TPG - Earnings call transcript Q2 2022

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Operator

Good morning, and welcome to the TPG's Second Quarter 2022 Earnings Conference Call. [Operator instructions] Please be advised that today's call is being recorded. Please go to TPG's IR website to obtain the earnings materials. I will now turn the call over to Gary Stein, Head of Investor Relations at TPG. Thank you, and sir, you may begin.

Gary Stein

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

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

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

or revise prior release forma statements discussing for Please an website. any on constitutes to or like guarantee company's non-GAAP during future offer it's the measures, fund. release, figures not call to that purchase interest I'd begin, financial that on forward-looking of refer in We'll we in GAAP to to the believes assessing actual earnings details we investors lens sell immediately required reconciled note as TPG's differ through do are on that on the TPG's remind performance release believe helpful please XXXX nearest for go-forward pro you results reflecting business. relevant TPG's filings no structure, this which TPG of historic the materially statements. this and the call a presenting forma and the or to GAAP results that that analysts performance. and by call could and understand measures refer cause release, is be reorganization for Before measures the from also non-GAAP to to non-GAAP obligation in an and offer except may of certain available are are our was non-GAAP pro earnings information. factors law. TPG management These the that financial update GAAP to an earnings solicitation this Please to earnings completed TPG's our include and and SEC any forward-looking Within to events We undertakes discussion measures, IPO. statements, measures, these nothing

our net of results at million We a quarter. per GAAP distributable briefly earnings million for common $XXX reported $X.XX $XX of after-tax Looking loss or second the and share.

of XX. declared which We September August holders dividend as Chief to will to record turn Executive that, of on Winkelried, call like of of I'd a over X Class also common With per to $X.XX be stock, the A paid Jon Officer. share

Jon Winkelried

Gary, morning, Thanks, good and everyone.

These We despite performance During remarks a and results results volatile the few portfolio, quarter, recent details delivered inherent of momentum our our financial I'll touch across Jack the turn more Q&A. our provide strength macroeconomic our highlights to our strong and financial geopolitical prepared on call global the the model. a on of I'll today, second then power earnings franchise, over of business. to and our in by for environment. results our followed growth highlight discuss the

quarter fee-related over ago $XX $XXX after-tax forma $XXX growth, our $X.XX Our of FRE, grew cash by ago of revenues tripled, share, or more earnings million, pro led compared million XX% a distributable year quarter same FRE second the XX%, which of $XXX revenues to more million quarter, while representing to quarterly earnings. dividend quarter. results, after-tax strong the year a announced to TPG's than we these Driven combined in million fee-related performance-related doubled to compared of than This of forma with the period. the pro earnings, distributable

months. healthcare record, billion by in raised record our track partners strong the newer aggregate, ongoing our first best-in-class which In quarter We're June under management, year-over-year. of closings a success is long-standing quarter, had campaigns rise. XX% increase received LP Capital quarter, total business, during significant several including of of last XX led across and fundraising strong partners. of team. of second our driven growth was and completed $XXX limited assets fundraising TPG's we ago billion the support activity $XX we our we $XX over and year an As TPG for XX, pleased to flagship This increase by the funds, a versus relationships, raised with excellent testament recently and we and The the from the XXX% have billion both is Partners,

In the of due despite addition macro uncertain environment than we X% And a investment respectively. of including aggregate, our decline fundraising global billion ongoing supply generated constraints. $X a chain second value creation portfolio The pressures, robust last billion, In interest months, last of rates, months, billion realizations $X for $XX XX quarter and inflationary XX war and to XX% delivered more billion, the confluence over factors, and the we $XX to quarter. highly invested and in respectively. remains value in rising the Ukraine, our

business As patient a volatility existing TPG and is of well. bounce and last have over decades long-term of cycles investors, successfully our despite the navigated we performing through number three backdrop, the

or time. aggressively realizations environment the over have the timing downturn, of last couldn't drivers X.Xx the we portfolio market have an We during for a of some we specific we for our the months. with of capital totaling current preparing amount challenging While predicted XX aggregate more invested monetized been onset the valuation attractive

largest environment. pool capital had this we firm's are investment believe dry we fee-generating our large of the favorable billion to representing this Importantly, of at in dry of we in powder, history, The increasingly June amount XX, XX% well-positioned With AUM. $XX powder. deploy

to our attractive core adapt investment quarters. sectors markets opportunities We in and sellers across reset valuations themes and coming to more as the stabilize expect see

valuations over XX the On last months. the realization front, frothy and into we to XX the recognized market leaned

investments has the the selectively in still quarters. expect monetize will to we Now coming environment changed, that

pace Our moderate. likely will

[ph] young a highlights I'd billion] [$XX our largest companies total of which business, walk strong of bias you companies, we now as through to continue patient value. of attractive to investing AUM relatively our have XX. some We remain and capital have like to portfolio and starting a long-term across these build platform had in with June

platform. companies, leading U.S. or in animal-health a European investments completed private Genrici, Milan, pharmaceuticals leading capital a Covetrus, and our Both take including of many and several healthcare on pending based announced for our building technology active while specialty leverage and of one capabilities as company thematic the investors, studied the most we areas private in of distribution quarter, transactions diligence in equity Doc experienced the years. services have During these funds

example stake software connectivity quarter, of acquisition proprietary create a the we During the among This a opportunities platforms. we leading also of is testing through completed of additional an provider the Sauce the in great investment investment automated our Labs, solutions.

