underscores was those mentioned continue style ongoing creation that indices. and first significant ago, exits, our investing exits. broader companies macro portfolio The reflects on grow outperforming focus our and signed the

stems provider in global position of This solutions as during outsourced as of coverage one technology the of dating experienced health thematic manufacturing in XXX investment largest artificial an and scale. to During our Confluent products value-added to our development original medical quarter, device from on investor and Fractal quarter, partner investment equity capabilities our on as our our and Analytics, private Asia thematic the to Medical TPG leading announced investment focus Also outsourced the a most our intelligence a investors first Fortune Technologies, nearly billion leverages medical services companies. capital India's back and active Quintiles. such companies. This invested digital in multi-decade care investment Capital on a builds funds $X contract leading companies

For billion, the our total funds capital $X pet Greencross, company. the $XX take-private the both quarter, including Holdings, McAfee largest biotech-focused billion research and of and approximately organization; care Asia's Health of generated realizations Australia's largest of Novatek recapitalizations contract

AUM Growth to growth, this continue to aggregate for digital and through perform in Growth we at funds have flexible tech quarter turn platform $XX well, capital XX of discussing XX% our months. first Let value and end growing at morning, our me creation of This the media billion platform funds. businesses with total quarter. for Despite adjacencies had the last of scale which our the broader X.X% market weakness first the been the provides

and sectors We driver where have health and ad cybersecurity, themes focus is rather mindset of built secular care on performance. our cycle like tech than portfolio late a with the a Growth and growth cyclical

In with brings we're addition, financial companies profiles deploying, are in scale curves the help resources we to we their substantial later-stage investing generally that growth and bear. TPG can bend the capital of given where have strong

in Growth platform Looking the during at invested quarter. capital the

transaction, sources accelerating with on through projectXX capital to our pace million and we to that subscribers. great is investment like mobile capital than how reset have competitive Acorns raise a opportunities I'd position and in have Rise's continued able last to but in with investment invest X.X [TTET] investment and fees Acorns, example us a terms recent planning highlight also for platform more mentioned to SPAC been a savings express This call, Company the of as addition investment the In that experiencing of sidelined. market is volatility, market and investments the significant for attractive of we capital on leading growth. the been were

monetization several Asia During to the the the also in a investment leading first in of of Healthcare partial fund industry, including a for through Toast, Holdings. investors we SaaS returned our monetization provider Growth stake quarter, restaurant and our transactions, our full capital

like includes billion companies to Rise TPG $X our climate across action announced which of billion discuss has March close Moving of briefly Fund, platform, than already inaugural to $XX of total Climate had committed Rise the its Climate capital our XX. and cap on, hard its Impact as catalyze $X.X This AUM scale I'd more at of final sector. which recently billion.

and Our Impact first for funds the had quarter XX aggregate XX% last months. the value creation X% of in

During invested vehicle Climate's the created Impact Rise $X.X India's tranche quarter, funds our billion, the of newly including investment Motors. subsidiary Tata of a first electrical in

Rise Funds and the projects investment and utility million the a world. number Climate announced solutions our solar addition, tracker provider global around $XXX solar scale of for Rise one in software In Nextracker,

quarter, prior billion $X.X TPG's of Estate capital Turning from increased primarily value for first to an quarter current fund Industrial the which Opportunistic raising more in than a follow-on a Opportunistic to States. facilities X% total established stands last our made quarter with raised. now Real billion build billion in and delivered a of funds. quarter, Estate. which opportunistic XX% across portfolio $X.X our at creation logistics Core XX% platform the first platform This throughout $XX the fund, we Properties, multi-tenant of due our of XX and for Real the United AUM, months the additional for In the XXXX, first investment Dogwood Plus platform to ended

multifamily [Dunewood a that Residential is a Core In growth is Plus of investment addition, with differentiated and platform building an in assets constraints. markets our supply through portfolio secular funds attractive dynamics completed Properties], new which

platform, Market focused quarter Solutions, investing of Private business AUM our touch GP funds strategies, Finally, billion on our long, long-only like secondaries $XX Solutions several and had end public across at short I'd the solutions. our which to which the is including first total of on and Market

