TPG Inc.

Please be advised that today's call is being recorded. Please go to TPG's IR website to obtain the earnings materials. I will now turn the call over to Gary Stein, Head of Investor Relations at TPG. Thank you. You may begin.

Gary Stein Great. Thanks, operator, and welcome, everyone. Joining me this morning are John Winkelried, Chief Executive Officer, and Jack Weingart, Chief Financial Officer. In addition, our executive chairman and co-founder, Jim Coulter, and our president, Todd Susitsky, are also here and will be available for the Q&A portion of this morning's call. I'd like to remind you this call may include forward-looking statements that do not guarantee future events or performance. Please refer to TPG's earnings release and SEC filings for factors that could cause actual results to differ materially from these statements. TPG undertakes no obligation to revise or update any forward-looking statements except as required by law. Within our discussion and earnings release, we're presenting GAAP and non-GAAP measures, and we believe certain non-GAAP measures that we discuss on this call are relevant in assessing the financial performance of the business. These non-GAAP measures are reconciled to the nearest GAAP figures in TPG's earnings release, which is available on our website. Please note that nothing on this call constitutes an offer to sell or a solicitation of an offer to purchase an interest in any TPG fund. Looking briefly at our results for the first quarter, we reported gap net income attributable to TPG Inc. of $25 million, and after-tax distributable earnings of $187 million, or 48 cents per share of Class A common stock. We declared a dividend of 41 cents per share of Class A common stock, which will be paid on June 2nd, 2025, to holders of record as of May 19th, 2025. I'll now turn the call over to John.

Thanks, Gary. And good morning, everyone. Yesterday, we announced that TPG had agreed to acquire Peppertree Capital Management. Peppertree is a leading specialized digital infrastructure manager with a focus on wireless communication towers. This acquisition leverages our deep sector expertise in communications and represents our further expansion into the digital infrastructure space. For our call today, Jack and I will first cover the current environment and our quarterly results, and then we'll provide some additional details on the Peppertree acquisition. We've witnessed a dramatic shift in the market environment over the last few months. Coming into 2025, there was broad-based strength across the economy, and confidence levels were near record highs. The market was anticipating meaningful earnings growth, accelerated M&A activity, and rising equity valuations. Several factors, including tariffs and general policy uncertainty, have upended the environment and created significant volatility. As a result, we're seeing unusual market correlations, renewed fears of inflation, and concerns around slowing economic growth. At TPG, we remain focused on executing our business and driving growth. Our leadership team has navigated through many cycles, and one of our core beliefs is that staying engaged and highly connected is critical during times like these. In my conversations with leaders of some of our largest strategic partners globally, I'm observing several consistent themes. Clients are adjusting their expectations around performance and liquidity in their portfolios, and they're evaluating the geographic diversification of their investments. At the same time, our clients are looking to partner with us to take advantage of opportunities created by the current environment and to leverage our global franchise. With respect to our portfolio, we entered this period with significant momentum, including strong top line and earnings growth. We've assessed the direct exposure across our investments to recent tariffs, and we see minimal first-order risk. While we expect uncertainty and market fluctuations to persist, our investment strategy, characterized by our intentional selection of sectors and themes, gives us confidence in the quality of our portfolio. And consistent with our dialogues with our largest clients, we're leaning into opportunities to deploy capital and play offense. As it relates to our capital formation efforts, we're seeing the benefits of strong connectivity with our clients. Despite a volatile environment, we continue to expect to raise significantly more capital this year than last. Several of our campaigns will likely elongate as clients manage through this period of disruption, but we remain very confident in our overall objectives. In credit, we have strong momentum. In prior quarters, we've discussed our focus on introducing our largest client relationships to our credit platform. Despite somewhat lighter credit fundraising in the first quarter, we're at an inflection point in our dialogues and have seen an acceleration in commitments to our strategies. In addition to the capital we raised in the first quarter, we have more than $3 billion of discrete credit mandates that have closed or are expected to close over the next several months. In private equity, we recently