Q3 2025 TPG Inc Earnings Call

November 4, 2025

Operator: Good morning, and welcome to TPG's Q3 2025 Earnings Conference Call. Currently, all callers have been placed in a listen-only mode, and following management's prepared remarks, the call will be open for your questions. If you would like to ask a question at that time, please press star one on your telephone keypad. If you need to remove yourself from the queue, press star two. To get as many questions as time permits, we ask that you please limit yourself to one question. At any time, if you should need operator assistance, press star zero. Please be advised that today's call is being recorded. Please go to TPG's IR website to obtain the earnings materials. I will now turn the call over to Gary Stein, Head of Investor Relations at TPG. Thank you. You may begin.

Third quarter 2025 earnings conference call. Currently all callers have been placed in a listen only mode and following management's prepared remarks, the call will be opened for your questions. If you would like to ask a question at that time. Please press star one on your telephone keypad, if you need to remove yourself from the queue Press star two to get as many questions as time permit.

We ask that you please limit yourself to one question.

Anytime if you should need operator assistance press Star Zero. Please be advised that today's call is being recorded. Please go to Tpg's IR website to obtain the earnings materials I will now turn the call over to Gary Stein head of Investor Relations at TPG. Thank you you may begin.

Great. Thanks, operator, and welcome everyone.

Please stand by your program is about to begin.

Gary Stein: Great. Thanks, operator, and welcome, everyone. Joining me this morning are Jon Winkelried, Chief Executive Officer, and Jack Weingart, Chief Financial Officer. Our President, Todd Sisitsky, is also here and will be available for the Q&A portion of this morning's call. I'd like to remind you this call may include forward-looking statements that do not guarantee future events or performance. Please refer to TPG's earnings release and SEC filings for factors that could cause actual results to differ materially from these statements. TPG undertakes no obligation to revise or update any forward-looking statements except as required by law. Within our discussion and earnings release, we're presenting GAAP and non-GAAP measures, and we believe certain non-GAAP measures that we discuss on this call are relevant in assessing the financial performance of the business.

Turning me. This morning are John Michael Reed, Chief Executive Officer, and Jack One Garg, Chief Financial Officer, Our President toxicity is also here and will be available for the Q&A portion of this morning's call.

Jon Winkelried: In TPG AG real estate, we've maintained an active investment pace with nearly $2 billion deployed year to date across our dedicated regional funds. We're identifying and capitalizing on improving supply-demand dynamics in certain sectors, including senior housing, and hospitality in the US, and office markets in Japan, Korea, and London, which have low vacancy rates and attractive rental growth. Before I wrap up, I want to share what I'm hearing from my conversations with our clients across the world and how it's shaping our business and the opportunities in front of us. In private equity, institutional clients continue to face liquidity constraints and are consolidating their relationships among fewer GPs. Against this backdrop, we believe TPG is gaining share due to the consistently strong returns we've delivered. This has been driven by our focus on investing in deeply thematic areas and partnering with our portfolio companies to drive growth.

I'd like to remind you. This call may include forward looking statements that do not guarantee future events or performance. Please refer to <unk> earnings release, and SEC filings for factors that could cause actual results to differ materially from these statements.

<unk> undertakes no obligation to revise or update any forward looking statements, except as required by law.

Within our discussion in earnings release, we are presenting GAAP and non-GAAP measures. We believe certain non-GAAP measures that we discussed on this call are relevant in assessing the financial performance out of the business.

These non-GAAP measures are reconciled to the nearest GAAP figures Tpg's earnings release, which is available on our website. Please note that nothing on this call constitutes an offer to sell or solicitation of an offer to purchase.

Good morning and welcome to the tpg's. Third quarter 2025 earnings conference. Call currently, all callers have been placed in a listen-only mode and following Management's prepared remarks, the call will be open for your questions. If you would like to ask a question at that time, please press star 1 on your telephone keypad, if you need to remove yourself from the queue press star 2 to get as many questions as time permits, we ask that you, please limit yourself to 1 question at any time. If you should need operator, assistance, press star zero. Please be advised that today's call is being recorded, please go to tpg's. IR website, to obtain the earnings materials, I will now turn the call over to Gary Stein. Head of investor relations at tpg. Thank you. You may begin.

Gary Stein: These non-GAAP measures are reconciled to the nearest GAAP figures in TPG's earnings release, which is available on our website. Please note that nothing on this call constitutes an offer to sell or solicitation of an offer to purchase an interest in any TPG fund. Looking briefly at our results for Q3, we reported a GAAP net income attributable to TPG Inc. of $67 million and after-tax distributable earnings of $214 million, or $0.53 per share of Class A common stock. We declared a dividend of $0.45 per share of Class A common stock, which will be paid on 1 December 2025, to holders of record as of 14 November 2025. I'll now turn the call over to Jon.

Great. Thanks, operator. And welcome, everyone.

An interest in any TPG fund.

Looking briefly at our results for the third quarter, we reported GAAP net income attributable TPG, Inc of $67 million.

Joining me this morning are Jon Winkelried, Reed Chief Executive Officer, and Jack Weingart, Chief Financial Officer. Our President, Todd Sitki, is also here and will be available for the Q&A portion of this morning's call.

After tax distributable earnings of $214 million or.

Or <unk> 53 per share of class a common stock we declared a dividend of <unk> 45 per share of class a common stock, which will be paid on December one 2025 to holders of record as of November <unk> 2025.

Jon Winkelried: Over the past decade, across our TPG Capital and TPG Growth funds, more than 80% of our value creation has come from earnings growth, compared to less than half for the S&P 500, where over 40% of the value was driven by multiple expansion. This differentiation is resonating with our clients and driving continued fund-over-fund growth across our private equity strategies. Additionally, we continue to see increasing allocations into private credit. Investors are diversifying their exposure into areas such as structured credit, lower middle market direct lending, and middle-of-the-capital structure opportunities, where we've built scaled investment strategies. Our clients are expanding their relationships with us across our credit platform, including through multi-fund partnerships and seeding new strategies. As a result, our credit AUM has grown 23% year over year, and it continues to be one of the fastest-growing areas within our firm.

I'd like to remind you that this call may include forward-looking statements that do not guarantee future events or performance. Please refer to TPG's earnings release and SEC filings for factors that could cause actual results to differ materially from these statements.

Tpg undertakes. No, obligation to revise or update any forward-looking statements except as required by law.

I'll now turn the call over to John.

Good morning, everyone. Thank you for joining us today.

Jon Winkelried: Good morning, everyone. Thank you for joining us today. TPG delivered strong results in Q3. Our total AUM grew 20%, and quarterly fee-related earnings grew 18% year-over-year. The flywheels across our business continued to accelerate, led by robust capital formation across all asset classes and a record quarter for deployment. I'll spend a moment on each of these important areas. This was an outstanding fundraising quarter. We raised a near record $18 billion of capital, up 60% from Q2 and 75% year-over-year. This was driven by a successful first close in our flagship private equity funds and strong credit fundraising, where we continue to experience a step function increase in capital formation. We've made substantial progress against our previous guidance of raising significantly more capital in 2025 compared to 2024.

CPG delivered strong results in the third quarter.

Within our discussion and earnings release, we're presenting. Gaap and non-gaap measures. And we believe certain non-gaap measures that we discuss on this, call are relevant in. Assessing, the financial performance of the business.

Our total AUM grew 20% in <unk>.

Quarterly fee related earnings grew 18% year over year to.

The flywheel is across our business continued to accelerate led by robust capital formation across all asset classes and a record quarter for deployment I'll.

These non-gaap measures are reconciled to the nearest Gap figures in tpg's, earnings release which is available on our website. Please note that nothing on this call, constitutes an offer to sell or solicitation of an offer to purchase.

And interest in any tpg fund.

I'll spend a moment on each of these important areas.

This was an outstanding fund raising quarter.

We raised in your record $18 billion of capital of 60% from the second quarter and 75% year over year.

This was driven by a successful first close in our flagship private equity funds and strong credit fundraising, where we continue to experience a step function increase in capital formation.

45 cents per share of class a common stock, which will be paid on December 1st 2025 to Holders of record as of November 14th 2025.

Jon Winkelried: Finally, in real estate, we are well-positioned to play offense with over $12 billion of combined dry powder and continued positive value creation across our portfolios. Over the past two years, we've capitalized on the substantial market dislocation to acquire high-quality assets that are not typically available for sale. We believe the real estate market has stabilized, and transaction activity is accelerating. Our clients are expressing a growing interest in real estate, as demonstrated by the success of TRECO's recent fundraise. Given the strength of our distinctive portfolios, we remain confident as we prepare to launch fundraising campaigns for several of our real estate strategies in the coming quarters. We made significant progress against our strategic priorities for 2025, and I'm pleased with the strength of our business across all key metrics.

I'll now turn the call over to John.

We've made substantial progress against our previous guidance of raising significantly more capital in 2025 compared to 2024.

Good morning everyone. Thank you for joining us today.

Tbg delivered, strong results in the third quarter.

Our total AUM grew 20%.

Year to date, we've raised over $35 billion of capital, which already exceeds our full year 2020 for fund raising.

Jon Winkelried: Year to date, we've raised over $35 billion of capital, which already exceeds our full-year 2024 fundraising. In private equity, we raised $12.3 billion in aggregate across our strategies. This was primarily driven by $10.1 billion raised in the first close for our flagship buyout funds, TPG Capital X and Healthcare Partners III, including commitments that are signed but not yet closed. We received strong support from our existing clients, who increased their commitments by 12% on average over the prior vintage. These results reinforce our confidence that TPG is positively differentiated within the private equity market, where fundraising has been perceived as challenging in the current environment. Our clients continue to lean in and look for more ways to partner with us in private equity, given our distinct and highly disciplined approach and consistently strong performance.

And quarterly fee-related earnings grew 18% year-over-year.

In private equity, we raised $12 3 billion in aggregate across our strategies. This was primarily driven by $10 1 billion raised in the first close.

And a record quarter for deployment.

I'll spend a moment on each of these important areas.

For our flagship buyout funds TPG capital 10, and healthcare partners.

Including commitments that are signed but not yet closed we received strong support from our existing clients who increased their commitments by 12% on average over the prior vintage.

We raised in your record, 18 billion of capital up 60% from the second quarter and 75% year-over-year.

These results reinforce our confidence that TPG is positively differentiated within the private equity market, where fund raising has been perceived as challenging in the current environment.

By a successful first. Close in our Flagship private Equity, Funds and strong, credit fundraising, where we continue to experience a step function increase in capital formation.

Jon Winkelried: Our increased scale and diversification positions us well to deliver accelerated growth and generate long-term value for our shareholders. I'll now turn the call over to Jack to discuss our financial results.

we've made substantial progress against our previous guidance of raising significantly more capital in 2025 compared to 2024

Our clients continue to lean in and look for more ways to partner with us in private equity given our distinct and highly disciplined approach and consistently strong performance as.

Gary Stein: Thanks, John, and thank you all for joining us today. As you can see from our strong third quarter results, we've been successfully executing on our growth strategy. On our last call, I discussed several key building blocks we've been putting in place to drive our next leg of growth. These include scaling our credit platform, launching our next series of private equity and real estate funds, and building on new products and businesses. Our Q3 results demonstrate that we're tracking well against these objectives. Our capital formation in credit is on pace for a record year in 2025, and credit deployment through the third quarter of nearly $17 billion already exceeds our full year 2024 total. Fundraising for TPG Capital 10 and Healthcare Partners 3 is off to a great start, with more than $10 billion raised in the first close. We continue to expand through organic innovation.

