Delaware | 001-41222 | 87-2063362 | |||||||||
(State or other jurisdiction
of incorporation)
|
(Commission File Number) |
(IRS Employer
Identification No.)
|
|||||||||
301 Commerce Street, Suite 3300 |
76102 | ||||||||||
Fort Worth, TX |
(Zip Code) |
Title of Each Class |
Trading
Symbol
|
Name of Each Exchange on Which Registered | ||||||||||||
Class A common stock, $0.001 par value | TPG | The Nasdaq Stock Market LLC |
||||||||||||
(Nasdaq Global Select Market) |
TPG Inc. | |||||
By: | /s/ Bradford Berenson | ||||
Name: | Bradford Berenson | ||||
Title: | General Counsel | ||||
TPG OPERATING GROUP II, L.P. | ||||||||
By: | TPG Holdings II-A, LLC, its general partner | |||||||
By: | /s/ Martin Davidson | |||||||
Name: | Martin Davidson | |||||||
Title: | Chief Accounting Officer |
AG GP, LLC | ||||||||
By: | /s/ Christopher D. Moore | |||||||
Name: | Christopher D. Moore | |||||||
Title: | Chief Legal Officer, General Counsel & Secretary |
Solely for purposes of Section 2 herein: | ||||||||
API REPRESENTATIVE, LLC | ||||||||
By its Sole Member: | ||||||||
/s/ Christopher D. Moore | ||||||||
Christopher D. Moore |
TPG OPERATING GROUP II, L.P. | |||||
By: | TPG Holdings II-A, LLC, its general partner | ||||
By: | /s/ Martin Davidson | ||||
Name: | Martin Davidson | ||||
Title: | Chief Accounting Officer |
AG GP, LLC | |||||
By: | /s/ Christopher D. Moore | ||||
Name: | Christopher D. Moore | ||||
Title: | Chief Legal Officer, General Counsel & Secretary |
Page |
|||||
Article I DEFINITIONS; INTERPRETATION |
2 |
||||
1.2 Other Interpretive Provisions |
8 |
||||
Article II TRANSFERS |
9 |
||||
2.1 Restrictions on Transfers of Securities |
9 |
||||
Article III REGISTRATION RIGHTS |
10 |
||||
3.1 Demand Registrations |
10 |
||||
3.2 Piggyback Registration |
11 |
||||
3.3 Shelf Take-Downs |
12 |
||||
3.4 Underwritten Block Trades |
13 |
||||
3.5 Restrictions; Suspension Periods |
13 |
||||
3.6 Participation in Underwritten Registrations |
14 |
||||
3.7 Other Registration-Related Matters |
14 |
||||
3.8 Indemnification |
16 |
||||
3.9 Rule 144 |
18 |
||||
3.10 No Inconsistent Agreements |
18 |
||||
Article IV COVENANTS |
18 |
||||
4.1 Confidentiality |
18 |
||||
4.2 Publicity |
19 |
||||
4.3 Further Assurances |
19 |
||||
4.4 Acknowledgment of Reorganization |
19 |
||||
4.5 Issuer Transaction |
19 |
||||
Article V TERMINATION |
20 |
||||
5.1 Termination |
20 |
||||
Article VI MISCELLANEOUS |
20 |
||||
6.1 Expenses |
20 |
||||
6.2 Notices |
20 |
||||
6.3 Amendment; Joinders |
21 |
||||
6.4 Waiver of Immunity |
21 |
||||
6.5 Entire Agreement |
21 |
||||
6.6 Assignment |
21 |
||||
6.7 No Third-Party Beneficiaries |
22 |
||||
6.8 Severability |
22 |
||||
6.9 Governing Law; Jurisdiction; Arbitration |
22 |
||||
6.10 Specific Performance |
23 |
||||
6.11 Counterparts and Facsimile; Electronic Signature |
23 |
ISSUER | |||||
TPG INC. | |||||
By: | /s/ Martin Davidson | ||||
Name: | Martin Davidson | ||||
Title: | Chief Accounting Officer |
CONTROLCO | |||||
TPG GP A, LLC | |||||
By: | /s/ Martin Davidson | ||||
Name: | Martin Davidson | ||||
Title: | Chief Accounting Officer |
API FEEDER PARTNERSHIPS
ALABAMA INVESTMENTS (PARALLEL), LP
By: Alabama Investments (Parallel) GP, LLC, its general partner
| |||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
ALABAMA INVESTMENTS (PARALLEL) FOUNDER A, LP
By: Alabama Investments (Parallel) GP, LLC, its general partner
| |||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
ALABAMA INVESTMENTS (PARALLEL) FOUNDER G, LP
By: Alabama Investments (Parallel) GP, LLC, its general partner
| |||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
API Representative, LLC | |||||
By: | /s/ Christopher D. Moore | ||||
Name: Christopher D. Moore | |||||
Title: Chief Legal Officer, General Counsel & Secretary |
[INVESTOR][LIMITED PARTNER]: | |||||
[●] | |||||
By: | |||||
Name: | |||||
Title: |
TPG INC. | |||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
TPG OPERATING GROUP I, L.P. | |||||
By: | TPG Holdings I-A, LLC, its general partner | ||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
TPG OPERATING GROUP II, L.P. | |||||
By: | TPG Holdings II-A, LLC | ||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
TPG OPERATING GROUP III, LP | |||||
By: | TPG Holdings III-A, L.P., its general partner | ||||
By: | TPG Holdings III-A, LLC, its general partner | ||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
TPG OPCO HOLDINGS, L.P. | |||||
By: | TPG LPCo-1, its general partner | ||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
ALABAMA INVESTMENTS (PARALLEL), LP
By: Alabama Investments (Parallel) GP, LLC, its general partner
| |||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
ALABAMA INVESTMENTS (PARALLEL) FOUNDER A, LP
By: Alabama Investments (Parallel) GP, LLC, its general partner
| |||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
ALABAMA INVESTMENTS (PARALLEL) FOUNDER G, LP
By: Alabama Investments (Parallel) GP, LLC, its general partner
| |||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
API Representative, LLC | |||||
By: | /s/ Christopher D. Moore | ||||
Name: Christopher D. Moore | |||||
Title: Chief Legal Officer, General Counsel & Secretary |
[●] | |||||
By: | |||||
Name: | |||||
Title: |
[●] | |||||
By: | |||||
Name: | |||||
Title: | |||||
Address for Notices: | |||||
Attention: |
Page | |||||
ARTICLE 1
DEFINITIONS
| |||||
Section 1.01. Definitions. |
2 |
||||
Section 1.02. Interpretation. |
9 |
||||
ARTICLE 2 DETERMINATION OF CERTAIN REALIZED TAX BENEFIT | |||||
Section 2.01. Basis Schedule. |
9 |
||||
Section 2.02. Tax Benefit Schedule. |
9 |
||||
Section 2.03. Procedures, Amendments. |
10 |
||||
ARTICLE 3 TAX BENEFIT PAYMENTS | |||||
Section 3.01. Payments. |
11 |
||||
Section 3.02. No Duplicative Payments. |
12 |
||||
Section 3.03. Pro Rata Payments. |
12 |
||||
Section 3.04. Payment Ordering. |
12 |
||||
ARTICLE 4 TERMINATION | |||||
Section 4.01. Early Termination of Agreement; Change of Control. |
12 |
||||
Section 4.02. Early Termination Notice. |
13 |
||||
Section 4.03. Payment upon Early Termination. |
13 |
||||
ARTICLE 5 SUBORDINATION AND LATE PAYMENTS | |||||
Section 5.01. Subordination. |
14 |
||||
Section 5.02. Late Payments by the Corporate Taxpayer. |
14 |
||||
ARTICLE 6 NO DISPUTES; CONSISTENCY; COOPERATION | |||||
Section 6.01. Participation in the Corporate Taxpayer’s and the Partnership’s Tax Matters. |
14 |
||||
Section 6.02. Consistency. |
14 |
||||
Section 6.03. Cooperation. |
15 |
||||
ARTICLE 7 MISCELLANEOUS | |||||
Section 7.01. Notices. |
15 |
||||
Section 7.02. Counterparts. |
15 |
||||
Section 7.03. Entire Agreement; No Third Party Beneficiaries. |
15 |
||||
Section 7.04. Severability. |
15 |
||||
Section 7.05. Successors; Assignment; Amendments; Waivers. |
16 |
||||
Section 7.06. Titles and Subtitles. |
16 |
||||
Section 7.07. Resolution of Disputes. |
16 |
||||
Section 7.08. Reconciliation. |
16 |
||||
Section 7.09. Withholding. |
17 |
Section 7.10. Admission of the Corporate Taxpayer into a Consolidated Group; Transfers of Corporate Assets. |
17 | ||||
Section 7.11. Confidentiality. |
18 | ||||
Section 7.12. Change in Law. |
18 |
||||
Section 7.13. Exchanges of TPG Partner Units. |
18 |
||||
Section 7.14. TRA Party Representative. |
19 |
PubCorp:
TPG INC.
| |||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer | |||||
Buyer:
TPG OPCO HOLDINGS, L.P.
By: TPG LPCo-1, LLC, its general partner
| |||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
TPG OPERATING GROUP II, L.P.
By: TPG Holdings II-A, LLC, its general partner
| |||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
TPG GP A, LLC | |||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
ALABAMA INVESTMENTS (PARALLEL), LP
By: Alabama Investments (Parallel) GP, LLC, its general partner
| |||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
ALABAMA INVESTMENTS (PARALLEL) FOUNDER A, LP
By: Alabama Investments (Parallel) GP, LLC, its general partner
| |||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
ALABAMA INVESTMENTS (PARALLEL) FOUNDER G, LP
By: Alabama Investments (Parallel) GP, LLC, its general partner
| |||||
By: | /s/ Martin Davidson | ||||
Name: Martin Davidson | |||||
Title: Chief Accounting Officer |
API Representative, LLC | |||||
By: | /s/ Christopher D. Moore | ||||
Name: Christopher D. Moore | |||||
Title: Chief Legal Officer, General Counsel & Secretary |
TPG INC. | |||||
By: | |||||
Name: | |||||
Title:
|
|||||
TPG OpCo Holdings, L.P. | |||||
By: | |||||
Name: | |||||
Title: |
[TRANSFEROR] | |||||
By: | |||||
Name: | |||||
Title: |
[PERMITTED TRANSFEREE] | |||||
By: | |||||
Name: | |||||
Title: |
Address for notices: | ||
MEMBER: | |||||
DB CC, LLC | |||||
By: | /s/ David Bonderman | ||||
Name: | David Bonderman | ||||
Title: | Member, President |
MEMBER: | |||||
JC GP, LLC | |||||
By: | /s/ James G. Coulter | ||||
Name: | James G. Coulter | ||||
Title: | Sole Member |
MEMBER: | |||||
JW CC, LLC | |||||
By: | /s/ Jon Winkelried | ||||
Name: | Jon Winkelried | ||||
Title: | Managing Partner |
ISSUER: | |||||
TPG INC. | |||||
By: | /s/ Martin Davidson | ||||
Name: | Martin Davidson | ||||
Title: | Chief Accounting Officer |
Member | Common Units | ||||
DB CC, LLC | 40 | ||||
JC GP, LLC | 40 | ||||
JW CC, LLC | 20 | ||||
TOTAL | 100 |
COMPANY: | |||||
TPG GP A, LLC | |||||
By: | |||||
Name: | |||||
Title: | |||||
MEMBER: | |||||
[NAME] |
Page | |||||
Consolidated Financial Statements: | |||||
December 31, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 600,460 | $ | 480,211 | |||||||
Restricted cash | 6,960 | 12,110 | |||||||||
Due from affiliates | 158,175 | 210,900 | |||||||||
Investments ($82,525 and $87,771 pledged as collateral under repurchase agreement as of December 31, 2022 and 2021, respectively) |
1,081,500 | 1,328,671 | |||||||||
Other assets | 154,745 | 76,013 | |||||||||
Assets of Consolidated Investment Funds: | |||||||||||
Cash and cash equivalents | 40,456 | 88,216 | |||||||||
Investments | 1,316,531 | 1,398,582 | |||||||||
Other assets | 42,970 | 33,854 | |||||||||
Total Assets | $ | 3,401,797 | $ | 3,628,557 | |||||||
Liabilities and Partners’ Capital | |||||||||||
Accrued performance allocation compensation | $ | 478,559 | $ | 549,061 | |||||||
Accrued cash and equity-based compensation and benefits | 271,662 | 307,007 | |||||||||
Repurchase agreements | 80,807 | 85,913 | |||||||||
Accounts payable and accrued expenses | 46,646 | 57,414 | |||||||||
Due to affiliates | 40,815 | 12,702 | |||||||||
Credit facility | 25,000 | — | |||||||||
Other liabilities | 106,268 | — | |||||||||
Liabilities of Consolidated Investment Funds: | |||||||||||
CLO notes payable | 1,310,701 | 1,399,436 | |||||||||
Accrued expenses | 10,121 | 2,954 | |||||||||
Other liabilities | 45,502 | 74,499 | |||||||||
Total Liabilities | 2,416,081 | 2,488,986 | |||||||||
Commitment and contingencies (Note 11) | |||||||||||
Partners’ capital | 951,175 | 1,094,426 | |||||||||
Non-controlling interests | 34,541 | 45,145 | |||||||||
Total Partners’ Capital | 985,716 | 1,139,571 | |||||||||
Total Liabilities and Partners’ Capital | $ | 3,401,797 | $ | 3,628,557 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Revenues | |||||||||||||||||
Fees and other | $ | 516,910 | $ | 452,279 | $ | 434,339 | |||||||||||
Capital allocation-based income | 76,158 | 811,781 | 24,434 | ||||||||||||||
Total revenues | 593,068 | 1,264,060 | 458,773 | ||||||||||||||
Expenses | |||||||||||||||||
Compensation and benefits: | |||||||||||||||||
Cash-based compensation, benefits and other | 393,638 | 384,677 | 344,846 | ||||||||||||||
Equity-based compensation | 10,156 | 33,865 | 10,637 | ||||||||||||||
Performance allocation compensation | 39,561 | 338,202 | 4,430 | ||||||||||||||
