TPG - Earnings call 3 2023

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Operator

Good morning, and welcome to TPG's Third Quarter 2023 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.

begin. may You

Gary Stein

and Angela, Great. welcome, Thanks, everyone.

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

to as do to release earnings like for except forward-looking or forward-looking undertakes remind this Please not results that performance. call events any guarantee law. cause obligation to by statements and that SEC TPG these I'd to statements. refer revise future differ could update may from required you factors or statements TPG's include actual filings no materially

Within measures release, and to the reconciled These earnings is which relevant we certain our business. release, discussion our are earnings assessing we'll on believe the available on discussing nearest be financial in that the measures non-GAAP performance GAAP of this website. figures call non-GAAP TPG's are in

on nothing purchase offer an call this solicitation offer any fund. constitutes to a or to TPG that note Please sell of an in interest an

on for attributable Class of at or reported declared stock. record X call We of share briefly paid attributable earnings per per We Class $XXX our Inc. to results and tax common common the million of share TPG, $XX Jon. to $X.XX third quarter. I'll after to dividend Looking over income stock, XX. be A million will net GAAP holders $X.XX A of With November as which the of of that, a December of turn

Jon Winkelried

and with by terrific who focused acknowledging our start region. against life are have Good attacks strongly been recent Gary. on humanitarian are the in We Thanks, East. by ongoing events and the the their Middle deeply condemn all saddened and Israel by the everyone. in to events. want thoughts loss We're the supporting and colleagues I families, impacted tragic these continued of morning, terrorist our crisis

into then our investing, highly begin capital brief from share progress We Turning we've on time, and substantial our my at I'll across to progress organic initiatives. update made In At a about we've focused AG formation are firm. Angelo excited the Gordon business. and on transaction been remain a productive the and some It's TPG. highlights comments made ] the earnings. same business our on across busy quarter today, and core integrating [ with

We Gordon on closed of acquisition our ] X. [ November Angelo

can asset number a a classes; credit desire long-term growing institutional a managers of GPs including: across in scaled partnering shaping as [ in interest for Now largest accelerate lines as in who estate; the strong of one additional strong X growth. ], channel yield-oriented our in with as and flow record, $XXX TPG's alternative investment addition credit alternatives, billion wealth to of track and alternative transaction capitalize our manager three, like to offer important industry together capital shortness differentiated important believe on them sector, business an position demand trends in LPs a one, two, firm, of strategic as amongst allocate platforms totaling we've real insurance of as to especially structures and private that complementary with scaled a exciting strengthened the well AUM levers in and differentiated XX. classes milestone Providing an semi-liquid and deal capabilities. us several secular advantaged asset investment This marks position more evolution. the us We to of September global partner asset today, with the Angelo multiple puts alternatives with Gordon with the

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we I'll out ago, some firm by TPG weeks close held events. my remarks our important Conference. Investor annual highlighting A few Capital

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to it Jack results. turn to review our over I'll financial Now

Jack Weingart

John. Thanks,

a reminder, transaction from the fees. TPG be subsequent not a in an with million of sequentially growth catch-up second to This reflect improved on third results a million fees. Management the grew combined both stand-alone basis. do management in since include the was fees revenues and transaction due increase discussing XX% PPG and FRR up Angela XX% result They quarter the to fee-related $XXX totaled As and fundraising, of strong year-over-year. record for quarter had fees a with X% the closed of end Gordon quarter. $XXX I'll

and structuring new placing to and financing with debt our by connection Transaction fees across platforms. lead increased driven in million, in be continue to our the role primarily sequentially investments $XX XX%

quarter. significant quarter, an capital, XX% as sequentially capital well-established just be valuable expense more business Our third growth our market of companies up is than weapon, continued to I management, This basis with the quarter. ago was which credit mentioned FRE in differentiated to growth the debt markets continues is the $XXX FRE well as portfolio strong strategic us point and particularly the XX% third from current a year-over-year. to the margin year in improvement XX% a was for for providing FRR This resulting environment. and million XXX due access