Year to date, we've raised over 35 billion dollars of capital, which already exceeds our full year. 2024 fundraising,

As a result, we believe we are outperforming in private equity fund raising relative to the broader market and gaining share.

Jon Winkelried: As a result, we believe we are outperforming in private equity fundraising relative to the broader market, and gaining share. In credit, after reaching an inflection point last quarter, we maintained our strong fundraising pace and closed $4.8 billion of credit capital in Q3. In middle-market direct lending, we announced the closing of a $3 billion continuation vehicle, which we believe is the largest-ever private credit CV. This unique transaction enabled us to extend the duration of our capital base for a portfolio of high-performing senior loans in collaboration with several strategic partners. In structured credit, we raised $1.4 billion across the strategy and launched our new liquid securities-focused open-ended fund. In credit solutions, we continued fundraising for our third flagship fund, bringing the total capital raised to date to $4.3 billion.

In private Equity, we raised 12.3 billion in aggregate across our strategies. This was primarily driven by 10.1 billion raised in the first close.

And credit after reaching an inflection point last quarter, we maintained our strong fundraising pace includes $4 8 billion of credit capital in the third quarter.

In middle market direct lending, we announced the closing of a $3 billion continuation vehicle, which we believe is the largest ever private credit CD.

For our Flagship buyout funds, tpg Capital 10 and HealthCare Partners 3, including commitments that are signed, but not yet closed. We received strong support from our existing clients who increased their commitments by 12% on average over the prior vintage.

This unique transaction enabled us to extend the duration of our capital base for our portfolio of high performing senior loans and collaborations with several strategic partners.

These results, reinforce our confidence that tpg is positively differentiated within the private Equity Market where fundraising has been perceived as challenging in the current environment.

In structured credit we raised $1 4 billion across the strategy and launched our new liquid Securities focused open ended fund and.

And in credit solutions to be continued fundraising for our third flagship fund, bringing the total capital raised to date to $4 $3 billion we.

Our clients continue to lean in and look for more ways to partner with us in private Equity, given our distinct and highly disciplined approach and consistently strong performance.

Gary Stein: As John mentioned, we raised $2.1 billion of capital for TRECO, our opportunistic real estate credit fund, including related vehicles, and approximately $900 million to date for TPOP, our new perpetual private equity product, which I'll expand on later. Additionally, earlier this year, we launched fundraising for our second GP-led secondaries fund, which is tracking to be significantly larger than its predecessor. We ended the third quarter with $286 billion of total assets under management, up 20% year over year. This was driven by $44 billion of capital raised and $24 billion of value creation, partly offset by $26 billion of realizations over the last 12 months. Fee-earning AUM increased 15% year over year to $163 billion. These figures include TPG Peppertree, which closed on 1 July and added $8 billion of AUM and $4.5 billion of fee-paying AUM.

as a result we believe we are outperforming in private Equity fundraising relative to the broader market and gaining share

We expect to hold a final close in the fourth quarter and for the fund to be meaningfully larger than its predecessor.

Jon Winkelried: We expect to hold a final close in Q4 and for the fund to be meaningfully larger than its predecessor. Year to date, we've raised nearly $12 billion of credit capital in what has been a breakout year for our franchise. As a result of our fundraising momentum, we ended the quarter with record credit dry powder of over $16 billion. Credit AUM, not earning fees, stood at nearly $11 billion, which represents over $100 million of annual revenue opportunity that we expect to flow into management fees over time. In real estate, we held a final close for our inaugural real estate credit strategy, bringing total commitments across the main fund and related vehicles to $2.1 billion, which exceeds our initial $1.5 billion target by more than 35%.

Year to date, we've raised nearly $12 billion of credit capital and what has been a breakout year for our franchise as.

As a result of our fundraising momentum we ended the quarter with record credit dry powder of over $16 billion.

Credit after reaching an inflection point. Last quarter, we maintained our strong fundraising pace and closed $4.8 billion of credit capital in the third quarter in Middle Market Direct Lending. We announced the closing of a $3 billion continuation vehicle, which we believe is the largest-ever private credit CV.

Credit AUM, not earning fees stood at nearly 11 billion, which represents over $100 million.

Annual revenue opportunity that we expect to flow into management fees over time.

This unique transaction enabled us to extend the duration of our Capital base for our portfolio of high-performing. Senior loans in collaboration with several strategic partners.

In real estate, we held the final close for our inaugural real estate credit strategy, bringing total commitments across the main fund and related vehicles to $2 1 billion, which exceeds our initial one $5 billion target by more than 35%.

In structured credit we raised 1.4 billion and launched our new liquid Securities focused open-ended fund.

And in Credit Solutions, we continued fundraising for our third Flagship fund, bringing the total Capital raised to date to 4.3 billion.

We raised approximately $1 billion of capital in the final closed driven by the strength of track those initial portfolio.

Gary Stein: As a result of our strong fundraising in recent quarters, our dry powder has grown to a record $73 billion. This represents a real strategic asset at a time when, as John indicated, our teams are sourcing very interesting investment opportunities. AUM subject to fee-earning growth was $35 billion at the end of the quarter, which included $24 billion of AUM not yet earning fees. This represents a revenue opportunity of more than $220 million on an annualized basis. Our management fees grew to $461 million in the third quarter, driven by the activation of TPG Capital 10 and the addition of TPG Peppertree to our market solutions platform. We generated $38 million of transaction and monitoring fees in the quarter and $163 million over the last 12 months. We continue to invest in building our capital markets franchise.

Jon Winkelried: We raised approximately $1 billion of capital in the final close, driven by the strength of TRECO's initial portfolio. TRECO adds to our long track record of expanding into adjacent strategies through organic innovation. Early in the current cycle, we identified a compelling opportunity to invest in real estate credit at attractive risk-adjusted returns, given the significant contraction in valuations and available leverage. We're seeing our thesis prove out, with the fund outperforming its initial return protections and generating double-digit cash-on-cash yields. TRECO is an important extension of our investment capabilities in both real estate and credit, and we expect to scale the strategy over time. Additionally, our fundraising success has been amplified by our increasing penetration into the fastest-growing distribution channels, including insurance and private wealth. First, we've grown our capital from insurance clients by more than 60% over the last two years.

We expect to hold a final close in Q4, and for the fund to be meaningfully larger than its predecessor.

As for our long track record of expanding into adjacent strategies through organic innovation early in the current cycle, we identified a compelling opportunity to invest in real estate credit at attractive risk adjusted returns given the significant contraction in evaluations and available leverage.

Year to date, we've raised nearly 12 billion dollars of credit capital and what has been a breakout year for our franchise.

As a result of our fundraising momentum, we ended the quarter with record credit dry powder of over $16 billion.

Seeing our thesis prove out with our fund outperforming its initial return protections and generating double digit cash on cash yields.

Credit AUM, not earning fees stood at nearly 11 billion which represents over a hundred million dollars of annual revenue opportunity that we expect to flow into management fees over time.

<unk> is an important extension of our investment capabilities in both real estate and credit and we expect to scale. This strategy over time.

Additionally, our fundraising success has been amplified by our increasing penetration into the fastest growing distribution channels, including insurance and private wealth.

In real estate, we held a final close for our inaugural real estate credit strategy. Bringing total commitments across the main fund and related vehicles to 2.1 billion which exceeds our initial, 1 and a half billion dollar Target by more than 35%.

First we have grown our capital from insurance clients by more than 60% over the last two years.

We raised approximately a billion dollars of capital in the Final close driven by the strength of tkos initial portfolio.

Gary Stein: As we look to the fourth quarter and into 2026, we expect to drive further growth in transaction fees. We reported quarterly fee-related revenue of $509 million, fee-related earnings of $225 million, and a 44% FRE margin, which tracks well against our previous guidance of exiting the year with a margin in the mid-40s. Our distributor earnings for the third quarter were $230 million, which included $30 million of realized performance allocations, driven by our full exit from Syngene International, which has traded up nearly 70% since its IPO in India last December. The full sale of Samoa, a leading cosmetics packaging company in Korea. This marks a strong first exit in TPG Asia 8, less than two years after our initial investment in the company, and is a great outcome for our Asia franchise.

Insurance represented 40% of truckload final close and over 25% of the capital raised for our credit platform in the third quarter, we're continuing to create innovative access points and cross platform solutions for our insurance clients.

Truckco adds to our long track record of expanding into adjacent strategies, through organic innovation.

Jon Winkelried: Insurance represented 40% of TRECO's final close and over 25% of the capital raised for our credit platform in Q3. We're continuing to create innovative access points and cross-platform solutions for our insurance clients. For example, we've closed more than $600 million of insurance capital in our first rated note feeder for credit solutions, which we believe is one of the few rated access points for this type of strategy in the market. Second, we're making strong progress in the private wealth channel, where we raised over $1 billion of capital across our drawdown and evergreen funds in Q3. TPOP, our perpetually offered private equity product, continues to gain momentum, with approximately $900 million of inflows since its launch five months ago, including $250 million in October.

Early in the current cycle, we identified a compelling opportunity to invest in real estate credit at attractive risk, adjusted returns given the significant contraction and valuations and available Leverage.

For example, we've closed more than $600 million of insurance capital and our first rated note feeder for credit solutions, which we believe is one of the few rated access points for this type of strategy in the market.

We're seeing our thesis prove out with a fund outperforming its initial return projections and generating double digit cash on cash yields.

Second, we're making strong progress in the private wealth channel, where we raised over $1 billion of capital across our drawdown in evergreen funds in the third quarter T. PA are perpetually offered private equity product continues to gain momentum with approximately $900 million of inflows since its launch five months ago, including 250.

Truckco is an important extension of our investment capabilities, in both real estate and credit and we expect to scale this strategy over time.

Additionally, our fundraising success has been Amplified by our increasing penetration into the fastest growing distribution channels, including insurance and private wealth.

First, we've grown our capital from insurance clients by more than 60% of the last 2 years.

<unk> million dollars in October.

This accelerated pace was supported by the launch of <unk> on.

Jon Winkelried: This accelerated pace was supported by the launch of TPOP on a leading international private bank platform in September. We're experiencing strong traction in Europe and Asia, and plan to launch on several additional domestic and international platforms over the next few quarters. Private wealth is an important growth driver for us, and we remain focused on further expanding access to our products across geographies and investor types, which Jack will touch on further. Moving on to deployment. As discussed on our last call, we expected our investment pace to accelerate into the back half of the year. In Q3, we deployed a record of $15 billion, up over 70% year-over-year, and our activity was well diversified across the firm.

Gary Stein: I'd like to take a moment to explain the relationship between our monetization activity and our generation of performance-related earnings for shareholders. During the quarter, we continued to drive strong realizations across our portfolio, which increased nearly 40% year over year to $8 billion. The reason that PRE did not increase commensurately relates to the timing of profit allocations early in a fund's life. In addition to Syngene International and Samoa, realizations during the quarter included early exits in several other funds, such as our highly successful sale of Elite in TPG Capital 9. These exits drove attractive profits and DPI for our fund investors but did not result in significant performance allocations as the gains went to repay fees and expenses, which is typical for the first exits in a fund.

On a leading international private bank platform in September.

We're experiencing strong traction in Europe, and Asia and plan to launch several additional domestic and international platforms over the next few quarters.

For our credit platform in the third quarter, we're continuing to create Innovative access points and cross-platform solutions for our insurance clients.

Private wealth is an important growth driver for us and we remain focused on further expanding access to our products across geographies and investor types with Jack will touch on further.