also the This increased quarter, TTAD, proprietary Labs strategic investment to fund, majority minority enhanced enabled our made led Our year, Sauce ownership XXXX its Labs capital invested And high-quality team in asset second in CAA Sauce which business. relationship acquisition its our shareholders which it first basis, to CAA's back a a position of helped position. tech on leadership investment. in within the last we its We of on in and this industries. entertainment XXXX. engage adjacencies sports a we single maintain and into first majority subsequently to ICM, moved In vehicle and a continuation

investment of partial funds in sale For our the company. approximately total Asia's recapitalization pet including billion, care realizations TPG of Greencross, and generated the Australia's largest capital $X quarter,

the at total billion $XX at of of platform growth our end the AUM quarter. second Next,

than we sectors security and on IT, growth rather healthcare with and digital and teams discussed, transformation, were like As drives built have focus secular performance. our infrastructure growth cyclical a portfolio

including We of completion an with global are financial strong and our often the provider active Platform through downside investing quarter, some governance in securities engagement profiles, are structured shareholder of Sodali, corporate of in well-established deployment form services. had investments leading and provide companies Growth that investment Mero our protection. a

consistent Holdings in position Agarwal’s including leadership the of compliance platform strategic further a Kaseya’s UK. services funded care to and waste Dr. its provider organic scale acquisition Take In largest for company acquisition acquisitions, the a provider Denali's X.X's Healthcare freelancers of with acquisition back-office on bolster leading drive focus our People growth, infrastructure to Private curve Datto transformational addition, we as and Brookson, Products portfolio leading services, eye management, hands-on software. approach India's of of and in several Healthcare, of bending to Imperial Asia Western

investors Holdings. and for During quarter, our through returned transactions, to partial the Healthcare growth FreedomPay platform monetizations several we Asia capital including

We Campus consumer also to of brand No. Evolent group its public and Campus implantable offering India's India. subscription sale second the athleisure pricing. IPO strategic the Health is IPO Activewear time completed the in an achieved provider and of Indian highest announced X for footwear of the sports and ever at

of as Moving on, had of total June billion AUM platform XX. the $XX Impact

medical stimulate substantial of is is existing Inflation landing, funds investment note largest and solutions, Power, vertical storage leading a the colleges attractive to renewable also in Technologies, developing and going to I'd deployed Solutions, carbon takeoff investment as North such energy Summit Carbon systems climate-related of rise tailwind our technologies a Reduction and and operates number Intersect developing create International Impact in portfolio and should quarter, Medical provide capital capable America. rise in some and also Malaysia. University, Beta companies transactions which our expected one climate Act electric which which of is the a aircraft opportunities forward. platform, During integrated the of capture which in

in which the warehouse in development ICON, and AUM was platform, a our billion remaining ended quarter, of had in the with estate U.K. the assets the real logistics realization quarter total sale of second Our venture substantial the which $XX and

continues to across investments deployment life add themes. the primarily the pace, student On platform at science new rental our real estate measured housing, housing, and side, a

component I on to offices We talent junior focused identify five our strategy, integral and mid-year an promotions more of Jack, to diverse. from We announced the members of call units, team and XX% which these retaining six business our nearly on as promotes over across investment is culture. best-in-class TPG's Before talent. touch of remain and turn recently recruiting like I'd

our We ever. this rigorous and as partner engaging process as annual also and held was year's promotions,

diverse. four and XX% our units. successful represented have partners And since business offices candidates Our of as five XXXX, partner new identified different globally

advancing inclusion we published available [ph]. our our to for the and social, firm our and the ESG and as our governance to environmental, TPG's I'd During as quarter, an accountable we global This our come that across commitment hall] keep continue report I [town to time event diversity, performance This is senior firm important firm. which communities. hosted ecosystem and updates also annual on ourselves annual strategy our wide together a to to underscores within website. and DEI firm equity and today, highlight like leaders on provide our most review, progress us and build broader is

delivered a Lastly, American board Gunther of leader I'm that who as a member distinguished is independent member as to new at a results former note added recently various has Express, director also Bright a boards. of Gunther an we pleased nonprofit exceptional our to board. executive McAfee,

experience and our board. call talent turn of over [ph] confident results. the through you [breadth] are leadership will Jack, We like to take that so his to our I'd now enhance can he financial