months last been margin we've margin the progress set FRE consistent was Our for making XX%, for the year. the reflects XX the XX% of FRE we end had which towards this target

earnings this scaling down the operating leverage Gordon, Angelo with meaningful While distributable which to we us with per allocations realization Class our a the from million for A common of $XX million $XXX believe realize provides includes the and FRE attributable blend were will we margin Jon that $X.XX primarily performance third CAA businesses. opportunity realized fourth of margin the of expansion After-tax stock. successful to the share net significant combination quarter This as our in discussed. quarter or look were acquisition in

to for we acquisition similar line income the is two in related quarter, the Gordon the of Additionally, included of incurred to item. million third realized other Angelo noncore $X expenses previous and quarters, investment which our

revolver Turning third $XXX $X.X sheet. at We of million September, to from end debt our $XXX and had revolver loan. we $XXX of upsized million million extended to billion, late the and equivalents our long-term balance of non-GAAP maturity In and our and cash quarter. the of the term both cash the

acquisition. to enhance ourselves flexibility. a attractive business, our the cash As our we we of on excess in balance year, with further financial ample the our position. capitalized strategic facilities liquidity sheet went with maintain last pricing to of our of a provide public early were result we financial able and potential strength When anticipation

cash this in upsized September drawing and cash from have cash $XXX Pro we down million our revolver. the non-GAAP been the and at acquisition at cash closing XX would equivalents excess addition use to forma closed our for $XXX million. approximately used week, Last AG of

at accrued to the in million end driven earlier by $XXX net prior Our a compared $XX of well as allocations decline million of value the quarter. were $XXX performance the quarter third in mentioned investments. gains million I decrease as was realized the the our This

depreciated the reflects This and companies, over quarter margins offset X% the continued our Our by across months. aggregate line top third last and performance in stable portfolio less contraction. growth than X% multiple XX appreciated

continue revenues pressures companies costs. inflationary private to portfolio by months, and input navigate passing the last grew equity our generally through effectively XX% Specifically, higher XX over our by

life rates sector selection by months. light Within centers, billion at earning secular yet last Fee-earning favorable subsectors. purpose-built real estate, as $X industrials, $XX billion data across and XX up billion of was offset was our largely careful rentals cap earning realizations billion, trends were assets billion our higher totaled by Such student growth offset $XX of single-family AUM housing, income sciences, with of of $XX operating capital and fee unrealized under quarter XX% which not driven year-over-year. months the creation subject year-over-year. X% our make value Across approximately collectively AUM for XX% management, XX value. of finished the over up our the $XXX which the $XX million, last to This fees. and net portfolio, third growth raised of was grew of $X We by end billion QX, and partially

during raised fundraising. to the quarter continue and make progress across $X.X our billion flagship to Moving fundraises. We

to towards closes larger We're Capital mentioned, and end Healthcare be continue to hold Partners fund we the final to this X each of year. keeping predecessor. we its expect expect X, than Jon As

the total demonstrates of held For from close strong X, support close and RISE first final This from half And for we our year. is new size Asia in LPs. increase we the to for XX% both final RISE a X billion. the and bringing X, fund fund weekend, expect our existing over the $X.X a next

As we campaigns, we're experiencing next we nice complete launch as momentum our these campaigns. flagship

holding actively working launched invested fundraising for $X our next of we billion recently XX% close we're committed first are fund a approximately are and and sixth we growth Fund, vintage. First, the our for the in strong towards now rise and Climate Second, launching process

across new Finally, we're funds, I've making next-generation the as progress business we initiatives discussed launch solid previously. those flagship

credit estate For our of commitments strategy, than inaugural quarter end, we received $XXX more million. after real

on for We approximately [ remainder we additional and of Truco capital closed as million have raise this $XXX capital, the we on to the ] expect fund. close

our business, of our private interest the and In in make progress market we're infrastructure very launch LPs seeing the in XXXX. to inaugural our from our the and we in all anchor We're be continue expect first addition of Overall, strong in transition to to delivering flagship climate equity remain on launching fund. next half active performance. continuing differentiated ability strategies, fund, to across Climate we're confident the of

growth and Our an meaningful formation business. Gordon growth our engine capital addition capabilities. in of combined drive Angelo is strong, believe we're and across our position the consistent, with to We and TPG excellent diversified