For example, we've closed more than 600 million of insurance capital in. Our first rated note feeder for Credit Solutions, which we believe is 1 of the few rated access points for this type of strategy in the market.

Moving on to deployment as discussed on our last call, we expected our investment pace to accelerate into the back half of the year in the third quarter, we deployed a record 15 billion.

second, we're making strong progress in the private wealth Channel, where we raised over a billion dollars of capital across our draw down and Evergreen funds in the third quarter,

Over 70% year over year, and our activity was well diversified diversified across the firm.

Our credit platform drove over half of the capital deployed during the quarter with $8 3 billion invested across our strategies more than doubling year over year.

teapop are perpetually, offered private Equity product continues to gain momentum with approximately 900 million of inflows since its launch 5 months ago, including 250 million in October,

Jon Winkelried: Our credit platform drove over half of the capital deployed during the quarter, with $8.3 billion invested across our strategies, more than doubling year-over-year. In structured credit, we deployed $3.6 billion of capital, half of which was driven by residential whole loan investments, where we continue to be a market leader. In asset-backed finance, we closed notable transactions across several of our verticals, including non-bank credit card origination. We also completed a meaningful upsize of our joint venture with Funding Circle and Barclays in the UK. In middle-market direct lending, Twinbrook generated $2 billion of gross, gross originations in Q3, our highest volume so far this year. Importantly, given the steady increase in overall M&A activity, 70% of our origination was driven by new investments, bringing the total number of companies in our portfolio to over 300.

This accelerated Pace was supported by the launch of teapot.

In structured credit we deployed $3 6 billion of capital half of which was driven by residential whole loan investments, where we continue to be a market leader in.

Gary Stein: Looking forward, this sets us up for increased performance allocations for the next series of exits in these young funds. On an LTM basis, we've generated $262 million of performance-related earnings for shareholders, which is a 140% increase compared to the prior 12-month period. Our clients recognize the differentiated DPI we've delivered, and we've continued to drive monetization activity since quarter end. In October, we completed our first major liquidity event in our GP-led secondaries business, TGS, through a partial realization of CR Fitness, a leading crunch fitness franchisee at an attractive valuation. Since our initial investment, our sponsor partner, Northcastle, and the management team have driven exceptional growth at the company, more than doubling both the number of active clubs and EBITDA. Just last night, our Rise Climate portfolio company, Beta Technologies, which has developed an electric aircraft capable of vertical takeoff, successfully priced a $1 billion all-primary IPO.

We're experiencing strong Traction in Europe, and Asia and plan to launch on several additional domestic and international platforms over the next few quarters.

In asset backed finance, we closed notable transactions across several of our verticals, including non bank credit card origination.

Private wealth is an important growth driver for us, and we remain focused on further expanding access to our products across geographies and investor types, which Jack will touch on further.

We also completed a meaningful upsides of our joint venture with funding circle and Barclays in the U K.

In middle market direct lending Twinbrook generated $2 billion of grocery gross originations in the third quarter, our highest volume so far this year <unk>.

Importantly, given the steady increase in overall M&A activity, 70% of our origination was driven by new investments, bringing the total number of companies in our portfolio to over 300.

Moving on to deployment as discussed on our last call, we expected our investment Pace to accelerate into the back half of the year. And the third quarter, we deployed a record 15 billion dollars up over 70% year-over-year and our activity was well Diversified Diversified across the firm.

Our pipeline remains robust and we expect the fourth quarter to be our most active quarter of the year.

Our credit platform drove over half of the capital deployed during the quarter with 8.3 billion invested across our strategies, more than doubling year-over-year.

Jon Winkelried: Our pipeline remains robust, and we expect the fourth quarter to be our most active quarter of the year. In credit solutions, as spreads remain at historic heights, our flexible mandate continues to create opportunities to provide tailored solutions in the private market. As an example, last year we formed a proprietary joint venture with Blue Star Alliance and Hilco Global to finance and acquire consumer brands and intellectual property. Our unique partnership brings together significant sector, operating, and financing expertise, enabling differentiated access to attractive opportunities. This was most recently highlighted by the JV's announced acquisition of the iconic Dickies apparel brand in September. Despite some recent concerns in the broader credit markets, including certain allegations of fraudulent activity, our portfolios continue to perform well. We've maintained a disciplined and highly selective approach to credit underwriting, with a focus on fundamentals and risk management.

Credit solutions as spreads remain at historic types are flexible mandate continues to create opportunities to provide tailored solutions and the private market.

And structured credit. We deployed 3.6 billion of capital, half of which was driven by residential, whole loan Investments where we continue to be a market leader.

As an example last year, we formed a proprietary joint venture with Blue Star Alliance, and Hilco global to finance and acquire consumer brands and intellectual property.

in asset back Finance, we close notable transactions across several of our verticals including non-bank credit card origination

Gary Stein: This IPO was very well received, allowing the company to upsize the offering and price above the filing range. Moving on to our balance sheet, we drew on our revolver during the quarter for several growth initiatives, including funding the cash consideration for Peppertree and seeding the portfolios for new businesses such as TPOP. We issued $500 million of senior notes during the quarter and used the proceeds to pay down our revolver. As a result, our net interest expense increased to $23 million in the third quarter. As of 30 September, we had $1.7 billion of net debt and $1.8 billion of available liquidity, giving us ample flexibility to continue pursuing new growth initiatives. Given our increased diversification and strong financial profile, during the quarter, we did receive an upgrade in our credit rating from Fitch to A-.

We also completed a meaningful upside of our joint venture with funding Circle and Barclays in the UK.

Our unique partnership brings together significant sector operating and financing expertise, enabling differentiated access to attractive opportunities.

In Middle Market, direct lending, twinbrook generated 2 billion dollars of gross. Gross, originations in the third quarter, our highest volume so far this year.

This was most recently highlighted by the JV announced acquisition of the iconic Dickies apparel brand in September.

Despite some recent concerns in the broader credit markets, including certain allegations of fraudulent activity our portfolios continue to perform well.

Importantly, given the steady increase in overall m&a activity 70% of our origination was driven by new Investments bringing the total number of companies in our portfolio to over 300.

We've maintained a disciplined and highly selective approach to credit underwriting with a focus on fundamentals and risk management.

Our pipeline remains robust and we expect the fourth quarter to be our most active quarter of the year.

As a result, our annualized loss ratio since inception has remained stable at only two basis points for Twinbrook.

Jon Winkelried: As a result, our annualized loss loss ratio since inception has remained stable at only 2 basis points for Twinbrook, 3 basis points for our private asset-backed credit business, and less than 40 basis points for credit solutions. We continue to uphold these same rigorous standards as we evaluate new investment opportunities, and Jack will share more details in his remarks. Across our private equity strategies, we maintained a healthy pace of deployment, with $4.6 billion of capital invested in Q3, up nearly 40% year-over-year. In TPG Capital, we announced the carve-out of Proficy, GE Vernova's manufacturing software business. This transaction is a culmination of the relationship we've built with GE Vernova over 7 years across both our capital and climate strategies.

And Credit Solutions as spreads remain at historic, tights, our flexible mandate continues to create opportunities to provide, tailor Solutions, and the private Market.

Three basis points for our private asset backed credit business.

And less than 40 basis points for credit solutions, we continue to uphold the same rigorous standards as we evaluate new investment opportunities and Jack will share more details in his remarks.

As an example, last year we formed a proprietary joint venture with Blue Star, Alliance, and Hilco Global to finance and acquire consumer brands and intellectual property.

Gary Stein: The fundamentals across our portfolios remained strong, and we delivered positive value creation in each of our platforms for the third quarter and over the last 12 months. As John mentioned, recently, there's been heightened focus in the market on credit quality due to a few high-profile defaults. Importantly, we have no exposure to those events, and the underlying health of our credit portfolios remains strong. In aggregate, our credit platform appreciated 3% in the third quarter and 12% over the last 12 months. In middle market direct lending, our portfolio comprises exclusively first lien loans with maintenance financial covenants, and we are a lead lender in nearly all of our transactions. We've built in significant downside protection and taken an active approach to portfolio management. As a result, our portfolio of more than 300 companies continues to perform well.

Across our private equity strategies, we maintained a healthy pace of deployment with $4 6 billion of capital invested in the third quarter up nearly 40% year over year.

Our unique partnership brings together. Significant sector operating and financing expertise enabling differentiated access to attractive opportunities.

This was most recently highlighted by the jv's announced acquisition of the iconic, Dickies apparel brand in September.

TPG capital, we announced the carve out with prophecy GE <unk> manufacturing software business.

Despite some recent concerns in the broader credit markets, including certain allegations of fraudulent activity, our portfolios continue to perform well.

This transaction is the culmination of the relationship we built with GE renova over seven years across both our capital and climate strategies.

We've maintained a discipline and highly selective approach to credit underwriting with a focus on fundamentals and risk management.

Promising aligns well with our expertise in corporate carve outs and structured partnerships, which comprised 11 of the 16, most recent investments and TPG capital.

Jon Winkelried: Proficy aligns well with our expertise in corporate carve-outs and structured partnerships, which comprise 11 of the 16 most recent investments in TPG Capital. Additionally, just a few weeks ago, we announced the take-private of Hologic, a leading provider of diagnostic, imaging, and surgical products focused on women's health, for up to $18 billion. We're excited to partner with one of the premier scaled platforms in the women's health space, which has long been a thematic area of focus for us. In tech adjacencies, we closed minority investments into several leading large language model developers, expanding our exposure to GenAI development and providing us with differentiated insights into this rapidly evolving area of the technology ecosystem. These investments follow the innovative debt financing that our credit solutions business recently anchored for xAI.

As a result, our annualized loss ratio since inception has remained stable at only 2 basis points for TwinBrook.

3 basis points for our private asset-backed credit business.

Additionally, just a few weeks ago, we announced the take private of Hologic, a leading provider of diagnostic imaging and surgical products focused on women's health for up to $18 billion.

And less than 40 basis points. For Credit Solutions, we continue to uphold these same rigorous standards as we evaluate new investment opportunities, and Jack will share more details in his remarks.

Gary Stein: Non-accruals remain extremely limited at less than 2%, and our average interest coverage ratio has remained very stable at approximately 2x. In structured credit, our asset-based credit fund's net IRR since inception remained above its target range at 13.5% at the end of the third quarter. In addition, our flagship structured credit fund, MVP, continued to outperform credit benchmarks and returned 3% in the third quarter. Recent stress in the structured credit market has been evident in the subprime auto space. Several years ago, we identified weakening fundamentals in auto finance, and our structured credit funds proactively rotated out of the sector. As a result, we currently have zero exposure. Looking at credit solutions, our funds generated net returns ranging from approximately 5% to 6% in the quarter, which far outpaced the US leveraged loan and high-yield bond indices.

We're excited to partner with one of the Premier scaled platforms in womens health space, which has long been a thematic area of focus for us.

Across our private Equity strategies. We maintained a healthy pace of diploma with 4.6 billion of capital invested in the third quarter up, nearly 40% year-over-year.

And tech Adjacencies, we closed minority investments into several leading large language model developers expanding our exposure to gen AI development and providing us with differentiated insights into this rapidly evolving area of the technology ecosystem.

And tbg capital, we announced the carveout the prophecy GE bernas manufacturing software business.

This transaction is a culmination of the relationship we built with GE Vernova over seven years across both our capital and climate strategies.

These investments fall the innovative debt financing that our credit solutions business recently anchored for SJI.

We continue to evaluate opportunities to capitalize on the robust growth in this space and a partner with leading AI companies across each of our asset classes.