work including January. and deals the hard the the debt strategy, Taking exceptional by IPO key best ways. highlight like the seven addition, investment strength and Markets up people, strategic ever our market. to of unitranche completed enabled talented a covenant-light particularly believe competitive years, was and and first in to detail talent direct the our it. us, with focus itself competitive recruiting step -- Asia. constantly of leading increasingly first one and Group important to job done in lender led our our culture, a Greencross, This culture our the is of Capital an continues for we The in of we largest is In of several deal back, fee-generating of of of in talent result in quarter, during recapitalization the many firm's reinforce be element in deep which an discussed manifests over area which to diverse group we Australia a transactions, you Retaining topic I'd this

promote this global and promoted as a Among For at of program in gender, class, where team or end diverse identify TPG I ethnicity. instance, XXX XX% were promotions March, race across firm members hosted of the several leaders the XXXX.

focus area creating to paths focus on will and never with opportunity team. and be been entire Our career of has for an our continue more enhanced important it mobility upward

Our of effort a seeks develop our employee the of XXXX, platforms meaningful management generate important is despite a a to we're Ownership as momentum to which quarter Overall, Todd goes example drive our engage we a continuously financial the very peers, how joined across team portfolio, founding have highlights Ownership Maryanne Works our are that our the people TPG. Two Works: and of more Works, of four both for operational first to commitment development walls broad members senior CEO with programs. challenging Last the to believe Analytics. We our our engaged results Sisitsky and across and of one number at month, of accelerate and our it we partner of continuing Ownership firm. can ownership of Y pleased environment. our along five beyond is Board Hancock, President, TPG operating engagement of nonprofit and the we with beyond our talent to important express

with over remain We on form focused like to to call capital also the broad-based fundraising now risk our intently Jack. turn campaigns. I'd

Jack Weingart

first Jon more significant $XX morning, last of And from our $XX to the creation of as same billion 'XX raising, the billion $XX fund more to to results this $XX I'm mentioned, the by period. the highlight XXXX. our good regarding offset billion some fund of briefly years At fee-earning drivers of billion billion to months percent XX% performance. of value of our in of investments from everyone. XX and were at during longer. grew, fee-earning. of first AUM our perpetual [indiscernible] returned primarily our realizations quarter during Fee-earning from the increased include points and quarter underlying [indiscernible]. Jon, the as and through walk than AUM billion of March of from XX 'XX, [indiscernible] going XX, end The capital driven partially this of Thanks, that AUM financial either and increase funds $XX approximately investors was March 'XX was increase $XX XX% [indiscernible] of end approximately the in or long-dated first XX% quarter or XX% our

XX% addition, of AUM fee-earning end our more quarter. [indiscernible] the In of years first a the as had or of

of XX, fee-earning billion growth, AUM March approximately more not fees, $X our investment. to for capital we had of $X yet future available than As including of nearly funds earning subject $XX billion billion and had

reported revenues guidance quarter fee-related guidance million. for our Turning $XXX and on the to the key regarding we for our We FRE, of metrics. call, non-GAAP and expectations or fee-related earnings, recorded QX quarter our the income reported that of $XXX first all at our quarter first for GAAP statement. came above net of We provided I reported income results On previous $XX million. first for or in million, results

quarter Our [indiscernible] XX% the continue FRE our on quarter in generate for basis. XX% to first and was pro fees grew the XXXX margin as pro and growth first management forma in the scale -- [indiscernible] year a we margins [indiscernible] and versus forma business ago of

forma performance [indiscernible] in distributable allocations the by year-ago than versus pro $XXX realized which million. driven growth after-tax by Our of FRE tripled more quarter, and

to Group. sheet Operating non-GAAP for balance TPG Turning the

million well and light As million of $XXX with our which sheet long-term are of of we March debt. cash of model, $XXX is capitalized XX, reflective balance business

$XX AUM, the was performance 'XX. net like or for Operating billion, note of $XXX the to Group, also total balance, end had eligible allocation XX% increase to of $XXX XX% an at XX% our of accrued XX, We represents performance or the as performance allocations; of billion that which allocation TPG generating I'd the million, $XXX and from million was March allocations.