Now to questions. I'll your turn to over Angela take the call

Operator

[Operator Instructions] from with first Goldman Blostein question Alex Our Sachs. comes

Alexander Blostein

on and we understand I hoping spend next Gordon was a Angela it with could more I week. discussion start quick going on time to we're

information So bit was a of on fundraising business of looks the it you like weeks ago, a is little But the Angelo maybe out couple of at muted. Gordon this you -- put fair some as preview. to a look

first only billion think it I about the half of XXXX. through was $X

that how any deal here related fundraising of sort help Was of related? And of sources with evolve unpack TPG? of uncertainty that of business? were to So maybe do sort some and synergies what action expect constraints the us the in from you

Jon Winkelried

transaction, our the transaction. I Gordon across across parts understand -- expected, substantial happening pause a had was the of On well. -- ultimately had bit would changes think a wanted in I would that of or announced understand way, Jack firm wanting I would to whether by Angelo think our you investment whether from as exactly that it I will wanted experienced substantial to progress to made take fronts, they what in any But Alex, in add think into look a as prior you John. that, respect Angela changing it's of there number Yes, really wanting at could think naturally, can LPs that fundraising when and momentum in understand the was And understand that their have the we business. or Gordon at can et it decision-making be not if I the how transaction, our we process, a in shot any to people, I be several terms strategies of was be the who to integrated cetera. there not --

So a a think I some us understand that hear us and LPs also, number step of of to I meet think directly. frankly, of with from -- surprisingly, bit not and the spend doing together wanted with back the to we the took and were have scope what both an to to time firms opportunity

two fair that. time that overall, how did transaction, LP think with the amount So fireside time this I a of reaction we're and will well and a together getting and now prior that even But LPs we we close think some thinking were their chat I LPs. have strategies us meeting their the meetings a had front annual base to fireside all to the across the spend the continuing for them their of individual chance opportunity with firms do to that LPAC them in of familiarizing bringing together from of spent an and out the firm a of we'll now had which we've continue response room. I TPG, chat to A the spent different the question meeting, number in actual be and the with time room going of of basically at as do one-off And as process. a some

will it feels the sort Angelo back And usual the more I how we'll unless good. been of with me about together. sort to we're I -- we've that the think the it's now as very been we and organization. engagement getting of business transaction positioned think LP be continue we've closed to base inside clear Gordon broader And like as of

both somewhat So is transformational the of organizations. think, -- that not a I for in transaction context surprising,

we'll appreciate more we we're think it. I formation learn to LP's But it, accelerate so of understand coming be to I And desire very to capital able that out together. confident think

Jack Weingart

that with to LPs. expanding expand only play from with sure actively Yes. And our the real a with they're LP here as that's the we've minds around to on longer-term that their of working been that that, something capital. out, of introducing their temporary existing in Jon, the base already our larger the the their to add encouraged larger some we're make this LPs combination to opportunity and I while help pause would they comfortable addition the is early but and stability, to them some their takes engagement of LPs wrap by

So we would fundraising year. their expect a as we next enter reacceleration of

Alexander Blostein

are do as to Great. on great then sort to the more a is Climate environment given And guys? guys your launch little you the to that strategy. of it for raising through ability I you course the will it more to see fund different and this for my And by X given -- is to year. strategy nuanced you That's syncratic of existing come fundraising. seen with their is be fact received next TPG's of helpful. market you think, over private the broader around upsize year. processor a campaigns that second track How that the closer bit the question It's the LP, an and getting size mentioned, And just we've fund think challenging to relative the end

Jack Weingart

Yes.