Jack Weingart

morning through Thanks the Jon, second points of walk and good quarter results some everyone. financial our highlight regarding briefly and performance. more our I'll significant

to the under This that $XX Fee Jon driven investments, increased billion $XXX was billion XXXX across by platforms, assets key to XXXX impact. in raising the June combined that mentioned, the XXXX. capital management nearly with returned the and $XX $XX earning billion $XX XX% our at $XX fund as total of year. $XX creation billion of by of Our same our notably from end were period. second in value of billion drivers fund this fee underlying of XX billion realizations quarter most XX, estate primarily The from during of to our $XXX the XX% at billion XX investments offset grew partially raised June billion increase from were of June capital increase at AUM Earning real of

longer. long-dated XX% in at quarter June XX a is for of the fee Capital At which Healthcare second our XX% of our increase, recent is funds compared fee $XX I'll was duration funds, our perpetual either approximately a Additionally, XXXX. AUM or years next our AUM AUM billion, of discuss of which the now of inception with and XX, proforma earning Partners or to momentarily, and XX% flagship activation earning

environment, year. addition, X%. of secular at earning partially the growth, or growth investing the result five of the the fundamental with more performance second of our subject strong, Despite more above EBITDA portfolio believe aggregate the second In $XX of with decline thematic fee sector-based environment macroeconomic fees is earning had earning XX% areas the $XX performance, not to well remain remaining market, a valuation than our billion, offset AUM leading at nearly years including multiple quarter. billion strong end of This and hands-on companies of yet approach at which in of a growth trends. fee we to the the duration of We end challenging in our and quarter, a revenue AUM declining

income Looking million. we for quarter GAAP net statement, at the a loss second of our recorded $XX

$XXX our non-GAAP quarter reported revenues of we FRE million, results, million. Regarding an the second of fee-related $XXX for

than growth of more doubled forma combination and ongoing management the the our driven FRE by and top line margin. of ago FRE Our expansion quarter, pro year versus a fees

XX% Our FRE for from quarter in this year. margin was second the up the quarter, first XX% of

the we As XX% we expect scale an and continued operating business have by FRE we as of target of drive with previously, FRE expansion indicated our margin year. leverage margin next end

realized the driven $XXX allocations were second quarter. by in million, was distributable the more $XX the and of which in million by after-tax quarter, forma Our than performance FRE Xx pro ago year growth earnings

to June million like July, well $XXX XX, as is to of sheet Operating cash sheet with non-GAAP $XXX business additional financial are of credit long-term Turning balance million our upsized reflective facility of million from provide $XXX the us of also balance model, and capitalized Group, we with flexibility. TPG undrawn debt. we In $XXX which million our to for

is and mentioned and at TPG On first held allocation our had or over by closes delivered additional Partners, expected fundraising, are Rise as we've from to our and a year-end. quarter, This flagship on to fundraising with Healthcare you Capital, million closing end months to previous post the Funds. was accrued also targeting release exceptional the last update Healthcare notable month we've the bit of XX calls. across billion realizations of saw where an billion, eligible billion. the June AUM balance, billion Group a our we record headwinds Operating of past In three despite billion June that represents another QX, XX like $X.X of bringing also mid-year, like billion of mark-to-market a $XX.X closed more and to and we $XX on earnings close balance with review, allocations. during all QX around we regulatory billion second valuations. the $XXX total TPG On total decreased We $XXX to first provide closed quarter our allocation we've that driven in to and end articulated end. target you of $X.X at of the cases, performance a the the by This transaction billion we $X rolling million of as a after non-cash a quarter-end. $X.X unrealized of I $XX is Wind $XXX month, a funds On TPG $XX closes Rise, during first $X quarter where which call an a related of million million XX, as River, XX% sale the $XXX capital we in A performance currently raised detail of the past under the the the allocation three and million. a $XX and for note Capital to we close combined net in billion, which regarding that of discussed now component XX% first performance first quarter raised the articulated and I'd for industry. I'd last decline on hold finished $XX.X Partners, target combined another on began billion. bringing in

this during call. first front, mentioned expect we our our more our to for Asia have in quarter. we'll the estate On funds call, our earnings last second $X.X estate on QX and we next close real as report fourth platform, raised complete to our on opportunistic the this quarter, TPG I billion real On

quarter complete commitments billion. with We expect approximately cap fund fundraising of have to $X.X capital at this a size for hard reached this fund, we and total our internal the

AUM funds on June We show of timing the which Finally, activated does up X, as Partners. Since flagship Partners we of new fee and finished mid-July. our had $X activated funds billion as is at X these X XX, of earning TPG so the the not numbers quarter-end. Healthcare a not activation Healthcare then, we have in TPG comment and of now investing why

remainder the across While extended for been may that of our be fundraising campaigns have discussed reasons industry. the well

our strong portfolios second business. updating start, to continued build the on in We proud we're we very the and with amidst our pleased We investment and of long-term quarters. strong closely progress future of you our portfolio our we backdrop, performing quarter believe working and we're step forward our across with Taking are companies back, results a are generating value. well our market are volatile momentum to look

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

Operator

[Operator instructions] America. come from Bank Craig Siegenthaler question of And with our first will

Your line is open.

