TPG Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Craig Siegenthaler - Bank of America - Analyst : So we had a follow-up on the private wealth channel. So on the product side, I'm curious, what is the expected flow contribution or trajectory from T-POP and TCAP over the next year? And it sounds like T-POP may actually start flowing pretty similarly -- inside of 2Q '25. And then just a follow-up on the RIA channel. Jon, I heard your comments around structuring innovative partnerships. Do you expect to launch an interval -- with third-party private credit managers, just given the unique requirements to that channel?

Question: Kenneth Worthington - JPMorgan - Analyst : So going to transaction and other fees, it clearly jumped a lot this quarter. You mentioned the build out of Capital Markets. I guess maybe first, are those capabilities fully or largely built out and launched at this point? And if not, how far along the ramping process are you? And then maybe digging a little deeper into 1Q '25 specifically, why so strong? Like deployment was down this quarter, what was it about either the type of transactions or the asset classes or the nuances in 1Q contributed to the magnitude of the increase that we saw. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 3:00PM, TPG.OQ - Q1 2025 TPG Inc Earnings Call

Question: Alexander Blostein - Goldman, Sachs & Co. - Analyst : My question is around private equity. Obviously, this continues to be an area of probably most concern given the changing backdrop we've seen over the last 1.5 month here. I was very encouraged by your comments around fundraising and the way you're thinking about both capital and health care launches in the middle of the year. So I was hoping you could expand on that a little bit and maybe what gives you confidence on being sort of able to get these done this year or get, I guess, the first close is done this year. How is LP makeup shaping up maybe relative to your existing base? And are there any sort of discounts or incentives that you feel like you have to put into place to get these campaigns off the ground? So effectively, just kind of hoping to go through some of these details a little bit more. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 3:00PM, TPG.OQ - Q1 2025 TPG Inc Earnings Call

Question: Glenn Schorr - Evercore ISI - Analyst : So I heard all the comments about the broadening in general across TPG, which I think we all like. See if we could drill down a little bit more on credit and to see where you think you need to broaden and deepen your scale across credit. Obviously, Angelo Gordon was a great addition. But what you need to add on to be like more, I don't know if full service is the right word, but that's what I'm thinking about. And? Then within that context, we've seen cyclical pressures on insurance-related spread earnings across the industry. And I know that's an area where you've been thinking about a lot. So I'm just curious if any of the market-related pressures that we've seen lately change how you go about thinking about broadening in insurance as well. Sorry, it's a two-part. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 3:00PM, TPG.OQ - Q1 2025 TPG Inc Earnings Call

Question: Brian Bedell - Deutsche Bank - Analyst : Maybe just a shift to the Impact platform. I think you talked about the elongated sales cycles. Is -- I guess the question is, are you seeing a big difference in the US versus outside the US in terms of the perception around policy uncertainties? In other words, is it slowing down in the US for both -- I guess, both for both deployment prospects on the Impact platform as well as fundraising? And I guess, are you seeing more opportunity outside the US? And I know you mentioned the global South deployment. So maybe just some color around those two dynamics going forward.

Question: Brian McKenna - JMP Securities - Analyst : So a couple of questions on the Peppertree acquisition. Where does fee-earning AUM stand today? And what's the average fee rate for the business? And then Peppertree has grown its underlying flagship funds by about $500 million over the last few vintages. So how should we think about the size of these flagship funds over time once formally integrated into TPG? And then it looks like the flagship fund is in the market every two years, so should we expect Fund XI to commence fundraising this year?

Question: Michael Cyprys - Morgan Stanley - Analyst : Maybe just circling back to some of the commentary you had alluded to earlier in your prepared remarks around hearing about clients evaluating geographic diversification. I was just hoping you could elaborate a bit on that just given policy changes here in the US and around the world. Just curious how you're thinking about positioning for that given you guys run more of a global fund structure. What's the opportunity set as you think about it from a product standpoint for maybe more regional specific or country-specific funds? And then maybe you could just remind us on your exposure to China from an investment portfolio and LP capital piece.

Question: Michael Brown - Wells Fargo - Analyst : So I just wanted to ask on the FRE margin. So if the -- some of the fundraising, the elongation there, causes some of your fundraising to slip quarter, does lower catch-up fees kind of impact your FRE margin in 4Q? And then is it fair to assume that Peppertree is accretive to your margins? And is that included in your 4Q FRE margin comment?