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TPTPG

TPG (TPG) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Aug 4, 2026

Source: earnings call transcript

Executive summary

TPG Q2 FY26 — Strong FRE Growth and Capital Raising Momentum

TPG delivered robust Q2 FY26 results, marked by significant fee-related earnings growth and strong capital raising momentum, positioning the firm to exceed its full-year fundraising target. The firm is actively integrating AI into its investment strategy and expanding its private wealth channel, despite broader market volatility impacting transaction fees and realizations. Management anticipates continued management fee growth and an acceleration in realizations in the latter half of the year and into 2027.

Highlights

5

  • Fee-related revenue grew 27% year-over-year to $628 million.

  • Fee-related earnings (FRE) increased 43% year-over-year to $315 million, achieving a 50% FRE margin.

  • Total assets under management (AUM) rose 25% year-over-year to $327 billion.

  • The firm raised $16 billion in Q2, bringing the year-to-date total to over $26 billion, on track to exceed $50 billion for FY26.

  • Net accrued carry balance increased 15% to $1.4 billion at the end of June.

Concerns

3

  • Transaction and monitoring fees are expected to step down in Q3 FY26 due to a pull-forward of certain closes into Q2.

  • Realized performance allocations were $35 million in Q2, with expectations for a step-up towards year-end 2026 and into 2027, implying current period was lower.

  • Private equity activity declined during the quarter as buyers and sellers recalibrated for geopolitical uncertainty, changing interest rate expectations, and AI-driven disruption.

Guidance & targets

CategoryTargetConfidence
Capital Raising
meet or exceed our target of raising more than $50 billion
high materiality
High
Management Fee Growth
continued robust Management Fee growth
high materiality
High
Transaction and Monitoring Fees
step down
medium materiality
High
FRE Margin
47%
high materiality
High
Realized Performance Allocations
step up
high materiality
Medium
Effective Corporate Income Tax Rate
high single digits
medium materiality
High
Effective Corporate Income Tax Rate
step up
medium materiality
High
Non-traded REIT Launch
launch
medium materiality
Medium
Multi-strategy Credit Fund
developing
low materiality
Medium
Captive Advisory Mandates
pursuing
low materiality
Medium
Flagship Evergreen Products
create a flagship evergreen product in each asset class
medium materiality
High
T-POP Inflows
continue to accelerate
medium materiality
High
Peppertree Fund Size
grow our fund size by 25%
medium materiality
High
Realizations Cadence
accelerate
high materiality
Medium
Deployment Pace
maintain a robust deployment pace
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Private Equity
Robust value creation driven by strong underlying financial and operating performance, outperforming the broader market. AI initiatives are actively implemented, resulting in tangible improvements to earnings growth, particularly in the software portfolio.
Portfolio appreciation: 6% in Q2LTM revenue and EBITDA growth: mid- to high teensSoftware bookings growth: mid-teens YoY in H1AI-activated recurring revenue (Boomi): >$100M, expected to double by year-end
————
Credit
Healthy credit metrics across the business with no notable changes. Strong performance in Credit Solutions, middle market Direct Lending, and asset-based finance, demonstrating active portfolio monitoring and robust risk management.
Portfolio appreciation: 3% in Q2Credit Solutions Fund 3 time-weighted net returns: 7.5% in Q2Credit Solutions Fund 3 inception-to-date net IRR: nearly 40%Twin Brook average interest coverage ratio: 2.4xTwin Brook nonaccrual rate: 1.4%Twin Brook annualized loss ratio since inception: 2 bpsABC Fund 1 net IRR since inception: 12%Mortgage Value Partners Fund net returns: 3.4% YTD
————
Real Estate
Portfolio appreciation driven by continued strength in data center, industrial, residential, and office assets. Activity is accelerating across the platform.
Portfolio appreciation: 3% in Q2
————