Craig Siegenthaler

morning everyone. good Hey,

Jon Winkelried

morning, Craig. Good

Craig Siegenthaler

to full-year we earlier the the closure year, X it in given have [ph]? the year you used. half the in [ph] think half some targets fundraising prepared So, $X that funds? more you the limited billion I emerging of little of this about billion [nominator challenges, second be start significantly the for I these their may extension, but your of effect] it'll the partners, second this of almost given remaining $XX have word I of commentary just the wanted to difficult see was Jack's $X to think raise [Fund fundraising Do hit a quarter, $X nice they billion on and circle Healthcare some want given to especially he to X] and billion was on back think

Jack Weingart

now expect be think Yes. be think the happier complete the Craig. Thanks look quarters of reasons and the more the campaigns we And made of just few of as will I end the a remains the fundraising the that them you're end to. market Against I the talking question, proud I quarter Look, all the industry the out we've the I toward campaigns be been for extended do or usual. challenges completion the that of we I we and fact think, than that, about that progress for more for quarters case wouldn't fundraising across couldn't articulating. to as year. of by the referred those subsequent backdrop,

all think will year. extend them of next into I

Craig Siegenthaler

Thank segments I you, Within And Jack. the estate. your And negative dynamics business for estate follow-up, that just was offset up? flat And were ones it's the cash marked real see mark which wanted maybe my on curious I the in behind portfolio, down will marks. and real generally strong actually of also X.X% rates which cap are to growth. flow which to likely free trended, how most,

Jon Winkelried

It's Jon. Yes, Craig.

First exposed say the talked I exposed. places performing about is are real that this I we think good and feel of all, about we're portfolio, think And being well. places we've that would frankly, estate before, extremely actually I our where,

centers So, significantly. focus much retail, a office or housing, obviously real little, are which rental, down industrial, you been perspective exposure sciences, to residential we housing, estate. as has have very And if data from sector life know, our studio any, significant content more and student

our market this in at comps market, an even general operating a had is one pretty entire have we our do downdraft. marketing, a the at market REITs ride do actually as think business, and good. public tough terms things across in look is in though REITs And as we look we've been performance our exceptionally conservative look matter, the you of example, if of I that reasonably at

benchmarks EQR, industrial couple largest a you. These REITs. Just and ProLogis, for apartment down XX%. down XX%. of the are

account so. of So, obviously, that, taking I marking being when those marked conservative housing think areas is to think the are And relative into the in benchmarks which about, slightly you sort we're places where that stronger. where about in think I to think residential how of relation reasonably we're book, industrial, marking portfolio, we're rest doing we rental the our

to Obviously, overall. terms that than fairly So, it's a this with were they rates quarter I think to spread markets are rates straightforward how securitization our slightly up in our values The etcetera. are in came approach of real we cap with marks. down, are slower wider, estate through much bit loan

Operator

you. Thank

question next Goldman Blostein will Sachs. come with Our from Alex

is line Your open.

Alex Blostein

good Hey, morning as well. everybody

fundraising I hoping kind So, little a could just, expand of maybe a under bit. look the was we backdrop little and on hood the bit

One either How differ kind customer year another is remaining of color of of of get curious like tab? the the I'm you LP composition number the funds try or we of does from the this Jon, the mentioned, fundraising? terms confidence more how of of through guys? just predecessor of We bit expansion a you of things, first it the LPs, piece the that kind slug basin. in geographically the LPs to evolved as little by the to for get cycle fundraising in

Jack Weingart

Jack. it's others. much composition first on the given cycle. of market than that current would I seeing segments base Alex, Thanks, is comments of the LP in we're the with, market Sure. think, was definitely bit affecting call, LP say a a prior I dynamics it the in that more the base, fundraising shift an mix say some are my this all, of would consistent cycle more the of than last international, I

the capital was same U.S. we've closed or X, it is on Healthcare about If last X, you time, about domestic Healthcare date, capital for XX%. the compare Partners TPG funds all example, to the TPG XX% and X so in

sovereign have – exactly substantial from base new like process. more but definitely we're a fundraising it's toward I shift increasing. added capital this broad-based expanding bit the say mix capital I a a our would percentage LP we've of amount fundraising of during and representing pensions LPs, also We've and successfully international portion added campaign. our don't lower mix then wealth And shift a So, areas with

Operator

Ken Morgan. instructions] next from question with J.P. Our will [Operator Alright, come Worthington you. thank

open. Your now line is

Ken Worthington

the taking for Thanks questions.

some of the we think valuations as for the To deals market to of between if in else] XX and organic think private growth then what [all extent, at months. come market valuations have potential about seen? up? know, conditions more your your capability as of filling in come for during about a XX down TPG for spreads or how do well are challenging look talked you out I you have adjusting market time two fill that sort So, I as [ph] holding the what gaps, and the all, ask period, product see, they bunch. given pick So, And bid don't down we've ultimately, gaps public kind of desire months I that we is one a guess, the to over, the IPO and process,

and half call So, that's still for Is you, sort or but not I year the that it, of a immediately, over is a priority next, the so. something guess, question?

