# TPG Inc. (TPG) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/TPG/thesis · /stocks/TPG/memo

## Financial Snapshot

---
source: coverage-next-full | ticker: TPG | step: "04" | created: 2026-05-29
type: step
step_number: "04"
title: Financial Snapshot
ticker: TPG
company: TPG Inc.
---

### Step 04 — Financial Snapshot

#### Critical Framing Note

**GAAP financial statements are largely uninformative for TPG.** The UP-C partnership structure causes most economic income to be allocated to NCI (non-controlling interest — OpGroup partners), resulting in minimal GAAP net income attributable to Class A shareholders. Additionally, mark-to-market accounting on investment portfolio creates extreme GAAP P&L volatility. Analysts, management, and investors universally use **FRE** and **After-Tax Distributable Earnings** as the economic metrics.

---

#### AUM Overview (Most Important Operational Metric)

| Period | Total AUM | Fee-Paying AUM | Capital Raised (FY) | Notes |
|--------|-----------|----------------|---------------------|-------|
| Q4 2021 | ~$114B | ~$82B | ~$20B | IPO base |
| Q4 2022 | ~$135B | ~$97B | ~$28B | Organic growth |
| Q4 2023 | ~$220B | ~$123B | ~$31B | Angelo Gordon (+~$73B) |
| Q4 2024 | ~$239B | ~$141B | ~$29B | Moderate year |
| Q4 2025 | ~$303B | ~$177B | ~$36.4B | Record fundraising |

**AUM CAGR FY2021-FY2025:** ~27.5% (includes Angelo Gordon)
**Organic AUM CAGR (ex-acquisition):** ~13-15%
**FPAUM CAGR FY2021-FY2025:** ~21%

---

#### Fee-Related Earnings (FRE) — Core Economic Metric

| Period | FRE | FRE Margin | FRE Growth YoY |
|--------|-----|------------|----------------|
| FY2021 | ~$280M | ~32% | N/A |
| FY2022 | ~$418M | ~33% | ~+49% |
| FY2023 | ~$513M | ~39% | ~+23% |
| FY2024 | ~$764M | ~42% | ~+49% |
| FY2025 | ~$1,091M | ~45% | ~+43% |
| Q4 2025 | ~$340M (annualized ~$1.36B) | ~52% | +72% YoY |

**FRE CAGR FY2022-FY2025: ~37.6%** — among the highest in the peer group

**Key driver of FRE margin expansion:**
- Fixed cost base (tech, finance, compliance) relatively stable
- Management fees growing with AUM
- Angelo Gordon integration synergies ($50-75M/yr estimated)

---

#### After-Tax Distributable Earnings (DE)

| Period | After-Tax DE | DE/Share (diluted) | Dividend/Share |
|--------|-------------|---------------------|----------------|
| FY2023 | ~$650M | ~$1.51 | ~$1.40 |
| FY2024 | ~$900M | ~$2.08 | ~$1.50 |
| FY2025 | ~$1,300M (est.) | ~$2.90 (est.) | ~$1.60-1.65 |
| Q4 2025 | $304M | $0.71 | ~$0.40 |

---

#### GAAP Income Statement

| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|--------|--------|--------|--------|--------|
| Total Revenues | ~$1.5B | ~$1.9B | ~$2.4B | ~$3.0B |
| Management/Advisory Fees | ~$900M | ~$1.1B | ~$1.5B | ~$1.9B |
| Performance Allocations | ~$400M | ~$500M | ~$600M | ~$800M |
| Investment Income | ~$200M | ~$300M | ~$300M | ~$300M |
| Total Expenses | ~$2.0B | ~$2.3B | ~$2.7B | ~$3.1B |
| GAAP Net Income (Loss) | (~$500M) | (~$400M) | (~$300M) | (~$100M) |
| NCI attributable | Large negative | Large negative | Large negative | Large negative |
| Class A Net Income | ~$50-100M | ~$100-150M | ~$150-200M | ~$200-250M |
| EPS (GAAP, diluted) | ~$0.25 | ~$0.45 | ~$0.55 | ~$0.65 |

**Note:** GAAP EPS is depressed by: (1) NCI allocation, (2) amortization of Angelo Gordon intangibles (~$400M/yr), (3) SBC charges, (4) TRA liability adjustments. None of these items affect cash earnings.

