TPG | 2 ▪ Total assets under management of $139 billion as of June 30, 2023, an increase of 9% compared to $127 billion as of June 30, 2022 ▪ GAAP net income attributable to TPG Inc. of $27 million for the second quarter ended June 30, 2023, with basic net income per share of Class A common stock of $0.32 ▪ Fee-Related Earnings of $125 million for the second quarter ended June 30, 2023, an increase of 23% year-over-year, resulting in a Fee- Related Earnings margin of 44% ▪ After-tax Distributable Earnings of $96 million (or $0.26 per share of Class A common stock) for the second quarter ended June 30, 2023 ▪ Dividend of $0.22 per share of Class A common stock for the second quarter ended June 30, 2023 San Francisco and Fort Worth, Texas – August 8, 2023 – TPG Inc. (NASDAQ: TPG), a leading global alternative asset management firm, reported its unaudited second quarter 2023 results. TPG issued a full detailed presentation of its quarter ended June 30, 2023 results, which can be viewed through the Investor Relations section of TPG’s website at shareholders.tpg.com. "Our second quarter results demonstrate the strength and durability of TPG’s business model, with fee-related earnings growth of 23% year- over-year to $125 million,” said Jon Winkelried, Chief Executive Officer. “As we’ve been working toward closing the Angelo Gordon acquisition, we’ve also been very active in our core business. The pace of activity across our investment platforms has continued to accelerate in the current environment and we’ve made meaningful progress on several key organic growth initiatives." Dividend TPG has declared a quarterly dividend of $0.22 per share of Class A common stock to holders of record at the close of business on August 18, 2023, payable on September 1, 2023. Conference Call TPG will host a conference call and live webcast at 11:00 am ET. It may be accessed by dialing (800) 579-2543 (US toll-free) or (785) 424-1789 (international), using the conference ID TPGQ223. The number should be dialed at least ten minutes prior to the start of the call. A simultaneous webcast will also be available and can be accessed through the Investor Relations section of TPG's website at shareholders.tpg.com. A webcast replay will be made available on the Events page in the Investor Relations section of TPG's website. Shareholder contact: Media contact: Gary Stein Luke Barrett 212-601-4750 415-743-1550 shareholders@tpg.com media@tpg.com TPG Reports Second Quarter 2023 Financial Results
TPG | 3 TPG Reports Second Quarter 2023 Financial Results About TPG TPG is a leading global alternative asset management firm, founded in San Francisco in 1992, with $139 billion of assets under management and investment and operational teams around the world. TPG invests across five multi-strategy platforms: Capital, Growth, Impact, Real Estate, and Market Solutions and our unique strategy is driven by collaboration, innovation, and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities. Forward Looking Statements This presentation may contain “forward-looking” statements based on the Company’s beliefs and assumptions and on information currently available to the Company. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods, or by the inclusion of forecasts or projections. Examples of forward-looking statements include, but are not limited to, statements we make regarding the outlook for our future business and financial performance, estimated operational metrics, business strategy and plans and objectives of management for future operations, including, among other things, statements regarding the expected filing of our amended and restated certificate of incorporation, expected growth, future capital expenditures, fund performance, dividends and dividend policy, and debt service obligations. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by any forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the inability to complete and recognize the anticipated benefits of the acquisition of Angelo, Gordon & Co., L.P. and AG Funds L.P. (collectively, “Angelo Gordon”) on the anticipated timeline or at all; purchase price adjustments; unexpected costs related to the transaction and the integration of the Angelo Gordon business and operations; our ability to manage growth and execute our business plan; and regional, national or global political, economic, business, competitive, market and regulatory conditions, among various other risks. For the reasons described above, we caution you against relying on any forward-looking statements, which should be read in conjunction with the other cautionary statements included elsewhere in this presentation and risk factors discussed from time to time in the Company’s filings with the SEC, which can be found at the SEC’s website at http://www.sec.gov. Any forward-looking statement in this presentation speaks only as of the date of this presentation. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update or revise any forward-looking statement after the date of this presentation, whether as a result of new information, future developments or otherwise, except as may be required by law. No recipient should, therefore, rely on these forward- looking statements as representing the views of the Company or its management as of any date subsequent to the date of the presentation. This presentation does not constitute an offer of any TPG Fund. Throughout this presentation, all current period amounts are preliminary and unaudited; totals may not sum due to rounding. See the Reconciliations and Disclosures section of this presentation for reconciliations of Non-GAAP to the most comparable GAAP measures and adjustment descriptions.
TPG | 5 ▪ Net income of $40 million for 2Q'23, compared to 1Q'23 net income of $36 million, and 2Q'22 net loss of $262 million ▪ Net income attributable to TPG Inc. of $27 million for 2Q'23, compared to net income of $25 million in 1Q'23 and net loss of $10 million in 2Q'22 GAAP Statements of Operations (Unaudited) 1. Operating profit margin, defined as net income divided by total revenues, was 242% for 2Q'22 and 7% for 2Q'23. ($ in thousands, except share and per share amounts) 2Q'22 2Q'23 2Q'22 YTD 2Q'23 YTD Revenues Fees and other $ 289,955 $ 327,103 $ 562,960 $ 638,574 Capital allocation-based income (398,237) 276,171 439,468 607,845 Total revenues (108,282) 603,274 1,002,428 1,246,419 Expenses Compensation and benefits Cash-based compensation and benefits 115,639 115,667 231,998 236,118 Equity-based compensation 145,140 155,166 331,051 312,459 Performance allocation compensation (298,026) 172,077 225,112 393,418 Total compensation and benefits (37,247) 442,910 788,161 941,995 General, administrative and other 77,671 104,544 179,935 209,417 Depreciation and amortization 8,558 8,304 17,257 16,526 Interest expense 4,731 8,518 9,369 15,936 Expenses of consolidated Public SPACs: Other 457 453 1,980 972 Total expenses 54,170 564,729 996,702 1,184,846 Investment income Income from investments: Net gains from investment activities (99,395) 846 (92,752) 15,662 Interest, dividends and other 782 9,983 986 17,954 Investment income of consolidated Public SPACs: Unrealized gains on derivative liabilities 5,823 667 8,480 (83) Interest, dividends and other 843 3,134 969 5,846 Total investment income (91,947) 14,630 (82,317) 39,379 Income before income taxes (254,399) 53,175 (76,591) 100,952 Income tax expense 8,098 13,164 23,102 25,267 Net income(1) (262,497) 40,011 (99,693) 75,685 Less: Net income attributable to redeemable equity in Public SPACs prior to IPO — — (517) — Net income attributable to other non-controlling interests prior to IPO — — 966 — Net income attributable to TPG Group Holdings prior to IPO — — 5,256 — Net income attributable to redeemable equity in Public SPACs 4,058 5,367 5,881 6,896 Net income attributable to non-controlling interests in TPG Operating Group (128,869) (25,306) (133,781) (50,798) Net income attributable to other non-controlling interests (127,827) 32,755 (8,923) 67,337 Net income attributable to TPG Inc. subsequent to IPO $ (9,859) $ 27,195 $ 31,425 $ 52,250 Net income available to Class A common stock - Basic per share $ (0.15) $ 0.32 $ 0.37 $ 0.59 Net income available to Class A common stock - Diluted per share $ (0.37) $ 0.02 $ (0.25) $ 0.01 Weighted average shares outstanding - Basic 79,240,058 80,540,569 79,240,058 80,022,820 Weighted average shares outstanding - Diluted 308,892,699 309,193,210 308,892,699 309,167,174