TPG NASDAQ: TPG reported first-quarter 2026 results highlighting year-over-year growth in fee-related earnings, assets under management, and activity across capital formation, deployment, and realizations, while also noting a GAAP net loss for the period.
Gary Stein, Head of Investor Relations, said the firm posted a GAAP net loss attributable to TPG Inc. of $123 million and after-tax distributable earnings of $282 million, or $0.70 per Class A share. TPG also declared a $0.59 per share dividend, payable May 26 to shareholders of record as of May 11.
Quarterly growth and platform momentum
Chief Executive Officer Jon Winkelried said TPG entered 2026 with “strong momentum” following a record 2025 for capital formation and deployment. Winkelried said the first quarter reflected an “acceleration of our growth objectives across the platform,” pointing to growth in fee-related earnings, assets under management, and transaction activity.
Among the key metrics highlighted on the call:
- Fee-related earnings (FRE) grew 36% year-over-year, and exceeded $1 billion on an LTM basis for the first time, according to management.
- After-tax distributable earnings per share rose 46% from the prior-year quarter.
- Total AUM increased 22% to $306 billion.
- Year-over-year increases in capital formation (75%), deployment (96%), and realizations (103%), as presented by Winkelried.
Winkelried framed the quarter against what he described as a “complex macro backdrop,” citing “the convergence of AI disruption, private credit stress, and geopolitical conflict” as sources of uncertainty. He said TPG’s business is “intentionally built to be resilient through cycles,” and called the current environment an opportunity.
AI, software exposure, and valuation marks
Winkelried spent part of his remarks addressing the implications of artificial intelligence for TPG’s investing activity, particularly in software. He said the firm evaluated its software portfolio using an “offensive opportunity and defensive risk” framework and has “high conviction” that “the vast majority” of software companies are positioned to benefit from AI.
He said the software portfolio is “relatively young,” with an average hold period of about three years, and that TPG is investing “significant capital and specialized resources” to help companies adopt AI. Winkelried added that aggregate bookings in the firm’s TPG Capital and TPG Growth software portfolio grew “more than 20% year-over-year” in the quarter.
During Q&A, Evercore analyst Glenn Schorr asked about private equity marks in the quarter. Chief Financial Officer Jack Weingart said the quarter’s private equity valuation change was driven by the firm “choosing to take down our valuation multiples consistent with what we saw in the public markets,” offset by strong earnings growth. He added that valuations are determined company by company using multiple inputs including discounted cash flow analysis and comps.
Weingart provided additional detail on the offset between earnings and multiples: in the TPG Capital portfolio, he said earnings growth would have increased values by $1.2 billion, while multiple reductions reduced values by $2.4 billion. In the growth platform, he said earnings growth added $600 million but multiple reductions reduced values by $1.1 billion. Todd Sisitsky, TPG’s President, said the firm was “really excited about this portfolio” and noted that two strategic exits during the quarter were completed “at premiums to our marks.”
Wolfe Research analyst Steven Chubak asked whether AI risk assessment extended beyond software. Sisitsky said TPG completed a systematic review across the broader private equity portfolio and discussed the firm’s assessment of AI-related risk in a portion of TPG’s Fund VIII. He said that of the remaining value in that fund, TPG identified 7% as in a “mitigate” category where it sees “material risk from AI,” while “over 60%” was characterized as “outperforming strong momentum,” including businesses with “breakout potential on the upside.”
In a separate exchange, Bank of America Securities analyst Craig Siegenthaler asked about follow-on investments and cross-fund investments in software, as well as appetite for opportunities in public software valuations. Sisitsky said TPG generally does not “start to cross and come in from new funds,” and instead maintains reserves within funds to support companies. He also described recent software-related carve-outs and partnerships, including Velotic and Optum UK, citing characteristics such as defensiveness, data moats, and AI-related product initiatives. Executive Chairman and co-founder Jim Coulter said he expects the AI discussion to shift from defense to offense over time, and called AI a potentially “positive weapon” for private equity as “change agents.”
Credit platform: performance, fundraising, and dry powder
Winkelried also addressed private credit, saying TPG’s credit portfolios are “healthy” and that the firm has “strong conviction” in long-term growth. He acknowledged scrutiny in the asset class and noted elevated redemptions in some retail-oriented credit vehicles across the industry, while saying institutional demand for yield continues to rise.