TPG operating KPIs by quarter

TPG operating KPIs stated on its earnings calls, by fiscal quarter
KPI Mar 2026 Q1 FY26This call Jun 2026 Q2 FY26Change vs prior quarter
Assets under management (AUM)
$306B Our after-tax distributable earnings per share grew 46% compared to the first quarter of last year, and total AUM grew 22% to $306 billion. Source: earnings call transcript
$327B We ended the quarter with $327 billion of total assets under management up 25% year-over-year and have continued to set new records for capital raising and deployment on an LTM basis, which I'll highlight now. Source: earnings call transcript
+6.9%
Assets under management (AUM) TPOP
$2.1B Across the TPOP strategy, monthly subscriptions increased throughout the first quarter, driving $545 million of inflows and bringing total AUM to $2.1 billion at the end of March, just 10 months after our initial launch. Source: earnings call transcript
$2.9B Inflows across the T-POP strategy were approximately $450 million in the quarter, bringing total AUM to $2.9 billion at the end of June. Source: earnings call transcript
+38.1%
Assets under management (AUM) Fee-earning
$175B Our fee-earning AUM grew 23% to $175 billion at the end of March. Source: earnings call transcript
$181B Fee-earning AUM increased 24% year-over-year to $181 billion. Source: earnings call transcript
+3.4%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

ProductTypeDetails
T-POPmilestone
Non-traded REITroadmap
Multi-strategy Credit Fundroadmap
Captive Advisory Mandatesroadmap

Deals & partnerships

Jackson Financial Strategic partnership for multiyear commitments $2.5B new commitments in Q2, total $4.5B since February multiyear

Received $2.5 billion in new multiyear commitments during the quarter, bringing total commitments to $4.5 billion since the partnership began in February.

OpenAI and a group of leading investment firms Lead founding partner of OpenAI Deployment Company (DeployCo) >$4B initial capital

TPG is the lead founding partner of DeployCo, a new AI transformation and services platform, committing over $4 billion of initial capital. This leverages TPG's extensive track record in technology and structuring corporate partnerships.

Smith + Howard Acquisition of a top 50 CPA firm

TPG Growth closed the acquisition of Smith + Howard, a top 50 CPA firm serving clients across the Southeast, just last week.

BMC Software Leading financing for the carve-out of BMC Helix

TPG agreed to lead a financing for the carve-out of BMC Helix from BMC Software, designing a bespoke solution with strong covenants and downside protection.

Bally's Intralot / Evoke Structured GBP 900 million second lien facility for acquisition financing GBP 900M

TPG's European team structured a GBP 900 million second lien facility to help Bally's Intralot's proposed GBP 2.2 billion acquisition of Evoke.

ECHO Realty Acquired control of a scaled grocery-anchored retail platform

TAC+, TPG's Core Plus real estate strategy, acquired control of ECHO Realty after taking an initial minority stake earlier this year.

Danone Sale of Made Group, a food and beverage platform

TPG Capital Asia recently announced the sale of Made Group, a leading better-for-you food and beverage platform based in Australia, to strategic buyer Danone.

Undisclosed buyer Sale of large-scale luxury hotel property in Central Tokyo

TPG agreed to sell a large-scale luxury hotel property in Central Tokyo from its Asia Real Estate business just last week.

Risks & headwinds

Market volatility impacting realizations Q2 FY26, potentially ongoing

Private equity activity declined; realized performance allocations were $35M in Q2.

Mitigation:Focus on building value across the portfolio, selectively monetizing investments at attractive valuations, strong monetization pipeline, unique portfolio construction, and corporate partnerships providing enhanced visibility into exits.

Transaction and monitoring fees step-down Q3 FY26

Expected to step down in Q3 FY26.

Mitigation:This is primarily a timing issue due to a pull-forward of certain transaction closes into Q2; the Capital Markets business is expected to remain a meaningful driver of top-line growth and margin expansion over time.

Private credit concerns impacting retail flows Recent past, potentially ongoing

Broader industry recently faced a deceleration in net flows across retail-oriented products.

Mitigation:TPG's momentum in the wealth channel continues to accelerate, with TCAP redemption requests at just 2.1% of total shares outstanding (well below industry average), and T-POP inflows accelerating.

AI disruption risks Ongoing

Market largely focused on AI disruption risks.

Mitigation:TPG is actively identifying new opportunities created by AI, investing directly in leading LLMs (OpenAI, Anthropic), and forming DeployCo to address AI implementation bottlenecks. AI-enabled revenue and cost initiatives are being implemented across the portfolio.

What to watch in Q3 FY26

Capital Raising

H2 FY26
Current $26B YTD
Target On track to exceed $50B for FY26

Why it matters

This is a key indicator of the firm's growth trajectory and future fee-related earnings.