Total compensation and benefits | 443,355 | 756,744 | 359,913 | ||||||||||||||
General, administrative and other | 167,114 | 146,745 | 134,593 | ||||||||||||||
Depreciation and amortization | 10,737 | 12,621 | 12,198 | ||||||||||||||
Interest expense | 3,010 | 1,771 | 2,294 | ||||||||||||||
Expenses of Consolidated Investment Funds: | |||||||||||||||||
Interest expense | 58,611 | 38,593 | 45,432 | ||||||||||||||
General, administrative and other | 2,234 | 3,258 | 4,156 | ||||||||||||||
Total expenses | 685,061 | 959,732 | 558,586 | ||||||||||||||
Investment income (loss) | |||||||||||||||||
Net gain (loss) from investment activities and other | (1,369) | 1,011 | 650 | ||||||||||||||
Interest, dividends and other | 10,121 | 4,140 | 5,246 | ||||||||||||||
Investment income for Consolidated Investment Funds: |
|||||||||||||||||
Net gain (loss) from investment activities and other |
(19,622) | (7,869) | (24,705) | ||||||||||||||
Interest, dividends and other | 86,832 | 65,529 | 78,981 | ||||||||||||||
Total investment income (loss) | 75,962 | 62,811 | 60,172 | ||||||||||||||
Net Income (loss) before income taxes |
(16,031) | 367,139 | (39,641) | ||||||||||||||
Income tax expense |
(1,363) | (4,839) | (3,156) | ||||||||||||||
Net income (loss) | (17,394) | 362,300 | (42,797) | ||||||||||||||
Other comprehensive income (loss), net: | |||||||||||||||||
Foreign currency translation adjustments, net including non-controlling interests | (125) | (299) | (152) | ||||||||||||||
Comprehensive income (loss) including non-controlling interests | (17,519) | 362,001 | (42,949) | ||||||||||||||
Comprehensive income (loss) by Partner: | |||||||||||||||||
Comprehensive income (loss) to Partners | (17,512) | 354,998 | (42,195) | ||||||||||||||
Comprehensive income (loss) allocable to non-controlling interests |
(7) | 7,003 | (754) | ||||||||||||||
Comprehensive income (loss) | $ | (17,519) | $ | 362,001 | $ | (42,949) |
Partners’ capital | Non-controlling interests | Total Partners’ capital | |||||||||||||||
Balance as of January 1, 2020 | $ | 557,818 | $ | 332,120 | $ | 889,938 | |||||||||||
Net income (loss) | (41,252) | (1,545) | (42,797) | ||||||||||||||
Capital contributions | 15,680 | 113,380 | 129,060 | ||||||||||||||
Capital distributions | (117,791) | (50,174) | (167,965) | ||||||||||||||
Other capital adjustments | (5,479) | (2,973) | (8,452) | ||||||||||||||
Changes in partner equity loans | 46,926 | (51,479) | (4,553) | ||||||||||||||
Other comprehensive income (loss), net | (943) | 791 | (152) | ||||||||||||||
Balance as of December 31, 2020 | $ | 454,959 | $ | 340,120 | $ | 795,079 | |||||||||||
Partners’ capital | Non-controlling interests | Total Partners’ capital | |||||||||||||||
Balance as of January 1, 2021 | $ | 454,959 | $ | 340,120 | $ | 795,079 | |||||||||||
2021 Restructuring (Note 1 & 2) | 289,794 | (289,794) | — | ||||||||||||||
Net income (loss) | 355,297 | 7,003 | 362,300 | ||||||||||||||
Capital contributions | 61,297 | 391 | 61,688 | ||||||||||||||
Capital distributions | (63,196) | (12,525) | (75,721) | ||||||||||||||
Other capital adjustments | (4,972) | (50) | (5,022) | ||||||||||||||
Changes in partner equity loans | 1,546 | — | 1,546 | ||||||||||||||
Other comprehensive income (loss), net | (299) | — | (299) | ||||||||||||||
Balance as of December 31, 2021 | $ | 1,094,426 | $ | 45,145 | $ | 1,139,571 | |||||||||||
Partners’ capital | Non-controlling interests | Total Partners’ capital | |||||||||||||||
Balance as of January 1, 2022 | $ | 1,094,426 | $ | 45,145 | $ | 1,139,571 | |||||||||||
Net income (loss) | (17,387) | (7) | (17,394) | ||||||||||||||
Capital contributions | 102,595 | 303 | 102,898 | ||||||||||||||
Capital distributions | (224,207) | (10,839) | (235,046) | ||||||||||||||
Other capital adjustments | (5,903) | (61) | (5,964) | ||||||||||||||
Changes in partner equity loans | 1,776 | — | 1,776 | ||||||||||||||
Other comprehensive income (loss), net | (125) | — | (125) | ||||||||||||||
Balance as of December 31, 2022 | $ | 951,175 | $ | 34,541 | $ | 985,716 |
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | (17,394) | $ | 362,300 | $ | (42,797) | |||||||||||
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||||||||||||||||
Equity-based compensation | 10,156 | 33,865 | 10,637 | ||||||||||||||
Performance allocation compensation | 39,561 | 338,202 | 4,430 | ||||||||||||||
Net (gain) loss from investment activities and other |
1,369 | (1,011) | (650) | ||||||||||||||
Capital allocation-based income | (76,158) | (811,781) | (24,434) | ||||||||||||||
Straight-lined rent and other non-cash rent expense |
— | 3,735 | 87 | ||||||||||||||
Depreciation and amortization | 10,737 | 12,621 | 12,198 | ||||||||||||||
Other non-cash activities | (15,759) | (12,396) | (4,191) | ||||||||||||||
Net (gain) loss from investment activities of Consolidated Investment Funds |
19,622 | 7,869 | 24,705 | ||||||||||||||
Changes in operating assets and liabilities: |
|||||||||||||||||
Due from affiliates | (33,833) | (12,138) | (21,231) | ||||||||||||||
Proceeds from Investment Funds | 382,995 | 297,714 | 146,252 | ||||||||||||||
Other assets | (1,647) | (1,635) | 5,335 | ||||||||||||||
Accounts payable and accrued expenses | 28,038 | (2,464) | 9,947 | ||||||||||||||
Due to affiliates | 35,721 | 1,204 | — | ||||||||||||||
Accrued cash and equity-based compensation and benefits |
(45,502) | 41,123 | (81,806) | ||||||||||||||
Accrued performance allocation compensation |
(110,063) | (96,640) | 27,448 | ||||||||||||||
Other liabilities | (17,011) | — | — | ||||||||||||||
Changes related to Consolidated Investment Funds: |
|||||||||||||||||
Purchases of investments | (524,289) | (915,385) | (784,525) | ||||||||||||||
Proceeds from investments | 501,017 | 946,048 | 545,527 | ||||||||||||||
Other assets | (9,116) | (22,142) | 6,193 | ||||||||||||||
Accrued expenses | 7,117 | 983 | (536) | ||||||||||||||
Other liabilities | (28,997) | 40,038 | 22,709 | ||||||||||||||
Total adjustments | 173,958 | (152,190) | (101,905) | ||||||||||||||
Net cash provided by (used in) operating activities |
156,564 | 210,110 | (144,702) | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Contributions to Investment Funds | (23,533) | (41,672) | (55,380) | ||||||||||||||
Distributions from Investment Funds | 47,207 | 53,828 | 35,466 | ||||||||||||||
Purchases of investments | (1,090) | (61,537) | (116,909) | ||||||||||||||
Proceeds from investments | 3,401 | 31,920 | 95,326 | ||||||||||||||
Issuance of short-term loans to related parties |
— | — | (47,974) | ||||||||||||||
Payments of short-term loans received from related parties |
— | — | 47,974 | ||||||||||||||
Proceeds from investments sold, but not yet purchased |
— | — | 33,532 | ||||||||||||||
Payments to cover investments sold, but not yet purchased |
— | (8,683) | (29,204) | ||||||||||||||
Purchases of fixed assets | (794) | (4,252) | (9,564) | ||||||||||||||
Disposal of fixed assets | 1,617 | — | — | ||||||||||||||
Net cash outflow from deconsolidation of Consolidated Investment Fund |
— | (15,512) | — | ||||||||||||||
Net cash provided by (used in) investing activities |
$ | 26,808 | $ | (45,908) | $ | (46,733) | |||||||||||
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Capital contributions | $ | 25,085 | $ | 43,078 | $ | 4,615 | |||||||||||
Capital contributions from non-controlling interests |
60 | 211 | — | ||||||||||||||
Capital distributions | (155,855) | (55,684) | (44,017) | ||||||||||||||
Capital distributions to non-controlling interests |
(1,486) | — | — | ||||||||||||||
Partner equity loans proceeds | — | — | 1,132 | ||||||||||||||
Partner equity loans issuance | — | (1,500) | (4,989) | ||||||||||||||
Proceeds from securitized financing | — | — | 33,542 | ||||||||||||||
Paydowns of other loan payable | — | — | (18,039) | ||||||||||||||
Proceeds from repurchase agreements | 29 | 56,792 | — | ||||||||||||||
Proceeds from credit facility | 25,000 | — | — | ||||||||||||||
Changes related to Consolidated Investment Funds: |
|||||||||||||||||
Capital contributions from non-controlling interests | — | — | 17,943 | ||||||||||||||
Capital distributions to non-controlling interests |
(9,188) | (12,327) | (32,760) | ||||||||||||||
Proceeds from issuance of the CLO | — | 10,105 | 215,291 | ||||||||||||||
Paydowns of CLO notes payable | — | — | (5,471) | ||||||||||||||
Borrowings of CLO warehouse | — | — | 106,215 | ||||||||||||||
Repayment of CLO warehouse loans | — | — | (116,881) | ||||||||||||||
Net cash provided by (used in) financing activities |
$ | (116,355) | $ | 40,675 | $ | 156,581 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | $ | 322 | $ | (5) | $ | (7,133) | |||||||||||
Net increase (decrease) in cash, cash equivalents, restricted cash and cash held by Consolidated Investment Funds | $ | 67,339 | $ | 204,872 | $ | (41,987) | |||||||||||
Cash, cash equivalents, restricted cash and cash held by Consolidated Investment Funds, beginning of year | 580,537 | 375,665 | 417,652 | ||||||||||||||
Cash, cash equivalents, restricted cash and cash held by Consolidated Investment Funds, end of year | $ | 647,876 | $ | 580,537 | $ | 375,665 | |||||||||||
Supplemental disclosure of non-cash investing and financing activities | |||||||||||||||||
Capital contributions in-kind | $ | 80,323 | $ | 26,608 | $ | 11,065 | |||||||||||
Capital contributions in-kind from non-controlling interests | 243 | 180 | 95,437 | ||||||||||||||
Capital distributions in-kind | (68,352) | (7,512) | (73,774) | ||||||||||||||
Capital distributions in-kind from non-controlling interests | (165) | (198) | (17,414) | ||||||||||||||
Other capital adjustments | (5,964) | (4,972) | (8,452) | ||||||||||||||
Other capital adjustments from non-controlling interests | — | (50) | — | ||||||||||||||
Partner equity loans proceeds | 10,588 | 6,060 | 51,159 | ||||||||||||||
Partner equity loans issuance | (8,812) | (3,014) | (51,159) | ||||||||||||||
Purchase of investments in-kind | — | — | (103,401) | ||||||||||||||
Sales of investments in-kind | — | — | 103,401 | ||||||||||||||
Contributions in-kind to Investment Funds | — | (5,510) | (293) | ||||||||||||||
Distributions in-kind from Investment Funds | — | 5,877 | — | ||||||||||||||
Increase in other loan payable | — | 5,510 | 293 | ||||||||||||||
Decrease in other loan payable | — | (5,877) | — |
Year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Supplemental cash flow disclosures | |||||||||||||||||
Cash paid for interest | $ | 54,233 | $ | 39,494 | $ | 41,086 | |||||||||||
Cash paid for taxes | 620 | 5,152 | 2,957 | ||||||||||||||
Reconciliation of cash, cash equivalents, restricted cash and cash held by Consolidated Investment Funds, end of period: |
|||||||||||||||||
Cash and cash equivalents | $ | 600,460 | $ | 480,211 | $ | 332,181 | |||||||||||
Cash held by Consolidated Investment Funds | 40,456 | 88,216 | 43,484 | ||||||||||||||
Restricted cash | 6,960 | 12,110 | — | ||||||||||||||
Cash, cash equivalents, restricted cash and cash held by Consolidated Investment Funds, end of year | $ | 647,876 | $ | 580,537 | $ | 375,665 |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Investments owned by Consolidated Investment Funds, at fair value | $ | 1,316,531 | $ | 1,398,582 | |||||||
Total investments owned by Consolidated Investment Funds |
$ | 1,316,531 | $ | 1,398,582 | |||||||
Investments owned by the Partnership: | |||||||||||
Equity Method Investments – GP Investments | $ | 221,982 | $ | 251,019 | |||||||
Accrued incentive allocation investment income | 767,169 | 980,852 | |||||||||
Other securities, at fair value | 505 | — | |||||||||
Investments in other partnerships, at fair value | 4,047 | 3,422 | |||||||||
Investments held to maturity, at amortized cost | 87,797 | 93,378 | |||||||||