climate... the On

our we about cycle in for public fundraising year, mark of look, flagship coming this the take and last we the a would funds years. back early on next knew as we big think Sorry, of overall step kind went super had couple I of the

call, the about that. we're talked I of on the As approaching end

we've And the after. the the enter been has meantime next ourselves say think in year next and growth good about work year doing the wave I of I'd we've feel as we we positioning the like been progress for Gordon. both about new of the [ Treco And talked that to. acquisition and creation of made, Fund in we fund business Angelo the Infrastructure terms ] Climate you're the referring that

us. of ahead curve growth new whole a got we've now So

in And But Climate On Climate $X the make be about your you would progress very would of Infrastructure private particular, updating I engagement say question and equity next we Fund fund our together. there. think high. generation as the fund, all billion obviously Alex, the I is the early we'll

you be those to -- substantial And I of two to launch with position talked growth we're that over leading think about what next equity first the market. the a size all year expect viewed this account across increase continue of into funds, take of off Gordon's private when credit, funds, And of climate, fundraising growth in the activity I expect have would to I Angelo fund. year. the we in

Operator

comes from Craig Bank with question next of Siegenthaler America. The

Craig Siegenthaler

Thanks. Good on the We business. capital wanted to morning, everyone. growth focus

unrealized has almost TPG growth of value X. X, So $X billion across

So or those against any you portfolio are would performing we're companies curious, And backdrop? if data be helpful higher that rate like to. have to EBITDA revenue points fresh the how trends date,

Jack Weingart

I of portfolios the about strong Greg, mean dynamics probably growth, portfolio, the equity EBIT growth. in in overall revenue I still stronger in my mid-teens strong Sure. kind apply, EBITDA talked private performance portfolio same across growth our the -- comments, growth,

actually portfolio. growth seeing we're So the margin expansion in

saw most well towards feel market of we is The the like and very is part health 'XX biggest kind market. of So obviously there. we're and interesting, the very the that positioned continue It spike activity quite equity active growth the of was market portfolio to end broader good. in the the

at environment. in results, looking we our that As you relatively were from know, patient

to to pretty Now kind capital difficult, some just those with of follow-on our than raise as well more needing of IPO I position market adding we're that positioned becoming more companies TTAD that a We're in pickup close capitalize provider, capital. solution with because in we both you on growth the market. investment that growth and in mentioned accelerated seeing funds. And activity. our a first process disruption and the the see

So after that of the happened third end the quarter.

investment fund. because we'll is talking the now it likewise, earnings the in So the our fund. we're we're But And raise the over seeing. it fourth in growth deployed reason to be accelerating of new AD progress we're the next in quarter relatively new about CTAD half activity in call, starting

Operator

Ken Worthington comes The JPMorgan. from next question with

Kenneth Worthington

quarter. And this funds Artists leverage see as mentioned we United John, the on continuation that you the and look you carry meaningful continuation forward. opportunities generated to TPG

Artists are if mentioned TPG like first, the in challenging? there remains think quarter, PE something actually in So U.S. Germany environment we more And And and your back vehicles second, I continuation expect that is then portfolios? India, the can opportunities you maybe United last

to are funds, by there different forward? either as class look or participate TPG ways So regions for in we continuation asset

Jon Winkelried

Yes.

take at that a continues or toolkit would me firms that evolution TPG continuation an the and you've volume clearly, become vehicle more part important lower. activity, it. think the I other have. private The the shot is for seen firms within to I all, that of where like a market and say think, -- first The matter -- I exit more of equity, exit environment of Let

I that we it's for continue. that think think generally worth, what would I expect trend to

of the overall I of kind overall think the multiple already on in of -- environment. about that we the just what's valuations, given market, dynamics and exit -- in going talked terms volatility compression the

to continue to I think that expect active. be you less should

that but of And I to a somewhat number a factors, think, think are industry clear capital context, factors ways the returning within is LPs constrained there's still our of exit amount a And of slowdown LPs. as result and you activity. as a one pressure of to of tremendous in find know, I

So better in accepted more I I think, understood and become, continuation and vehicle think has the more the that market. market

ability was with vehicles frankly, what hesitation going that, the their on going that of LPs there years one several vehicles fund much was on time, it's over think and continuation better part become understood market. the ago, I capital of would some from think things And the to out, to level of and also that. new I understand generally affect think like how assets moving a of but part back dynamics get to I both

