Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

TPG records $199 million earnings in first quarter since IPO

Economy May 10, 2022 10:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Jon Winkelried, CEO of private-equity firm TPG, celebrates his company's IPO outside the Nasdaq Market site in Times Square in New York City, U.S., January 13, 2022. REUTERS/Brendan McDermid
 
BX
-0.73%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Chibuike Oguh

(Reuters) - TPG said on Tuesday its after-tax distributable earnings rose to $199 million in the first quarter, up from $65 million a year earlier, adding that its private equity and impact investing businesses had delivered strong growth in asset sales.

TPG's result exceeded the average analyst estimate of $149 million calculated by financial data provider Refinitiv.

The performance was in line with Blackstone (NYSE:BX), KKR and Carlyle, which all reported bumper profits despite soaring inflation, rising interest rates and Russia's invasion of Ukraine.

"We weighted our exits towards full company sales instead of initial public offerings. That's because an IPO doesn't lock in the equity value for our fund investors," TPG Chief Financial Officer Jack Weingart said.

TPG said it generated $4.8 billion from cashing out its investments. That includes cybersecurity software provider McAfee, which TPG and Thoma Bravo sold to a consortium of investment firms in a $14 billion deal.

The Fort Worth, Texas-based firm also spent $4.4 billion on new acquisitions during the quarter.

"We're probably in the high end with respect to our ratio of monetizations to new investments," TPG Chief Executive Jon Winkelried told Reuters in an interview.

"Until recently, you heard about soaring valuations in the market and very high multiples. We felt we should be leaning into that in order to return capital to our limited partners at very attractive valuations."

Funds managed under TPG's private equity, healthcare and Asia business appreciated by 11%, while its real estate funds gained 6.2%. The private equity portfolios of Blackstone and Carlyle rose by 2.8% and 7%, respectively.

TPG said it ended the quarter with $120 billion of assets under management and $30.27 billion in unspent capital. TPG declared a divided of 44 cents per share, the first time it had announced a payout to investors since its IPO in January.

(This story refiles to correct paragraph 10 to say $30.27 billion in unspent capital, not $30.2 billion)

TPG records $199 million earnings in first quarter since IPO
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email