Total investments owned by the Partnership | $ | 1,081,500 | $ | 1,328,671 |
December 31, 2022 | |||||||||||||||||
GP investments | Accrued incentive allocation investment income | Total | |||||||||||||||
Credit | $ | 113,257 | $ | 169,618 | $ | 282,875 | |||||||||||
Real Estate | 66,109 | 560,265 | 626,374 | ||||||||||||||
Private Equity | 2,640 | 29,270 | 31,910 | ||||||||||||||
Multistrategy | 39,976 | 8,016 | 47,992 | ||||||||||||||
$ | 221,982 | $ | 767,169 | $ | 989,151 |
December 31, 2021 | |||||||||||||||||
GP investments | Accrued incentive allocation investment income | Total | |||||||||||||||
Credit | $ | 132,201 | $ | 285,815 | $ | 418,016 | |||||||||||
Real Estate | 66,716 | 625,464 | 692,180 | ||||||||||||||
Private Equity | 3,825 | 46,956 | 50,781 | ||||||||||||||
Multistrategy | 48,277 | 22,617 | 70,894 | ||||||||||||||
$ | 251,019 | $ | 980,852 | $ | 1,231,871 |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Investments, at fair value | |||||||||||
United States | |||||||||||
Consumer | $ | 359,378 | $ | 376,985 | |||||||
Energy and Natural Resources | 124,947 | 127,382 | |||||||||
Financials | 36,076 | 43,167 | |||||||||
Healthcare | 109,260 | 130,696 | |||||||||
Industrials | 508,919 | 521,119 | |||||||||
Telecommunications | 31,525 | 55,619 | |||||||||
Total United States | 1,170,105 | 1,254,968 | |||||||||
Canada | |||||||||||
Consumer | 10,062 | 3,129 | |||||||||
Healthcare | 5,504 | — | |||||||||
Industrials | 15,362 | 17,943 | |||||||||
Telecommunications | — | 591 | |||||||||
Total Canada | 30,928 | 21,663 | |||||||||
European Union & United Kingdom | |||||||||||
Consumer | 53,474 | 44,313 | |||||||||
Healthcare | 2,325 | 4,168 | |||||||||
Industrials | 45,011 | 55,823 | |||||||||
Telecommunications | 7,519 | 10,592 | |||||||||
Total European Union & United Kingdom | 108,329 | 114,896 | |||||||||
Bermuda | |||||||||||
Industrials | — | 7,055 | |||||||||
Central America | |||||||||||
Industrials | 7,169 | — | |||||||||
Total investments held through the Consolidated Investment Funds (cost $1,424,512 and $1,411,902 respectively) | $ | 1,316,531 | $ | 1,398,582 |
December 31, 2022 | |||||||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||||||||||||||
Equity investments, common stock | $ | — | $ | 18 | $ | — | $ | 18 | |||||||||||||||
Fixed income securities, bank debt | — | 1,223,701 | 92,812 | 1,316,513 | |||||||||||||||||||
Total Financial Instruments owned by Consolidated Investment Funds |
— | 1,223,719 | 92,812 | 1,316,531 | |||||||||||||||||||
Financial Instruments owned by the Partnership | |||||||||||||||||||||||
Cash equivalents | 339,146 | — | — | 339,146 | |||||||||||||||||||
Other securities, at fair value | — | — | 505 | 505 | |||||||||||||||||||
Total Financial Instruments owned by the Partnership |
339,146 | — | 505 | 339,651 | |||||||||||||||||||
Total | $ | 339,146 | $ | 1,223,719 | $ | 93,317 | $ | 1,656,182 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||||||||||||||
CLO notes payable | $ | — | $ | — | $ | 1,310,701 | $ | 1,310,701 | |||||||||||||||
Total | $ | — | $ | — | $ | 1,310,701 | $ | 1,310,701 |
December 31, 2021 | |||||||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||||||||||||||
Equity investments, common stock | $ | — | $ | 76 | $ | 659 | $ | 735 | |||||||||||||||
Fixed income securities, bank debt | — | 1,275,155 | 122,692 | 1,397,847 | |||||||||||||||||||
Total Financial Instruments owned by Consolidated Investment Funds | — | 1,275,231 | 123,351 | 1,398,582 | |||||||||||||||||||
Financial Instruments owned by the Partnership | |||||||||||||||||||||||
Cash equivalents | 37,532 | — | — | 37,532 | |||||||||||||||||||
Total Financial Instruments owned by the Partnership | 37,532 | — | — | 37,532 | |||||||||||||||||||
Total | $ | 37,532 | $ | 1,275,231 | $ | 123,351 | $ | 1,436,114 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||||||||||||||
CLO notes payable | $ | — | $ | — | $ | 1,399,436 | $ | 1,399,436 | |||||||||||||||
Total | $ | — | $ | — | $ | 1,399,436 | $ | 1,399,436 |
December 31, 2022 | |||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range (Weighted Average) | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||||||||||||||
Fixed income securities, bank debt (1) |
$ | 92,812 | — | — | — | ||||||||||||||||||
Financial Instruments owned by the Partnership | |||||||||||||||||||||||
Other securities, at fair value | $ | 505 | Black Scholes Model | Volatility | 40% | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||||||||||||||
CLO notes payable | $ | 1,310,701 | N/A(2) |
N/A | N/A |
December 31, 2021 | |||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range (Weighted Average) | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||||||||||||||
Equity investments, common stock (1) |
$ | 659 | — | — | — | ||||||||||||||||||
Fixed income securities, bank debt (1) |
$ | 122,692 | — | — | — | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||||||||||||||
CLO notes payable | $ | 1,399,436 | N/A(2) |
N/A | N/A |
Year Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Assets | |||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||
Equity investments, common stock | |||||||||||
Balance, beginning of period | $ | 659 | $ | 141 | |||||||
Purchases | — | — | |||||||||
Sales | (876) | (165) | |||||||||
Transfer In | — | — | |||||||||
Transfer Out | — | (125) | |||||||||
Gain (loss) | 217 | 808 | |||||||||
Total Equity investments, common stock | — | 659 | |||||||||
Total change in unrealized gain (loss) on equity investments still held | $ | — | $ | 808 | |||||||
Fixed income securities, bank debt | |||||||||||
Balance, beginning of period | $ | 122,692 | $ | 174,826 | |||||||
Purchases | 34,870 | 62,798 | |||||||||
Sales | (54,363) | (55,933) | |||||||||
Transfer In | 51,544 | 31,902 | |||||||||
Transfer Out | (55,621) | (94,698) | |||||||||
Gain (loss) | (6,310) | 3,797 | |||||||||
Total Fixed income securities, bank debt | 92,812 | 122,692 | |||||||||
Total Financial Instruments owned by Consolidated Investment Funds |
$ | 92,812 | $ | 123,351 | |||||||
Total change in unrealized gain (loss) on fixed income securities still held | $ | (3,916) | $ | 1,736 | |||||||
Financial Instruments owned by the Partnership | |||||||||||
Other securities, at fair value | |||||||||||
Balance, beginning of period | $ | — | $ | — | |||||||
Purchases | 536 | — | |||||||||
Sales | — | — | |||||||||
Transfer In | — | — | |||||||||
Transfer Out | — | — | |||||||||
Gain (loss) | (31) | — | |||||||||
Total Other securities, at fair value | 505 | — | |||||||||
Total Financial Instruments owned by the Partnership |
$ | 505 | $ | — | |||||||
Total change in unrealized gain (loss) on other securities still held | $ | (31) | $ | — | |||||||
Year Ended December 31, | |||||||||||
2022 | 2021 | ||||||||||
Liabilities | |||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||
CLO notes payable | |||||||||||
Balance, beginning of period | $ | 1,399,436 | $ | 1,582,537 | |||||||
Purchases | — | — | |||||||||
Sales | — | — | |||||||||
Transfer In | — | — | |||||||||
Transfer Out | — | — | |||||||||
Gain (loss) | (88,735) | (183,101) | |||||||||
Total Financial Instruments owned by Consolidated Investment Funds | $ | 1,310,701 | $ | 1,399,436 |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
GP investments | $ | 200,475 | $ | 222,402 | |||||||
Accrued incentive allocations | 764,887 | 980,852 | |||||||||
Total Investments in VIEs | 965,362 | 1,203,254 | |||||||||
Due from affiliates | 113,971 | 170,655 | |||||||||
Total VIE-related assets | 1,079,333 | 1,373,909 | |||||||||
Due to affiliates | 22,476 | — | |||||||||
Maximum exposure to loss | $ | 1,101,809 | $ | 1,373,909 |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Other assets owned by Consolidated Investment Funds | |||||||||||
Receivable from brokers | $ | 37,408 | $ | 30,871 | |||||||
Interest and other dividends receivable | 5,562 | 2,983 | |||||||||
Total other assets owned by Consolidated Investment Funds |
$ | 42,970 | $ | 33,854 | |||||||
Other assets owned by the Partnership | |||||||||||
Fixed assets, gross: | |||||||||||
Equipment | $ | 9,853 | $ | 9,320 | |||||||
Leasehold improvements | 93,840 | 96,433 | |||||||||
Capitalized software | 24,475 | 24,478 | |||||||||
Other | 1,835 | 3,477 | |||||||||
Total fixed assets, gross | 130,003 | 133,708 | |||||||||
Less: Accumulated depreciation and amortization | (87,462) | (79,610) | |||||||||
Total fixed assets, net | 42,541 | 54,098 | |||||||||
Lease assets, net | 88,642 | — | |||||||||
Prepaid and other assets | 22,205 | 21,758 | |||||||||
Interest and dividends receivable | 1,357 | 157 | |||||||||
Total other assets owned by the Partnership |
$ | 154,745 | $ | 76,013 |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Other liabilities of Consolidated Investment Funds | |||||||||||
Payable to brokers | $ | 45,502 | $ | 74,499 | |||||||
Other liabilities of the Partnership | |||||||||||
Lease liability(1) |
$ | 106,268 | $ | — |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Management fees | $ | 433,301 | $ | 382,559 | $ | 371,267 | |||||||||||
Other fees | 2,507 | 702 | 878 | ||||||||||||||
Incentive fee income | 7,317 | 2,482 | 1,658 | ||||||||||||||
Expense reimbursements | 73,785 | 66,536 | 60,536 | ||||||||||||||
Fees and other | $ | 516,910 | $ | 452,279 | $ | 434,339 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Incentive allocation investment income | 79,673 | 772,857 | 24,100 | ||||||||||||||
GP investment income | (3,515) | 38,924 | 334 | ||||||||||||||
Capital allocation-based income | $ | 76,158 | $ | 811,781 | $ | 24,434 |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Due from affiliates | |||||||||||
Management fees and incentive income receivable | $ | 63,770 | $ | 139,818 | |||||||
Receivable from related parties, net | 94,405 | 71,082 | |||||||||
Total | $ | 158,175 | $ | 210,900 | |||||||
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Due to affiliates | |||||||||||
Partner distributions and redemptions | $ | 18,094 | $ | 10,588 | |||||||
Payable to Investment Funds | 22,476 | — | |||||||||
Other payables to related parties | 245 | 2,114 | |||||||||
Total | $ | 40,815 | $ | 12,702 |
Year Ended December 31, 2022 | ||||||||
Operating lease cost (1) |
$ | 14,516 | ||||||
Short-term lease cost | 157 | |||||||
Variable lease cost (2) |
2,010 | |||||||
Total lease costs | $ | 16,683 | ||||||
Weighted average remaining lease term (in years) | 8 | |||||||
Weighted average discount rate | 3.23% |
Year Ended December 31, 2022 | ||||||||
Cash paid related to lease liabilities: | ||||||||
Operating cash flows for operating leases | $ | 17,011 | ||||||
Non-cash right-of-use assets obtained in exchange for new and/or modified operating lease liabilities |
1,632 | |||||||
Non-cash right-of-use assets and lease liability termination | (380) |
Operating Leases | ||||||||
2023 | $ | 17,802 | ||||||
2024 | 16,396 | |||||||
2025 | 15,949 | |||||||
2026 | 12,823 | |||||||
2027 | 14,813 | |||||||
Thereafter | 42,786 | |||||||
Total undiscounted lease payments (1) |
120,569 | |||||||
Less: Imputed interest | (14,301) | |||||||
Lease liabilities | $ | 106,268 |
Operating Leases | ||||||||
2022 | $ | 16,349 | ||||||
2023 | 15,758 | |||||||
2024 | 15,589 | |||||||
2025 | 15,702 | |||||||
2026 | 13,155 | |||||||
Thereafter | 58,700 | |||||||
Total | $ | 135,253 |
December 31, 2022 | |||||||||||||||||||||||
|
Gross amount of assets or liabilities presented on the consolidated statements of financial condition | Gross amounts not offset on the consolidated statements of financial condition | |||||||||||||||||||||
Financial instruments | Cash collateral | Net amount | |||||||||||||||||||||
Repurchase agreements | $ | (80,807) | $ | 80,807 | $ | — | $ | — |
December 31, 2021 | |||||||||||||||||||||||