So view virtue company of management a level say place the makes in of by is terms the the essentially that look that by exception, strategically of the in in exits. own of out. at vehicles been that in for But a that I think are I it's still significant would amount company. fund to virtue activity great type And there will we CAA that using portfolio a where is terms of there our sense. -- for time, with continuation there it having our very in having team of I do partnership of expect respect, market. it in a think held I the And long obviously, a had be a front was a growth of where it of the for sort still not the rule that example timed of

to that be continue also And some so the it had perfect to to the example a try one vehicle. might growth a to desire capital, we return why benefit continuation from made able use of but

So gives that tremendous success we'll credibility a the we'll vehicle, the way, use -- be I of the -- to with in market. of sources part and CAA think, us to in I respect amount the the think continue capital of by

companies, because expertise -- have some we CD value LPs And sector solution to flip be of different on. frankly, have GP other also and of to stood TPG the our understand partner dynamic, for is a to the rely coming that capital you reason continue that looking evaluation that process -- cases, provide the we the these for same obviously, side, have to how really in they in we up that more which know fundraising solutions On strategy now with the sponsors see can on are number TGS, GP the sponsors that deep sectors. sources can is can across and which more is exactly

in of ourselves in you deal number terms a did, as of in seeing really in excellent mentioned that being an no the view level of strategically been deals in a to market. And there abatement that has market. of but flow partner that we we So the position we're choice order be

we it's one important time. over in undercapitalized. firms the it terms space. active very that think of them can of private is I among And are in are ultimately, This in so strategy scaled And markets we markets the -- the believe deal that absolutely equity it's -- be few that a in the capabilities of

would a expect we to So to be good capital rent. continue form opportunity very to it

Operator

Michael question Cyprys Stanley. The Morgan next comes from with

Michael Cyprys

the the the compelling estate of you're origination as real enhancing you're this checkout. of can types thinking opportunities over strategy the your credit And on in the capital estate update capacity. investments? real us just X then there platform marketplace, of ask some platform to next look hoping build-out I credit the work I terms building to in to you just seeing now you wanted about where was on X most how how of the are out put years you thinking out to

Jon Winkelried

Mike, thanks for the question.

I all, public leverage of comes our we're think, our that to waiting REIT. of first out with origination capability

preexisting. So that obviously was

opportunities. we're real already to market credit that So respect seeded pursue. into in opportunities the flows some types is of in we'll the terms really frankly, broader with of terms estate of of well Check the

opportunity in So cases. capabilities. over connected of our market. looking across time, That's continue you look for under in are a to feel certain assets flow the to clear that we'll like particular to to we're pressure systemically origination this if well banks add the shed sources We both us in

very estate look a as that aware. I'm disruptive you in market, If financing you're at the market certain right players now. It's sure have real solutions,

markets. because out across in result relationships so of a of our building think trip a the we'll of of Gordon's our -- real be market both franchise well number a that, deep franchise I Angelo as And result as as of different estate as

landscape have provider I think understands across the we that market a deep the and space. as understands the financing credibility

really it real a a financing market. looks scalable overall us, to over opportunity very and estate broken pretty like right interesting now time. So is

understand we of And to able be market and lot what of real and There's to risks is so And it you virtue have the value-add this. approval just expect provider the public looking like. publicly I be that, an as of also of dislocation markets we be do currently result in the as to were to able expertise, securities think and thinking expect a what a by solutions estate a of liquidity given traded our world.

at will a way, of is the Angelo team expectation on of to our of capital. public a markets having able types side flex that well. seeing and those result the So team structured markets opportunities be the also as between as private there's The credit Gordon by we -- pool

more think and with a but and a but So way on what to in in the terms business footprint, opportunity. that's resources come see opportunity we think I we'll both scale be to the consistent great we it's this, of

Operator

with Brown The next KBW. question Michael comes from

Michael Brown

Great.