launched campaigns for the next vintage of our TPG capital and healthcare partners funds. We're receiving strong support from both existing and new clients, and we expect to hold sizable first closes around mid-year. In the next few weeks, we're launching the campaign of our second GP Solutions Fund. Our first fund is now approximately 85% committed, and we expect to raise a meaningfully larger successor fund. Additionally, in our impact platform, we continue to drive several ongoing fundraisers, including our RISE Climate Private Equity Fund, the Global South Initiative, and our Climate Transition Infrastructure Fund. We had a strong start to these campaigns and have raised more than 60% of our target, including capital that has been committed but will close at a later date. While fundraising timelines for climate-related strategies will be elongated due to policy uncertainty in the United States, we believe energy transition is a generational investing opportunity, and the strength of the RISE franchise continues to resonate with clients globally. TBG AG Real Estate held a successful final close for its fourth European fund. This campaign was mid-flight when we acquired Angelo Gordon, and it's a testament to the strength of our integration and the quality of our business that we successfully grew the fund to nearly $2.3 billion, a 50% increase from its predecessor. Broadly across fundraising, we're benefiting from the quality and depth of our relationships with our largest clients globally through the formation of strategic partnerships and customized solutions. Just last week, we established the largest strategic partnership in our history, which will span across private equity, credit, real estate, and infrastructure. This partnership, which represents over $4 billion of potential new capital, will accelerate scale and innovation across our investment strategies. It reflects the strong trust we've built with our clients as a result of our differentiated investment approach and long track record of delivering excellent performance. Overall, while not immune to the broader industry dynamics and macro uncertainty, our clients continue to recognize our differentiated investment performance, and in particular, the excellent DPI we're consistently delivering. I'd also like to provide an update on private wealth, which is a high priority growth area. Our private wealth strategy has several key elements, including building deep connectivity with leading wire house partners, accessing the RIA channel, and continuing to expand our team and product set. Since our last earnings call, we made meaningful progress. We recently launched TPOP, our new perpetually offered private equity vehicle, with two of the largest wire houses in the United States. We have longstanding high-quality relationships in the channel, and the level of engagement and interest in TPOP is high. In connection with the launch, Jim Coulter, Todd Susitsky, and over a dozen leaders from our private equity business led marketing events with key executives and financial advisors. Outside of the United States, we're taking a similar approach, and we'll be launching TPOP with one of the leading international private banks later this year. Over time, we expect to partner with additional banks to offer TPOP on their platforms. As it relates to the RIA channel, we're focused on enhancing our presence and footprint. We're actively structuring several innovative partnerships to extend our brand and increase the accessibility of our products for the RIA community. And finally, we remain focused on continuing to grow our private wealth team both domestically and internationally. As a result of our comprehensive approach, we've successfully launched TPOP and expect to begin seeing inflows over the next couple of months. With the introduction of TPOP, we've enhanced our product set for the private wealth channel, which includes TCAP, our non-traded BDC, and mortgage value partners, a key product in our structured credit franchise. We expect to continue to build our suite of private wealth products across private equity, credit, and real assets. Turning to deployment, we maintained a strong pace with $7.3 billion of capital invested in the first quarter and recently announced a number of interesting investments. In TPG growth, we agreed to acquire a significant stake in Cliffwater, a leading retail alternatives investment manager in the United States. The private wealth sector is one of our highest conviction thematic areas, and Cliffwater builds upon TPG's existing investments in Creative Planning and Homrick Berg. Rise Climate has agreed to partner with Siemens Gamesa to carve out its onshore wind turbine manufacturing and services business in India and South Asia. Siemens chose to partner with TPG given our strong climate investing credentials and key relationships in the industry. This will be the first investment for the Rise Climate Global South Initiative. And in our Asia Mid-Cap Growth and Buyout Strategy, PICA, we announced two transactions. First, the acquisition of Orange Valley and the proposed take private of Econ Healthcare, two leading private nursing home