TPG executives are aiming to double the firm’s assets under management to $500 billion “over the next several years,” possibly in less than five years, said Jon Winkelried, CEO during the firm’s Feb. 11 earnings call.
“I think that it's hard to predict exactly ... what kinds of opportunities are kind of realizable when,” Winkelried said on the call.
TPG reported $245.9 billion in assets under management as of Dec. 31, a 3% increase from the end of the prior quarter and up 11% year over year.
He noted that TPG raised $30 billion in 2024, a 54% increase from 2023 and the same as in 2022.
“We successfully grew private equity and infrastructure fundraising year over year, raising $14 billion in 2024,” Winkelried said. “Since our IPO, we've doubled our AUM to nearly $250 billion.”
Realizations from selling portfolio companies and other assets help the firm’s fundraising, said Jack Weingart, chief financial officer, during the same call. For example, in the private equity side of its business, capital and growth businesses “generated $35 million and $23 million, respectively, from monetizations primarily within the technology sector,” he said.
“Our clients remain very focused on DPI (distributions to paid in capital) as a key performance metric and our ability to drive successful realizations continues to be a real differentiator for TPG,” Weingart said. “This is particularly important as we look to significantly increase our capital raised in 2025.”
And while TPG executives expect to grow its AUM organically by launching new businesses and investment strategies such as a climate transition infrastructure fund that it launched in the fourth quarter, they are also on the lookout to buy another money manager, he said.
In November 2023, TPG closed its acquisition of $75 billion credit and real estate manager Angelo Gordon.
“We continue to evaluate inorganic opportunities that further increase the scale, origination capabilities, and diversification of our franchise,” Winkelried said.