investment you want playbook channel, the meaningfully and this of long to it that maybe better capabilities needed and wanted about Jon, insurance to that maybe to approaching addition I know, that week. broader to a just Angelo certainly But service we'll opportunity you're may you next would be Gordon how hear industry be about you the little the just hear about there? to time? the thinking take more you and And diversification get tap into you gives to how where what's as incremental So much bit over

Jon Winkelried

mean a I Yes. question. it's good

of type it's I in meaningfully dialogue that think remarks, -- we're now the very And that tangible. shifted. heard my you I is has prepared think that right experiencing

in the private a dialogue from Gordon put had to them fundamentally LPs able prior number transaction, of with but insurance only a perspective. perspective, ours, to companies to Angela it being Just of estate we real really and serve were equity that

We a for us as understand particularly had class approached plans of annuity and holistic also asset a to relationship, companies, -- our about insurance wanted were and more number players what life but an that have credit overall. I

so a of were had to hard on. we conversations And series that execute

or describe, funds. I what from, two categories. industry. would having a ranged number general mean, in we've I -- I And has we're substantial, relationships those credit them Post dialogue in dialogue that quality type participation the dialogue of Angelo in a the be in and that with LP-type SMAs strategies, transaction, I permanent say, put I would guess, and had of players One inflection very the would

The other seen other similar execute to market. what would in managers be relationship, a you've more alternative of asset strategic type the

for I would And us focus very a going currently now. that say, it's ball high on dialogues several the a to firm say it Exactly Hard of take I as level so put we long how have to in but advance will would combined that that category. that.

focus We put we this. have of TPG and on is between that sort team to that AG a together dedicated

I management asset of in about would solutions life as some think attract players, to talent insurance for of with expertise. type respect to annuity sort knowledge continue industry naturally, over and you we'll effective time, of and understanding the think what

respect that think capability I that So be over some in adding we'll time.

because the It's very if a platform. is of this exciting it's very that things we where a at to one about us attractive It's you credit play as look, I area And competitive very, exciting for now us. us by that area spectrum, a was Angelo the we're can firm role. for capability, think one credit opportunity an multi-strategy multi-strategy a that was credit the across really business way, Gordon's together

lending credit insurance So fully asset-backed that needs. Brook, a really the combination service the of broad direct the a is required then the asset-related structured credit side, solutions platform, which industry side to and incorporates capability Twin is corporate on and insurance really

well obviously, road. we're keep as positioned very We we informed continue focused we're everybody we'll So on go And it. down that think to now.

Operator

The next Bedell question with Bank. from Deutsche comes Brian

Brian Bedell

you LP and have and afternoon. conference the asked of course, Rise and have questions on Great. been of one infrastructure. do Most climate climate to answered. my related, then Good almost But

asset classes I terms two individually. those of in Just terms of -- what you're the the hearing guess for from LPs in demand

they about So demand guess either thinking Obviously, how very I'm getting to But what are transition. invest, substituting that what if And at for good energy transition got for? limited or what for substituting are is then are they energy the is they've I capacity infrastructure they infrastructure?

Jon Winkelried

climate all, PE a that unique. say, kind our would markets also frontier Look, I and a I is very the think, infrastructure I first think very, in transitional that of is, of strategy

and are with course the for number the better dedicated think over and And small I because that First strategic space. think absolutely do of climate-related in I is building it's as my believe the amount the next the solutions market ourselves to to our as the very plus capital part of remarks, next, the what now having And very that category a category this space this of we that mentioned course respect in in solve actually distinctive of decade some enormous. in X are capability, we years of I sector quite -- dedicated the of credible capability. to a partners it providers now firms a we're for And build right is issues that and we these in the deliberate last us, number relates the view limited. we've of the that very been built credible of over the the resources to we've just required all, and

frankly at but what is looking this seeing this range think think ways, as result different are looking we're as I market. And from the that navigate LPs a our leadership LPs -- of -- different is looking a hard depending LPs this in I view at is -- this of of they we're they're seeing number in what of from this in a part ways. at area a to looking that that, dialogue at because LPs really is extraordinary. our is it, And finding be this in from robustness what of with they're pretty the we're of