Gross amount of assets or liabilities presented on the consolidated statements of financial condition | Gross amounts not offset on the consolidated statements of financial condition | ||||||||||||||||||||||
Financial instruments | Cash collateral | Net amount | |||||||||||||||||||||
Repurchase agreements | $ | (85,913) | $ | 85,913 | $ | — | $ | — |
December 31, 2022 | |||||||||||||||||||||||
Principal Balance | Fair Value(1) |
Weighted Average Interest Rate(2) |
Maturity Date | ||||||||||||||||||||
Northwoods XV, Ltd. | $ | 451,110 | $ | 401,020 | 5.0% | 6/20/2034 | |||||||||||||||||
Northwoods XVI, Ltd. | 483,682 | 442,005 | 5.8% | 11/15/2030 | |||||||||||||||||||
Northwoods XVII, Ltd. | 505,750 | 467,676 | 5.5% | 4/30/2031 | |||||||||||||||||||
$ | 1,440,542 | $ | 1,310,701 |
December 31, 2021 | |||||||||||||||||||||||
Principal Balance | Fair Value(1) |
Weighted Average Interest Rate(2) |
Maturity Date | ||||||||||||||||||||
Northwoods XV, Ltd. | $ | 451,110 | $ | 430,638 | 1.8% | 6/20/2034 | |||||||||||||||||
Northwoods XVI, Ltd. | 473,882 | 470,374 | 2.0% | 11/15/2030 | |||||||||||||||||||
Northwoods XVII, Ltd. | 504,800 | 498,424 | 1.7% | 4/30/2031 | |||||||||||||||||||
$ | 1,429,792 | $ | 1,399,436 |
Page | |||||
Unaudited Consolidated Financial Statements | |||||
June 30, 2023 | December 31, 2022 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 429,764 | $ | 600,460 | |||||||
Restricted cash | 10,318 | 6,960 | |||||||||
Investments ($83,094 and $82,525 pledged as collateral under repurchase agreement as of June 30, 2023 and December 31, 2022, respectively; net of allowance for credit losses of $1,861 and $0 as of June 30, 2023 and December 31, 2022, respectively) |
1,126,606 | 1,081,500 | |||||||||
Due from affiliates |
116,202 | 158,175 | |||||||||
Other assets | 156,402 | 154,745 | |||||||||
Assets of Consolidated Investment Funds: | |||||||||||
Cash and cash equivalents | — | 40,456 | |||||||||
Investments | — | 1,316,531 | |||||||||
Other assets | — | 42,970 | |||||||||
Total Assets | $ | 1,839,292 | $ | 3,401,797 | |||||||
Liabilities and Partners’ Capital | |||||||||||
Accrued performance allocation compensation | $ | 486,679 | $ | 478,559 | |||||||
Accrued cash and equity-based compensation and benefits |
158,175 | 271,662 | |||||||||
Other liabilities | 114,398 | 106,268 | |||||||||
Repurchase agreements | 82,374 | 80,807 | |||||||||
Accounts payable and accrued expenses | 53,168 | 46,646 | |||||||||
Due to affiliates | 9,287 | 40,815 | |||||||||
Credit facility | 25,000 | 25,000 | |||||||||
Liabilities of Consolidated Investment Funds: | |||||||||||
CLO notes payable | — | 1,310,701 | |||||||||
Accrued expenses | — | 10,121 | |||||||||
Other liabilities | — | 45,502 | |||||||||
Total Liabilities | 929,081 | 2,416,081 | |||||||||
Commitment and contingencies (Note 11) | |||||||||||
Partners’ capital | 903,954 | 951,175 | |||||||||
Non-controlling interests | 6,257 | 34,541 | |||||||||
Total Partners’ Capital | 910,211 | 985,716 | |||||||||
Total Liabilities and Partners’ Capital | $ | 1,839,292 | $ | 3,401,797 |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Revenues: | |||||||||||
Fees and other | $ | 285,362 | $ | 242,893 | |||||||
Capital allocation-based income | 110,606 | 93,756 | |||||||||
Total revenues | 395,968 | 336,649 | |||||||||
Expenses: | |||||||||||
Compensation and benefits: |
|||||||||||
Cash-based compensation, benefits and other | 220,513 | 185,677 | |||||||||
Equity-based compensation | 4,755 | 4,076 | |||||||||
Performance allocation compensation | 40,062 | 53,405 | |||||||||
Total compensation and benefits | 265,330 | 243,158 | |||||||||
General, administrative and other | 103,178 | 80,404 | |||||||||
Depreciation and amortization | 4,933 | 5,553 | |||||||||
Interest expense | 3,294 | 1,195 | |||||||||
Expenses of Consolidated Investment Funds: | |||||||||||
Interest expense | 50,450 | 21,129 | |||||||||
General, administrative and other | 956 | 1,042 | |||||||||
Total expenses | 428,141 | 352,481 | |||||||||
Investment income (loss): | |||||||||||
Net gain (loss) from investment activities and other |
206 | (2,781) | |||||||||
Interest, dividends and other | 9,975 | 3,019 | |||||||||
Investment income of Consolidated Investment Funds: |
|||||||||||
Net gain (loss) from investment activities and other |
(12,148) | (12,700) | |||||||||
Interest, dividends and other | 64,855 | 33,685 | |||||||||
Total investment income (loss) | 62,888 | 21,223 | |||||||||
Net Income (loss) before income taxes | 30,715 | 5,391 | |||||||||
Income tax expense | (2,814) | (660) | |||||||||
Net income (loss) | 27,901 | 4,731 | |||||||||
Other comprehensive income (loss), net: | |||||||||||
Foreign currency translation adjustments, net including non-controlling interests | 348 | (206) | |||||||||
Comprehensive income (loss) including non-controlling interests | 28,249 | 4,525 | |||||||||
Comprehensive income (loss) by Partner: | |||||||||||
Comprehensive income (loss) to Partners | 28,938 | 8,120 | |||||||||
Comprehensive income (loss) allocable to non-controlling interests |
(689) | (3,595) | |||||||||
Comprehensive income (loss) | $ | 28,249 | $ | 4,525 | |||||||
Partners’ capital | Non-controlling interests | Total Partners’ capital | |||||||||||||||
Balance as of January 1, 2022 | $ | 1,094,426 | $ | 45,145 | $ | 1,139,571 | |||||||||||
Net income (loss) | 8,326 | (3,595) | 4,731 | ||||||||||||||
Capital contributions | 52,253 | 150 | 52,403 | ||||||||||||||
Capital distributions | (166,918) | (5,977) | (172,895) | ||||||||||||||
Other capital adjustments | 1,697 | 23 | 1,720 | ||||||||||||||
Changes in partner equity loans | 3,588 | — | 3,588 | ||||||||||||||
Other comprehensive income (loss), net | (206) | — | (206) | ||||||||||||||
Balance as of June 30, 2022 | $ | 993,166 | $ | 35,746 | $ | 1,028,912 | |||||||||||
Partners’ capital | Non-controlling interests | Total Partners’ capital | |||||||||||||||
Balance as of January 1, 2023 | $ | 951,175 | $ | 34,541 | $ | 985,716 | |||||||||||
Net income (loss) | 28,590 | (689) | 27,901 | ||||||||||||||
Capital contributions | 26,811 | 296 | 27,107 | ||||||||||||||
Capital distributions | (103,739) | (5,594) | (109,333) | ||||||||||||||
Other capital adjustments | (270) | (1) | (271) | ||||||||||||||
Changes in partner equity loans | 1,039 | — | 1,039 | ||||||||||||||
Other comprehensive income (loss), net | 348 | — | 348 | ||||||||||||||
Deconsolidation of Investment Funds (Note 2) | — | (22,296) | (22,296) | ||||||||||||||
Balance as of June 30, 2023 | $ | 903,954 | $ | 6,257 | $ | 910,211 |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 27,901 | $ | 4,731 | |||||||
Adjustments to reconcile net income (loss) to net cash from operating activities: |
|||||||||||
Equity-based compensation | 4,755 | 4,076 | |||||||||
Performance allocation compensation | 40,062 | 53,405 | |||||||||
Net (gain) loss from investment activities and other | (206) | 2,781 | |||||||||
Capital allocation-based income | (110,606) | (93,756) | |||||||||
Depreciation and amortization | 4,933 | 5,553 | |||||||||
Other non-cash activities | (10,547) | (16,309) | |||||||||
Net (gain) loss from investment activities of Consolidated Investment Funds |
12,148 | 12,700 | |||||||||
Changes in operating assets and liabilities: |
|||||||||||
Due from affiliates | 37,834 | (7,014) | |||||||||
Proceeds from Investment Funds | 63,762 | 255,582 | |||||||||
Other assets | 5,677 | 3,070 | |||||||||
Accounts payable and accrued expenses | 6,514 | 24,145 | |||||||||
Accrued cash and equity-based compensation and benefits |
(118,242) | (168,081) | |||||||||
Accrued performance allocation compensation | (31,942) | (56,712) | |||||||||
Due to affiliates | (31,712) | — | |||||||||
Other liabilities | (7,958) | (8,348) | |||||||||
Changes related to Consolidated Investment Funds: |
— | ||||||||||
Purchases of investments | (240,347) | (349,135) | |||||||||
Proceeds from investments | 283,208 | 321,358 | |||||||||
Other assets | 11,140 | 5,258 | |||||||||
Accrued expenses | 1,144 | 1,609 | |||||||||
Other liabilities | 6,956 | (16,092) | |||||||||
Total adjustments | (73,427) | (25,910) | |||||||||
Net cash provided by (used in) operating activities |
(45,526) | (21,179) | |||||||||
Cash flows from investing activities: | |||||||||||
Contributions to Investment Funds | (6,368) | (7,396) | |||||||||
Distributions from Investment Funds | 18,253 | 25,318 | |||||||||
Purchases of investments | (181) | (674) | |||||||||
Proceeds from investments | 2,732 | 3,186 | |||||||||
Purchases of fixed assets | (4,001) | (399) | |||||||||
Net cash outflow from deconsolidation of Investment Funds (Note 2) |
(97,962) | — | |||||||||
Net cash provided by (used in) investing activities |
$ | (87,527) | $ | 20,035 | |||||||
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from financing activities: | |||||||||||
Capital contributions | $ | — | $ | 2,626 | |||||||
Capital contributions from non-controlling interests | — | 43 | |||||||||
Capital distributions | (65,157) | (109,201) | |||||||||
Capital distributions to non-controlling interests | — | (1,009) | |||||||||
Proceeds from repurchase agreements | — | 28 | |||||||||
Partner equity loan proceeds | 1,222 | — | |||||||||
Changes related to Consolidated Investment Funds: | |||||||||||
Paydowns of CLO notes payable | (6,570) | — | |||||||||
Capital distributions to non-controlling interests |
(5,480) | (4,958) | |||||||||
Net cash provided by (used in) financing activities |
$ | (75,985) | $ | (112,471) | |||||||
Effect of exchange rate changes on cash and cash equivalents | $ | 1,244 | $ | 360 | |||||||
Net increase (decrease) in cash, cash equivalents, restricted cash and cash held by Consolidated Investment Funds | $ | (207,794) | $ | (113,255) | |||||||
Cash, cash equivalents, restricted cash and cash held by Consolidated Investment Funds, beginning of period | 647,876 | 580,537 | |||||||||
Cash, cash equivalents, restricted cash and cash held by Consolidated Investment Funds, end of period | $ | 440,082 | $ | 467,282 | |||||||
Supplemental non-cash flow disclosures: | |||||||||||
Capital contributions in-kind | $ | 26,811 | $ | 52,234 | |||||||
Capital contributions in-kind from non-controlling interests | 296 | 107 | |||||||||
Capital distributions in-kind | (38,582) | (57,718) | |||||||||
Capital distributions in-kind to non-controlling Interests | (114) | (9) | |||||||||
Other capital adjustments | (271) | 1,717 | |||||||||
Partner equity loan issuances | (256) | (5,294) | |||||||||
Partner equity loan proceeds | 73 | 8,882 | |||||||||
Supplemental cash flow disclosures: | |||||||||||
Cash paid for interest | 34,040 | 627 | |||||||||
Cash paid for taxes | 4,203 | 999 | |||||||||
Reconciliation of cash, cash equivalents, restricted cash and cash held by Consolidated Investment Funds, end of period:
|
|||||||||||
Cash and cash equivalents | $ | 429,764 | $ | 403,258 | |||||||
Cash held by Consolidated Investment Funds | — | 52,705 | |||||||||
Restricted cash | 10,318 | 11,319 | |||||||||
Cash, cash equivalents, restricted cash and cash held by Consolidated Investment Funds, end of period | $ | 440,082 | $ | 467,282 |
June 30, 2023 | December 31, 2022 | ||||||||||
Investments owned by Consolidated Investment Funds, at fair value | $ | — | $ | 1,316,531 | |||||||
Total investments owned by Consolidated Investment Funds |
$ | — | $ | 1,316,531 | |||||||
Investments owned by the Partnership: | |||||||||||
Equity Method Investments – GP Investments | $ | 215,942 | $ | 221,982 | |||||||
Accrued incentive allocation investment income | 820,162 | 767,169 | |||||||||
Other securities, at fair value | 470 | 505 | |||||||||
Investments in other partnerships, at fair value | 3,425 | 4,047 | |||||||||