Jon Winkelried

with to [ph], to just to [bid-ask the spread] space] think portfolio you're just first I respect [odd the clarify [ph], of part referring the within our generally on question, right? your Ken, not company,

Ken Worthington

is Correct. for as or Yes. M&A. you buyer personal an – as you a buyer your a investor This

Jon Winkelried

as know, growth first to you think I has of growth. through said of organic have, well, that Well, our expand we're kind most bespoke business. situational. the the very because of look, think of bid-ask And generalize characterize in as [indiscernible] IPO to process, interested during naturally, spread, in would Yes. kind been developed I terms the I as we think of hard our historically of question personally, continuing we I sort the part It's or very,

to believe for will an growth us. important driver continue We that be

expect focused what characteristics And it or the to side, would the I the specific firm On there, targeted think very are? nonorganic we very adding, the strategy and we're what be I acquisition would on that it's of that think you people. potential

in really hard bid-ask have when I spread. to time the generalizing that comes a of terms it So,

So, paid they had the asset-class do, people where years. to number of tailwind a businesses, over particularly the want get a has for generally last the lot

would judgment our be we in be continue is, and to gaps that on of And on forward have leaning business. it situational in say a and sort do would our it would I that to to desire I So, one-off continues – specific. filling quite reiterate

in strategies impact space. that generally to various dialogue think think broadening able credit We our the number feel where a continue business something I hire, our is that a across accelerate that have particular, acquiring a with in in that like rise we some I capabilities categories might something of to there team different or an discipline. by be either something we aqua and particular in

in And so, to the continue be market. we'll engaged

Ken Worthington

Okay. That’s much. That’s from you me. Thank very great. it

Jon Winkelried

Thank you.

Operator

with question will next come Deutsche Brian Bedell Bank. from Our

Your line is open.

Brian Bedell

second mentioned Good that level. just if morning the close XXXX. the Thanks we're that the FRE very XX% now Maybe activating XX% that to end much. just at funds in of July, you folks. Obviously, whether getting could level at given stepped on maintain margin you at your the to here? talk XX% about can in nicely that half you think you're a up margin level you FRE these the where to view Jack,

Jack Weingart

fact – and meaningful, on business large all timing that that Yes. is closes I first how we have Thanks for mean, to continue expansion. the drive question, Brian. Look, good The our funds our think works. the models our of to accelerated FRE understand you I should flagship margin guys

You good additional can will base the the we've business that management a back to growth continued to bolus half how activation our things activated of in our of in coincides now those But new terms to relative funds never in people fee growth our of exactly the provide time and that of these capital. grow investment capital the year.

target year. us grow the the XX% maintain think half of FRE to Again, question, your that these or the fundraises. to answer margin complete back we I as allow will, toward in our

Operator

question next with Evercore. Our Glenn come from Schorr will

Glenn Schorr

Hi, thanks much. very

market half, comments of back moderate at. the in So, the on complete monetizations, we're loud I the looking and heard your makes maybe in clear case sense

on curious Just lead about I and and you time some talk weird but ink usually, a you deal. much how And have if could how when long? you lag that's question, always know

timing lot is cash with it's in before. don't guess percentage having pace same and I've than if So, dealing never pace a the maybe of powder the that market, question of same a but on as of dry monetization? any AUM because monetization. the I moderation so you're know might seen much I different make bid-ask deployment And on quicker deployment, in hand

So, question. the but two-parter, it's Thanks. same

Jon Winkelried

we'll Glenn, think seeing deployment. we're we'll is what Maybe what a monetizations. pace flip Todd do then I of ask start monetizations to little here with it's And bit to who's talk there, about Jon. it I'll and over

Todd Sisitsky

Yes.

thanks, We're all, question. cycle aware. for very Glenn the of First

so, relationship period, highest know, for our we on of as industry. the was And active past the and one year during monetizations between think last monetization were two investments the you in over I new front. And this the – us or very the

period, substantial of sales. strategic. too the those majority that continue but And did strategic of During were many time pay. were on front, these what I we're we not some think monetization your do to IPOs, a point, And of to sales

our period companies have portfolios. is, periods, as of So, this that the not think, enacted as our and several still dialogues active many may of fronts, during but I those on some they be quite during you there [indiscernible]