on overall expected remain with and clients momentum my usual comments industry-wide campaigns crowded On market the segments last than market the longer likely remains true. the call Against sooner some regarding temporarily Fundraising is that to strong. fundraising capital, their raising fundraising side, The will market certain are conditions backdrop, managers complete. take the of over-allocated. than our

of raised As more $X said, that billion during first the Jon Xx the raised quarter, amount during we first we than quarter over the XXXX.

at our cap final Impact we platform, close hard and of had to of Impact $X.X close broad-based we midyear. month the On a first expect billion, last on Rise Fund next Climate the our fund around

Our hold at next we $X.X soon fund is cap Real hard Estate and opportunistic close final the will our of oversubscribed, billion.

On platform, for Asia. strong TPG core demand see products: Partners TPG you Capital and know, continue Healthcare Capital, three as to we the our

shortly TPG closings We Capital midyear, TPG expect to close Partners for complete and by followed first Healthcare around Asia's first thereafter. accelerated

quarter We will on these have call. more to campaigns second during report the

some additional Before I first wrap a like company. remarks, to as public up I'd provide dividend our cash quarterly detail my prepared regarding

of what effective quarterly higher out we to costs subject recognized due of to payable morning on is XX. intention current A basis, to quarter non-GAAP this that $X.XX I June of holders of indicated attributable deferred announced earnings stock, share would be tax to slightly have the a shareholders we record QX our of Consistent that than Class the purposes. will certain approach, in the note necessary was common business rate Inc. pay to at distributable the were with May on tax IPO-related for approvals. this previously cash as TPG X during reminder, a on close dividend a after-tax per As which to least XX%

business. shares. first the XXX at unvested RSUs, fully of we feel million the we first to back, diluted growth end the and about including step a driving results share quarter, good our make very count quarter approximately was our Taking Finally, our continue progress across

Our profits investment of significant Despite the capital deployment, a have turbulent market solid of we and our amounts portfolio delivered pace value returning strong investors. capital to backdrop, maintained also while back creation.

strong over of back questions. operator a call our fundraising and we to I'd take In in addition, the like campaigns. the to growth now FRE to we as can With AUM so expect result your turn continue that, broad-based

Operator

first [Operator Siegenthaler Bank take of We'll from our question Craig from Instructions] America.

Craig Siegenthaler

Craig Siegenthaler.

which also, also timing dealing lower you fundraising, of It verticals said, So do a comments were be may coming year. calendar just you what and does but you with this heard the the the effect markets. maybe denominator And do raises? to on have busy equity public plus with certain I then looks most How starting the your over-allocated? private most crowded, over-allocated, view this of verticals as the impact like you're back

Jack Weingart

you When in terms had the based the of market about. sell-off impacted third it over-allocated say most the back the U.S. that of markets, LP with other about the causing is you coming of consistent the think faster their we market the in denominator in to kind industry, been I public of with Yes. market have segments Thanks, piece than The alternatives effect. the marketplace. part lot the most pension combined verticals, the of that And in in portfolio, had Craig. see outperformance, would on more the a they discussions traditional talked metrics GPs planned. fund is And

a ask for anyone I capital returned camp. just a the a back we of more and established is what down fortunate seeing to we to really fundraising for is -- part in GPs in market most of that is strongest And also the the we in that to the segment their benefiting be are market. benefit, the relationships. lot choices credit with of opposed choices as are clearly are while. having particular see And a first drawing LPs So those to it's and And group. to time who's that happening coming make And largest, think capital

The market, there other market, Middle the of pockets are segments Asia, East, crowded continued international of of the segments the mostly Europe. in despite of lots the market, in of some growth even

So fund-raising of dynamics I -- think in I we of to base, of these shift the the see composition those would segments. we'll -- our expect campaigns, part, see in different reflecting different result the a LP

that's overall. of fund-raising the described how market I So kind

haven't Real our the we'll -- it had Opportunistic we for a are which next I yet timing, our went public, reiterate of we said, relates what closed. close the we and didn't we And to soon I close As on have expected when the to funds, -- Capital capital. pools articulated just largest Estate, final just like fund.