Investments held to maturity, at amortized cost | 86,607 | 87,797 | |||||||||
Total investments owned by the Partnership | $ | 1,126,606 | $ | 1,081,500 |
June 30, 2023 | |||||||||||||||||
GP investments | Accrued incentive allocation investment income | Total | |||||||||||||||
Credit | $ | 108,183 | $ | 244,088 | $ | 352,271 | |||||||||||
Real Estate | 65,332 | 544,844 | 610,176 | ||||||||||||||
Private Equity | 2,221 | 28,709 | 30,930 | ||||||||||||||
Multistrategy | 40,206 | 2,521 | 42,727 | ||||||||||||||
$ | 215,942 | $ | 820,162 | $ | 1,036,104 | ||||||||||||
December 31, 2022 | |||||||||||||||||
GP investments | Accrued incentive allocation investment income | Total | |||||||||||||||
Credit | $ | 113,257 | $ | 169,618 | $ | 282,875 | |||||||||||
Real Estate | 66,109 | 560,265 | 626,374 | ||||||||||||||
Private Equity | 2,640 | 29,270 | 31,910 | ||||||||||||||
Multistrategy | 39,976 | 8,016 | 47,992 | ||||||||||||||
$ | 221,982 | $ | 767,169 | $ | 989,151 |
June 30, 2023 | ||||||||
Beginning balance | $ | — | ||||||
Impact of adopting ASU 2016-13 | 1,861 | |||||||
Provision for credit losses | — | |||||||
Allowance for credit losses on held to maturity investments | $ | 1,861 |
December 31, 2022 | ||||||||
Investments, at fair value | ||||||||
United States | ||||||||
Consumer | $ | 359,378 | ||||||
Energy and Natural Resources | 124,947 | |||||||
Financials | 36,076 | |||||||
Healthcare | 109,260 | |||||||
Industrials | 508,919 | |||||||
Telecommunications | 31,525 | |||||||
Total United States | 1,170,105 | |||||||
Canada | ||||||||
Consumer | 10,062 | |||||||
Healthcare | 5,504 | |||||||
Industrials | 15,362 | |||||||
Total Canada | 30,928 | |||||||
European Union & United Kingdom | ||||||||
Consumer | 53,474 | |||||||
Healthcare | 2,325 | |||||||
Industrials | 45,011 | |||||||
Telecommunications | 7,519 | |||||||
Total European Union & United Kingdom | 108,329 | |||||||
Central America | ||||||||
Industrials | 7,169 | |||||||
Total investments held through the Consolidated Investment Funds (cost $1,424,512) |
$ | 1,316,531 |
June 30, 2023 | |||||||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Financial Instruments owned by the Partnership | |||||||||||||||||||||||
Cash equivalents | $ | 320,154 | $ | — | $ | — | $ | 320,154 | |||||||||||||||
Other securities, at fair value | — | — | 470 | 470 | |||||||||||||||||||
Total Financial Instruments owned by the Partnership |
$ | 320,154 | $ | — | $ | 470 | $ | 320,624 |
December 31, 2022 | |||||||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||||||||||||||
Equity investments, common stock | $ | — | $ | 18 | $ | — | $ | 18 | |||||||||||||||
Fixed income securities, bank debt | — | 1,223,701 | 92,812 | 1,316,513 | |||||||||||||||||||
Total Financial Instruments owned by Consolidated Investment Funds |
— | 1,223,719 | 92,812 | 1,316,531 | |||||||||||||||||||
Financial Instruments owned by the Partnership | |||||||||||||||||||||||
Cash equivalents | 339,146 | — | — | 339,146 | |||||||||||||||||||
Other securities, at fair value | — | — | 505 | 505 | |||||||||||||||||||
Total Financial Instruments owned by the Partnership |
339,146 | — | 505 | 339,651 | |||||||||||||||||||
Total | $ | 339,146 | $ | 1,223,719 | $ | 93,317 | $ | 1,656,182 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||||||||||||||
CLO notes payable | $ | — | $ | — | $ | 1,310,701 | $ | 1,310,701 | |||||||||||||||
Total | $ | — | $ | — | $ | 1,310,701 | $ | 1,310,701 |
June 30, 2023 | |||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range (Weighted Average) | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Financial Instruments owned by the Partnership | |||||||||||||||||||||||
Other securities, at fair value | $ | 470 | Black Scholes Model | Volatility | 40% |
December 31, 2022 | |||||||||||||||||||||||
Fair Value | Valuation Technique(s) | Unobservable Input(s) | Range (Weighted Average) | ||||||||||||||||||||
Assets | |||||||||||||||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||||||||||||||
Fixed income securities, bank debt(1) |
$ | 92,812 | — | — | — | ||||||||||||||||||
Financial Instruments owned by the Partnership | |||||||||||||||||||||||
Other securities, at fair value | $ | 505 | Black Scholes Model | Volatility | 40% | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||||||||||||||
CLO notes payable | $ | 1,310,701 | N/A(2) |
N/A | N/A |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Assets | |||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||
Equity investments, common stock | |||||||||||
Balance, beginning of period | $ | — | $ | 659 | |||||||
Purchases | 4,301 | — | |||||||||
Sales | — | (876) | |||||||||
Transfer In | — | — | |||||||||
Transfer Out | — | — | |||||||||
Gain (loss) | (3,636) | 217 | |||||||||
Deconsolidation of Investment Funds (Note 2) | (665) | — | |||||||||
Total Equity investments, common stock | — | — | |||||||||
Fixed income securities, bank debt | |||||||||||
Balance, beginning of period | 92,812 | 122,692 | |||||||||
Purchases | 12,711 | 38,815 | |||||||||
Sales | (21,502) | (50,301) | |||||||||
Transfer In | 54,052 | 104,278 | |||||||||
Transfer Out | (37,226) | (42,779) | |||||||||
Gain (loss) | 6,628 | (11,050) | |||||||||
Deconsolidation of Investment Funds (Note 2) | (107,475) | — | |||||||||
Total Fixed income securities, bank debt | — | 161,655 | |||||||||
Total Financial Instruments owned by Consolidated Investment Funds | $ | — | $ | 161,655 | |||||||
Total change in unrealized gain (loss) on fixed income securities still held |
$ | — | $ | (9,171) | |||||||
Other Securities, at fair value | |||||||||||
Balance, beginning of period | 506 | — | |||||||||
Purchases | — | 536 | |||||||||
Sales | — | — | |||||||||
Transfer In | — | — | |||||||||
Transfer Out | — | — | |||||||||
Gain (loss) | (36) | (315) | |||||||||
Total Other securities, at fair value | 470 | 221 | |||||||||
Total Financial Instruments owned by the Partnership | $ | 470 | $ | 221 | |||||||
Total change in unrealized gain (loss) on other securities still held |
$ | (36) | $ | (315) | |||||||
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Liabilities | |||||||||||
Financial Instruments owned by Consolidated Investment Funds | |||||||||||
CLO notes payable | |||||||||||
Balance, beginning of period | $ | 1,310,701 | $ | 1,399,436 | |||||||
Purchases | — | — | |||||||||
Sales | (6,570) | — | |||||||||
Transfer In | — | — | |||||||||
Transfer Out | — | — | |||||||||
Gain (loss) | 40,327 | (87,670) | |||||||||
Deconsolidation of Investment Funds (Note 2) | (1,344,458) | — | |||||||||
Total Financial Instruments owned by Consolidated Investment Funds | $ | — | $ | 1,311,766 | |||||||
June 30, 2023 | December 31, 2022 | ||||||||||
GP investments | $ | 196,237 | $ | 200,475 | |||||||
Accrued incentive allocations | 817,670 | 764,887 | |||||||||
Total Investments in VIEs | 1,013,907 | 965,362 | |||||||||
Due from affiliates | 101,907 | 113,971 | |||||||||
Total VIE-related assets | 1,115,814 | 1,079,333 | |||||||||
Due to affiliates | 10 | 22,476 | |||||||||
Maximum exposure to loss | $ | 1,115,824 | $ | 1,101,809 |
June 30, 2023 | December 31, 2022 | ||||||||||
Other assets owned by Consolidated Investment Funds | |||||||||||
Receivable from brokers | $ | — | $ | 37,408 | |||||||
Interest and other dividends receivable | — | 5,562 | |||||||||
Total other assets owned by Consolidated Investment Funds |
$ | — | $ | 42,970 | |||||||
Other assets owned by the Partnership | |||||||||||
Fixed assets, gross: | |||||||||||
Equipment | $ | 10,260 | $ | 9,853 | |||||||
Leasehold improvements | 96,377 | 93,840 | |||||||||
Capitalized software | 25,774 | 24,475 | |||||||||
Other | 1,836 | 1,835 | |||||||||
Total fixed assets, gross | 134,247 | 130,003 | |||||||||
Less: Accumulated depreciation and amortization | (92,637) | (87,462) | |||||||||
Total fixed assets, net | 41,610 | 42,541 | |||||||||
Lease assets, net | 96,908 | 88,642 | |||||||||
Prepaid and other assets | 16,336 | 22,205 | |||||||||
Interest and dividends receivable | 1,548 | 1,357 | |||||||||
Total other assets owned by the Partnership | $ | 156,402 | $ | 154,745 |
June 30, 2023 | December 31, 2022 | ||||||||||
Other liabilities of Consolidated Investment Funds | |||||||||||
Payable to brokers | $ | — | $ | 45,502 | |||||||
Other liabilities of the Partnership | |||||||||||
Lease liability(1) |
$ | 114,398 | $ | 106,268 |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Management fees | $ | 244,035 | $ | 202,578 | |||||||
Other fees | 1,162 | 520 | |||||||||
Incentive fee income | 5,411 | 989 | |||||||||
Expense reimbursements | 34,754 | 38,806 | |||||||||
Fees and other | $ | 285,362 | $ | 242,893 |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Incentive allocation investment income | $ | 106,221 | $ | 93,872 | |||||||
GP investment income/(loss) | 4,385 | (116) | |||||||||
Capital allocation-based income | $ | 110,606 | $ | 93,756 |
June 30, 2023 | December 31, 2022 | ||||||||||
Due from affiliates | |||||||||||
Management fees and incentive income receivable | $ | 42,121 | $ | 63,770 | |||||||
Receivable from related parties, net | 74,081 | 94,405 | |||||||||
Total | $ | 116,202 | $ | 158,175 | |||||||
June 30, 2023 | December 31, 2022 | ||||||||||
Due to affiliates | |||||||||||
Partner distributions and redemptions | $ | 9,279 | $ | 18,094 | |||||||
Payable to Investment Funds | — | 22,476 | |||||||||
Other payables to related parties | 8 | 245 | |||||||||
Total | $ | 9,287 | $ | 40,815 |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Operating lease cost | $ | 8,199 | $ | 7,281 | |||||||
Short-term lease cost | 96 | 75 | |||||||||
Variable lease cost (1) |
1,029 | 1,275 | |||||||||
Total lease costs | $ | 9,324 | $ | 8,631 | |||||||
Weighted average remaining lease term (in years) | 7 | 9 | |||||||||
Weighted average discount rate | 3.75% | 3.43% |
Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash paid related to lease liabilities: | |||||||||||
Operating cash flows for operating leases | $ | 7,958 | $ | 8,348 | |||||||
Non-cash right-of-use assets obtained in exchange for new and/or modified operating lease liabilities | 12,108 | 34 | |||||||||
Non-cash right-of-use assets and lease liability termination | — | — |
Operating Leases | ||||||||
Remainder of 2023 | $ | 10,911 | ||||||
2024 | 18,933 | |||||||
2025 | 18,949 | |||||||
2026 | 15,932 | |||||||
2027 | 17,353 | |||||||
Thereafter | 50,053 | |||||||
Total undiscounted lease payments (1) |
$ | 132,131 | ||||||
Less: Imputed interest | (17,733) | |||||||
Lease liabilities | $ | 114,398 |
June 30, 2023 | |||||||||||||||||||||||
|
Gross amount of assets or liabilities presented on the consolidated statements of financial condition | Gross amounts not offset on the consolidated statements of financial condition | |||||||||||||||||||||
Financial instruments | Cash collateral | Net amount | |||||||||||||||||||||
Repurchase agreements | $ | (82,374) | $ | 82,374 | $ | — | $ | — |
December 31, 2022 | |||||||||||||||||||||||
Gross amount of assets or liabilities presented on the consolidated statements of financial condition | Gross amounts not offset on the consolidated statements of financial condition | ||||||||||||||||||||||
Financial instruments | Cash collateral | Net amount | |||||||||||||||||||||
Repurchase agreements | $ | (80,807) | $ | 80,807 | $ | — | $ | — |
December 31, 2022 | |||||||||||||||||||||||
Principal Balance | Fair Value(1) |
Weighted Average Interest Rate(2) |
Maturity Date | ||||||||||||||||||||
Northwoods XV, Ltd. | $ | 451,110 | $ | 401,020 | 5.00% | 6/20/2034 | |||||||||||||||||
Northwoods XVI, Ltd. | 483,682 | 442,005 | 5.80% | 11/15/2030 | |||||||||||||||||||
Northwoods XVII, Ltd. | 505,750 | 467,676 | 5.50% | 4/30/2031 | |||||||||||||||||||