Jon Winkelried: We continue to evaluate opportunities to capitalize on the robust growth in this space and to partner with leading AI companies across each of our asset classes... and Rise Climate, yesterday, we announced the acquisition of Kinetic, a leading international operator of zero-emission transport and infrastructure based in Australia. Kinetic aligns closely with our deep, deep expertise in clean electrification and mobility, and represents the second investment by our transition infrastructure strategy. In real estate, we had our most active deployment quarter so far this year, with $1.9 billion invested across TPG and TPG AG Real Estate. During Q3, TREP completed the acquisition of the former Broadcom office campus in Palo Alto's Stanford Research Park. This investment is consistent with TREP's continued focus on selectively investing in office markets where we see compelling green shoots emerging, such as the San Francisco Bay Area.

Prophecy aligns, well with our expertise in corporate carve and structured Partnerships, which comprised 11 of the 16 most recent investments in tpg capital.

And a rise climate yesterday, we announced the acquisition of kinetic a leading international operator zero emission transport and infrastructure based in Australia.

Additionally, just a few weeks ago, we announced that take private of philosophic a leading provider of Diagnostic Imaging and surgical products focused on women's health for up to 18 billion dollars.

Kinetic aligns closely with our deep expertise in clean electrification mobility and.

We're excited to partner with one of the premier scaled platforms in the women's health space, which has long been a thematic area of focus for us.

And represents the second investment by our transmission infrastructure strategy.

Gary Stein: In addition, our second essential housing fund generated a net return of nearly 4% during the quarter and more than 11% year to date. Turning to private equity, our portfolio in aggregate appreciated 3% in the quarter and 11% over the last 12 months. Overall, the companies within our capital, growth, and impact platforms continue to meaningfully outperform the broader market, with revenue and EBITDA growth of approximately 17% and 20% respectively over the last 12 months. TPG's real estate portfolio appreciated 3.5% in the quarter and nearly 16% over the last 12 months. We continue to see strong performance and value creation in our data center, residential, and industrial investments. TPG AG's real estate portfolio appreciated by 2% in the third quarter and 3.5% over the last 12 months.

In real estate, we had our most active deployment quarter. So far this year with $1 9 billion invested across TPG and TPG AG real estate.

During the third quarter.

Insights into this rapidly evolving area of the technology ecosystem.

<unk> completed the acquisition of the former Broadcom office campus in Palo Altos, Stanford Research Park. This.

these Investments follow the Innovative debt financing that our credit solutions business recently anchored for xai

This investment is consistent with trips continue to focus on selectively investing in office markets, where we see compelling green shoots emerging such as the San Francisco Bay area. We believe the Bay area is reaching an inflection point in demand driven by the growth in AI focused tenants.

We continue to evaluate opportunities to capitalize on the robust growth in the space and a partner with leading AI companies across each of our asset classes.

Jon Winkelried: We believe the Bay Area is reaching an inflection point in demand, driven by the growth in AI-focused tenants. In TPG AG Real Estate, we've maintained an active investment pace with nearly $2 billion deployed year to date across our dedicated regional funds. We're identifying and capitalizing on improving supply-demand dynamics in certain sectors, including senior housing and hospitality in the US, and office markets in Japan, Korea, and London, which have low vacancy rates and attractive rental growth. Before I wrap up, I want to share what I'm hearing from my conversations with our clients across the world and how it's shaping our business and the opportunities in front of us. In private equity, institutional clients continue to face liquidity constraints and are consolidating their relationships among fewer GPs. Against this backdrop, we believe TPG is gaining share due to the consistently strong returns we've delivered.

And TPG Asia real estate, we've maintained an active investment pace with nearly 2 billion deployed year to date across our dedicated regional funds.

And arise climate. Yesterday, we announced the acquisition of kinetic. A leading international operator of zero, emission transport and infrastructure based on Australia.

Connecticut, Alliance closely with our deep, deep expertise in clean electrification and mobility.

We're identifying and capitalizing on improving supply demand dynamics in certain sectors, including senior housing and hospitality in the U S and office markets in Japan, Korea in London, which have low vacancy rates and attractive rental growth.

And represents the second investment by our transition infrastructure strategy.

Gary Stein: Our net accrued performance balance grew by nearly $200 million in the quarter to reach $1.2 billion, driven by our strong value creation in addition to $100 million of accrued carry acquired through Peppertree. Turning to fundraising, we raised more than $18 billion during the third quarter, including more than $12 billion in private equity and nearly $5 billion in credit. Year to date through the third quarter, we've raised more than $35 billion across our platforms, which already exceeds the $30 billion we raised in 2024. As Jon noted, private wealth is a strategic priority and an important growth driver for TPG. I'd like to share some additional detail on our progress in increasing our penetration within this channel.

In real estate, we had our most active deployment quarter so far this year, with $1.9 billion invested across TPG and TPG AG, Real Estate.

Before I wrap up I want to share what I'm hearing from my conversations with our clients across the world and how it's shaping our business and the opportunities in front of us.

During the third quarter, trepp completed, the acquisition of the former broadcom office campus in Palo, alto's, Stanford Research Park.

<unk> equity institutional clients continue to face liquidity constraints and are consolidating their relationships among fewer GPS.

This investment is consistent with treps continued, focus on selectively investing in office markets, where we see, compelling green shoots emerging such as the San Francisco Bay Area.

This backdrop, we believe TPG is gaining share due to the consistently strong returns we've delivered.

We believe that the Bay Area is reaching an inflection point, in demand driven by the growth in AI focused tenants.

This has been driven by our focus on investing deeply thematic areas and partnering with our portfolio companies to drive growth.

Jon Winkelried: This has been driven by our focus on investing in deeply thematic areas and partnering with our portfolio companies to drive growth. Over the past decade, across our TPG Capital and TPG Growth funds, more than 80% of our value creation has come from earnings growth, compared to less than half for the S&P 500, where over 40% of the value was driven by multiple expansion. This differentiation is resonating with our clients and driving continued fund over fund growth across our private equity strategies. Additionally, we continue to see increasing allocations into private credit. Investors are diversifying their exposure into areas such as structured credit, lower middle market direct lending, and middle of the capital structure opportunities where we've built scaled investment strategies. Our clients are expanding their relationships with us across our credit platform, including through multi-fund partnerships and seeding new strategies.

And tbg Ag Real Estate. We've maintained an active investment Pace with nearly 2 billion deployed year to date across our dedicated Regional funds.

Over the past decade across our TPG capital and TPG growth funds more than 80% of our value creation as comfortable earnings growth compared to less than half for the S&P 500, where over 40% of the value was driven by multiple expansion.

Gary Stein: During the third quarter, we raised over a billion dollars of capital in the wealth channel, and approximately half of these inflows came from our evergreen solutions, which continue to gain momentum as we widen our distribution partnerships globally. TCAP, our non-traded BDC, raised $235 million in the quarter and continues to grow, reaching over $4 billion of AUM at the end of September. TCAP is actively distributed by three of the largest US wirehouses, and we recently launched on one of the largest independent broker-dealer platforms. Twin Brook's focus on the lower-middle market, conservative lending standards, and high credit quality is continuing to differentiate TCAP relative to other credit options available to wealth clients. We're actively expanding TCAP's distribution network and expect inflows to continue to accelerate. TPOP, our perpetually offered private equity vehicle, has been very well received in the channel, exceeding our high expectations.

We are identifying and capitalizing on improving supply and demand dynamics in certain sectors, including senior housing and hospitality in the U.S., as well as office markets in Japan, Korea, and London, which have low vacancy rates and attractive rental growth.

Differentiation is resonating with our clients and driving continued fund overfund growth across our private equity strategies.

before I wrap up, I want to share what I'm hearing from my conversations with our clients, across the world, and how it's shaping our business and the opportunities in front of us,

Additionally, we continue to see increasing allocations into private credit.

Investors are diversifying their exposure into areas, such as structured credit lower middle market direct lending and middle of the capital structure opportunities, where we built scaled investment strategies.

Our clients are expanding their relationships with us across our credit platform, including through multi fund partnerships and seeding new strategies.

Over the past decade.

As a result, our credit AUM has grown 23% year over year and it continues to be one of the fastest growing areas within our firm.

Jon Winkelried: As a result, our credit AUM has grown 23% year-over-year, and it continues to be one of the fastest growing areas within our firm. Finally, in real estate, we are well positioned to play offense with over $12 billion of combined dry powder and continued positive value creation across our portfolios. Over the past two years, we capitalized on the substantial market dislocation to acquire high-quality assets that are not typically available for sale. We believe the real estate market has stabilized and transaction activity is accelerating. Our clients are expressing a growing interest in real estate, as demonstrated by the success of TRECO's recent fundraise. Given the strength of our distinctive portfolios, we remain confident as we prepare to launch fundraising campaigns for several of our real estate strategies in the coming quarters.

And finally in real estate, we are well positioned to play offense with over $12 billion of combined dry powder and continued positive value creation across our portfolios over the past two years, we capitalize on the substantial market dislocation to acquire high quality assets that are not typically available for sale.

Gary Stein: TPOP has raised approximately $900 million in its first five months, and we're experiencing increasing momentum as we grow our distribution footprint and investment portfolio. From its activation date in June through 30 September, TPOP has delivered net returns of approximately 12% and, as of quarter end, provided exposure to 41 individual TPG portfolio companies. We're very focused on expanding our distribution for this strategy globally in 2026. Finally, we continue to expand our partnerships with global banks and wealth platforms, adding more than 20 new relationships in the third quarter. Additionally, we're actively structuring several innovative partnerships to extend our brand and increase the accessibility of our products for the wealth community, including in the RIA channel. We look forward to providing updates here in the coming quarters. Before I wrap up, I'd like to provide an update on our fundraising outlook.

Across our TPG Capital and TBG Growth funds, more than 80% of our value creation has come from earnings growth, compared to less than half for the S&P 500, where over 40% of the value was driven by multiple expansion.

This differentiation is resonating with our clients and driving continued fund over fund growth across our private Equity strategies.

Additionally, we continue to see increasing allocations into private credit.

We believe the real estate market has stabilized and transaction activity is accelerating our clients are.

Are expressing a growing interest in real estate as demonstrated by the demonstrated by the success of <unk> recent fund raise.

Given the strength of our distinctive portfolios, we remain confident as we prepare to launch fundraising campaigns for several of our real estate strategies in the coming quarters.

Investors are diversifying their exposure and areas such as structured, credit lower Middle Market, direct lending and middle of the capital structure opportunities where we've built scaled investment strategies. Our clients are expanding the relationships with us. Our credit platform including through multi fund Partnerships and seating new strategies.

We made significant progress against our strategic priorities for 2025, and I am pleased with the strength of our business across all key metrics, our increased scale and diversification positions us well to deliver accelerated growth and generate long term value for our shareholders I'll now turn the call over to Jack to discuss our financial results.

As a result, our credit AUM has grown 23% year-over-year, and it continues to be one of the fastest-growing areas within our firm.

Jon Winkelried: We made significant progress against our strategic priorities for 2025, and I'm pleased with the strength of our business across all key metrics. Our increased scale and diversification positions us well to deliver accelerated growth and generate long-term value for our shareholders. I'll now turn the call over to Jack to discuss our financial results.

Gary Stein: During the course of this year, as we anticipated, we've been experiencing a step function increase in the pace of our capital formation, with a particularly robust third quarter driven by the strong first close for our TPG Capital and Healthcare Partners funds. Most of the remaining capital for these funds will be raised next year. Nonetheless, we still expect the fourth quarter to be an active period for fundraising across asset classes. Looking at 2026, we expect to have another robust year of fundraising similar to this year, driven by a number of ongoing and new campaigns. In credit, we expect continued capital raising across all of our existing businesses. In addition, we're working on launching several new strategies to further expand our credit platform. In private equity, we'll continue to be in the market with our capital and climate campaigns.