Given our strong progress in the first half of the year, combined with our robust pipeline for the second half, we remain confident that we will meet or exceed our target of raising more than $50 billion in 2026.

Find out whether TPG delivers this. Inve re-checks your case every morning.

Q&A highlights

How does Axel Andre's background fit into TPG's vision for its insurance channel, particularly regarding the Jackson partnership?

Jon Winkelried explained that TPG's insurance strategy remains consistent, focusing on developing partnerships with insurers. The Jackson partnership is performing exceptionally well, creating a 'flywheel effect' for origination and broader product distribution. Axel's deep familiarity with the insurance industry is highly complementary to the existing leadership team and expanding franchise, aligning with TPG's FRE-centric, balance sheet-light approach.

“The Jackson partnership, I will say, by the way, continues to go extremely well in all respects, not only just the productivity but also the relationship that we've established between the organizations at Jackson at their asset management business at PPM.”

asked by Alexander Blostein · answered by Jon Winkelried

3 min read 7 chapters

Detailed narrative

Macro Environment and TPG's Positioning

The first half of 2026 has been characterized by significant inflections across AI, private credit, monetary policy, and geopolitics, reshaping the macro backdrop and investing landscape. TPG believes it is well-positioned to gain market share amidst this environment, leveraging its proven track record and differentiated investment capabilities. The firm is actively capitalizing on an expanding opportunity set, with clients seeking deeper engagement across its franchise.

Capital Markets Business Strength

TPG's Capital Markets business continues to be a powerful revenue driver, with the second quarter marking its second-highest quarter ever for transaction and monitoring fees. This growth is attributed to the firm's success in scaling deployment and integrating its broker-dealer capabilities across various asset classes and geographies. The Capital Markets revenue in Q2 was driven by over 20 transactions across 14 strategies, including a growing contribution from the credit platform, reinforcing its role in top-line growth and margin expansion.

AI Integration and DeployCo Initiative

TPG is actively investing behind the AI evolution, holding direct positions in leading LLMs like OpenAI and Anthropic, which provide unique insights into emerging technology trends. A significant initiative is the formation of DeployCo, an AI transformation and services platform, where TPG is a lead founding partner with over $4 billion of initial capital committed. DeployCo aims to address AI implementation bottlenecks for large enterprises, combining OpenAI's talent with TPG's operational expertise, as demonstrated by its work with Conservice to automate processes and improve efficiency.

Private Wealth Channel Momentum

Despite a broader industry deceleration in net flows for retail-oriented products, TPG's momentum in the private wealth channel is accelerating. The firm expects to gain market share, viewing this as a crucial long-term growth driver. T-POP, TPG's perpetual private equity product, celebrated its one-year anniversary with approximately $450 million in Q2 inflows, reaching $2.9 billion in AUM. TPG is expanding its global distribution footprint and developing new products, including a non-traded REIT and a multi-strategy credit fund.

Credit Platform Deployment and Performance

TPG's Credit business maintained strong activity, deploying $4.4 billion in Q2. Twin Brook generated $2.3 billion in gross originations, pacing ahead of expectations, with add-on activity accounting for over 40% of quarterly volume. The platform's integrated approach, combining scaled capital and flexible structuring, allows it to deliver tailored solutions where traditional lenders often cannot, as evidenced by leading financing for the BMC Helix carve-out and structuring a GBP 900 million facility for Bally's Intralot.

Real Estate Market Opportunity

The firm sees attractive opportunities in real estate due to reset valuations, increased replacement costs, limited supply growth, and improving fundamentals. Activity is accelerating across the real estate platform, with $2.3 billion deployed in Q2. TPG's Core Plus strategy, TAC+, acquired control of ECHO Realty, a grocery-anchored retail platform, and continues to expand into lower cost of capital real estate, representing a significant growth opportunity.

Leadership Transition

TPG announced a leadership transition with Axel Andre joining as the new Chief Financial Officer. Jack Weingart, who served as CFO since the IPO, is fully transitioning into his role as CEO of Global Wealth Solutions, a strategic growth area for the firm. Axel Andre brings deep public company CFO experience and familiarity with the insurance industry, aligning with TPG's strategic priorities and FRE-centric approach.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.