$ | 1,440,542 | $ | 1,310,701 |
Unaudited Pro Forma Condensed Combined Statement of Financial Condition | ||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Historical | ||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | TPG Inc. (as adjusted) | Angelo Gordon (as adjusted) | Transaction Accounting Adjustments | Notes | Transaction Accounting Compensation Adjustments | Notes | Pro Forma Combined | |||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 893,560 | $ | 429,764 | $ | (579,516) | 5 (A) | $ | — | $ | 743,808 | |||||||||||||||||||||||||||||||||
Restricted cash | 13,182 | 10,318 | — | — | 23,500 | |||||||||||||||||||||||||||||||||||||||
Due from affiliates | 175,753 | 116,202 | — | — | 291,955 | |||||||||||||||||||||||||||||||||||||||
Investments | 5,795,218 | 1,126,606 | (6,847) | 5 (G) | — | 6,914,977 | ||||||||||||||||||||||||||||||||||||||
Intangibles | 122,005 | — | 576,000 | 5 (F) | — | 698,005 | ||||||||||||||||||||||||||||||||||||||
Goodwill | 230,194 | — | — | — | 230,194 | |||||||||||||||||||||||||||||||||||||||
Other assets, net | 276,720 | 156,402 | (3,116) | 5 (B), (H), (J) | — | 430,006 | ||||||||||||||||||||||||||||||||||||||
Assets of consolidated Public SPACs: |
||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 4,059 | — | — | — | 4,059 | |||||||||||||||||||||||||||||||||||||||
Assets held in Trust Account | 259,370 | — | — | — | 259,370 | |||||||||||||||||||||||||||||||||||||||
Other assets, net | 126 | — | — | — | 126 | |||||||||||||||||||||||||||||||||||||||
Total assets | $ | 7,770,187 | $ | 1,839,292 | $ | (13,479) | $ | — | $ | 9,596,000 | ||||||||||||||||||||||||||||||||||
Liabilities, Redeemable Equity and Equity | ||||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Accounts payable and accrued expenses | $ | 185,984 | $ | 211,343 | $ | — | $ | (71,946) | 5 (N) | $ | 325,381 | |||||||||||||||||||||||||||||||||
Due to affiliates | 124,764 | 9,287 | — | — | 134,051 | |||||||||||||||||||||||||||||||||||||||
Debt obligations | 444,901 | 25,000 | 445,000 | 5 (B), (C) | — | 914,901 | ||||||||||||||||||||||||||||||||||||||
Accrued performance allocation compensation | 3,388,976 | 486,679 | — | 267,982 | 5 (N) | 4,143,637 | ||||||||||||||||||||||||||||||||||||||
Contingent consideration | — | — | 157,080 | 5 (D) | — | 157,080 | ||||||||||||||||||||||||||||||||||||||
Other liabilities | 226,953 | 196,772 | — | — | 423,725 | |||||||||||||||||||||||||||||||||||||||
Liabilities of consolidated Public SPACs: | ||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities | 750 | — | — | — | 750 | |||||||||||||||||||||||||||||||||||||||
Deferred underwriting | 8,750 | — | — | — | 8,750 | |||||||||||||||||||||||||||||||||||||||
Other liabilities | 206 | — | — | — | 206 | |||||||||||||||||||||||||||||||||||||||
Total liabilities | 4,381,284 | 929,081 | 602,080 | 196,036 | 6,108,481 | |||||||||||||||||||||||||||||||||||||||
Redeemable equity attributable to consolidated Public SPACs | 259,370 | — | — | — | 259,370 | |||||||||||||||||||||||||||||||||||||||
Class A common stock | 80 | — | — | — | 80 | |||||||||||||||||||||||||||||||||||||||
Class B common stock | 229 | — | — | — | 229 | |||||||||||||||||||||||||||||||||||||||
Additional paid-in-capital | 531,512 | — | — | — | 531,512 | |||||||||||||||||||||||||||||||||||||||
Retained (deficit) earnings | (3,663) | — | 2,492 | 5 (I), (J), (K) | 57,686 | 5 (N) | 56,515 | |||||||||||||||||||||||||||||||||||||
Partners’ capital controlling interests | — | 903,954 | (903,954) | 5 (B), (E) | — | — | ||||||||||||||||||||||||||||||||||||||
Non-controlling interest in legacy Angelo Gordon | — | 6,257 | (6,257) | 5 (E) | — | — | ||||||||||||||||||||||||||||||||||||||
Other non-controlling interests | 2,601,375 | — | 292,160 | 5 (M) | (253,722) | 5 (N) | 2,639,813 | |||||||||||||||||||||||||||||||||||||
Total equity | 3,129,533 | 910,211 | (615,559) | (196,036) | 3,228,149 | |||||||||||||||||||||||||||||||||||||||
Total liabilities, redeemable equity, and equity | $ | 7,770,187 | $ | 1,839,292 | $ | (13,479) | $ | — | $ | 9,596,000 | ||||||||||||||||||||||||||||||||||
Unaudited Pro Forma Condensed Combined Statement of Operations and Other Data | |||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Historical | |||||||||||||||||||||||||||||||||||||||||
($ in thousands, except share and per share amounts) | TPG Inc. | Angelo Gordon | Transaction Accounting Adjustments | Notes | Transaction Accounting Compensation Adjustments | Notes | Pro Forma Combined | ||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||
Fees and other | $ | 638,574 | $ | 285,362 | $ | 1,478 | 6 (A), (F) | $ | — | $ | 925,414 | ||||||||||||||||||||||||||||||
Capital allocation-based income (loss) | 607,845 | 110,606 | (1,046) | 6 (A) | — | 717,405 | |||||||||||||||||||||||||||||||||||
Total revenues | 1,246,419 | 395,968 | 432 | — | 1,642,819 | ||||||||||||||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||||||||||||||
Compensation and benefits: | |||||||||||||||||||||||||||||||||||||||||
Cash-based compensation and benefits | 236,118 | 220,513 | — | (71,946) | 6 (K) | 384,685 | |||||||||||||||||||||||||||||||||||
Equity-based compensation | 312,459 | 4,755 | — | 173,866 | 6 (I) | 491,080 | |||||||||||||||||||||||||||||||||||
Performance allocation compensation | 393,418 | 40,062 | — | 47,377 | 6 (J), (K) | 480,857 | |||||||||||||||||||||||||||||||||||
Total compensation and benefits | 941,995 | 265,330 | — | 149,297 | 1,356,622 | ||||||||||||||||||||||||||||||||||||
General, administrative and other | 209,417 | 103,178 | (775) | 6 (A) | — | 311,820 | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 16,526 | 4,933 | 39,662 | 6 (B) | — | 61,121 | |||||||||||||||||||||||||||||||||||
Interest expense | 15,936 | 3,294 | 13,827 | 6 (C) | — | 33,057 | |||||||||||||||||||||||||||||||||||
Expenses of consolidated Public SPACs and Investment Funds: | |||||||||||||||||||||||||||||||||||||||||
Interest expense | — | 50,450 | (50,450) | 6 (A) | — | — | |||||||||||||||||||||||||||||||||||
General, administrative and other | — | 956 | (956) | 6 (A) | — | — | |||||||||||||||||||||||||||||||||||
Other | 972 | — | — | — | 972 | ||||||||||||||||||||||||||||||||||||
Total expenses | 1,184,846 | 428,141 | 1,308 | 149,297 | 1,763,592 | ||||||||||||||||||||||||||||||||||||
Investment income | |||||||||||||||||||||||||||||||||||||||||
Income from investments: | |||||||||||||||||||||||||||||||||||||||||
Net gains from investment activities | 15,662 | 206 | — | — | 15,868 | ||||||||||||||||||||||||||||||||||||
Interest, dividends and other | 17,954 | 9,975 | — | — | 27,929 | ||||||||||||||||||||||||||||||||||||
Investment income of consolidated Public SPACs and Investment Funds: | |||||||||||||||||||||||||||||||||||||||||
Unrealized gains (losses) on derivative liabilities of Public SPACs | (83) | — | — | — | (83) | ||||||||||||||||||||||||||||||||||||
Net gains (losses) from consolidated fund investment activities | — | (12,148) | 12,148 | 6 (A) | — | — | |||||||||||||||||||||||||||||||||||
Interest, dividends and other | 5,846 | 64,855 | (64,855) | 6 (A) | — | 5,846 | |||||||||||||||||||||||||||||||||||
Total investment income (loss) | 39,379 | 62,888 | (52,707) | — | 49,560 | ||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 100,952 | 30,715 | (53,583) | (149,297) | (71,213) | ||||||||||||||||||||||||||||||||||||
Income tax expense | 25,267 | 2,814 | (978) | 6 (G) | (6,800) | 6 (G) | 20,303 | ||||||||||||||||||||||||||||||||||
Net (loss) income | $ | 75,685 | $ | 27,901 | $ | (52,605) | $ | (142,497) | $ | (91,516) |
Unaudited Pro Forma Condensed Combined Statement of Operations and Other Data | |||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Historical | |||||||||||||||||||||||||||||||||||||||||
($ in thousands, except share and per share amounts) | TPG Inc. | Angelo Gordon | Transaction Accounting Adjustments | Notes | Transaction Accounting Compensation Adjustments | Notes | Pro Forma Combined | ||||||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||||||||||
Net income attributable to redeemable equity in Public SPACs | $ | 6,896 | $ | — | $ | — | $ | — | $ | 6,896 | |||||||||||||||||||||||||||||||
Net loss attributable to non-controlling interests in TPG Operating Group | (50,798) | — | (21,521) | 6 (H) | (120,359) | 6 (I), (J) | (192,678) | ||||||||||||||||||||||||||||||||||
Net income (loss) attributable to other non-controlling interests | 67,337 | (689) | 689 | 6 (H) | — | 67,337 | |||||||||||||||||||||||||||||||||||
Net income attributable to TPG Inc./controlling interest | $ | 52,250 | $ | 28,590 | $ | (31,773) | $ | (22,138) | $ | 26,929 | |||||||||||||||||||||||||||||||
Pro forma net income (loss) per share data: | |||||||||||||||||||||||||||||||||||||||||
Net income available to Class A common stock per share | |||||||||||||||||||||||||||||||||||||||||
Basic | $ | 0.59 | $ | 0.20 | |||||||||||||||||||||||||||||||||||||
Diluted | $ | 0.01 | $ | (0.36) | |||||||||||||||||||||||||||||||||||||
Weighted-average shares of Class A common stock outstanding | |||||||||||||||||||||||||||||||||||||||||
Basic | 80,022,820 | 82,085,531 | |||||||||||||||||||||||||||||||||||||||
Diluted | 309,167,174 | 365,456,786 |
Unaudited Pro Forma Condensed Combined Statement of Operations and Other Data | ||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Historical | ||||||||||||||||||||||||||||||||||||||||||||
($ in thousands, except share and per share amounts) | TPG Inc. | Angelo Gordon | Transaction Accounting Adjustments | Notes | Transaction Accounting Compensation Adjustments | Notes | Pro Forma Combined | |||||||||||||||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||||||||||||||||
Fees and other | $ | 1,246,635 | $ | 516,910 | $ | 4,428 | 6 (A), (F) | $ | — | $ | 1,767,973 | |||||||||||||||||||||||||||||||||
Capital allocation-based income | 756,252 | 76,158 | 88 | 6 (A) | — | 832,498 | ||||||||||||||||||||||||||||||||||||||
Total revenues | 2,002,887 | 593,068 | 4,516 | — | 2,600,471 | |||||||||||||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||||||||||
Compensation and benefits: | ||||||||||||||||||||||||||||||||||||||||||||
Cash-based compensation and benefits | 473,696 | 393,638 | — | (116,664) | 6 (K) | 750,670 | ||||||||||||||||||||||||||||||||||||||
Equity-based compensation | 627,714 | 10,156 | — | 354,120 | 6 (I) | 991,990 | ||||||||||||||||||||||||||||||||||||||
Performance allocation compensation | 416,556 | 39,561 | — | 30,143 | 6 (J), (K) | 486,260 | ||||||||||||||||||||||||||||||||||||||
Total compensation and benefits | 1,517,966 | 443,355 | — | 267,599 | 2,228,920 | |||||||||||||||||||||||||||||||||||||||
General, administrative and other | 368,915 | 167,114 | 25,541 | 6 (A), (D) | — | 561,570 | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 32,990 | 10,737 | 80,424 | 6 (B) | — | 124,151 | ||||||||||||||||||||||||||||||||||||||
Interest expense | 21,612 | 3,010 | 29,647 | 6 (C) | — | 54,269 | ||||||||||||||||||||||||||||||||||||||
Expenses of consolidated Public SPACs and Investment Funds: | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense | — | 58,611 | (58,611) | 6 (A) | — | — | ||||||||||||||||||||||||||||||||||||||
General, administrative and other | — | 2,234 | (2,234) | 6 (A) | — | — | ||||||||||||||||||||||||||||||||||||||
Other | 3,316 | — | — | — | 3,316 | |||||||||||||||||||||||||||||||||||||||
Total expenses | 1,944,799 | 685,061 | 74,767 | 267,599 | 2,972,226 | |||||||||||||||||||||||||||||||||||||||
Investment income | ||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from investments: | ||||||||||||||||||||||||||||||||||||||||||||
Net (losses) gains from investment activities | (110,131) | (1,369) | — | — | (111,500) | |||||||||||||||||||||||||||||||||||||||
