TPG Inc Q4 2024 Earnings Call Transcript

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

Question: Ken Worthington - JPMorgan - Analyst : Hi. Good morning. Thanks for taking the question. I wanted to follow up on your annual TPG Partners meeting. You mentioned the doubling of AUM in the coming years. Where do you place a bigger presence in an opportunity for insurance in your list of priorities, which you commented being credit climate growth in wealth as you highlighted, what is important? And were there themes that either reoccurred throughout your gathering or that you think might be helpful to shareholders as we think about the next couple of years here?

Question: Alex Blostein - Goldman Sachs & Co - Analyst : Hi, good morning, everybody. Just maybe to build on that, Jon, when it comes to insurance, we've talked about it for a couple of quarters now. Maybe you just remind us how important is it for TPG to remain fairly balance sheet light and capital light as you valued various insurance opportunities out there. And a bit of a follow up to that, not so much related to insurance, but to partnerships broadly. We've seen a number of alternative asset managers form partnerships with some of the larger traditional firms, more in the JV fashion, more in kind of product creation and distribution. How important is that for you guys as you're thinking about your plan over the next couple of years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 11, 2025 / 4:00PM, TPG.OQ - Q4 2024 TPG Inc Earnings Call

Question: Michael Cyprys - Morgan Stanley - Analyst : Great. Thank you. Good morning. Just coming back to your commentary around -- looking to double AUM over the next several years, it sounds like that could maybe be under five years. Maybe I'm putting words in your mouth, but is that fair? Just how are you thinking about that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 11, 2025 / 4:00PM, TPG.OQ - Q4 2024 TPG Inc Earnings Call You also mentioned five of the biggest drivers, just curious which of those do you see as the most meaningful or two? How much would you anticipate from organic versus inorganic? And then on the inorganic side maybe just remind us of your hurdles, that criteria, if you can elaborate on some of the areas that you're thinking about you mentioned broadly infrastructure and geographic expansion. Thank you.

Question: Glenn Schorr - Evercore ISI - Analyst : Hello there. So I appreciate the aspiration versus target and there's a lot of moving parts, and we idiots always trying to pin you down to number, so I apologize. Curious within this conversation about the asset growth and all the drivers underneath. How do you think about FRE alongside with that? Meaning, can it grow in lockstep with the asset growth given more drivers? And if you had any thoughts on how to define significantly more capital being raised next year, that would be great also. Appreciate it. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 11, 2025 / 4:00PM, TPG.OQ - Q4 2024 TPG Inc Earnings Call

Question: Brian Bedell - Deutsche Bank - Analyst : Good afternoon, folks. Question on the -- I guess it's a two part question. One on how you're seeing the the impact from the partnership with Intersect Power, your portfolio company and Rise Climate and Google in terms of the, I guess, just first of all, the financial impact to TPG from that partnership? And then longer term, the potential for more of these types of partnerships in growing the Impact platform broadly? And I guess just linking into the $500 billion to what extent do you see the opportunity and impact and the infrastructure, assuming that you're going to keep infrastructure in the Impact platform to this to be the fastest grower in your business overall, maybe even to get to the size comparable to the capital platform in five years.

Question: Mike Brown - Wells Fargo Securities, LLC - Analyst : Okay. Great. Thanks for taking my question. So lots of commentary on the management fee dynamics in the fourth quarter and if there the pieces are in place for growth here in 2025, but just given some of the noise here, I was just hoping to maybe narrow in on the quarter-over-quarter movement in 1Q and maybe just the right range to consider here as we think about our forecast here for 1Q. Thank you.

Question: Arnaud Giblat - BNP Paribas - Analyst : Yeah. Good morning. Just a quick question on Intersect. If I have heard well, it's an $20 billion opportunity with Google. I'm just wondering how the economics of this is captured whether this is through a fund or through co-invest or what are the economics with that deal? Secondly, if I could just have a quick follow-up in bridging the growth in AUM and fee-paying AUM in the capital and infra growth. I was wondering if there was any co-invest, I guess, that gets captured in the AUM that probably -- that would never then turn fee paying. Is there any of that or is this just a timing of activation thing?Thank you.

Question: Dan Fannon - Jefferies - Analyst : Thanks. Good morning. I wanted to follow up on credit performance. And as we think about this past year, one year kind of post integration of the deal curious about just kind of the growth outlook where you are in kind of maximizing the integration and kind of pro forma leverage of the combined businesses as we think about 2025 and beyond.