Maiden earnings after IPO boosted by higher assets under management and fees
US private equity group TPG is spotting increasing opportunities to invest in fast-growing technology companies after the sector was hit hard at the start of the year by investor fears over rising interest rates and Russia’s invasion of Ukraine.
In the fourth quarter, TPG’s publicly traded corporation generated fee-related earnings of $91mn, a 20 per cent increase from the previous year and $137mn in after-tax distributable earnings, a metric analysts favour as a proxy for firm cash flows. For the full year, TPG generated $326mn in fee-related earnings and $538mn in distributable earnings, increases of 44 per cent and 131 per cent, respectively.
The group’s rising earnings came as it sold $25.4bn in assets during the year and brought in more than $20bn in new investor commitments.
However, they also reflect TPG’s novel structure versus competitors Blackstone Group, KKR and Apollo Global, which all listed their shares in the years around the 2008 financial crisis.
Read more: FT