Thanks, John and thank you all for joining US today as you can see from our strong third quarter results, we've been successfully executing on our growth strategy.

And finally, in real estate, we are well positioned to play offense with over 12 billion dollars of combined, dry powder and continued positive value creation across our portfolios. Over the past 2 years, we've capitalized on the substantial Market, dislocation to acquire high-quality assets that are not typically available for sale.

Jack Weingart: Thanks, Jon, and thank you all for joining us today. As you can see from our strong third quarter results, we've been successfully executing on our growth strategy. On our last call, I discussed several key building blocks we've been putting in place to drive our next leg of growth. These include scaling our credit platform, launching our next series of private equity and real estate funds, and building on new products and businesses. Our Q3 results demonstrate that we're tracking well against these objectives. Our capital formation and credit is on pace for a record year in 2025, and credit deployment through the third quarter of nearly $17 billion already exceeds our full year 2024 total. Fundraising for TPG Capital Ten and Healthcare Partners Three is off to a great start, and with more than $10 billion raised in the first close.

We believe the real estate market and stabilized and transaction activity is accelerating.

On our last call I discussed several key building blocks, we've been putting in place to drive our next leg of growth. These include scaling our credit platform launching our next series of private equity and real estate funds and building on new products and businesses.

Our clients are are expressing a growing interest in real estate as demonstrated by demonstrated by the success of tco's. Recent fundraiser.

Given the strength of our distinctive portfolios. We remain confident. As we prepare to launch fundraising campaigns for several of our real estate strategies in the coming quarters.

Our Q3 results demonstrate that we're tracking well against these objectives.

Our capital formation and credit is on pace for a record year in 2025 and credit deployment through the third quarter of nearly $17 billion already exceeds our full year 2024 total.

We made significant progress against our strategic priorities for 2025. And I'm pleased with the strength of our business, across all key metrics, our increased scale, and diversification positions us, well to deliver accelerated growth and generate long-term value. For our shareholders.

Fundraising for TPG capital 10 in healthcare partners III is off to a great start and with more than $10 billion raised in the first close.

I'll now turn the call over to Jack to discuss our financial results.

Gary Stein: We expect to launch fundraising for the next vintage of our flagship Asia fund, as well as our fourth Rise fund. On the real estate side, we expect 2026 to be an important and significant year for our franchise. We'll begin fundraising for the next vintage of TPG Real Estate's flagship fund and TPG AG Real Estate's funds in both the US and Asia. We also remain highly focused on diversifying our sources of capital and further penetrating the fastest-growing distribution channels. In private wealth, we expect to grow our distribution network in the US and internationally and launch additional semi-liquid and yield-oriented products across asset classes. Additionally, we continue to organically expand our insurance relationships and evaluate broader strategic partnerships and inorganic opportunities. Based on the increased cadence and consistency of our capital formation efforts over the last few years, we've clearly been successful in expanding and diversifying our business.

And we continue to expand through organic innovation innovation as John mentioned, we raised $2 1 billion of capital for <unk>, our opportunistic real estate credit fund, including related vehicles and approximately $900 to date for <unk> pump, our new perpetual private equity product, which I will expand on later.

Jack Weingart: And we continue to expand through organic innovation. As John mentioned, we raised $2.1 billion of capital for TRECO, our opportunistic real estate credit fund, including related vehicles, and approximately $900 million to date for TPOP, our new perpetual private equity product, which I'll expand on later. Additionally, earlier this year, we launched fundraising for our second GP-led secondaries fund, which is tracking to be significantly larger than its predecessor. We ended Q3 with $286 billion of total assets under management, up 20% year-over-year. This was driven by $44 billion of capital raised and $24 billion of value creation, partly offset by $26 billion of realizations over the last twelve months. Fee-earning AUM increased 15% year-over-year to $163 billion.

Additionally, early earlier this year, we launched fundraising for our second GP led secondaries fund, which is tracking to be significant significantly larger than its predecessor.

Thanks, John, and thank you all for joining us today. As you can see from our strong third-quarter results, we've been successfully executing on our growth strategy. In our last call, I discussed several key building blocks we've been putting in place to drive our next leg of growth. These include scaling our credit platform, launching our next series of private equity and real estate funds, and building on new products and businesses.

Our Q3 results demonstrate that we're tracking well against these objectives.

We ended the third quarter with 286 billion.

Total assets under management up 20% year over year. This was driven by $44 billion of capital raised in $24 billion of value creation, partly offset by 26 billion of realizations over the last 12 months.

deployment through the third quarter of nearly 17 billion already exceeds our full year 2024 total

Fundraising for TPG Capital 10 and HealthCare Partners 3 is off to a great start, with more than $10 billion raised in the first close.

The earning AUM increased 15% year over year to 163 billion.

These figures include TPG, Peppertree, which closed on July one and added $8 billion of AUM in $4 5 billion of fee paying AUM.

Jack Weingart: These figures include TPG Peppertree, which closed on 1 July and added $8 billion of AUM and $4.5 billion of fee-paying AUM. As a result of our strong fundraising in recent quarters, our dry powder has grown to a record $73 billion. This represents a real strategic asset at a time when, as John indicated, our teams are sourcing very interesting investment opportunities. AUM subject to fee earning growth was $35 billion at the end of the quarter, which included $24 billion of AUM not yet earning fees. This represents a revenue opportunity of more than $220 million on an annualized basis. Our management fees grew to $461 million in Q3, driven by the activation of TPG Capital X, and the addition of TPG Peppertree to our market solutions platform.

Gary Stein: We're excited to continue building on this momentum and delivering differentiated results for our clients and shareholders. Now I'll turn the call back to Madison to take your questions. Thank you. And at this time, if you wish to ask a question, please press Star 1 on your telephone keypad. You may remove yourself from the queue by pressing Star 2. Again, please limit yourself to one question. And we'll take our first question from Glynn Shore with Evercore.

As a result of our strong fundraising in recent quarters, our dry powder has grown to a record 73 billion.

And we continue to expand through organic Innovation, Innovation, as John mentioned, we raised 2.1 billion of capital for TCO. Our opportunistic, real estate credit fund including related vehicles and approximately 900 million to date for teapop. Our new Perpetual, private Equity product which I'll expand on later.

This represents a real strategic asset at a time when as John indicated our teams are sourcing very interesting investment opportunities.

Additionally, earlier this year, we launched fundraising for our second, GP-led secondaries fund, which is tracking to be significantly larger than its predecessor.

AUM subject to fee, earning growth was $35 billion at the end of the quarter, which included 24 billion of AUM not yet earning fees.

Jon Winkelried: Hi, thank you. So I appreciate the call. Hello. I appreciate the call you gave us on the relationship between monetizations and FRE and some monetizations early in fund's life. What's interesting is 69% of your net accrued performance is now in funds that five years or older. So I'm just curious, really good monetization backdrop according to the banks, brokers, you guys. So how does that inform us about the realization pipeline that you're looking at, given the age, timing, and all the other comments? Thank you.

This represents a revenue opportunity of more than $220 million on an annualized basis.

Our management fees grew to $461 million in the third quarter driven by the activation of the TPG capital 10.

We ended the third quarter with 286 billion dollars of total assets under management up 20% year-over-year. This was driven by 44 billion of capital raised and 24 billion in value, creation. Partly offset by 26 billion of realizations over the last 12 months.

Fee earning AUM. Increased 15% year-over-year to 163 billion.

And the addition of TPG pepper tree to our market solutions platform with.

We generated $38 million of transaction and monitoring fees in the quarter and $163 million over the last 12 months.

Jack Weingart: We generated $38 million of transaction and monitoring fees in the quarter, and $163 million over the last twelve months. We continued to invest in building our capital markets franchise. As we look to Q4 and into 2026, we expect to drive further growth in transaction fees. We reported quarterly fee-related revenue of $509 million, fee-related earnings of $225 million, and a 44% FRE margin, which tracks well against our previous guidance of exiting the year with a margin in the mid-forties.

These figures include tpg Pepper Tree, which closed on July 1st and added 8 billion of AUM and 4 and a half billion of fee paying AUM.

We continue to invest in building our capital markets franchise.

And as we look to the fourth quarter and into 2026, we expect to drive further growth and transaction fees.

As a result of our strong fundraising in recent quarters. Our dry powder has grown to a record 73 billion. This represents a real strategic asset at a time when as Gene indicated, our teams are sourcing very interesting investment opportunities.

We reported quarterly fee related revenue of 509 million fee related earnings of $225 million, and a 44% FRE margin, which tracks well against our previous guidance of exiting the year with a margin in the mid Forty's.

Jack Weingart: Yeah, good question, Glynn. Let me start just by explaining that vintage page a little bit because I don't think we've done that in the past. And then Todd will expand a bit more on our outlook for PRE. But on that vintage chart, when we say vintage, the category vintage is before 2020 and earlier, that refers to the vintage of the fund itself, not to the underlying portfolio companies. So the biggest category there, for example, is TPG 8, which is a 2019 vintage fund. So those investments were made largely in 2020, 2021, 2022 before we raised TPG 9. And then growth 5 is a 2020 vintage fund. That's another big category in that kind of aged vintage bucket. And that's a 2020 vintage fund where most of those deals were done in 2021, 2022, 2023.

AUM subject to fearing and growth was 35 billion dollars at the end of the quarter, which included 24 billion of AUM, not yet earning fees.

This represents a revenue opportunity of more than 220 million on an annualized basis.

Our distributable earnings for the third quarter were $230 million, which included $30 million of realized performance allocations.

Jack Weingart: Our distributable earnings for the third quarter were $230 million, which included $30 million of realized performance allocations, driven by our full exit from SCI Life Sciences, which has traded up nearly 70% since its IPO in the India Stock Exchange last December, and the full sale of Samhwa, a leading cosmetics packaging company in Korea. This marks a strong first exit in TPG Asia Eight, less than two years after our initial investment in the company, and is a great outcome for our Asia franchise. I'd like to take a moment to explain the relationship between our monetization activity and our generation of performance-related earnings for shareholders. During the quarter, we continued to drive strong realizations across our portfolio, which increased nearly 40% year-over-year to $8 billion.

Driven by our full exit from <unk> life Sciences, which is traded up nearly 70% since its IPO in India stock Exchange last December.

Our management fees grew to 461 million in the third quarter driven by the activation of tpg capital 10. And the addition of tpg pepper tree to our Market Solutions platform.

The full sale of somewhat.

We generated 38 million of transaction and monitoring fees in the in the quarter and 163 million over the last 12 months.

Leading cosmetics packaging company in Korea. This marks a strong first exit and TPG Asia eight less than two years. After our initial investment in the company and is a great outcome for our Asia franchise.

We continue to invest in building our Capital markets franchise.

And as we look to the fourth quarter and into 2026, we expect to drive further growth in transaction fees.

I'd like to take a moment to explain the relationship between our monetization activity and our generation of performance related earnings for shareholders.

During the quarter, we continued to drive strong realizations across our portfolio, which increased nearly 40% year over year to $8 billion.

Jack Weingart: So despite 2020 sounding like an earlier vintage, the vintages of the underlying investments are actually still pretty young. So that being said, that's what that page means. And Todd will expand more on our approach to monetizations.

We reported quarterly fee related revenue of 509 million fee related, earnings of 225 million and a 44% FR margin which tracks well against our previous guidance of exiting the year with a margin in the mid-40s.