On large the raised Impact in closing That climate side, fund. a finished first we quarter. the

And to in so funds we we Fund continue Rise the the to capital have IPO, Impact and -- close and good momentum campaigns as see broad-based activating fund have we having end those next X. close funds, closer Capital talked and and the When we a about I mentioned. and continue a of the the large to expect the year, the Capital at first midyear, around Healthcare we in we

to closings have about QX more we'll in of call. size So the talk the those

Operator

from JPMorgan. comes Worthington question next Ken Our from

Ken Brooks

interest in and done this an what the possibly further rounding how interest environment, in side challenging you're infrastructure what at means market the what we're had actually out about for maybe getting Maybe TPG And public private something the Great. seeing via that its in versus seeing the really talk M&A. there. valuations point? product offering, creditor market

Jon Winkelried

Yes.

our about call. last talked on talked -- we road. obviously about when that We is think about Jon. we talked this were that on the I We

base. of of that -- we the We're just have market. reasonable to platform continuing a in I level the an terms to understand our continuing and been diversifying in grow we've product dialogue think in interest do

And as And been to example, a with what course said we clearly, the you, the be our this over how right, we've we're going think don't an we've of to be going what it perspective -- been and have of tell about I terms with -- firm before, very as the through fits from do, evaluation. first well through, as both in -- is of we're thoughtful in been in quarter, consistent to we've I value fit we've of space. front, on through a time just -- substantial we're I you and that I remain adjust. mean, where focused. like have buyers value that, expectations are they interested on sellers now specific expect, we There's are would anything But to for continue like revaluation terms probably to where nothing in we doing to we -- but our we're to own deal take it. be else, the report seeing some

Operator

Our Sachs. from Blostein next question from Alex comes Goldman

Alex Blostein

be the impacts in we growth of and of of portfolio to was sort valuation and the to kind there a seen, hoping And technology more could out a Well, valuation portfolio not that couple super the and markets interest any in proof, market the curious of how that here, last pointed are several today rates the couple quite thinking whether sounds months. well. fundamentals headwind obviously, minutes lower multiples the guys over framework to we're companies over like that's about extend cycle valuation portfolio I'm But volatile quarters that in I framework. higher of you and doing just need spend in on late we've you the the be next delays you about through the of seeing have flows positioning or it the

Jon Winkelried

Alex. Yes. Thanks,

who's respond Todd on think Sisitsky, to that. I going office, to actually our is London

Todd Sisitsky

hear I you Thank hope you can for well. the question. Sure. Yes, me

in bit good little I our find feel in of lot that you a very investing us. quite and approach. strategy suggested, current tell that. of as into we we positives questions about about transformation like would sounds for think are you tell -- out It I your how built there. in would about question's in this general, And of feel the -- I positive point like few market. market brand portfolio go-forward and feel more companies, there's there the is the sort actually you our we that the growth a held a

time. So a this pretty is exciting

global doing this, our it this of that And we've environment. And following public over followed have market investments historically, environment in the big was reset. seen with cap and context that up it that have were now macro IMS, we've best years really happens after the in was $XX-plus been IQVIA, financial investment we that, was the XX transaction market which done a the strategy that really but only able first and a Board of worked. That seven come the in years company. management vintages followed challenging company billion before crisis XXXX some for We this to is the a

So the question of about I growth. a But whether way of we broader are able strategy to would is to find you use interesting we macro about this distinguish what in intentionally the think we us we concerns focus and if I to invest, even think growth that segments that very the construct themes tell opportunities every following be environment, our between year; just the And actually we for we it, when understand investors, of and to want interesting, it's as on to the interesting follow what sale. deliberately actionable. think and actionable, as study not think we and we what that we happens is maybe what's

about conviction is really when as in and The the studied work exciting the do, want on and that develop we capitalize this years. moment. cycle often firm. the the they we on done moment teams that and work we at a relationships actionable that we've the They with to over teams aggressively all And about. become and we've management what's are areas learned to this find we've excited So back, we

a the actually it that we be interesting moment strategy find given very we for market So have. us