strategy. at equity sort a piece as their of look private Some this of

area sort of too ignore. and the sort we'll for capital, capital of pool. of it important part their they're ultimately, of starting to allocations. have LPs big as This of this at of is innovation pool some looking are into this their innovation then mainstream capital area allocation Some they're too from pools a large most and -- looking And now private in equity an

mentioned Jack really really a And strong before, that, of here, so engagement. we're result strong as engagement seeing we're had mean I seeing, as

of is, think, engagement expect time. our that mentioned on capital we'll we in as we capital move I to think And LP everything I raise into more LPs. so seeing expect strong that far, we from raise first that expect we're case, climate that to an from pretty more suggest a the level Jack than did that, infrastructure and the we'll to fact,

think think that where -- in rapid the in we're too, that to kind the a is as to What as time real business, the or it required trends quite of to sort requirements assets seen of On therefore, the plus the different I over continue cost capital side, that opportunistic moves fairly core. said would But and as as this a of starts like parts cores hip. in fund in technologies you've capital climate infrastructure things evolve seeing seeing spectrum of you've the respects, trend industry at some to of the history of, and way, market we're this alluded estate, this capital those climate of over kind these and we're the -- large. when say, this an seeing example down he Jack joined is that and seen of what I some build-outs cost natural of the market which things of are the of in like requirements these with capital some

different flexibility and puts in because companies partners that base infrastructure in and pool us capital seeing finding we're move But relationship a so of between the it of capital a create differentiated infrastructure position And to across generally. knowledge the equity a pool provides and capital private the our of to fairly we're good aggressive way. that's for what an is sector really solutions

to allocated going in continue And to that position. I capital a So watch. to expect sector be is I going that the of think more is this increase. We're very to X interesting areas differentiated the meaningfully the

Jack Weingart

has LPs significantly. only in amplify the John's to expanded comments breadth would add, this Yes. interested I just that area of

raised about raised And LP RISE the since ago, -- first If opportunity, ago. base in climate the has X the think awareness areas fund these of capital certainly, needed years years the we our X significantly. last investment the X, X fund first was expanded or you among Rise the we

increased be number more around years wave identified that across we were LPs LP case any for as of or climate have they of as X fundraising them important capital next constrained who ago, upon this So than today may generally, area X embark investment it one an think is while the the significantly. has I the world this

Operator

comes with The from Adam UBS. Beatty question next

Adam Beatty

making on follow sort bit to estate. side. a potential multi-decade maybe opportunity. want up for little I of about real Jon on time staying estate, more I your before Thanks. on On the I us. real intriguing, was equity appreciate what said

certain right now, sciences. TPG housing, of of subsectors, is areas light real more So in industrial, estate life the some positioned resilient

wondering involvement a real favored the maybe maybe office retail? and sectors then or of whether some Just the you what seeing those thinking value-add thumbnail you're less areas or investment just quick And the triple brings like in and areas about in opportunities estate could, Gordon net. deepening of if Angelo in

Jon Winkelried

very are our -- that and what's of I that's terms investing it. say and about a say got I being investing of as know, sector Yes, we're us deliberate where think underpinning capital strategy, sort how focused, would and core would been in we're here sort I you of we very

actually, perspective, work on if from sort we our like, investing opportunity marched I fundamentals favorite general, to the us. felt valuation for And the instance, is we wasn't of one we that equity of wait respect with the sectors that upon at in say, way, sectors that until have at a the opportunity the done things And so a kind in approach to on look maybe question over do time, that's your our we some different of on them. less side yet like either perspective areas, or hospitality. did there would of is And quite looked by

uncertain through until actually investments it. and office term, that of Codian we that think ] an probably market to side enough opportunities compelling office right in got now, But in near now, saw of of We have TPG involved think see our sort But the sufficiently dislocated watch to obviously, not there. view I portfolio. make and we to I [ in on retail continue right our couple opportunity exposure we is think really respect don't the efficiently much we been we X% hospitality a as space. . With the I