These that we'll think see during moderation. and opportunities of to so growth. more to hands in a periods the pace up still in a made a of strategic more we we've like I a built there. number types more possible end end the to up And this, economic feel And strategic, about companies are moment, the of companies buyer that and slipping be like that's many And why net but cycles. such continue it's are we high years, different opportunities we quite in talk those over we’ve deployment

ongoing. And are like on ahead there's front. dialogues the frankly, opportunities quarters the the feel going we years in yes, to and to be moderation, modernization continue So,

Jon Winkelried

out. about And, sitting, about comments look, going couple on the past to going tremendous call in a sort terms of focus to the think cycle. what while for market, like actually, deployed through we on this and a as Glenn, think Jim, we're right. clearly of of in we see a want already got amount feel on like of dynamic your deployment in I which talked where the as I see We a where we have here to ask the they're adjustment really powder focused well privates, good process about from and starting deployment, sectors still privates. take we like talk dry the particular, that opportunities is there. dry capital, pace, the We but a spread as now. And that great ours, the to looking about actually We've you level see well, playing where and on we're continuing. in And go actually lot and we've know, overall, observation I'm there's the comments been who the public lot make themes of We of amount see activity, – and a if you do fair We've that. ask calls. into powder, really my think, to absolutely There's of I is there's of

of is done because clear they obviously, but there. to a that that some of easy done. get will – of done, I will not market getting some the think opportunities given get there's number get that deals They're and public think there's done reset, I

dialogue deals some in engaged we're So, like that. on

to new terms to make activity. a starting I over our sponsor-to-sponsor when think related some, just And sort – going start in of, build, here kind impact that comment resetting about kind Jim for expectations then relative of given, instance, we of that. Technologies. do our in And strengths on I we I'm Climate etcetera., business. see to mentioned of that to the of are turn

Jim Coulter

I in things climate this that first Those positive that but is admitters. we've XX% to an deployment, It's it deployed, incentives discussion has of a investment portfolio, weren't XXX% taxes the The very we're existing bill drive it's these opportunities more deployed effect bill focused all, should incentives. importantly, drive our that of in assuming climate you money. which this to in probably is you us in someone on you the driven of have it who investment that release to your Personally, that by mitigation. of have unlike going on, have And bill a followed three investment place $X bill probably interesting – basically of was serves is pending double pending – bill on cash and scores Traditional bill know think climate space. expects space. to give trillion a is probably the happen, repeat, XX% sense, who drive to is been what to is traditional the investment. To that almost attempts there's obviously, in adding way, This attempts the Jim, [indiscernible] well. that

should aperture a the that's and will that for profit tends sense very around our drive hurdle. make given to And open us U.S. that world. advancement lastly, for So, the potential pool high deals technological of investments, the substantial

market, I our is driving in going increase think, to U.S. So, aperture globally. the changes

So, effect. climate have yet, not for forward very space I but that talked well should in about is the looking interesting a interesting think deployment

Jon Winkelried

Yes.

estate. don't piece, last bit little why Just talk a numbers real you Jack, about on

Jack Weingart

you realization a little Sure, more the Glenn, give pipeline. just to color on

that on still call not closed. or that $XXX think actual quarter realizations. but you mentioned of today, delivered in yet second signed, sit so million not of had yet million performance saw here $XXX as million we I contractually that And committed, $XX I closed. we Obviously, we the we of have but the had allocations over allocable were last realizations

were selective point I beyond Jon's be bias is monetizations. think at to comments that, this on our

– young, portfolio the bias and months past to months, aggressive teams to build build XX companies, assets with a that XX very attractive in opportunities. exit unless portfolio how in value long-term we selling those currently interesting our management have we of were we very the very Given see at to is work

Operator

you. Thank

from Stanley. Cyprys come will Michael question with next Morgan Our

Your open. line is

Michael Cyprys

on question. elaborate just the Thanks Hi, of opportunity guys bit on the And just taking more a pending you do terms following or the to that the from could to for climate expanding bill? maybe you. is the good and that guess set up need the you pending bill you morning. platform capitalize opportunity see in the anything you there I team Thank mentioned. Maybe on that that? set

Jim Coulter

Michael, building about Yes. Jim. team. progress the feel the We existing it's of good

deployment the has space in this year. impact been pointed As strong out, Jon

us concerned time, the think to or I inorganic Over there of So, way deploying the capital organic allow team. pools of any either I'm opportunities in are about not growth expand space. for types we're in to

want obviously, around views will focus of adjacencies So, PE, are build our clear bill we inorganically into. right either climate now could the I is that exposure area. this think accelerate that, in or but the LP's organically on And grow to they Climate there

Operator

you. Thank

next KBW. come will Our with question from Lee Robert

Your line is now open.

