TPG Inc. Reports 433% Revenue Growth, Net Loss in Latest Quarter

TPG Inc. reported significant financial growth in its latest 10-Q filing for the quarter ending September 30, 2024. Total revenues surged to $855.4 million, a remarkable increase of 433% from $160.4 million in the same quarter of 2023. For the nine months ended September 30, 2024, revenues reached $2.42 billion, up 72% from $1.41 billion in the prior year. This growth was primarily driven by a substantial rise in management fees, which totaled $410.8 million for the quarter, reflecting a 47% increase from $278.9 million in 2023. The acquisition of Angelo Gordon, completed on November 1, 2023, contributed significantly to this increase, adding $133.4 million in management fees.

Performance allocations also saw a dramatic turnaround, with TPG reporting $308.0 million for the quarter, compared to a loss of $200.1 million in the same period last year. This recovery was attributed to improved fund performance across various platforms, particularly in Capital and Growth. However, total expenses for the quarter rose sharply to $867.1 million from $256.2 million in 2023, largely due to increased compensation and benefits expenses, which amounted to $671.7 million, up from $139.0 million in the prior year.

Despite the revenue growth, TPG reported a net loss of $21.4 million for the quarter, although this was an improvement from a loss of $94.7 million in the same quarter of 2023. For the nine-month period, the net loss was $88.0 million, compared to a loss of $19.0 million in the previous year. Basic net income per share for the quarter was $0.04, down from $0.14 in 2023.

Strategically, TPG's acquisition of Angelo Gordon for $1.14 billion, which included $740.7 million in cash at closing, has enhanced its capabilities in credit and real estate investments. The acquisition is expected to bolster TPG's asset management platform, which now totals approximately $239.1 billion in assets under management (AUM), up from $136.1 billion a year earlier.

As of September 30, 2024, TPG's total assets were reported at $10.52 billion, an increase from $9.37 billion at the end of 2023. Total liabilities also rose to $7.13 billion from $6.01 billion, primarily due to new debt obligations from the issuance of Senior and Subordinated Notes. The company’s cash and cash equivalents increased to $1.16 billion, reflecting a net change of $499.4 million during the nine months.

Overall, TPG Inc. is navigating a period of substantial growth and strategic expansion, particularly following its recent acquisition, while also managing increased operational costs and debt obligations.