operators in Singapore. And second, the acquisition of a controlling stake in Five Good Friends, a technology-led home care disruptor in Australia. Looking ahead, as we've seen in prior periods of uncertainty, overall deal volume across the industry may moderate. However, currently our pipelines remain robust. The deal flow across our platforms is characterized by proprietary opportunities we've sourced off market and reflects our strong track record of structuring creative transactions, including corporate carve outs and take privates. Additionally, several of our investment strategies are particularly well suited for uncertain environments like this. Our GP led secondary strategy currently has a strong pipeline, which is benefiting from the growing pressure for GPs to generate liquidity at a time when options are limited. Another example is TPG Tech Adjacencies, which provides flexible, solutions-oriented capital for private technology companies. We expect the demand for TTED's capital to increase as the public markets remain largely shut and founders and businesses seek alternatives to fund growth and liquidity needs. And finally, Credit Solutions is well positioned given it provides bespoke, highly structured capital solutions to help companies resolve complex financing challenges. We anticipate there will be an increasing pipeline of private financing opportunities due to the heightened uncertainty and less receptivity from traditional sources of capital, such as banks. As it relates to credit deployment more broadly, Twinbrook had a strong first quarter with $1.8 billion of gross originations. Despite a more volatile market backdrop, we're seeing a steady pace of sponsor M&A activity, and our pipeline remains active. Additionally, as lead lender in almost all our transactions, Twinbrook's incumbency is a powerful source of embedded add-on activity that we have exclusive access to. In structured credit, activity continues to be robust as those markets have so far been less impacted by the current dislocation and volatility. Spreads in asset-backed securities and residential home loans have remained reasonably stable and asset portfolios continue to trade. Looking ahead, we believe there will be more opportunities to lend against assets as well as acquire asset collateral pools at attractive valuations, particularly as originators and banks look for creative ways to manage their risk and liquidity. In real estate, our deployment pace was intentionally modest during the first quarter. However, the impact of recent market volatility, uncertainty around interest rates, and a potential recession are creating increasing flows of actionable opportunities. We have $13 billion of dry powder on a combined basis for our real estate platforms, and our teams are evaluating a number of interesting investments in the U.S., Europe, and Asia. In addition, the opportunity set for TRECO, our real estate credit strategy, has continued to expand due to the ongoing pullback in bank lending activity and more volatile credit conditions in the debt capital markets. As we look ahead, our experience has been that periods of dislocation often create some of the most interesting investment opportunities. With $57 billion of total dry powder across the firm, we're in a strong position to take advantage of this environment. Turning to realizations, we continue to successfully execute on important exits and liquidity events. This includes the sell-down of some of our largest public positions, such as Viking Cruises, Lifetime Fitness, and the full exit of Nextracker. Additionally, we successfully completed two public listings, Dr. Argarol's Healthcare and OneSource Specialty Pharma in India, where over the last three years, we've taken 11 of our portfolio companies public, delivering strong returns for fund investors. And last month, we announced the sale of two TPG growth portfolio companies, Crunch Fitness and a leading healthcare technology company. These investments are expected to generate outstanding returns for our fund investors and demonstrate the quality and resilience of our portfolio. Year-to-date, we have realized approximately $1.8 billion in our TPG growth funds, including transactions that are signed but not yet closed. Additionally, consistent with our track record of driving organic innovation in areas where TPG has a right to win, last week we launched a new strategy, TPG Sports, in partnership with Rory McIlroy, Sean O'Flaherty, and the team at Symphony Ventures. This strategy will invest in businesses that are driving the sports ecosystem, which is benefiting from strong secular tailwinds and transformational growth catalyzed by new technology. TPG Sports was launched with a significant anchor commitment from Lunit, an important UAE-based strategic partner for TPG, and we expect to continue to raise capital over the coming quarters. As we look ahead, we are well positioned to navigate through this market dislocation. We remain highly focused on executing across our business and continuing to drive long-term growth and value creation for all our stakeholders. I'll turn the call over to Jack to discuss our financial results.