Robert Lee

your, morning. Wanted a first talked business for talk Obviously, stands of footprint. Asian I of you growing know Great, thanks. the be first Good much in. to something as have Thanks list don't questions. but maybe you platform, kind about and you've taking some your to year? your about question my maybe footprint really on, Can the it update guidance mean EMEA just EMEA expand on platform. where region? us priorities controlled, half it's you in, your your investing at on that expense of large apologize Europe accelerate can and over this secondly, came well expect seemed you the the a through you I went pace earlier, still should meaningful year, back through to particular, in that us the for like then just we but I And if update and comp

Todd Sisitsky

Thanks It's Todd. question. Sure. to

beginning This Let been really we've just geography in since the me – start on of the firm. the front. is a European

And lot recent in important to So, years. it I made of us. progress, a we've think, is

we Jon deal, announced I [indiscernible]. large think, mentioned, a healthcare as just

one of London the the Healthcare with a Capital works great We of co-heads platform TPG have who out team.

estate, partners strengths, have pipeline the team success the liquidity there. – members senior investment In a so, have strong both who front. with and And another and really our presence of which a of is and of the on our our presence had lot we're real building global we a on number

And us, Europe grow. so, we're continuing for to

in, of fundraising strengths. important from has And it increasingly have particularly We also sort become us leaned perspective. place our for a in an

much personally. had spent how we and remember weekends can't over I over team conference. a dozen members So, We [indiscernible] for trips in the and Europe

across new from a have of and number we've the in relationships Europe. a building We fund standpoint raising been platforms

us. area important for an it's So,

We're of European lot a a team putting presence. Europe And lot our are on to we're senior against leading to leadership our it. spending continue the as business. keep energy strengths in global time a grow We to of fundamentally, a platform trying as

Jon Winkelried

Jack, want do to you [indiscernible]?

Jack Weingart

Sure.

talent invest to On to our the the business. expense front, we're growth support definitely in continuing of

benefits but rebounds high I'd continued in we XXs back and growth business year, than of right firm, to next answer comp next the – people to to question, employees the to in moderate platforms. been And timing the traveling expect line, that that that's the we expect year, that's in expense always more. pace services So hard And and expect we've and OpEx as in through continued up continue we're line have broad-based the pretty across at far more a I this the is The and people in it added XXX over the new office predict increase the where is an comp but would our growth and all do we line. investment line. comp through roles, benefits right year. as for benefits on as find is based your

Operator

you. Thank

BNP. Giblat Our next with question from come will Arnaud

is open. Your line

Arnaud Giblat

Hi, good on ask morning. Can question. in question the the X.X% quarter. change valuations? down Thanks my for I taking think over I you the capital took

split uplifts EBITDA, could growth up you moving for the Thank upon parts different change exit? or in If multiples, in me any you that had of valuation terms and you. in

Jon Winkelried

have on revenue private equity portfolio a we but we way growth across would way as I remarks, that Sure. our in look and is the would metric. companies characterize – earnings the I out came valuations the I the at is addressed little my comparable aggregate definitely bit exceeding side that this prepared generally,

by for in our offset as down – growth multiples on was we, that almost the So, took average, the but look valuation we earnings. quarter,

Operator

you. Thank

next question O'Shea Our comes Wells with Fargo. from Finian

Finian OShea

the on starting morning. credit. do bringing private still A maybe example, you out question you internally, have consider from Good team, it the and or everyone. Do similar in building a for playbook from onset there? Hi,

Jack Weingart

point, evaluating of which sort bringing you're this a consistent At of but as expanding would – talking and the be platform said, of we on before a comments, are what I in team. acquisitions/Aqua think this including, I we a are unclear. hire, in still to in looking we couple alluded do I options, terms with focus about my different have

So, at hopefully, it. have say to more remain we some focused it we'll on on and point,

Operator

Thank you.

will question with on from Our next Rufus come BMO Capital. Hone

now Your line is open.

Rufus Hone

that starting for come my had to you could more up but Good if accelerated of sense a have to a you market taking new that, of was Thanks your coming funds you for fundraising well, us the a helpful? get funds you into And morning. you. through Asia that over and give Great. would closings what to fund And in you to around the next mentioned expect of pipeline as bring little larger some detail hoping year little XXXX. spills question. quarter. the I XXXX, be this Thank

Jon Winkelried

Sure.

businesses. of we've continues focus all, talked the completing fundraising campaigns First existing that to and current be on scaling our the about

X X, as Rise probably complete to months first campaigns. we out Asia play the over TPG that, XX which months the Healthcare talk quarter. We'll to X, In the those as continue I to and those Fund, addition Funds, this mentioned, campaigns, our close Partners about next we'll

out that to calls, the back on we year, platforms, on by extend the that, continuing about point we've growth are the are I'd also half prior those sciences. creation. to XXXX. talked as we're initial as will play focus into closes update on you organic most which and in probably addition two which across through new to both life also secondaries business we we'll focused this of And way, of In And areas will

Operator

you. Thank

from Securities. next JMP McKenna come Our question with will Brian

open. is line Your

Brian McKenna

thanks. Great,

growth over had about here how products longer-term part talk the How market you flagship And should for the then a Asia you the see but region? opportunities about of think of fund, of could So, in time? your allocation your in next moving the you're business, I lineup on forward? as strategies I we resource know evolving and your question business some

