TPG's AUM up 19% in first year after IPO; firm extends flagship fundraising

TPG in its first year as a public company reported assets under management of $135 billion as of Dec. 31, flat from three months earlier, but up 19% from 12 months earlier.

TPG executives chose to go public as they were beginning to raise the latest vintages of their flagship funds "so TPG's public shareholders could share in our accelerated growth," said Jon Winkelried, TPG director and CEO, during an earnings call Wednesday.

During 2022, TPG raised $30 billion, including $3.6 billion in the fourth quarter; that compared with $20.5 billion in 2021, including $2.8 billion in the fourth quarter of that year. TPG held early first closes across all its flagship funds, including buyout fund TPG Partners IX, health care-focused private equity fund TPG Healthcare Partners II, Asia-focused buyout fund TPG Asia VIII and impact investing-focused private equity fund The Rise Fund III.

In April, TPG held a final close of TPG Rise Climate at its $7.3 billion hard cap. But TPG is "not immune to the fundraising challenges our industry is facing," Mr. Winkelried said.

TPG executives expect to extend fundraising for its flagship funds "through the remainder of this year given ongoing challenges in the fundraising market," he said.

During 2022, TPG invested $16.6 billion, including $5.7 billion in the fourth quarter. But it might be more difficult to make investments in 2023, Mr. Winkelried said.

"There was a more active environment for deployment as we got toward the end of the year," he said. "Now, it feels like … there's another little pause in the market. Because I think people's expectations on price are maybe going back up. I don't know whether that's well founded or not, but I think they're going back up."

TPG reported GAAP net income of $24 million in the fourth quarter and $92 million for the year ended Dec. 31.