TPG NASDAQ: TPG reported third-quarter 2026 GAAP net income attributable to the company of $100 million and after-tax distributable earnings of $265 million, or $0.65 per Class A share, as fundraising, deployment and assets under management continued to grow across private equity, credit, real estate and wealth products.
The alternative asset manager declared a quarterly dividend of $0.55 per Class A share, payable Nov. 23 to shareholders of record on Nov. 9.
Chief Executive Officer Jon Winkelried said the firm raised more than $15 billion during the quarter, bringing year-to-date capital formation to nearly $42 billion. TPG now expects to raise more than $55 billion for the full year, above its previous target of more than $50 billion.
Fundraising across strategies
Private-equity fundraising totaled $8.5 billion in the third quarter and more than $21 billion year to date. TPG completed final closes for its second Rise Climate Fund and Global South Initiative, with aggregate commitments of $10.4 billion across the funds and related vehicles. Winkelried said the total was 44% larger than the firm’s inaugural climate fund, while 31% of commitments came from investors new to TPG.
The firm also raised an additional $1.7 billion for TPG X and Healthcare Partners III, bringing commitments to nearly $16 billion, exceeding the size of the prior vintage. Its inaugural Asia growth equity fund, TECA, surpassed its target with $1.3 billion in commitments. TPG’s third Tech Adjacencies fund received $1.6 billion during the quarter, bringing total commitments to $2.5 billion.
In credit, TPG raised $5.8 billion in the quarter and nearly $16 billion year to date. Its fourth Essential Housing fund held a $2 billion first close, already exceeding the predecessor fund’s size. The Advantage Direct Lending strategy raised another $550 million, bringing capital raised to $1.4 billion, including signed commitments that had not closed. TPG said that capital represents about $3 billion of buying power including target leverage.
Winkelried said TPG expects to double credit assets under management to $200 billion by the end of 2029. The firm has nearly doubled credit AUM since acquiring Angelo Gordon three years ago, he said.
TPG also began a significant real-estate fundraising cycle. The firm held a first close of about $5 billion for its fifth TPG Real Estate opportunistic fund and related vehicles. Winkelried described the start as one of the strongest fundraising launches the firm has experienced, citing interest from institutional investors seeking partnerships with managers rather than direct real-estate investing.
AUM, margins and private wealth
Chief Financial Officer Axel André said total AUM reached $346 billion at the end of September, up 21% from a year earlier. Fee-paying AUM rose 16% year over year to $190 billion. The company had $54 billion of AUM subject to fee earning growth, including $43 billion not yet earning fees, much of it in credit strategies that generate fees when capital is deployed.
André said the undeployed credit capital represents an annualized revenue opportunity of about $160 million. TPG ended the quarter with a record $86 billion of dry powder, equal to 45% of fee-paying AUM.
TPG raised its full-year 2026 fee-related earnings margin guidance to approximately 48%, which would be nearly 300 basis points above 2025. Third-quarter FRE margin was 50%, aided by $62 million of catch-up fees; André said the margin would have been about 47% when normalized for what he described as a normal level of catch-up fees.
In private wealth, TPG’s T-POP strategy recorded about $400 million of inflows during the quarter and had $3.5 billion of AUM at the end of September. The company said the strategy’s annualized inception-to-date return was 31%. TCAP, its non-traded business development company, generated $134 million of gross inflows in the quarter and had $5.6 billion of AUM. TPG said TCAP raised another $138 million in October, taking year-to-date net inflows to $543 million.
Jack Weingart, CEO of TPG Global Wealth Solutions, said current flows into T-POP and related strategies were running at about $200 million per month. TPG plans to launch a multi-strategy credit interval fund and a non-traded REIT in 2027, according to management.
Deployment, realizations and investment performance
TPG deployed more than $11 billion during the quarter, including $7.7 billion across credit strategies. Credit Solutions deployed more than $5 billion of gross capital over the past two years, including recycled proceeds from early realizations. Twin Brook generated $3.7 billion of gross originations in middle-market direct lending, while asset-based finance deployed more than $2 billion.
Private-equity strategies invested $2 billion in the quarter and $16 billion year to date. TPG’s Tech Adjacencies strategy co-led a $3.9 billion Series F financing for Crusoe, an AI infrastructure platform. Real estate deployed $1.8 billion, including the acquisition of a national portfolio of medical outpatient buildings by TPG AG U.S. Real Estate.
The company generated $6.6 billion of realizations in the quarter and more than $20 billion year to date. André said realized performance allocations were only $7 million because proceeds from private-equity monetizations were primarily used to return costs to clients. He added that proceeds were also used to return basis on realized transactions and cover unrealized losses, mainly in TPG VIII software companies facing what he called greater AI-related defensive risk.
Despite the lower performance-related earnings, net accrued performance rose sequentially to a record $1.5 billion. Management expects realized performance allocations to increase in the fourth quarter and into 2027.
TPG said its private-equity portfolio appreciated 3% during the quarter and 10% over the past 12 months. Its credit portfolio rose 2% in the quarter and 11% over 12 months, while real estate appreciated 1% in the quarter and 8% over the past year.
Selective approach to AI infrastructure
Management said it sees opportunities tied to AI, data centers, power and digital infrastructure, but emphasized selectivity. Winkelried said TPG generally favors in-place, leased assets generating cash flow and has limited development-risk exposure.
He said the firm is also focused on “picks and shovels” opportunities surrounding data-center development, including energy and industrial supply-chain needs. However, he cautioned that development uncertainty, ongoing financing needs and investor concentration could create risks in portions of the market.
“When the market gets very sure of something, occasionally it’s good to be cautious,” Executive Chairman and Co-Founder Jim Coulter said, adding that TPG is seeking an “alpha” approach rather than a broad data-center “beta” exposure.
About TPG (NASDAQ:TPG)
TPG Inc is a global alternative asset management firm that invests across a range of strategies, including private equity, growth equity, impact investing, real estate, infrastructure, credit and secondaries. The company partners with businesses and management teams to provide capital, strategic guidance and operational support.
TPG manages investment funds for institutional investors and other clients, with a focus on sectors such as technology, healthcare, consumer products and services, financial services, and business services.
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