Jack Weingart

raised raised our right mean and reemphasize the the getting completed base business, that is now and fund, is focus. our is core our flagship obviously, business the that of fund frankly, fund real to I of and just getting that – important our

in perhaps do that by hybrid what is that but mean I our we slightly what tech here a in adjacencies asset of couple before have I perhaps that about I characterize and areas think strategy interesting is those mirrors essentially another area broader return say, verticals. as them, of going for fund, context that industries be a interesting. And I that than a type place is in obviously, an big might And interesting. structures the category thought see – could return region there that might could real us of different is slightly in that that would estate be might area our at we forward, be are also region, forward, the going equity class credit return also guess that would be in a one private other be slightly a focus which I different opportunities. we

to once our for So, Asia be thinking opportunities. through core get other fund fund, potential we going about we're raise our

Jon Winkelried

elsewhere. your team point, I in we business very [indiscernible] stable on business then and team region And in the a strong have the think and capital

incremental with like some really from hiring good from steady it's And so, we but base. feel we're selective additions, And goes a really and good place. a more as she building starting

Jim Coulter

investing growth in through some the Jon, franchise, global on miss the given and people and fund we of Yes. would I our I that focus Asia that would year our add the platform the Tata note tend school. perhaps highest strength in Malaysian done our was to flagship growth Motors. funds of our out impact is last most investment the and of in a recent investment Jon IPO billion probably medical with investment our Asia India – profile is had in climate investment mentioned a the in

footprint a have our our we to So, substantial several there. out of products grow across platforms

Operator

Thank you.

Brian question with last from Bedell Our come will Deutsche Bank.

Brian Bedell

follow-up. my taking for much so Thanks Great.

to follow the potential question wanted inorganic the Just platform. expansion up earlier on Impact about on a

areas or on that it types thinking accelerate some And bit of Rise of color little types of new of [healthcare capital franchise [ph]. terms the both infrastructure in that on mostly in a if across an maybe in what also other retail of that terms is would also comment areas, X burners] and can then just platform? you're Just the you that but of the just funds, their impact some take-up more and

Jon Winkelried

why Jim, don't you the with platform? start [indiscernible]

Jim Coulter

Yes.

already that in For trillion for to technology classes. eventually and we equity of is a tower just on happen to started It's It's we're moment. into particularly, across me global playing. has investing other at going $XXX going very happening move the spread an that happen expected to in will in private I'll is asset impact as the of transition accelerated in that center climate a climate that and here. themes infrastructure renewables pace. and same in like And clear focus The assets saw it number traditional data

of that's transition. be And will entering on And finally, infrastructure. companies a credit So, as create private opportunity that address approach, look set there the an thematic equity crossover well capital been will as this thematic we think up public the it clear markets. credit investing entering be from And I our if perspective. private to the opportunities for as in between clear opportunities there's a lot mature, you from market. in and in private in basis, at A the there's

also deployment capital very being adjacencies in days a all pace. So, making and large considering early we're the this we're while prudent sure is area, that of in

Jack Weingart

net longer-term we it’s us. Jack. expansion worth, Hi, high retail, area a On of definitely for net to it's worth, Brian, continue big see high

institutions. of compared percentage As highest self-focused access high those, channel have TPG of true initial active retail, business, don't in have funds segment. X, in planned campaign our That end multiple different lead lockup engagements X, the of that, low peers – to the with your Partners a some with Typically, high you end of as on know, partners. applicable net our up in today, that worth it's worth like is all really you have to you our closes planned campaigns net product market today be for channel with underway set the you life Asia sciences, long-term X, of we our all are would partners the We investor business, secondaries with do Healthcare high worth products really relatively to because already a capital. net base or Rise

So, actually raising institutional already planning had. to those funds high all been across follow worth date closures net success net we've we're these without capital because worth had campaigns the has the that successful much high we in to

So, net rights. about that's a been There's definitely It's the this, more kind of the upside the of some liquid market, forward. toward but today high worth weighted that with the from lower in has of end redemption lot been in vehicles more written more of case. raised capital

base of issue. We off term that as near- point. still lot at Longer term growth capital you're our starting to the net in think the to more definitely see off high kick lower I and down net the their worth risk market go we're overall us, the channel. that of backed for a market, this high see to mentality, see a we opportunity worth you in starting has expand see

Operator

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

Gary Stein

operator. today. us Thanks, for Great. Thanks, joining everyone,

to If follow speaking with next Ebony. forward me quarter. or you have any additional we'll with you Otherwise, again up look questions, please

Jon Winkelried

Thanks, everyone.

Jack Weingart

you. Thank

Jim Coulter

Thanks.

Operator

webcast. conclude call TPG's does quarter and gentlemen, today's Ladies this second XXXX earnings and

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

TPG (TPG) 13 Aug 222022 Q2 Earnings call transcript