TPG attributed the year-over-year AUM increase to $15 billion in capital raised and $7 billion in value creation, which was partially offset by $10 billion in realizations.
TPG raised $1.5 billion in the second quarter, down from $2 billion in the first quarter and a drop from $12.7 billion in the second quarter of 2022.
When asked by an analyst whether TPG is offering investors incentives to commit capital to its funds, Jack Weingart, chief financial officer and director, speaking on the same earnings call, said TPG could offer big limited partners incentives to seed new investment strategies.
"Around incentives, look, I think everyone in the industry is getting, is finding the largest LPs in the market to be good partners in helping build new businesses and that comes in lots of different forms," Mr. Weingart said.
TPG invested more than it took in during the second quarter, $2.8 billion in the second quarter, down from $2.3 billion in the first quarter and down from $3.8 billion in the year-earlier quarter.
Realizations also trended down compared with prior quarters at $1.3 billion in the second quarter, down from $2.3 billion in the prior quarter and down from $4.4 billion in the quarter ended June 30, 2022.
However, TPG executives said the firm is not under pressure by investors that want more money back. Mr. Weingart said TPG was more aggressive than its peers in selling assets in 2021.
"There's definitely a lot of pressure on GPs (general partners) in the market who have not returned a lot of capital and have a lot of unrealized investments in their fund," Mr. Weingart said.
TPG has a younger portfolio than average in the industry, and TPG executives are now more focused on building value in that portfolio more than selling assets, he said.