The reason that PRA did not increase commensurately releases.

Jack Weingart: The reason that PRE did not increase commensurately relates to the timing of profit allocations early in a fund's life. In addition to SCI Life Sciences and Samhwa, realizations during the quarter included early exits in several other funds, such as our highly successful sale of Elite in TPG Capital IX. These exits drove attractive profits and DPI for our fund investors, but did not result in significant performance allocations as the gains went to repay fees and expenses, which is typical for the first exits in a fund. Looking forward, this sets us up for increased performance allocations for the next series of exits in these young funds. On an LTM basis, we've generated $262 million of performance-related earnings for shareholders, which is a 140% increase compared to the prior twelve-month period.

our distributor earnings for the third quarter, over 230 million, which included million dollars of realized performance allocations

It relates to the timing of profit allocations early in the Fund's life.

Todd Sisitsky: Yeah, I think just to echo what Jack said, these are a lot of newer deals. We are folks who drive growth in those investments that take sometimes a couple of years, but we feel like we're at the appropriate cycle in terms of the liquidity in those funds. I'd say that without repeating much of what Jack said, I do feel like DPI and liquidity has been a real differentiator for us. We approach it with a lot of intentionality. I think we bring the same level of focus and intensity that we do to the investment decisions, which I think has been a differentiator for us, which is part of the reason we were net sellers in capital and growth in 2021, 2022. We were net buyers in 2023 when the market pulled back, and then net sellers in 2024.

In addition to <unk> life Sciences, and somewhat realizations during the quarter included early exits and several other funds such as our highly successful sale of elite and TPG capital nine these exits drove attractive profits and DPI for our fund investors, but did not result in significant performance allocations as the gains went to <unk>.

driven by our full exit from SC Life Sciences, which is traded up, nearly 70% since its IPO in the India, Stock Exchange, last December, and the full sale of Samoa a leading Cosmetics, packaging company in Korea. This marks, a strong first exit in tpg Asia, 8, less than 2 years after our initial investment in the company is a great outcome for Asia franchise.

We pay fees and expenses, which is typical for the first exit sort of funds.

Looking forward this sets us up for increased performance allocations for the next series of exits in these young funds.

I'd like to take a moment to explain the relationship, between our monetization activity, and our generation of performance related earnings for shareholders.

On an LTM basis, we generated $262 million of performance related earnings for shareholders, which is a 140% increase compared to the prior 12 month period.

During the quarter, we continued to drive strong realizations across our portfolio, which increased nearly 40% year-over-year to 8 billion dollars.

Todd Sisitsky: As I look forward, I feel like we are constructive on the liquidity prospects and feel like we have at present a number of assets we're exploring liquidity around. Jon mentioned actually the majority of TPG Capital's investments in this last fund have been carve-outs and structured relationships. In many of the structured relationships, we actually know who the buyer of the business will be. In many of those cases, we have put-call relationships, which I think is another interesting feature and pretty unusual set of opportunities. The majority of the deals in capital over the last many years have been sold to strategics. The strategics, I think, are perking up and are active. We've also mentioned some IPO, recent IPO, as in yesterday. We've had more than 13 IPOs in India in the past few years. So we're taking advantage of those market opportunities as well.

Our clients recognize the differentiated DPI, we've delivered and we've continued to drive monetization activity since quarter end.

The reason that PR did not increase commensurately and it relates to the timing of profit allocations early in a fund's life.

Jack Weingart: Our clients recognize the differentiated DPI we've delivered, and we've continued to drive monetization activity since quarter end. In October, we completed our first major liquidity event in our GP-led secondaries business, TPG's, through a partial realization of CR Fitness, a leading Crunch Fitness franchisee at an attractive valuation. Since our initial investment, our sponsor partner, North Castle, and the management team have driven exceptional growth at the company, more than doubling both the number of active clubs and EBITDA. Just last night, our Rise and Rise Climate portfolio company, Beta Technologies, which has developed electric aircraft capable of vertical takeoff, successfully priced a billion-dollar all-primary IPO. This IPO was very well received, allowing the company to upsize the offering and price above the filing range. Moving on to our balance sheet.

Tober, we completed our first major liquidity events in our GP led secondaries business CGS.

Through a partial realization of our fitness, a leading crunch fitness franchisee at an attractive valuation.

Since our initial investment our sponsor partner North Castle and the management team has driven exceptional growth of the company more than doubling both the number of active clubs and EBITDA.

In addition to sign Life Sciences in Samoa realizations. During the quarter included early exits, in several other funds, such as our highly successful sale of elite in TVG capital N these exits drove attractive profits and DPI for our fund. Investors but did not result in significant performance allocations as the gains, went to repay fees and expenses which is typical for the first exits in a fund.

And just last night, our rise and rise climate portfolio company Beta technologies, which is developed electric aircraft capable of vertical takeoff successfully priced a $1 billion all primary IPO.

Looking forward, this sets us up for increased performance and allocations for the next series of exits in these young funds.

This IPO was very well received allowing the company besides the offering and priced above the filing range.

On an LTM basis. We've generated 262 million of performance-related earnings for shareholders which is 140% increase compared to the prior 12-month period.

Moving onto our balance sheet, we drew on our revolver during the quarter for several growth initiatives, including funding the cash consideration for Peppertree and seeding the portfolios for new businesses, such as T pump.

Our clients, recognize the differentiated DPI we've delivered and we've continued to drive monetization activity since quarter end.

Todd Sisitsky: But overall, we feel good about the momentum in the portfolio. We feel good about the dialogues we're having, and we're constructive on the liquidity environment.

Jack Weingart: We drew on our revolver during the quarter for several growth initiatives, including funding the cash consideration for Peppertree and seeding the portfolios for new businesses such as TPOP. We issued $500 million of senior notes during the quarter and used the proceeds to pay down our revolver. As a result, our net interest expense increased to $23 million in Q3. As of 30 September, we had $1.7 billion of net debt and $1.8 billion of available liquidity, giving us ample flexibility to continue pursuing new growth initiatives. Given our increased diversification and strong financial profile, during the quarter, we did receive an upgrade in our credit rating from Fitch to A-.

in October, we completed our first major liquidity event in our GP, Le secondary business, T TGs

Jack Weingart: Glynn, my comments on the call were meant to basically indicate that we are still aggressive on the monetization front. The timing issue I described is how that flows through FRE. If the sales were made in more mature funds that had already had exits paid down the fees and expenses, which is the normal way a waterfall works, the FRE during the quarter would have been probably twice the $30 million.

We issued $500 million of senior notes during the quarter and used the proceeds to pay down our revolver.

As a result, our net interest expense increased to $23 million in the third quarter.

As of September 30, we had $1 7 billion of net debt and $1 8 billion of available liquidity, giving us ample flexibility to continue to pursue continue pursuing new growth initiatives.

Through a partial realization of CR, Fitness a leading Crunch, Fitness franchisee at an attractive valuation. Since our initial investment, our sponsor partner in North castle and the management team have driven exceptional growth at the company, more than doubling both, the number of active clubs and ibida.

Given our increased diversification and strong financial profile during the quarter. We did receive an upgrade in our credit rating from Fitch to a minus.

Todd Sisitsky: Right. And so now, essentially, we've cleared the decks. The next exits out of those funds should flow through the PRE.

Technologies which is developed electric aircraft capable of vertical takeoff successfully priced, a billion dollar all primary IPO.

The fundamentals across our portfolios remains strong.

Jon Winkelried: Very helpful, Colin. Thanks.

This IPO was very well received allowing the company to upsize the offering and price above the filing range.

Jack Weingart: The fundamentals across our portfolios remain strong, and we delivered positive value creation in each of our platforms for Q3 and over the last 12 months. As John mentioned, recently, there's been heightened focus in the market on credit quality due to a few high-profile defaults. Importantly, we have no exposure to those events, and the underlying health of our credit portfolios remains strong. In aggregate, our credit platform appreciated 3% in Q3 and 12% over the last 12 months. In middle market direct lending, our portfolio comprises exclusively first lien loans with maintenance financial covenants, and we are a lead lender in nearly all of our transactions. We've built in significant downside protection and take an active approach to portfolio management. As a result, our portfolio of more than 300 companies continues to perform well.

We delivered positive value creation in each of our platforms for the third quarter.

Gary Stein: Thank you. Our next question comes from Craig C. Nzoller with Bank of America.

And over the last 12 months.

As John mentioned recently, there has been heightened focus in the market on credit quality due to a few high profile defaults.

Craig Siegenthaler: Good morning, Jon, Jack, whoever is doing well. We also have a question on realizations, but aggregate realizations, not FRE. For the first time since you IPOed almost four years ago, it is once again raining IPO and M&A announcements. If this continues, can you help us frame the level of realization potential out of your PE and growth capital businesses over the next year? The reason I'm asking TPG this is last time we had this backdrop in 2021, TPG was arguably the most active in the industry at monetizing. It sounds like your commentary today is constructive, but maybe not super bullish.

Moving on to our balance sheet, we drew on our revolver during the quarter for several growth initiatives, including funding the cash consideration for Pepper Tree and seeding the portfolios for new businesses such as TeaPop.

Importantly, we have no exposure to diverse.

We issued $500 million of senior notes during the quarter and used the proceeds to pay down our revolver.

And the underlying health of our credit portfolios remained strong.

As a result, our net interest expense increased to $23 million in the third quarter.

In aggregate, our credit platform appreciated 3% in the third quarter and 12% over the last 12 months.

In middle market direct lending our portfolio comprises exclusively first lien loans with maintenance financial covenants and where our lead lender in nearly all of our transactions. We've built in significant downside protection and take an active approach to portfolio management.

As of September 30th, we had 1.7 billion of net debt and 1.8 billion of available liquidity. Giving us ample flexibility to continue to pears. Continue pursuing New Growth initiatives.

Given our increased diversification and strong financial profile. During the quarter, we did receive an upgrade in our credit rating from Fitch to A minus.

As a result, our portfolio of more than 300 companies continues to perform well non accruals remain extremely limited at less than 2% and our average interest coverage ratio has remained very stable at approximately two times.

The fundamentals across our portfolios remain strong and we delivered positive value Creation in each of our platforms for the third quarter.

Jack Weingart: Well, maybe I'll start on that, Craig. It's Jack. The way I think about that, as you know, we don't forecast realizations and PRE for a good reason. We're going to sell companies when it's the right time to sell companies, and we have all the complicated waterfall mechanics that I just talked about. That being said, the way I think about it from the top down is our accrued but unrealized PRE or performance allocation balance is now up to $1.2 billion. We acquired some accrued PRE from Peppertree. That was half of that increase. The other half was. So we're seeing that balance start to grow again. And as you and I have talked about, one way to frame it is through a cycle, you would expect that we would monetize that balance over, call it, a three- or four-year time period.

and over the last 12 months,

Jack Weingart: Non-accruals remain extremely limited at less than 2%, and our average interest coverage ratio has remained very stable at approximately two times. In structured credit, our asset-based credit funds net IRR since inception remained above its target range at thirteen and a half percent at the end of Q3. In addition, our flagship structured credit fund, MVP, continued to outperform credit benchmarks and returned 3% in Q3. Recent stress in the structured credit market has been evident in the subprime auto space. Several years ago, we identified weakening fundamentals in auto finance, and our structured credit funds proactively rotated out of the sector. As a result, we currently have zero exposure. Looking at credit solutions, our funds generated net returns ranging from approximately 5% to 6% in the quarter, which far outpaced the US leveraged loan and high-yield bond indices.