Jim Coulter

Alex, Coulter. Yes. Jim it's

often a you that experience a take like would time, they'd And to year about-face for company, -- it investor and at which finance would the to lines that the area financed in head. sort second a be needs coming SPAC us capital X. was of We for in climate. our lot been like market to has saying a the would last of of price financed plan go given to environment, They at be This is X. much back is complete a XX%. me and We through company Let pretty of this I'm we're a away that X say financed in momentum where in quickly. its an scratched would be at saying into X. spending The that." front We year essentially half below come "No, and come to which they plus in say, that

So competitors were market-based you're out in was what a the resetting or taking is as in either valuation the growth series market of their marketplace. than happening that techniques momentum-based

we're as there's fundamental what So buyers net a be seeing to reset. here year, sellers very opportunity this an last disciplined And net is year.

Operator

Robert from KBW. comes question from next Our Lee

Robert Lee

QX, us to in signed Jack, maybe a about I that question update guess, speak? so indicating signed Can for at kind exits. QX, chunk you what on I some already contracts from, you. given value creation guess, of we that and the should coming just a bucket, the of you potential the on, be thinking for utilization

Jack Weingart

thanks the Rob, question. for Sure.

allocations. mentioned came first locked think that, on from through $XXX monetizations saw Inc. I from of $XXX the transactions occurred -- performance call, performance of the during last we So that fact $XXX TPG already call million, allocations about that rest quarter. had on to talked the Approximately of million half and came of it, quarter you the the the contracts. additional million of in the that that based call signed over that What $XXX come on million about the I were last

that million have potential sell, contractually may happen in agreed we what's as just would coming sales other think close forward So, And But the in, already in from QX that not Wind may that year. quarters to if the in from piece either we platforms first the think PRE remainder we've continue on the and already at late look those have there's as we look they that quarter forward, or ground. no about to deal using we expect again, companies monetization the year. we'll be The or is later I number don't call, additional biggest the we happen. the expect I that the ongoing of mentioned our we to we to question as that but year, talk the QX. forecast in And this of I which across framework River. -- about PRE last additional call, to least of during future That, add $XXX activity

Operator

Our comes Michael next from Morgan Cyprys question Stanley. from

Michael Cyprys

the hoping with Rise Climate. we could a Impact was spend moment on and I Rise platform

think other would Just be you about for could that here. dedicated it further there that curious from opportunities how building fund some out seem strategies.

How terms you And build-out. is of newer that So ability of market opportunity stands more and set? extent about guys the raise just curious to that thinking sort alluded to Impact these to that are backdrop challenging timing strategies? the the in you where what

Jim Coulter

think that Michael, about, up building while substantial in we've platform number for obviously, directions. a there talked to we've the also of Rise been And future over last is doing expansion. opportunity as expand we the year

So over in credit for interest within investing in time, markets. Impact-related the Impact-related investing markets, base our investing client we find Impact-related infrastructure, public in

those a a but the think to in if that, trend that anything, are accelerate. is of -- future, build continue All and a I involve this will

we're I'd in we've interesting. of to the recently the continue. out Coming gave, points and on flattered within of the seen. some of -- question say that the investment -- is, in it's the We activity sectors that you activity ways, second One Rise some focused

forward -- on almost areas green accelerating higher oil we're ed, concerns you devices. like online prices build about into and think and suggests acceleration X:X security the energy about In climate If build climate transition, framework. a a

seeing climate, Internet to You've access families. access, across an we're so the to of seen with care think area in rise services, the recent come. telehealth, acceleration actually investment I free there's opportunity underprivileged financial an substantial where health This opportunities. care, across Health the announcements on is

know, percent large in and So a you platform, as years. expand we the the that for our would to in see have, assets future growing opportunity to and Impact of continue we

Operator

Fin question next O'Shea Fargo. Wells from Our comes from

Fin O'Shea

guys the market. opportunity on you preferred equity Last quarter, in the growth in touched

pipeline as could a also, if arena? in competitor you provide if expanding that an that seeing Just Private it's update increasingly is And expected. Credit on

