TPG Inc. Reports 46% Revenue Increase to $3.5 Billion for 2024

TPG Inc. reported total revenues of $3.5 billion for the year ended December 31, 2024, a 46% increase compared to $2.4 billion in 2023. This increase was driven by a 36% rise in fees and other revenue to $2.1 billion, primarily due to increased management fees ($450 million increase) and transaction fees ($90 million increase), and a 61% surge in capital allocation-based income to $1.4 billion, largely attributed to higher performance allocations ($493.5 million increase). The company's net loss for 2024 was $76.9 million, compared to a net income of $23.4 million in 2023.

The significant increase in revenue is partly attributable to the acquisition of Angelo Gordon on November 1, 2023. Angelo Gordon contributed $458.9 million in increased management fees and $301.6 million in net gains from performance allocations during 2024. However, expenses also increased significantly, rising from $2.4 billion in 2023 to $3.6 billion in 2024, primarily due to higher compensation and benefits costs associated with the increased headcount following the acquisition. The company's assets under management (AUM) grew from $221.6 billion to $245.9 billion during the year, reflecting both organic growth and the Angelo Gordon acquisition.

Strategic developments during the year included the completion of the Angelo Gordon acquisition, which expanded TPG's presence in credit and real estate investing. The company also launched TPG Rise Climate Transition Infrastructure, a new product focused on climate-related infrastructure investments. TPG employed over 1,900 people as of December 31, 2024, with approximately 670 investment and operations professionals across 16 countries. The company's six investment platforms—Capital, Growth, Impact, TPG Angelo Gordon, Real Estate, and Market Solutions—continued to operate, with varying degrees of success across different product lines.

Key operational developments included increases in AUM across several platforms, driven by both capital raised and investment appreciation. However, the company also experienced realizations (sales of investments) totaling $22.9 billion during the year. The company's fee-earning AUM (FAUM) increased to $141.3 billion as of December 31, 2024, from $136.8 billion at the end of 2023. Net accrued performance, representing unrealized and undistributed performance allocations, reached $974 million as of December 31, 2024.

TPG's 10-K filing highlights several risks, including dependence on senior leadership, competition in the investment management industry, market volatility, regulatory changes (particularly concerning ESG and data privacy), and the complexities of integrating Angelo Gordon. The company also notes the potential for clawback obligations related to performance allocations and the impact of higher interest rates on debt financing. The filing includes forward-looking statements, cautioning that actual results may differ materially from expectations.