TPG Fee Earnings Rise 43%, Fundraising Seen Above $50 Billion

TPG Inc. (NASDAQ: TPG) said it expects to exceed its $50 billion full-year fundraising target after bringing in $15.2 billion during the third quarter and nearly $42 billion in the first nine months of 2026. The fundraising progress, combined with higher management fees, helped lift fee-related earnings by 43% even as realized performance allocations declined sharply.

For the quarter ended September 30, TPG reported GAAP net income of $263.8 million, up from $199.2 million a year earlier. Net income attributable to TPG Inc. increased to $99.6 million from $67.1 million, while diluted net income per Class A share rose to $0.41 from $0.20.

Total revenue was broadly unchanged at $1.22 billion. Fees and other revenue increased to $712.7 million from $596.5 million, but capital allocation-based income fell to $508.4 million from $627.0 million. Investment income rose to $136.6 million from $35.9 million, including $121.0 million of net gains from investment activities. TPG’s operating profit margin, defined as GAAP net income divided by total revenue, increased to 21.6% from 16.3%.

Fee earnings strengthened

Fee-related revenue, a non-GAAP measure, rose 25% to $638.1 million, primarily because management fees increased to $572.9 million from $461.3 million. Third-quarter management fees included $62 million of catch-up fees, compared with $4 million a year earlier. Transaction, monitoring and other fees, net, rose to $54.7 million from $40.7 million.

Fee-related earnings increased to $321.4 million from $225.0 million, while the fee-related earnings margin expanded to 50% from 44%. TPG attributed the improvement to management fees and its capital markets business.

After-tax distributable earnings rose 24% to $264.8 million, or $0.65 per share, primarily reflecting the growth in fee-related earnings. That increase came despite realized performance allocations, net, declining to $6.7 million from $30.4 million. The quarter’s realized performance allocations were mainly generated by MMDL V in the Credit platform and TTAD II and Growth IV in the Growth platform.

For the first nine months, fee-related revenue increased to $1.82 billion from $1.48 billion, fee-related earnings rose to $882.9 million from $626.1 million, and after-tax distributable earnings reached $826.7 million, up from $669.4 million.

AUM and fundraising expand

Assets under management rose 21% over the past 12 months to $345.7 billion, while fee-earning AUM increased 16% to $189.5 billion. Over that period, TPG raised $57.8 billion, led by $24.8 billion in Credit and $9.3 billion in Capital, partially offset by $25.2 billion of realizations.

Credit remained TPG’s largest platform by AUM at $108.0 billion and accounted for $5.8 billion of the quarter’s $15.2 billion in capital raised. Market Solutions raised $2.2 billion, while Capital and Growth each raised about $2 billion. Year-to-date fundraising totaled $41.6 billion, compared with $35.3 billion in the same period of 2025.

TPG invested $11.5 billion during the quarter and $39.7 billion year to date. Realizations totaled $6.6 billion for the quarter and $20.4 billion for the first nine months. Available capital reached a record $85.6 billion, including $24.5 billion in Credit and $22.5 billion in Capital.

The firm also reported $53.8 billion of AUM subject to fee-earning growth, equal to 28% of fee-earning AUM. TPG estimated that deploying or activating this capital, including capital subject to higher fee rates, represents an annual gross fee-related revenue opportunity of approximately $330 million.

Net accrued performance increased to $1.45 billion from $1.37 billion at the end of the second quarter, reflecting $93 million of value creation and other activity, partly offset by $7 million of realized gains.

Outlook, capital and dividend

Management expects full-year fundraising to exceed $50 billion, citing investment performance and investor relationships. The company also pointed to its available capital and investment opportunity set, although the presentation did not provide financial guidance beyond the fundraising expectation.

On a non-GAAP basis, TPG ended the quarter with $112 million of cash and cash equivalents, $2.2 billion of net debt and $1.75 billion of undrawn revolving credit capacity. Available liquidity totaled $1.9 billion. GAAP debt obligations were $2.28 billion, up from $1.72 billion at the end of 2025, primarily because of a $500 million senior notes offering in the first quarter.

TPG declared a quarterly dividend of $0.55 per Class A share, payable November 23 to shareholders of record on November 9. Dividends declared for the first nine months totaled $1.73 per share. Future dividends remain subject to board discretion, cash requirements, legal and contractual restrictions, and the company’s financial condition.

The company cautioned that its outlook is subject to risks including the integration and cost of acquisitions, execution of its growth plans, and political, economic, competitive, market and regulatory conditions. Fund valuations also involve judgment, and actual realized values may differ materially from reported estimates. All current-period results in the presentation were preliminary and unaudited.