Jon Winkelried

comment. Well, can maybe I just

market. the be I in reasonably think think, that pipeline, to the equity healthy I continues growth

look I of stage on, said generating of company, that to what focused the opportunity that I But comments, the public companies later-stage flow. earnings, that's on the tends in -- be cash reinforcing not just -- gone think you at the think despite it's that think are of unusual. that my markets I the when I revaluation generating type and companies and we're type reset in company that, the are

You the markets the public I to see how -- begin not are go. think market going reset. participants sure where And deep reset see on, go people a progression you is right, to

very was reset or Things -- very Jim breather things continues, deep. you companies in that across are are the take is when moment seeing looking the these do been when And or and about was you for been to so population to broad have -- high when funding a very slow I have And of what And bit. we as profitable, the for sponsors, see some reset at valuation little and this looking down transactions where figure the expectations growers, that matter, market. pricing, it of a look that that companies he And and some we're is. which that settle -- their look the entire not has. of then -- opportunities relating the we're think see try that before, fast some out next very talking of to move you at that

there as in is I outcome of to terms different ability have our have to bear comments, would probably Because been have, I seen mentioned And it they frankly, the highly of attractive that we that an for to the plate form of example types you So down to capital. in we have relates And opportunity. sourced like to that get set, capital. would think, respects, also, our my type of still capital as markets, I that company a that to where resources growth more think prior of bring the and other might provide the for interesting think in the is Acorns, back. companies I particularly in middle opportunity right continues of lot that

whether as of said -- far that's Private terms providing think as of form in you far competition. Credit As -- private Credit, as some or Private asked not I you

couple and And way which across the built capital, capital opportunities platforms We to Credit tech a we of was strategies what felt do lot of trying -- same adjacencies up to spectrum it where will capital also we operational growth of I our we market space think of they're that think and important and to. capital had business our growth did, into the building and solutions there. investment would partners evolving institutionalized flexible opportunities, kind growth of capital a why cross types capabilities One equity the that. pool to is And into I say be necessarily that have note have essentially that's that companies have the grew things flexible the are looking important They that as kind we differently. given don't sort into that capital resources can can we platform we're I that credit of solutions equity of a of are But a the Private over is that upon just depending in and range we of set provider are capital. capital, pool the in have very companies are there of for. I that the of kind that maybe hybrid are forms reason our like we platform.

secondly, investing. area edges, of the very think first I'd adjacency well of the in the yield-based the is all, we're credit Credit the say. been the areas that business into crossover is pretty points And some incursion -- limited. funds this tech by I type yield get clearly, like largest active opportunity. and retreat at offset current as more opportunities have than products, that within growth I know, would out you of So been this Private yield to have blending ability add, you're the for Two we out by feel seeing positioned But of any

Operator

Deutsche from Brian from comes Bedell question Next Bank.

Brian Bedell

Great. Two-parter, to if or side pension I I the may. fundraising Maybe first one for it either should say Jon slowing or with back plans down. Jack, -- distribution of just

your I funds. capital of pension I'm almost is -- wrong, me half from correct if almost but if think

the can would I well might retail near-term of just growing So side be that, for of other as then that question of slack? terms international think expectations side of the in picking Maybe talk up you be you just mentioned some second if your on Jim. about And that channel.

up fund. on -- Just that the Rise on following Climate

Climate terms for for know that see I where conversations the I strong know investing in it's market you extent carbon I before -- or Rise might had think Do committed got early, you up of in decarbonization, say. $X picking demand back the due than to the but you sooner you've rather -- carbon billion already later? have a of -- I should be

Jack Weingart

it's the question -- the point, on mention question. for -- the net I for fund-raising Thanks Brian, Jack. worth. high did forget two-part The to

You're about that. right

You reiterated the well to. that dynamics I pretty referred

I fundraising, won't So said worth did to the same building reiterate pools that the wave capital the us. -- I shifting We of the on with of it capital. would do an worth We say is high-net this are that of important towards is more a place the and to we more side, do expect our the last we expect I of of wave growth team address fundraising, last area channel which high point about in that for opportunity. out funds quarter, international thing we of net

majority of of toward significant also true to products, penetration new our more applicable our even think the to are move I we credit and that other that remains continue products areas And of it of like end only client Now an market. the as that highest vast see expansion we'll yield-oriented base.

