TPG Inc - Ordinary Shares - Class A

Strong Financial Performance: TPG reported a GAAP net income of $77 million for Q4 2025, with annual fee-related revenue reaching $2.1 billion, a 36% increase year-over-year. Fee-related earnings (FRE) for Q4 stood at $326 million, contributing to a full year FRE margin of 45%, reflecting a notable 340 basis point expansion from 2024.

Record Capital Raising: TPG achieved record capital formation, raising $51 billion in 2025, a 71% increase compared to 2024. This growth was attributed to the firm’s expanding global franchise, with substantial fundraising across private equity and credit strategies. TPG expects to exceed $50 billion in capital raising in 2026, indicating sustained momentum.

Strategic Focus on Credit and Direct Lending: The firm highlighted the strength of its lower middle market lending strategy, which has maintained a disciplined approach with strong credit quality indicated by non-accruals at just over 1%. Despite pressures on the broader direct lending market, TPG's investments remain insulated, suggesting effective risk management and selective sourcing of opportunities.