not probably going to anytime that an we're soon. it's area go So

like what market the of kind and in sort now capital. interesting we for seeing that those desire of know the I which things in of still creating very, investors' to a really larger is we're -- that, still sectors the remarks, liquidity the fundamentally right we're prepared discrete that actionable now and what's result and very need think happen seeing is of in I certain a we that right it's more because need sectors. fundamentals like where And core dynamic kind of about said my as opportunities well, we --

office in take Europe exposure of private been right now, XX% we're an portfolio, office they've the doing So industrial, within the process that they're and XX% that is sort of example, about as that's in doing exiting the that.

it's of the part really down dam play. of the a Germany. watching while. been It's And it's an market the that into sort water industrial really So a industrial between and we've corridor for ports

that Hard the we've harder data it, watched thought much the with entry pay centers. so with a get deployed. capital Virginia, to but be situation for point gave basically it And in which an engaged for are enter, data the without that to while. it's to Northern able A area was having similar sort us this enough access that -- in market is of or do in to an we to centers either to Harder too we compelling. core enter

So us opportunity the that. do this to gave

We're signed we sort think of to very is we hopefully that industrial on that core core also in soon of is industrial. it kind deal another North that as America, to working relates

these and result And think just as general opportunities dislocation. now they're we are risk-reward a of pricing. So great the

So focused that. on think we'll I be continue to

different I Gordon On was One, haven't the we does that of my effort. a that business side, things as number penetration geographical us had. combined for Gordon the Angelo mentioned in a remarks Angelo historically as

has So enter the it's been now. for Gordon that as very business, And in an Asia market. some to hard market example, time Angelo

potentially firm a able that. us to on Asia to think to real opportunity think I on So footprint of our continue continue an grow and AG's to PE the the footprint in side, as to And compelling kind provides I be opportunity a side that. estate for scale

We build that. to continue

financing product actually to lease net the a environment, and And lot for of of this a banks availability, Angelo is Gordon cost-effective the in on a On to that to the in side, gone looking are regional leasing is lease think given the what's use acquisition. with we looked at financing. that net prior I financing assets in net corporates lack get respects order business

on strategy of net think So AG. to lease the core actually to we good in environment our is this try what pretty a is build

but us it, So you'll hear about our perspective. from more that's

Operator

comes question next from with The . Luke Mason BNP Paribas.

Luke Edward Mason

but detail Appreciate HX. was more on in is next question FRE week, XX% which my Gordon's margin,

quickly how up. wondering you that Just can scale think

mentioned of time you a the the previously enjoy running XXs TPG than going like think the I shouldn't on in is FRE longer more margin mid-XXs stand-alone? be

Jack Weingart

Yes, good question.

was like to important grow the platform the things to super insurance breadth market. We of thought the of coverage right things of the for about really Angel Gordon it of having how we platform. liked credit But multi-strategy the about we will this one more John us about virtually and from. every next But as important talk that about the private week. is talked aspect

all operating Now built support it's out that. fully of businesses, each have each operating expensive those support platforms businesses. to an to of to support also scalable those build and platform to they

as come their we firm, will find get additional expect as a operate now businesses. margin. and that So and together together we combined to synergies We their scale better ability absolutely

a platform, company were for think time your is into see get I their And Our -- we expansion margin over XXs we that TPG beginning absolutely comments margin. a for what now focused if the should basis, is the we're getting And stand-alone that same saw business. combined correct. combined scale stand-alone the and our on on -- now it combined really, opportunity credit

Operator

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

Gary Stein

Great. and quarter. taking back to look Thanks, us if again today next we'll questions, any you speaking please for to to And busy joining thanks, Otherwise, for Angela, to follow-up Thank such everyone, feel circle us. it. day you have you. a on forward appreciate free

Jack Weingart

Thanks, everyone.

Operator

webcast. Quarter Third Earnings TPG XXXX today's Call concludes and This

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

TPG (TPG) 7 Nov 232023 Q3 Earnings call transcript