Interest, dividends and other | 9,168 | 10,121 | — | — | 19,289 | |||||||||||||||||||||||||||||||||||||||
Investment income of consolidated Public SPACs and Investment Funds: | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains on derivative liabilities of Public SPACs | 12,382 | — | — | — | 12,382 | |||||||||||||||||||||||||||||||||||||||
Net gains (losses) for consolidated fund investment activities | — | (19,622) | 19,622 | 6 (A) | — | — | ||||||||||||||||||||||||||||||||||||||
Interest, dividends and other | 6,741 | 86,832 | (86,832) | 6 (A) | — | 6,741 | ||||||||||||||||||||||||||||||||||||||
Total investment (loss) income | (81,840) | 75,962 | (67,210) | — | (73,088) | |||||||||||||||||||||||||||||||||||||||
Other income/(expense) | ||||||||||||||||||||||||||||||||||||||||||||
Gain from bargain purchase | — | — | 74,508 | 6 (E) | — | 74,508 | ||||||||||||||||||||||||||||||||||||||
(Loss) income before income taxes | (23,752) | (16,031) | (62,953) | (267,599) | (370,335) | |||||||||||||||||||||||||||||||||||||||
Income tax expense | 32,483 | 1,363 | 8,023 | 6 (G) | (14,838) | 6 (G) | 27,031 | |||||||||||||||||||||||||||||||||||||
Net (loss) income | $ | (56,235) | $ | (17,394) | $ | (70,976) | $ | (252,761) | $ | (397,366) |
Unaudited Pro Forma Condensed Combined Statement of Operations and Other Data | ||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
Historical | ||||||||||||||||||||||||||||||||||||||||||||
($ in thousands, except share and per share amounts) | TPG Inc. | Angelo Gordon | Transaction Accounting Adjustments | Notes | Transaction Accounting Compensation Adjustments | Notes | Pro Forma Combined | |||||||||||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income attributable to redeemable equity in Public SPACs prior to Reorganization and IPO | $ | (517) | $ | — | $ | — | $ | — | $ | (517) | ||||||||||||||||||||||||||||||||||
Net income attributable to other non-controlling interests prior to Reorganization and IPO | 966 | — | — | — | 966 | |||||||||||||||||||||||||||||||||||||||
Net income attributable to TPG Group Holdings prior to Reorganization and IPO | 5,256 | — | — | — | 5,256 | |||||||||||||||||||||||||||||||||||||||
Net income attributable to redeemable equity in Public SPACs | 15,165 | — | — | — | 15,165 | |||||||||||||||||||||||||||||||||||||||
Net loss attributable to non-controlling interests in TPG Operating Group | (180,824) | — | (57,411) | 6 (H) | (204,458) | 6 (I), (J) | (442,693) | |||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to other non-controlling interests | 11,293 | (7) | (362) | 6 (H) | — | 10,924 | ||||||||||||||||||||||||||||||||||||||
Net income attributable to TPG Inc. subsequent to reorganization and IPO | $ | 92,426 | $ | (17,387) | $ | (13,203) | $ | (48,303) | $ | 13,533 | ||||||||||||||||||||||||||||||||||
Pro forma net income per share data: | ||||||||||||||||||||||||||||||||||||||||||||
Net income available to Class A common stock per share | ||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.10 | $ | 0.20 | ||||||||||||||||||||||||||||||||||||||||
Diluted | $ | (0.19) | $ | (0.92) | ||||||||||||||||||||||||||||||||||||||||
Weighted-average shares of Class A common stock outstanding | ||||||||||||||||||||||||||||||||||||||||||||
Basic | 79,255,411 | 80,587,371 | ||||||||||||||||||||||||||||||||||||||||||
Diluted | 308,908,052 | 363,958,626 |
As of June 30, 2023 | |||||||||||||||||
($ in thousands) | TPG (Historical) | Reclassification Adjustments | TPG (as adjusted) | ||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 893,560 | $ | — | $ | 893,560 | |||||||||||
Restricted cash | 13,182 | — | 13,182 | ||||||||||||||
Due from affiliates | 175,753 | — | 175,753 | ||||||||||||||
Investments | 5,795,218 | — | 5,795,218 | ||||||||||||||
Intangibles | — | 122,005 | (1) | 122,005 | |||||||||||||
Goodwill | — | 230,194 | (1) | 230,194 | |||||||||||||
Other assets, net | 628,919 | (352,199) | (1) | 276,720 | |||||||||||||
Assets of consolidated Public SPACs: | |||||||||||||||||
Cash and cash equivalents | 4,059 | — | 4,059 | ||||||||||||||
Assets held in Trust Accounts | 259,370 | — | 259,370 | ||||||||||||||
Other assets | 126 | — | 126 | ||||||||||||||
Total assets | $ | 7,770,187 | $ | — | $ | 7,770,187 | |||||||||||
Liabilities and Equity | |||||||||||||||||
Liabilities | |||||||||||||||||
Accounts payable and accrued expenses | $ | 185,984 | $ | — | $ | 185,984 | |||||||||||
Due to affiliates | 124,764 | — | 124,764 | ||||||||||||||
Debt Obligations | 444,901 | — | 444,901 | ||||||||||||||
Accrued performance allocation compensation | 3,388,976 | — | 3,388,976 | ||||||||||||||
Other liabilities | 226,953 | — | 226,953 | ||||||||||||||
Liabilities of consolidated Public SPACs: | |||||||||||||||||
Derivative liabilities | 750 | — | 750 | ||||||||||||||
Deferred underwriting | 8,750 | — | 8,750 | ||||||||||||||
Other liabilities | 206 | — | 206 | ||||||||||||||
Total Liabilities | 4,381,284 | — | 4,381,284 | ||||||||||||||
Redeemable equity attributable to consolidated public SPACs | 259,370 | — | 259,370 | ||||||||||||||
Class A common stock | 80 | — | 80 | ||||||||||||||
Class B common stock | 229 | — | 229 | ||||||||||||||
Additional paid-in-capital | 531,512 | — | 531,512 | ||||||||||||||
Retained (deficit) earnings | (3,663) | — | (3,663) | ||||||||||||||
Other non-controlling interests | 2,601,375 | — | 2,601,375 | ||||||||||||||
Total Equity | 3,129,533 | — | 3,129,533 | ||||||||||||||
Total liabilities and equity | $ | 7,770,187 | $ | — | $ | 7,770,187 |
As of June 30, 2023 | |||||||||||||||||
($ in thousands) | Angelo Gordon (Historical) | Reclassification Adjustments | Angelo Gordon (as adjusted) | ||||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 429,764 | $ | — | $ | 429,764 | |||||||||||
Restricted cash | 10,318 | — | 10,318 | ||||||||||||||
Due from affiliates | 116,202 | — | 116,202 | ||||||||||||||
Investments | 1,126,606 | — | 1,126,606 | ||||||||||||||
Other assets, net | 156,402 | — | 156,402 | ||||||||||||||
Total assets | $ | 1,839,292 | $ | — | $ | 1,839,292 | |||||||||||
Liabilities and Equity | |||||||||||||||||
Liabilities | |||||||||||||||||
Accounts payable and accrued expenses | $ | 53,168 | $ | 158,175 | (1) | $ | 211,343 | ||||||||||
Due to affiliates | 9,287 | — | 9,287 | ||||||||||||||
Debt obligations | — | 25,000 | (2) | 25,000 | |||||||||||||
Accrued performance allocation compensation | 486,679 | — | 486,679 | ||||||||||||||
Accrued cash and equity-based compensation and benefits | 158,175 | (158,175) | (1) | — | |||||||||||||
Repurchase agreements | 82,374 | (82,374) | (3) | — | |||||||||||||
Credit facility | 25,000 | (25,000) | (2) | — | |||||||||||||
Other liabilities | 114,398 | 82,374 | (3) | 196,772 | |||||||||||||
Total Liabilities | 929,081 | — | 929,081 | ||||||||||||||
Partners’ equity | 903,954 | — | 903,954 | ||||||||||||||
Non-controlling interest | 6,257 | — | 6,257 | ||||||||||||||
Total Equity | 910,211 | — | 910,211 | ||||||||||||||
Total liabilities and equity | $ | 1,839,292 | $ | — | $ | 1,839,292 |
Cash (1) |
$ | 703,425 | ||||||
Common Units (2) |
261,112 | |||||||
Fair Value of Earnout Payment (3) |
29,325 | |||||||
Fair Value of Aggregate Annual Cash Holdback Amount (4) |
127,755 | |||||||
Total estimated Purchase Price | $ | 1,121,617 |
($ in thousands) | Angelo Gordon | Fair Value Adjustment | Purchase Price Allocation | ||||||||||||||
Total value to allocate | |||||||||||||||||
Cash and cash equivalents | $ | 116,764 | $ | — | $ | 116,764 | |||||||||||
Restricted cash | 10,318 | — | 10,318 | ||||||||||||||
Due from affiliates | 116,202 | — | 116,202 | ||||||||||||||
Investments | 1,126,606 | (6,847) | 5 (G) | 1,119,759 | |||||||||||||
Intangibles | — | 570,000 | 5 (F) | 570,000 | |||||||||||||
Other assets | 153,547 | 17,489 | 5 (H) | 171,036 | |||||||||||||
Total assets | $ | 1,523,437 | $ | 580,642 | $ | 2,104,079 | |||||||||||
Accounts payable and accrued expenses | 197,083 | — | 197,083 | ||||||||||||||
Due to affiliates | 9,287 | — | 9,287 | ||||||||||||||
Accrued performance allocation compensation | 500,939 | — | 500,939 | ||||||||||||||
Other liabilities | 196,772 | — | 196,772 | ||||||||||||||
Total liabilities | $ | 904,081 | $ | — | $ | 904,081 | |||||||||||
Fair value of assets acquired/liabilities assumed | 1,199,998 | ||||||||||||||||
Estimated Purchase Price | 1,121,617 | ||||||||||||||||
Fair Value of Non-controlling interest of Angelo Gordon | 3,873 | ||||||||||||||||
Gain from bargain purchase | $ | (74,508) |
($ in thousands) | Related Note | As of June 30, 2023 | |||||||||
Opening balance sheet adjustment - cash distribution | 5(B) | $ | (288,000) | ||||||||
Opening balance sheet adjustment - AG Credit Facility repayment | 5(B) | (25,000) | |||||||||
Draw on Senior Unsecured Revolving Credit Facility | 5(C) | 470,000 | |||||||||
Cash component of the estimated Purchase Price | Note 3 | (703,425) | |||||||||
Consideration for non-compete agreements | 5(F) | (6,000) | |||||||||
Payment of estimated transaction costs | 5(I) | (27,091) | |||||||||
Total cash and cash equivalents pro forma adjustment | $ | (579,516) |
($ in thousands) | Preliminary Fair Value | Estimated Average Useful Life (in years) | |||||||||
Trade name - Angelo Gordon | $ | 15,500 | 5 | ||||||||
Technology | 45,500 | 4 | |||||||||
Acquired carried interest | 56,500 | 5 | |||||||||
Investment management agreements | 452,500 | 5.5-14.5 | |||||||||
Fair value of intangible assets acquired as part of the Purchase Price | $ | 570,000 | |||||||||
Fair value of non-compete agreements related to the Transactions |
6,000 | 2 | |||||||||
Total fair value of intangible assets pro forma adjustment | $ | 576,000 |
($ in thousands) | Related Note | As of June 30, 2023 | |||||||||
Vested Common Units | Note 3 | $ | 261,112 | ||||||||
Non-controlling interest in subsidiary of AG OpCo | 5(L) | 3,873 | |||||||||
Reallocation from partners’ capital attributable to TPG Inc. | 5(K) | 27,175 | |||||||||
Total other non-controlling interests pro forma adjustment | $ | 292,160 |
($ in thousands) | Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||
Trade name - Angelo Gordon | $ | 1,529 | $ | 3,100 | |||||||
Technology | 5,610 | 11,375 | |||||||||
Acquired carried interest | 5,573 | 11,300 | |||||||||
Investment management agreements | 25,471 | 51,649 | |||||||||
Non-compete agreements | 1,479 | 3,000 | |||||||||
Total expected amortization pro forma adjustment | $ | 39,662 | $ | 80,424 |
($ in thousands) | Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||
Additional allocable income from the Acquired Interests | $ | 28,590 | $ | (17,387) | |||||||
Transaction Accounting Adjustments attributable to TPG Inc. | (32,751) | (5,180) | |||||||||
Additional net income attributable to TPG Inc. | (4,161) | (22,567) | |||||||||
TPG Inc. effective tax rate | 23.5 | % | 23.5 | % | |||||||
Income tax effects of additional net income attributable to TPG Inc. from the Acquired Interests and Transaction Accounting Adjustments | (978) | (5,303) | |||||||||
Income tax effects of the Pre-Closing TPG Transactions | — | 15,478 | |||||||||
Income tax effects related to changes in our valuation allowance | — | (2,152) | |||||||||
Total income tax expense pro forma adjustment associated with Transaction Accounting Adjustments | $ | (978) | $ | 8,023 |
($ in thousands) | Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||
Transaction Accounting Compensation Adjustments attributable to TPG Inc. | $ | (28,938) | $ | (63,141) | |||||||
TPG Inc. effective tax rate | 23.5 | % | 23.5 | % | |||||||
Total income tax expense pro forma adjustment associated with Transaction Accounting Compensation Adjustments | $ | (6,800) | $ | (14,838) |
