TPG Inc at Bank of America Financial Services Conference Transcript

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

Question: Craig Siegenthaler - Bank of America - Analyst : Jack, let's start with the macro setup. You've entered year three of the bull markets. IPOs are -- have started to -- are expected to start to rebound. The yield curve has steepened. There's record money market AUM on the sidelines. What are your expectations for both fundraising and transactions in 2025?

Question: Craig Siegenthaler - Bank of America - Analyst : So Jack, let's talk about long-term growth. TPG has grown very quickly since the 2022 IPO, and is well positioned for multiple secular themes. What is your growth outlook? And how much of a role will the flagship funds play versus new products via innovation?

Question: Craig Siegenthaler - Bank of America - Analyst : Thank you, Jack. You addressed part of this earlier, but I wanted to see if you could refine the response. What are the key product gaps today? And specifically with them, do you have any thoughts on how you'll look to address them between organic, inorganic team lift out?

Question: Craig Siegenthaler - Bank of America - Analyst : -- Gordon, how has the deal been tracking since you closed it?

Question: Craig Siegenthaler - Bank of America - Analyst : So Jack, I wanted to talk about your portfolio positioning, especially in the Capital business, which is very different than your peers. When I look at it, I see a lot of tech, kind of really software, a lot of healthcare. These were areas that did very well in 2021. These are areas that I think did not do as well when we had that 500 basis points shock. But now fast forward today, if you look at the IPO pipelines out there, it's mostly tech and health care. So it looks like they're doing really well again. What is your perspective on how the underlying fundamentals have trended? And if this is a rich IPO pipeline for these areas, TPG should be pretty well positioned.

Question: Craig Siegenthaler - Bank of America - Analyst : Jack, one of your more differentiated businesses is growth, capital where you're an industry leader. This business supplies capital to younger, higher growth companies, actually not necessarily younger, but higher growth companies. And a good example, I think, was your previous investment in Uber. And it allowed them to remain private much longer. My question is, how has this business performed since 2000, 2001, given the 500 basis point rate shock, but then we've had a -- we're in year three of the bull market today? 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 12, 2025 / 6:50PM, TPG.OQ - TPG Inc at Bank of America Financial Services Conference

Question: Craig Siegenthaler - Bank of America - Analyst : So Jack, I know you're very focused now on growing in the private wealth channel. I think over the last decade, you mainly used that to raise some capital inside your longer term drawdown strategies. But what are your plans for the future there? And will semi liquid products be more in the mix?

Question: Craig Siegenthaler - Bank of America - Analyst : I think on the semi liquid side, growth, capital, impact, there might be some good products there.

Question: Craig Siegenthaler - Bank of America - Analyst : Let's jump into the insurance channel. This is an area where you're not as visible as some of the other large cap alts. I mean you have insurance clients, and I'm curious to see what percent of AUM comes from them. But now that you have Angelo Gordon, you have a real private credit manager. What are your thoughts on building something -- and we have a lot of different varieties out there. We have the capital-intensive model, we have the capital-light, zero liability model. Which one attracts you more?

Question: Craig Siegenthaler - Bank of America - Analyst : Got it. Let's move on to the operating margin story. And Jack, one of my favorite things about TPG is that your margin is not as high as peers. And I like it because, as you drive operating leverage, it's going to enhance your earnings growth. And it's something that some of them don't have anymore because their margins are so high. So I wanted your perspective on how you plan to drive operating leverage going forward?

Question: Craig Siegenthaler - Bank of America - Analyst : Great. And I think with that, we are actually out of time. So Jack, on behalf of all of us at Bank of America, just want to thank you for joining us.