In the structured credit our asset based credit funds net IRR since inception remained above its target range at 30 13, 5% at the end of the third quarter. In addition, our flagship structured credit fund MVP continued to outperform credit benchmarks and returned 3% in the third quarter.

As John mentioned recently, there's been heightened focus in the market on credit quality due to a few high-profile defaults.

Importantly, we have no exposure to those events and the underlying health of our credit portfolios, remain strong.

In aggregate, our credit platform appreciated 3% in the third quarter and 12% over the last 12 months.

Recent stress in the structured credit market has been evidenced in the subprime auto space.

Several years ago, we identified weakening fundamentals in auto finance and our structured credit funds proactively rotated out of the sector. As a result, we currently have zero exposure.

In Middle Market Direct Lending, our portfolio comprises exclusively first lien loans, with maintenance financial covenants. We are a lead lender in nearly all of our transactions. We've built in significant downside protection and take an active approach to portfolio management.

Looking at credit solutions, our funds generated net returns ranging from approximately 5% to 6% in the quarter, which far outpaced the U S leveraged loan and high yield bond indices.

As a result, our portfolio of more than 300 companies, continues to perform well.

Jack Weingart: And the more attractive the market gets, the more we'll tend to lean into that. But the most important question is, what are the underlying companies? Have we achieved our value creation plan? And is it the right thing to do for our funds and our investors to sell that business? And that'll be our framework for thinking about each exit through the course of the year, next year.

Non-accruals remain extremely limited at less than 2%, and our average interest coverage ratio has remained very stable at approximately 2 times.

In addition, our second essential housing fund generated a net return of nearly 4% during the quarter in more than 11% year to date.

Jack Weingart: In addition, our second essential housing fund generated a net return of nearly 4% during the quarter and more than 11% year-to-date. Turning to private equity, our portfolio in aggregate appreciated 3% in the quarter and 11% over the last twelve months. Overall, the companies within our capital, growth, and impact platforms continue to meaningfully outperform the broader market, with revenue and EBITDA growth of approximately 17% and 20%, respectively, over the last twelve months. TPG's real estate portfolio appreciated 3.5% in the quarter and nearly 16% over the last twelve months. We continue to see strong performance and value creation in our data center, residential, and industrial investments. TPGAG's real estate portfolio appreciated by 2% in the third quarter and 3.5% over the last twelve months.

Turning to private equity our portfolio in aggregate I appreciated 3% in the quarter and 11% over the last 12 months overall the companies within our capital growth and impact platforms continue to meaningfully outperform the broader market with revenue and EBITDA growth of approximately 17% and 20 <unk>.

Jon Winkelried: Hey, Craig, it's John. I think your interpretation of it is slightly off. I think that when we were talking about this, I think what we were trying to communicate is this intentionality around what we do and how we do it. And when you look at how we built our portfolios across Capital 8, Capital 9, and now it's Capital 10. Again, Todd just mentioned this, the dynamics of the strategic partnerships that we have. In a number of cases, actually having strategics work alongside of us to know because they want an opportunity to acquire an asset. I think that what we've done is try to set up our portfolios in a way where we have multiple pathways in terms of exit opportunities. You look at the size of our companies, the size of our businesses.

in structured credit our asset based credit funds, net, irrs since Inception remained above, its target range. At 3013 and a half percent. At the end of the third quarter. In addition, our Flagship structured credit fund MVP continued to outperform credit benchmarks and returned. 3%, in the third quarter,

Recent stress in the structured credit market has been evident in the subprime auto space.

Scent, respectively over the last 12 months.

TPG is real estate portfolio appreciated three 5% in the quarter and nearly 16% over last 12 months.

Several years ago, we identified weakening fundamentals in auto finance, and our structured credit funds proactively rotated out of the sector as a result. We currently have zero exposure.

We continue to see strong performance and value creation in our datacenter residential and industrial investments TPG AG real estate portfolio appreciated by 2% in the third quarter and three 5% over the last 12 months.

Looking at Credit Solutions, the funds generated net returns ranging from approximately 5% to 6% in the quarter, which far outpaced the US leveraged loan and high-yield bond indices.

In addition our second essential housing fund generated a net return of nearly 4% during the quarter and more than 11% year to date.

Our net accrued performance balance grew by nearly $200 million in the quarter to reach $1 2 billion driven by a strong value creation. In addition to a $100 million of accrued carry acquired through penetration.

Jack Weingart: Our net accrued performance balance grew by nearly $200 million in the quarter to reach $1.2 billion, driven by our strong value creation, in addition to $100 million of accrued carry acquired through Peppertree. Turning to fundraising, we raised more than $18 billion during the third quarter, including more than $12 billion in private equity and nearly $5 billion in credit. Year-to-date, through the third quarter, we've raised more than $35 billion across our platforms, which already exceeds the $30 billion we raised in 2024. As John noted, private wealth is a strategic priority and an important growth driver for TPG. I'd like to share some additional detail on our progress in increasing our penetration within this channel.

Turning to private Equity, our portfolio in aggregate appreciated, 3% in the quarter and 11% over the last 12 months.

Jon Winkelried: One of the things that we focus on, obviously, is creating value, which I mentioned in my comments, in terms of revenue growth, EBITDA growth, and also trying to be intentional about where in the lifecycle of that value creation we actually start to think about selling or monetizing assets so that there is more in the tank as we think about who's ultimately going to buy the asset. And I think that if you look at our portfolios, I think we're actually overlaying that, by the way, is sort of a perspective on where valuations are. You made the point about 2021, 2022, we leaned in, obviously, we sold our entire software portfolio back then because of the way we perceive valuations in the market. That turned out to be a very good decision.

Turning to fundraising we raised more than $18 billion during the third quarter, including more than $12 billion in private equity and nearly $5 billion in credit.

Overall, the companies within our Capital Growth and Impact platforms continue to meaningfully outperform the broader market, with revenue and EBITDA growth of approximately 17% and 20%, respectively, over the last 12 months.

Year to date through the third quarter, we have raised more than $35 billion across our platforms, which already exceeds the $30 billion raised in 2024.

Tpg's, real estate portfolio, appreciated 3 and a half percent in the quarter and nearly 16% over the last 12 months.

As John noted private wealth is a strategic priority.

And an important growth driver for TPG I'd like to share some additional detail on our progress and increasing our penetration within this channel.

We continue to see strong performance and value Creation in our data center residential and Industrial Investments.

Tpg AG's real estate portfolio appreciated by 2% in the third quarter and 3 and a half percent over the last 12 months.

During the third quarter, we raised over $1 billion of capital in the wealth channel and approximately half of these inflows came from our evergreen solutions, which continue to gain momentum as we widen our distribution partnerships globally.

Jack Weingart: During Q3, we raised over $1 billion of capital in the wealth channel, and approximately half of these inflows came from our evergreen solutions, which continue to gain momentum as we widen our distribution partnerships globally. TCAP, our non-traded BDC, raised $235 million in the quarter and continues to grow, reaching over $4 billion of AUM at the end of September. TCAP is actively distributed by three of the largest US wirehouses, and we recently launched on one of the largest independent broker-dealer platforms. Twin Brook's focus on the lower middle market, conservative lending standards, and high credit quality is continuing to differentiate TCAP relative to other credit options available to wealth clients. We're actively expanding TCAP's distribution network and expect inflows to continue to accelerate.

T cap or non traded BDC raised $235 million in the quarter and continues to grow reaching over $4 billion of.

Our net accrued performance, balance, grew by nearly 200 million in the quarter to reach. 1.2 billion driven by our strong value Creation. In addition to a hundred million dollars of acred carry acquired through pepper tree

Jon Winkelried: I would say that what we're meaning to communicate is that we're as focused on how we think about making decisions around the buy in our portfolio as we are on the sell. And I would say that you should expect us to be active as it relates to how we think about monetizing our portfolios. And so I just wanted to clarify because I think your interpretation is a little bit off.

AUM at the end of September.

<unk> is actively distributed by three of the largest U S warehouses and we recently launched on one of the largest independent broker dealer platforms.

Turning to fundraising, we raised more than $18 billion during the third quarter, including more than $12 billion in private equity and nearly $5 billion in credit.

Twin Brooks focus on the lower middle market Conservative lending standards and high credit quality is continuing to differentiate <unk> relative to other credit options available to wealth clients.

Year to date through the third quarter. We've raised more than 35 billion across our platforms, which already exceeds the 30 billion. We raised in 2024

as John noted, private wealth is a strategic priority.

We're actively expanding <unk> distribution network and expect inflows to continue to accelerate.

Todd Sisitsky: Just the last thing I would add, and both Jon and Jack have referenced it. One of the reasons I think we're constructive on the exits is just the strength of the portfolio performance. We have a portfolio on an LTM basis across private equity that's growing EBITDA at 20%+, and none of the platforms on an LTM basis are below 15%. They're all really performing well. And that is, of course, we were dealing with these strategic exits, but also IPOs. That's the best leading indicator.

And an important growth driver for TPG. I'd like to share some additional detail on our progress in increasing our penetration within this channel.

Keep up our perpetually offered private equity vehicle has been very well received in the channel exceeding our high expectations <unk> has raised approximately $900 million in its first five months and we're experiencing increasing momentum as we grow our distribution footprint and investment portfolio.

Jack Weingart: TPOP, our perpetually offered private equity vehicle, has been very well received in the channel, exceeding our high expectations. TPOP has raised approximately $900 million in its first 5 months, and we're experiencing increasing momentum as we grow our distribution footprint and investment portfolio. From its activation date in June through September 30, TPOP has delivered net returns of approximately 12%, and as of quarter end, provided exposure to 41 individual TPG portfolio companies. We're very focused on expanding our distribution for this strategy globally in 2026. Finally, we continue to expand our partnerships with global banks and wealth platforms, adding more than 20 new relationships in Q3. Additionally, we're actively structuring several innovative partnerships to extend our brand and increase the accessibility of our products for wealth-- for the wealth community, including in the RIA channel.

Both activation date in June through September 30, <unk> has delivered net returns of approximately 12% and as of quarter end provided exposure of 41 individual TPG portfolio companies were very focused on expanding our distribution for this strategy globally in 2026.

And continues to grow, reaching over $4 billion of AUM at the end of September.

Gary Stein: Thank you. And we'll take our next question from Ken Worthington with JPMorgan.

Ken Worthington: Hi. Good morning. Thanks for taking the question. We're seeing far more concern about AI disrupting certain parts of the software, technology, and business services area. So two parts here. One, as you think about your investment portfolio, do you see any risks in the investment as that theme plays out? And then maybe, hopefully, more interesting, how do you feel about being on the winning side of this technological shift, either through Peppertree or elsewhere in your various business verticals?

Finally, we continue to expand our partnerships with global banks and wealth platforms, adding more than 20, new relationships in the third quarter. Additionally, we are actively structuring several innovative partnerships to extend our brand and increase the accessibility of our products for wealth for the wealth community, including the RIAA channel wed.

Tap is actively distributed by 3 of the largest US warehouses and we recently launched on 1 of the largest independent broker. Dealer platforms Twin Brooks focus on the lower Middle Market, conservative lending, standards and high credit quality is continuing to differentiate teap relative to other credit options available to wealth clients.

We're actively expanding Taps, distribution, and Network and expect inflows to continue to accelerate.

Look forward to providing updates here in the coming quarters.