He said each of TPG’s credit strategies outperformed their respective benchmarks in the quarter, with “very low and stable loss ratios.” He also emphasized that Twin Brook, the firm’s lower middle market direct lending business, focuses on senior secured first lien loans with financial covenants and described the revolver lender role as an “embedded early warning system.”
Winkelried said TCAP, TPG’s non-traded BDC, reported $193 million of gross inflows and $31 million of redemption requests in the first quarter, representing 1.3% of total shares outstanding, and ended the quarter with $4.7 billion of AUM, up 33% year-over-year. He also said TPG plans to launch a “multi-strategy credit interval fund” next year.
During Q&A, Goldman Sachs analyst Alex Blostein asked where TPG expects to be most active within credit and what the mix might mean for fee rates. Winkelried pointed to credit solutions and asset-based finance/structured credit as two areas of opportunity. He said the pipeline in credit solutions “has never been stronger,” citing volatility and balance sheet stress as drivers and noting that credit solutions tends to be a “higher fee construct” given its bespoke nature. He also highlighted asset-based finance as an area benefiting from demand to diversify away from “EBITDA risk.”
Citizens analyst Brian McKenna asked whether performance at Twin Brook and TCAP is accelerating institutional flows. Winkelried responded that the answer is “yes,” and said the market is beginning to see more dispersion across lending portfolios. He added that institutional clients are focusing more on diversification, and described the lower middle market as different from upper middle market direct lending given competitive dynamics and the role as lead lender.
Fundraising, deployment, realizations, and outlook
Winkelried said TPG raised “more than $10 billion” in the first quarter, including $4.4 billion in credit and $4.9 billion in private equity. He also discussed the firm’s partnership with Jackson Financial, including $2 billion of initial commitments to its asset-based finance business and the recent closing of a “Jackson-rated note feeder” in middle market direct lending.
On deployment, Winkelried said TPG invested more than $14 billion in the quarter, including $5.7 billion in credit and nearly $7 billion across private equity strategies. He highlighted a $3.8 billion continuation vehicle for Curium Pharma through the firm’s GP-led secondaries business, and said TPG Rise Climate announced the acquisition of Sabre Industries. In real estate, he said TPG invested $1.8 billion, including investments in senior housing and a grocery-anchored retail platform, and activity in Japan and South Korea.
Winkelried said TPG realized nearly $9 billion in the first quarter, including the sales of OneOncology and Intersect’s digital power business. Weingart said realized performance allocations were $68 million in the quarter, above the $50 million the firm had guided to previously, and said it was “anchored by the strategic sales of OneOncology and Intersect Power.”
Weingart also provided additional detail on AUM and fee-related revenue. He said fee-earning AUM grew 23% to $175 billion at the end of March and noted $45 billion of AUM subject to fee-earning growth, including $33 billion not yet earning fees, with the largest component in credit. He said TPG has visibility into approximately $140 million of annual revenue opportunity as that credit capital is deployed. Fee-related revenue was $557 million, up 17% year-over-year, driven by management fee and transaction/monitoring fee growth.
On margin, Weingart said first-quarter FRE margin was 44.3%, a 620 basis point expansion from the first quarter of 2025, and reiterated confidence in achieving a full-year 2026 FRE margin of 47%. Responding to a question from BNP Paribas analyst Arnaud Gibaud, Weingart said TPG will continue investing for growth while also driving operating leverage, and contextualized margins versus prior periods including the quarter impacted by the Angelo Gordon acquisition.
Management reiterated expectations for total 2026 fundraising to exceed $50 billion, with Weingart saying the remainder is expected to be weighted to the back half of the year due to fund closing timing in real estate and other strategies and a “barbell effect” in private equity fundraising. In response to questions on fundraising mix, Weingart said he did not see notable changes in geographic mix, and said private wealth would be a larger part of fundraising than last year but not the main driver, with institutional relationships remaining the primary engine.
About TPG NASDAQ: TPG
TPG Inc NASDAQ: TPG is a global alternative asset management firm that invests across a range of strategies including private equity, growth equity, real assets, credit and hedge funds. Founded in 1992 as Texas Pacific Group, the firm has expanded its product set to serve a broad set of institutional and individual investors through commingled funds, separately managed accounts and other customized investment vehicles.
TPG operates investment platforms that target buyouts, growth-stage companies, real estate and credit opportunities, and it has developed dedicated thematic and impact vehicles such as the TPG Rise Fund to pursue social and environmental outcomes alongside financial returns.
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