($ in thousands) | Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||
Loss before provision for income taxes | $ | (71,213) | $ | (370,335) | |||||||
Less: | |||||||||||
Provision for local and foreign income taxes | 14,548 | 13,869 | |||||||||
Net income attributable to redeemable equity in Public SPACs | 6,896 | 15,165 | |||||||||
Allocable Income | (92,657) | (399,369) | |||||||||
Less: | |||||||||||
Net loss attributable to non-controlling interest in TPG Operating Group and its consolidated subsidiaries | (192,678) | (442,693) | |||||||||
Net (loss) income attributable to redeemable equity in Public SPACs prior to Reorganization and IPO | — | (517) | |||||||||
Net income attributable to other non-controlling interests prior to Reorganization and IPO | — | 966 | |||||||||
Net income attributable to TPG Group Holdings prior to Reorganization and IPO | — | 5,256 | |||||||||
Net income attributable to other non-controlling interests | 67,337 | 10,924 | |||||||||
TPG Inc.’s income before provision for income taxes in the TPG Operating Group | 32,684 | 26,695 | |||||||||
Provision for income taxes | 5,755 | 13,162 | |||||||||
Net income attributable to TPG Inc. | $ | 26,929 | $ | 13,533 |
($ in thousands, except share and per share amounts) | Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||
Pro forma basic net income per share: | |||||||||||
Numerator: | |||||||||||
Net loss | $ | (91,516) | $ | (397,366) | |||||||
Less: | |||||||||||
Net income attributable to non-controlling interests prior to IPO and Reorganization | — | 5,705 | |||||||||
Net income attributable to redeemable interest in Public SPACs | 6,896 | 15,165 | |||||||||
Net income attributable to non-controlling interests in TPG Operating Group | (192,678) | (442,693) | |||||||||
Net income attributable to other non-controlling interests | 67,337 | 10,924 | |||||||||
Net income attributable to Class A common stockholders prior to distributions | 26,929 | 13,533 | |||||||||
Reallocation of earnings (to) from unvested participating securities | (10,597) | 2,221 | |||||||||
Net income attributable to Class A Common Stockholders - Basic | 16,332 | 15,754 | |||||||||
Net loss assuming exchange of non-controlling interests | (148,661) | (351,910) | |||||||||
Net loss attributable to Class A Common Stockholders - Diluted | $ | (132,329) | $ | (336,156) | |||||||
Denominator | |||||||||||
Class A Common Stock outstanding - Basic (1) |
82,085,531 | 80,587,371 | |||||||||
Exchange of Common Units to Class A Common Stock (2) |
283,371,255 | 283,371,255 | |||||||||
Shares of Common Stock Outstanding - Diluted | 365,456,786 | 363,958,626 | |||||||||
Pro Forma net income (loss) available to Class A common stock per share | |||||||||||
Basic | $ | 0.20 | $ | 0.20 | |||||||
Diluted | $ | (0.36) | $ | (0.92) |
Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Historical | Pro Forma Adjustments | ||||||||||||||||||||||||||||||||||||||||
($ in thousands) | TPG Inc. | Angelo Gordon | Transaction Accounting Adjustments | Notes | Transaction Compensation Adjustments | Notes | Pro Forma Non-GAAP Combined |
||||||||||||||||||||||||||||||||||
Management fees | $ | 504,610 | $ | 240,284 | $ | (1,509) | (6) | $ | — | $ | 743,385 | ||||||||||||||||||||||||||||||
Fee-related performance revenues | — | 5,180 | — | — | 5,180 | ||||||||||||||||||||||||||||||||||||
Transaction, monitoring, and other fees, net | 21,536 | 1,162 | — | — | 22,698 | ||||||||||||||||||||||||||||||||||||
Other income | 25,039 | (323) | — | — | 24,716 | ||||||||||||||||||||||||||||||||||||
Fee Related Revenues | 551,185 | 246,303 | (1,509) | — | 795,979 | ||||||||||||||||||||||||||||||||||||
Cash-based compensation and benefits, net | 196,043 | 201,350 | — | (57,686) | (8) | 339,707 | |||||||||||||||||||||||||||||||||||
Fee-related performance compensation | — | 2,718 | — | — | 2,718 | ||||||||||||||||||||||||||||||||||||
Operating expenses, net | 130,429 | 43,614 | (775) | (1) | — | 173,268 | |||||||||||||||||||||||||||||||||||
Fee Related Expenses | 326,472 | 247,682 | (775) | (57,686) | 515,693 | ||||||||||||||||||||||||||||||||||||
Total Fee-Related Earnings | $ | 224,713 | $ | (1,379) | $ | (734) | $ | 57,686 | $ | 280,286 | |||||||||||||||||||||||||||||||
Realized performance allocations, net | 11,655 | 27,693 | — | (17,164) | (7) | 22,184 | |||||||||||||||||||||||||||||||||||
Realized investment income and other, net | (27,937) | (15,997) | — | (4) | — | (43,934) | |||||||||||||||||||||||||||||||||||
Depreciation expense | (2,344) | (5,272) | — | — | (7,616) | ||||||||||||||||||||||||||||||||||||
Interest (expense) income, net | (217) | 5,819 | (13,827) | (2), (3) | — | (8,225) | |||||||||||||||||||||||||||||||||||
Distributable Earnings | $ | 205,870 | $ | 10,864 | $ | (14,561) | $ | 40,522 | $ | 242,695 | |||||||||||||||||||||||||||||||
Income taxes | (21,790) | (2,714) | 193 | (5) | (2,110) | (5) | (26,421) | ||||||||||||||||||||||||||||||||||
After-Tax Distributable Earnings | $ | 184,080 | $ | 8,150 | $ | (14,368) | $ | 38,412 | $ | 216,274 |
Year Ended December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Historical | Pro Forma Adjustments | ||||||||||||||||||||||||||||||||||||||||
($ in thousands) | TPG Inc. | Angelo Gordon | Transaction Accounting Adjustments | Notes | Transaction Compensation Adjustments | Notes | Pro Forma Non-GAAP Combined |
||||||||||||||||||||||||||||||||||
Management fees | $ | 929,860 | $ | 428,708 | $ | (1,506) | (6) | $ | — | $ | 1,357,062 | ||||||||||||||||||||||||||||||
Fee-related performance revenues | — | 7,317 | — | — | 7,317 | ||||||||||||||||||||||||||||||||||||
Transaction, monitoring, and other fees, net | 109,078 | 2,507 | — | — | 111,585 | ||||||||||||||||||||||||||||||||||||
Other income | 47,069 | 435 | — | — | 47,504 | ||||||||||||||||||||||||||||||||||||
Fee Related Revenues | 1,086,007 | 438,967 | (1,506) | — | 1,523,468 | ||||||||||||||||||||||||||||||||||||
Cash-based compensation and benefits, net | 392,968 | 367,906 | — | (104,221) | (8) | 656,653 | |||||||||||||||||||||||||||||||||||
Fee-related performance compensation | — | 2,994 | — | — | 2,994 | ||||||||||||||||||||||||||||||||||||
Operating expenses, net | 239,189 | 86,377 | (1,550) | (1) | — | 324,016 | |||||||||||||||||||||||||||||||||||
Fee Related Expenses | 632,157 | 457,277 | (1,550) | (104,221) | 983,663 | ||||||||||||||||||||||||||||||||||||
Total Fee-Related Earnings | $ | 453,850 | $ | (18,310) | $ | 44 | $ | 104,221 | $ | 539,805 | |||||||||||||||||||||||||||||||
Realized performance allocations, net | 282,383 | 146,490 | — | (87,702) | (7) | 341,171 | |||||||||||||||||||||||||||||||||||
Realized investment income and other, net | 42,038 | 13,853 | (27,091) | (4) | — | 28,800 | |||||||||||||||||||||||||||||||||||
Depreciation expense | (4,590) | (11,323) | — | — | (15,913) | ||||||||||||||||||||||||||||||||||||
Interest (expense) income, net | (13,795) | 5,248 | (29,647) | (2), (3) | — | (38,194) | |||||||||||||||||||||||||||||||||||
Distributable Earnings | $ | 759,886 | $ | 135,958 | $ | (56,694) | $ | 16,519 | $ | 855,669 | |||||||||||||||||||||||||||||||
Income taxes | (59,623) | (2,397) | (4,129) | (5) | (854) | (5) | (67,003) | ||||||||||||||||||||||||||||||||||
After-Tax Distributable Earnings | $ | 700,263 | $ | 133,561 | $ | (60,823) | $ | 15,665 | $ | 788,666 |
($ in thousands) | Six Months Ended June 30, 2023 | Year Ended December 31, 2022 | |||||||||
Total Pro Forma GAAP Net Income (loss) | $ | (91,516) | $ | (397,366) | |||||||
Net income (loss) attributable to redeemable equity in Public SPACs | (6,896) | (14,648) | |||||||||
Net income attributable to other non-controlling interests | (67,288) | (10,943) | |||||||||
Amortization | 46,737 | 94,577 | |||||||||
Performance allocations from other non-controlling interest | 15,953 | (70,002) | |||||||||
Equity-based compensation expense | 488,675 | 998,187 | |||||||||
Unrealized performance allocations, net | (144,321) | 233,552 | |||||||||
Unrealized investment income (loss) | (19,725) | 73,994 | |||||||||
Unrealized (gain) loss on derivatives | 7 | (1,119) | |||||||||
Income tax expense | (5,816) | (39,356) | |||||||||
Gain from bargain purchase | — | (74,508) | |||||||||
Non-recurring and other | 465 | (3,703) | |||||||||
Pro Forma After-tax Distributable Earnings | 216,275 | 788,665 | |||||||||
Income tax expense | 26,420 | 67,003 | |||||||||
Pro Forma Distributable Earnings | 242,695 | 855,668 | |||||||||
Realized performance fees, net | (22,184) | (341,171) | |||||||||
Realized investment income and other, net | 43,934 | (28,800) | |||||||||
Depreciation expense | 7,616 | 15,913 | |||||||||
Interest expense, net | 8,225 | 38,194 | |||||||||
Total Pro Forma Fee-Related Earnings | $ | 280,286 | $ | 539,804 |
As of June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Historical | Pro Forma Adjustments | ||||||||||||||||||||||||||||||||||||||||
($ in thousands) | TPG Inc. | Angelo Gordon | Transaction Accounting Adjustments | Notes | Transaction Compensation Adjustments | Notes | Pro Forma Non-GAAP Combined |
||||||||||||||||||||||||||||||||||
Book Assets | |||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 577,603 | $ | — | $ | (463,617) | (1), (2), (3), (4) | $ | — | $ | 113,986 | ||||||||||||||||||||||||||||||
Restricted cash | 13,182 | — | — | — | 13,182 | ||||||||||||||||||||||||||||||||||||
Accrued performance | 759,778 | 431,135 | — | (267,103) | (11) | 923,810 | |||||||||||||||||||||||||||||||||||
Other investments | 626,037 | 224,070 | — | — | 850,107 | ||||||||||||||||||||||||||||||||||||
Other assets, net | 547,620 | 277,750 | 439,495 | (4), (5), (6), (7), (8), (9) | 57,686 | (12) | 1,322,551 | ||||||||||||||||||||||||||||||||||
Total Book Assets | $ | 2,524,220 | $ | 932,955 | $ | (24,122) | $ | (209,417) | $ | 3,223,636 | |||||||||||||||||||||||||||||||
Book Liabilities | |||||||||||||||||||||||||||||||||||||||||
Accounts payable, accrued expenses and other | $ | 46,783 | $ | 4,001 | $ | 157,080 | (10) | $ | — | $ | 207,864 | ||||||||||||||||||||||||||||||
Debt obligations | 444,901 | 25,000 | 445,000 | (1), (5) | — | 914,901 | |||||||||||||||||||||||||||||||||||
Total Book Liabilities | $ | 491,684 | $ | 29,001 | $ | 602,080 | $ | — | $ | 1,122,765 | |||||||||||||||||||||||||||||||
Net Book Value | $ | 2,032,536 | $ | 903,954 | $ | (626,202) | $ | (209,417) | $ | 2,100,871 |
($ in thousands) | As of June 30, 2023 | ||||
Total Pro Forma GAAP Assets | $ | 9,596,000 | |||
Impact of consolidated funds and Public SPACs | (263,555) | ||||
Impact of other consolidated entities | (5,626,662) | ||||
Impact of reclassification adjustments | (262,087) | ||||
Impact of transaction adjustments related to opening balance sheet adjustment | (220,060) | ||||
Total Pro Forma Book Assets | $ | 3,223,636 | |||
Total Pro Forma GAAP Liabilities | $ | 6,108,481 | |||
Impact of consolidated funds and Public SPACs | (9,706) | ||||
Impact of other consolidated entities | (4,468,254) | ||||
Impact of reclassification adjustments | (311,720) | ||||
Impact of transaction adjustments related to opening balance sheet adjustment | (196,036) | ||||
Total Pro Forma Book Liabilities | $ | 1,122,765 | |||
Total Pro Forma GAAP Redeemable equity from consolidated Public SPACs | $ | 259,370 | |||
Impact of consolidated Public SPACs | (259,370) | ||||
Total Pro Forma Book Redeemable equity from consolidated Public SPACs | $ | — | |||
Total Pro Forma GAAP Equity | $ | 3,228,149 | |||
Impact of consolidated funds and Public SPACs | 5,521 | ||||
Impact of other consolidated entities | (1,158,408) | ||||
Impact of reclassification adjustments | 49,633 | ||||
Impact of transaction adjustments related to opening balance sheet adjustment | (24,024) | ||||
Total Pro Forma Net Book Value | $ | 2,100,871 |