Jim Coulter

up, think both what our little marketplace. enough Will scale Climate secondly, questions at two-sided the as ended there $X and persistency scale a out as has billion substantial there words, by this of see were year over asked Counsel be and And we and a the demand investors be we're launched Rise sides A And been answered. describe capital into side, would for of the General investment on been that we I the the I'll question, opportunity say, type demand our very On of it, there surprised I where there focused have product of marketplace. year a product? seeing we ago, demand? in pleasantly on In would other growing.

in you opportunity scale calls the out noted, deployment opportunity that, when we're opportunity of strategy I and forward of So to return And pace be. brings seeing the as some thinking terms think, an here. good market our for might both

Operator

UBS. Adam from from comes Beatty question next our And

Adam Beatty

recently I of in that business wanted the There are some talked challenges idiosyncratic challenges Asia. there to global to about about. some in addition the ask we've

I how want company resilient a portfolio So expect Asia And opportunity. in also that's I you just to thoughts there, would more on operations terms fundraising deployment is markets, be get lastly, of then mentioned your source opportunity. that of going, international included, and might

So if well, as that be you could talk great. that would about

Jon Winkelried

Sure.

again in think a 'XX. background, long the first there our of just very Asian everyone's We time. in for we've all, been markets business for started I

And at this you talked on may of have our even And it think number the We're a look importantly, back. in markets it the goes way about if we -- So there. call. road, focus on last and on franchise Asia. we in our Asia is I touched and

of lighter and was of all -- was other education the as one happening terms more think particularly the there that been severe I expect distribution our China, much that in activity of have last number a of reasons. example part look happen. the sort is in government and in and to things An sector read China witnessed. investors about that of its of example, to a where three number impact watched four didn't place Things different market becoming we've intervention invest many last better for a probably terms China and at exposure have for years, to were our If you of recognizing the challenging the investing we to

performance So the then, Australia our look in for now I'd well. know opportunities different Southeast there number and Zealand really highlight in I interesting really some focused obviously, our it's of some strong. in are at opportunities New interesting we're some as probably South Korea. And good seen opportunities. been where business. on recently, some a India. you you opportunities. highlight you more Asia, Korea across if really seeing We've franchise, think been I opportunities would industries We're Asia seen And excellent very in we market. focused our We've have in on

about of -- it's feel in where Asia high certain that possible growth. the think pretty there certain we parts will exceed growth good the I to as there other be will degree of sectors, -- Maybe a world. in a and expect growth So we place markets

Asia into not we're we're So our very and which different say I what would is there. than markets focused elsewhere in continuing certain capital we world, do thematic-oriented is -- on the we're investors. allocate approach it, we to

region. a that say of very capital to to going to where certain most I secular It's exactly industries over terms like the long certain be allocating we're is of growth big there's we to in of So to that impact think themes the term. the in hard China have going and sort feel continue impact

region I think it's or the thereabouts. half of the GDP

the opportunities we're China there. about that generating said of feeling so changes, results region we're pretty we're And that, seeing so probably kind as But will the good and still that having think I change.

So that, but come our that's respect -- outlook. to... With on -- we're more to

Todd Sisitsky

Hey, Jon?

Jon Winkelried

Yes. Sorry. Yes.

Todd Sisitsky

sure our a well Asia, the course, war at in, add, portfolio, Certainly piece and of which I inflation. true the happening. times We, And like on a I'd overall. understand of the of just And think -- is was which spend seeing I we portfolio, like for of because of quite statement in time to the question. held Asia. effects portfolio pressure broader and that making lot the what's this, last talent the has think,

Jon's typically themes, really U.S. and secular differentiation companies the pursue across think those with on and of value-added end on and secular -- apply and Asia the way, higher growth. We have commodity on explanation in just of is competitive outputs growth by I exposure. globally, understand investing try the themes Europe. focused and of to that up We them we less one

on margins, pass the healthy generally with relationships customers, costs. gross stronger to ability So

to that in ahead So important I when inflation. is themes, for the things of our you're us big exposure sure the most about the of think in and thinking of we're impact making one neighborhood terms right

so portfolio targeting been out. we've and to be rather cyclical than far, So that secular growth, seems bearing the