---

#### Balance Sheet Snapshot

| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|--------|--------|--------|--------|--------|
| Total Assets | ~$5.2B | ~$14.8B | ~$15.2B | ~$16.0B |
| Cash & Equivalents | ~$900M | ~$850M | ~$826M | ~$900M |
| Investments (fund interests) | ~$2.5B | ~$3.8B | ~$3.9B | ~$4.2B |
| Goodwill + Intangibles | ~$0.5B | ~$5.5B | ~$5.1B | ~$4.7B |
| Total Liabilities | ~$2.8B | ~$9.8B | ~$10.2B | ~$10.5B |
| Long-term Debt | ~$1.1B | ~$1.8B | ~$1.72B | ~$1.70B |
| TRA Liability | — | ~$1.5B | ~$1.4B | ~$1.3B |
| Total Equity (inc. NCI) | ~$2.4B | ~$5.0B | ~$5.0B | ~$5.5B |

**Balance Sheet Notes:**
- Goodwill jump in 2023 = Angelo Gordon acquisition (~$4.5B goodwill + intangibles recorded)
- TRA (Tax Receivable Agreement): obligation to pay pre-IPO partners ~85% of tax benefits from basis step-up; reduces future cash tax payments but creates ongoing liability of ~$1.3B
- NCI makes total equity figure meaningless for Class A analysis; use enterprise value framework

---

#### Cash Flow Summary

| Metric | FY2023 | FY2024 | FY2025 |
|--------|--------|--------|--------|
| Operating Cash Flow | ~$700M | ~$850M | ~$1.1B |
| CapEx | ~$30M | ~$35M | ~$40M |
| Free Cash Flow | ~$670M | ~$815M | ~$1.06B |
| Dividends Paid | ~$400M | ~$480M | ~$550M |
| Acquisitions (net) | ~$2.7B | ~$0 | ~$200M |
| Debt Repayment | — | ~$80M | ~$70M |

**FCF Conversion (FRE → FCF):** ~90-95% — very high for an asset-light management business
**Dividend payout on FCF:** ~50-55% — leaves room for co-investment commitments and small acquisitions

---

#### Angelo Gordon Acquisition Financial Impact

The acquisition of Angelo Gordon (closed October 2023) was transformational:

| Metric | Pre-Acquisition | Post-Acquisition (2024+) |
|--------|-----------------|--------------------------|
| AUM | ~$135B | ~$220B+ |
| Credit AUM % | ~10% | ~35%+ |
| FRE | ~$418M | ~$764M → $1,091M |
| Amortization burden | ~$50M/yr | ~$400M/yr (acquired intangibles) |
| Integration costs | — | ~$50M one-time (FY2024) |
| Synergies (realized) | — | ~$50-75M/yr (by 2025) |

**Cost:** $2.7B in cash (~$1.8B) + TPG stock (~$0.9B)
**Multiple paid:** ~4-5x management fee revenue; ~10x FRE (on Angelo Gordon standalone)
**Strategic verdict:** Strategically sound — added credit scale that would have taken 5-7 years to build organically; accretive to FRE within 18 months of close

---

#### Key Financial Ratios (Peer-Comparable)

| Metric | TPG (2025) | BX | KKR | ARES |
|--------|-----------|-----|-----|------|
| Total AUM | $303B | $1.1T | $620B | $470B |
| FRE | $1.09B | ~$6.5B | ~$4.5B | ~$3.2B |
| FRE Margin | 45% | ~55% | ~55% | ~50% |
| P/FRE | ~6x* | ~23x | ~20x | ~21x |
| Price/AUM % | ~2.2% | ~12% | ~10% | ~8% |
| FRE/AUM | ~0.36% | ~0.59% | ~0.73% | ~0.68% |
| Dividend Yield | ~4.9% | ~3.5% | ~1.5% | ~3.0% |

*TPG P/FRE based on total firm FRE ($1.09B) vs. total enterprise market cap (~$17B estimated including NCI value). On Class A float only ($6.7B market cap) the P/FRE appears very low, but this is misleading — must use total firm economics.

---

#### Financial Quality Flags

| Flag | Severity | Detail |
|------|----------|--------|
| GAAP earnings uninformative | HIGH | NCI + intangible amortization distort Class A EPS |
| Goodwill ($4.7B) = 30% of assets | MEDIUM | Angelo Gordon; no current impairment risk but watch |
| TRA liability ($1.3B) | MEDIUM | Real cash obligation; unfunded; paid over years |
| Ongoing dilution | MEDIUM | OpGroup unit-to-Class A conversions ~6%/year |
| Carry lumpiness | LOW | Expected; disclosed; build into scenarios not base case |
| Debt ($1.72B) | LOW | Manageable; ~1.6x FRE; investment grade credit profile |

---

#### Summary

TPG's financial profile is that of a high-quality, capital-light management business with exceptional FCF conversion, growing management fees locked in by long-duration contracts, and an FRE margin trajectory pointing toward 50%+ over the next 2-3 years. The GAAP income statement is structurally misleading; the true economic performance is best captured by FRE ($1.09B in FY2025, growing 40%+/year) and After-Tax DE ($1.3B estimated FY2025). The balance sheet is clean ex-acquisition goodwill, and the cash generation capacity comfortably supports the dividend and ongoing GP co-investment commitments.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/TPG/fundamental

## Navigation

- Overview: /stocks/TPG
- Financials (this page): /stocks/TPG/financials
- Thesis: /stocks/TPG/thesis
- Investment Memo: /stocks/TPG/memo
- Coverage universe: /stocks