TPG Inc at Morgan Stanley US Financials, Payments & CRE Conference Transcript

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

Question: Mike Cyprys - Morgan Stanley - Analyst : So let's kick off with the Angelo Gordon acquisition. It's been about six months or so since you guys closed in on the transaction. That significantly diversifies the business. It brings you into the private credit space. And the size, it scales your real estate platform in a meaningful way. It's been 6 months since you closed the deal. Maybe just update us on the integration. What are your priorities now? And have your views evolved with respect to revenue and expense synergies there?

Question: Mike Cyprys - Morgan Stanley - Analyst : Any particular sort of figures you've shared with folks just on revenue or expense synergies as you kind of walk it out here?

Question: Mike Cyprys - Morgan Stanley - Analyst : Maybe just coming back to a comment you made around needing two financial covenants within your direct lending business that's focused more on the lower middle market. Maybe kind of picking up on our conversation we had just before we came up here on the stage. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 11, 2024 / 7:15PM, TPG.OQ - TPG Inc at Morgan Stanley US Financials, Payments & CRE Conference Maybe you could just talk a little bit a bit about how your structure's maybe differ from what you see happening at the larger end of the marketplace, where we are starting to see some cracks, whether it's a software LBO transaction that's been in the news and topical amongst investors, what do you see happening there? And how are you guys positioned?

Question: Mike Cyprys - Morgan Stanley - Analyst : So perhaps different dynamic in the lower end of the market and maybe an opportunity for your credit solutions business at the upper end.

Question: Mike Cyprys - Morgan Stanley - Analyst : To the extent that there is a need for capital there. Maybe staying with credit here, right? So you have three platforms within credit. You have the direct lending, there's credit solutions and also structured credit. Maybe just talk a little bit about your approach to sourcing. I believe you recently mentioned that you are out originating the sort of embedded capital base. So I guess what gives you conviction in that? How much origination capacity would you say the platform has today? And how do you think about expanding that over time?

Question: Mike Cyprys - Morgan Stanley - Analyst : Great. Why don't we shift gears, move over to private equity. You've suggested that you're on track for a three to four-year deployment cycle in private equity. Can you talk about the pipeline, the opportunity set that you see in the market? And what might help catalyze a more meaningful acceleration in deployment activity?

Question: Mike Cyprys - Morgan Stanley - Analyst : Great. So it sounds like robust pipeline on the deployment side even still this year, just kind of the composition or mix here is maybe shifting a little bit. And I appreciate the added data points on the portfolio health, particularly in capital and in the growth franchise, which, that kind of lends itself to sort of a question just around the exit environment, right? You mentioned some valuations you see in the marketplace maybe a little frothy, keeping you from maybe being more active on the deployment side. But does that make you more active on the realization on the exit side? How are you seeing that shape up?

Question: Mike Cyprys - Morgan Stanley - Analyst : Great. So we have about four minutes left. I want to combine the last two questions just to make sure we have time to get to them, and that is on private wealth and also insurance. On the insurance side, you've mentioned that you are exploring, and thinking about some ways of sort of partnering. Just curious, any sort of updates how you're thinking about the approach that you might take. Some have sort of acquired insurance companies. Others have partnered and gone a capital-light route. Is there room for a third way, a middle approach, or is there an approach that you guys are thinking about? And then the other piece, just more broadly on private wealth, just how you're seeing the opportunity set in terms of your product pipeline?

Question: Mike Cyprys - Morgan Stanley - Analyst : Great. I'm afraid we'll have to leave it there. Please join me in thanking Jon Winkelried. Thank you for your time.