Jon Winkelried

investment. -- the that called Campus went worth India a company out the our IPO growth relative company multiple a but public is very our follow hours, probably And Campus to noting one you XX, attractive market a called was XX closely, of Activewear It's at in Activewear. Indian very past investments of in in fund don't the successfully India

Operator

Our comes question last from Hone Rufus BMO. from

Rufus Hone

just your raised looking to that permanent of beyond I generally. growth know was more a you hoping assets talk Estate that's the the And build real you capital through and that, I Clearly, you fund, area real big but Real And seeing moment could spend on how outsized environment. you an opportunistic a are out in vehicles? platform? current can demand estate from LPs

Jon Winkelried

We're growth question. for feeling pretty and there. good for franchise the Real potential Yes, the about thanks our Estate

we've that I fund the we've to largest think mentioned, date opportunistic there. we as raised raised

-- seeing opportunities And that's us advantage a that's take powder market. the we're that dry plenty us of so giving of given in to

-- And ability replacement on. the interesting estate is this we've of you've real that can you've corporate real to the very what's dynamic going that got pressures corporate and on get place in Just to now, looking some that protection the Arguably, got in point is from real people and a of dynamics in have markets, because reset back estate. other going because seen given at seen market inflationary high at you cost rents. a estate go this that valuations right supply taking step estate inflation very, we've constraints, less real reset of where

as it So at are cap is look think actually the I always up is real And considered. real things broadly, holding in you relates markets a Financing still more pretty market very that well, well. up holding market all estate. rates the when financing estate question to

deals so on that. underlying about -- estate cost financing been movement But in Although, the feeling there pretty real clearly, we're there good side. with are -- associated has

As Plus first Core first of you Core know, fund. also, we just finished our our Strategy, completing Plus the raise

product a opportunities feel tools from very advantage we perspective the that that market, take good of time, we've launched about the a deploying we're set capital. So having in have interesting to we at already pretty that and added and

So that out that. builds

that potentially, you're where to over an we side side, -- in on capital the that and which think the commercial TRTX. Sachs, as our out the opportunities market, a positions in overall credit aware, publicly, estate to On even feel market with of we where new Bouchard, estate have real that what be new I the upon opportunities real CEO time, I think, capital at build We that -- business. a on environment is the But our who look Goldman finance we which business, for debt I capital see space, reset us changes result real just joined see. there. trades to up within have business real We're to environment upward moving to years credit are which like the that, based for well XX joined rate expect what in REIT platform, build a ran and mortgage improving, we'll excited we'll for going in structural estate pools just think Doug is an rates, us is on he we look us the permanent Doug hired estate And of continuing commercial board. after recently actually

us obviously, gives estate build sourcing as forms. Plus, has So money. various the expand call been penetrating successful the raise our about we we particular, product we we're can in think way, excited channels that retail pretty Over through think, pools other TAC ability think an about in real Plus, The to as using in Core example, to also capital which there. of capital market, and time, by what set, potentially we I

opportunities is And so so of of TAC as Core Plus over set the structured did fund, can things we we capital, when we actually continue of one period to pool that we Plus our we that it invest percent of our pool that a invested a up certain structure. get capital With the time, we that flip fund with after that be after that and bit, a that we'll evaluating of into investment structure in season percentage an to -- do vehicle. open-ended

us. momentum feel estate. about I a real like opportunities lot great our for are feel there So of I in

Operator

now portion conclude call. does any back Stein I or of like today's Gary Q&A to the remarks. would closing call turn over for to the This additional

Gary Stein

for questions. to any or Great. directly look next us Please have forward additional with up everyone, you you if quarter. follow with feel Thanks, joining to We operator. free me Thanks, today. Ebony, again speaking

Jon Winkelried

Thanks, everyone.

Jack Weingart

Thank you.

Operator

Webcast. This TPG's concludes XXXX today's First Call Earnings Quarter and

a have You time, this your wonderful at may day. disconnect line and

TPG (TPG) 14 May 222022 Q1 Earnings call transcript