Jack Weingart: We look forward to providing updates here in the coming quarters. Before I wrap up, I'd like to provide an update on our fundraising outlook. During the course of this year, as we anticipated, we've been experiencing a step function increase in the pace of our capital formation, with a particularly robust Q3, driven by the strong first close for our TPG Capital and Healthcare Partners funds. Most of the remaining capital for these funds will be raised next year. Nonetheless, we still expect the Q4 to be an active period for fundraising across asset classes. Looking at 2026, we expect to have another robust year of fundraising similar to this year, driven by a number of ongoing and new campaigns. In credit, we expect continued capital raising across all of our existing businesses.

Before I wrap up I'd.

I'd like to provide an update on our fundraising outlook. During the course of this year as we anticipated we've been experiencing a step function increase in the pace of our capital formation with a particularly robust third quarter driven by the strong first close for our TG capital on the healthcare partners funds.

Teapop is a perpetually offered private equity vehicle that has been very well received in the channel, exceeding our high expectations. Teapop has raised approximately $900 million in its first 5 months, and we're experiencing increasing momentum as we grow our distribution footprint and investment portfolio.

Todd Sisitsky: Sure. Thanks for the question, Ken. We've been very early investors in AI. We started over a decade ago with C3 AI and have had a number of the early predecessors to today's company, as well as a number of the companies that are in the headlines today. And actually, it's not even limited to the equity side. Credit Solutions actually led, what I think is, the first substantial debt investment in AI by leading a raise for XAI last quarter. It helps that we're based in San Francisco. With a good arm, you can probably hit more than half of the AI companies from our building. And we've invested significant AI capabilities. So we have an AI center of excellence in which our operations and business building team drive AI adoption among each of the portfolio companies.

Most of the remaining capital for these funds will be raised next year. Nonetheless, we still expect the fourth quarter to be an active period for fundraising across asset classes looking.

From its activation date in June, through September 30th, tpop has delivered net returns of approximately 12% and as of quarter end provided exposure to 41 individual tpg, portfolio companies, we're very focused on expanding our distribution for this strategy globally in 2026.

Looking at 2026, we expect to have another robust year of fundraising similar to this year driven by a number of ongoing and new campaigns.

Credit, we expect continued capital raising across all of our existing businesses. In addition, we are working on launching several new strategies to further expand our credit platform.

Finally, we continue to expand our Partnerships with global Banks and wealth platforms adding more than 20 new relationships in the third quarter. Additionally, we're actively structuring several Innovative Partnerships to extend our brand and increase the accessibility of our products for wealth for the wealth Community, including in the Raa Channel,

We look forward to providing updates here in the coming quarters.

Jack Weingart: In addition, we're working on launching several new strategies to further expand our credit platform. In private equity, we'll continue to be in the market with our capital and climate campaigns. We expect to launch fundraising for the next vintage of our flagship Asia fund, as well as our fourth Rise fund. On the real estate side, we expect 2026 to be an important and significant year for our franchise. We'll begin fundraising for the next vintage of TPG Real Estate's flagship fund and TPG AG Real Estate's funds in both the US and Asia. We also remain highly focused on diversifying our sources of capital and further penetrating the fastest-growing distribution channels. In private wealth, we expect to grow our distribution network in the US and internationally and launch additional semi-liquid and yield-oriented products across asset classes.

Before I wrap up.

In private equity, we will continue to be in the market with our capital and climate campaigns.

I’d like to provide an update on our fundraising outlook.

We expect to launch fund raising for the next vintage of our flagship Asia funds as well as our <unk> fund.

Todd Sisitsky: We have a lot of investments recently in AI-specific human capital, the former chief technology officer at Accenture, one of the co-heads of McKinsey Software Business. So AI is really part of everything we're doing now. It's moving quickly. It's part of every underwriting decision. Technology in general, software in particular, are certainly in our power alley. I think you were specifically focused on the impact of AI there. Our software portfolio is growing earnings at 22 to 23%. And I do think AI is having a meaningful impact, but it's having a meaningful impact in both directions. There's some real opportunities and net beneficiaries from AI. So for us, we've been spending time in areas like vertical market software, fintech, and cybersecurity. You've seen that in a number of our recent investments.

On the real estate side, we expect 2026 to be an important and significant year for our franchise.

During the course of this year. As we anticipated, we've been experiencing a step function increase in the pace of our Capital formation, with a particularly robust third quarter driven by the strong first closed for our TG capital and HealthCare Partners funds.

We'll begin fund raising for the next vintage of TPG real estate flagship fund and TPG AG real estate funds in both the U S and Asia.

Most of the remaining capital for these funds will be raised next year. Nonetheless, we we still expect the fourth quarter to be an active period for fundraising, the cross asset classes,

We also remain highly focused on diversifying our sources of capital and further penetrating the fastest growing distribution channels.

Looking at 2026, we expect to have another robust year of fundraising similar to this year, driven by a number of ongoing and new campaigns.

In private wealth, we expect to grow our distribution network in the U S and internationally and launch additional semi liquid and yield oriented products across asset classes.

Additionally, we continue to organically expand our insurance relationships and evaluated broader strategic partnerships and inorganic opportunities.

In credit, we expect continued Capital raising across all of our existing businesses. In addition, we're working on launching several new strategies to further. Expand our credit platform.

Jack Weingart: Additionally, we continue to organically expand our insurance relationships and evaluate broader strategic partnerships and inorganic opportunities. Based on the increased cadence and consistency of our capital formation efforts over the last few years, we've clearly been successful in expanding and diversifying our business. We're excited to continue building on this momentum and delivering differentiated results for our clients and shareholders. Now I'll turn the call back to Madison to take your questions.

Todd Sisitsky: We've probably been a little more cautious on some of the broader horizontal themes in infrastructure software where we see AI changing the landscape very quickly. And again, every single underwriting decision, not just in software, but particularly in software, has a high-intensity focus on the impact of AI. Even in companies like healthcare IT, just to use one example, one of our largest investments in the last few years was a business called Lyric, which we bought out of UnitedHealthcare. It looks at 60+ percent of the primary claims in the US healthcare insurance industry. And so you would think as an algorithm-based business, you would have a big impact from AI. But for years and years, we've been the only ones who have aggregated basis that have a proprietary look at all that data. So AI really isn't a threat.

In private Equity, we'll continue to be in the market with our capital and climate campaigns.

Based on the increased cadence and consistency of our capital formation efforts over the last few years, we've clearly been successful in expanding and diversifying our business.

We expect to launch fundraising for the next vintage of our Flagship Asia fund, as well as our fourth rise fund.

On the real estate side, we expect 2026 to be an important and significant year for our franchise.

We're excited to continue building on this momentum and delivering differentiated results for our clients and shareholders.

Now I will turn the call back to the medicines to take your questions.

We'll begin fundraising for the next vintage of tpg real estate's. Flagship fund and tpg a real estate funds in both the US and Asia.

Thank you and at this time, if you wish to ask a question. Please press star one on your telephone keypad, you may hear maybe yourself from the queue by pressing star queue again, please limit yourself to one question and we will take our first question from Glenn Schorr with Evercore.

Operator: Thank you. And at this time, if you wish to ask a question, please press star one on your telephone keypad. You may remove yourself from the queue by pressing star two. Again, please limit yourself to one question, and we'll take our first question from Glenn Schorr with Evercore.

We also remain highly focused on diversifying our sources of capital and further penetrating the fastest-growing distribution channels.

In private wealth. We expect to grow our distribution Network in the US and internationally and launch additional semi-liquid and yield oriented products across asset classes.

Hi, Thank you.

Sorry the question.

Todd Sisitsky: Instead, it's an opportunity for that business to expand its footprint beyond the primary claims editing space. So it's really a very company-by-company analysis. In the companies that I think we've leaned into, we really feel like it's an opportunity. To your point, AI has a huge impact on healthcare. It has a huge impact outside of equity, on the credit side as well. And we feel like we have assembled the right team and the right internal rigor to make sure that we're thinking. Quite dynamically and in an intentional way about how to make sure that we're on the right side of AI and then leveraging AI to drive performance in our portfolio companies.

Glenn Schorr: Hi, thank you. So I appreciate the call-

Hello, I appreciate the color you gave us on the relationship between monetization and PRA.

Jack Weingart: Hey, Glenn.

Glenn Schorr: Hello. I appreciate the call you gave us on the relationship between monetizations and PRE and some monetizations early in fund's life. So what's interesting is 69% of your net accrued performance is now in funds that's five years or older. So I'm just curious, really good monetization backdrop according to the banks, brokers, you guys. So just how does that inform us about the realization pipeline that you're looking at, given the age, timing, and all the other comments? Thank you.

Additionally, we continue to organically expand our insurance relationships and evaluate broader strategic partnerships and inorganic opportunities.

Some monetization early in funds life.

So what's interesting is.

The 9% of your net accrued performance is now.

In funds that five years or older.

So I'm just curious really good.

Based on the increase, cadence, and consistency of our capital formation efforts over the last few years, we've clearly been successful in expanding and diversifying our business. We're excited to continue building on this momentum and delivering differentiated results for our clients and shareholders.

<unk> backdrop.

According to the banks brokers you guys.

Now, I'll turn the call back to Madison to take your questions.

So just how does that inform us about the realization pipeline that youre looking at given the H timing.

The other comments.

Yes. Good question, Glenn let me start with just by explaining that vintage page a little bit because I don't think we've done that in the past and then Todd will expand a bit more on our on our outlook for for PRA.

Jack Weingart: Yeah, good question, Glenn. Let me start just by explaining that vintage page a little bit, because I don't think we've done that in the past, and then Todd will expand a bit more on our outlook for PRE. But on that vintage chart, when we say vintage, you know, the category vintage is before 2020 and earlier, that refers to the vintage of the fund itself, not to the underlying portfolio companies. So, the biggest category there, for example, is TPG eight, which is a 2019 vintage fund. So those investments were made largely in 2020, 2021, 2022, before we raised TPG nine. And then growth five, the 2020 vintage fund, that's another big category in that kind of aged vintage bucket.

Ken Worthington: Great. Thank you.

Thank you. And at this time, if you wish to ask a question, please press *1 on your telephone keypad. You may remove yourself from the queue by pressing *2 again. Please limit yourself to one question, and we'll take our first question from Glenn Shore with Evercore.

Hi, thank you.

Gary Stein: Thank you. We will take our next question from Alex Lawstein with Goldman Sachs. Please go ahead.

But on that vintage chart, when we say vintage.

Sure.

Jack Weingart: Hey, good morning. Thank you for the question. I wanted to spend a minute on credit. It feels like momentum in that business is finally starting to take off. We saw it with fundraising for the last couple of quarters, but it looks like deployment is also starting to catch up. So maybe spend a minute on how you see the growth evolving from here, where the incremental benefits on fundraising are coming from. And I think one of the items you highlighted also launched a new product when it comes to credit into 2026. I was hoping you could expand on that as well. Thanks.

The category vintages, before 2000 22020 and earlier.

So I appreciate the color. Hello, I appreciate the color. You gave us on the relationship between modernizations and P and and some some modernizations early in funds life.

That refers to the vintage of the fund itself not to the underlying portfolio companies. So the biggest category. There for example is TPG AIDS, which is 2019 vintage funds. So those investments were made largely in 2020 'twenty one 'twenty two before we raised CPG nine.

And then growth five to 2020 vintage fund that's another big category in that in that kind of age vintage bucket and Thats, a 2020 vintage fund where most of those deals were done until 'twenty, one 'twenty two 'twenty three.

Jon Winkelried: Yeah, sure. Thanks, Alex. It's John. Look, I think as we said in our comments, this has been the underlying thesis of when we acquired the Angelo Gordon business was that it was a platform that had a multi-strategy approach in terms of across lending, structured credit, credit solutions, and total return opportunities. And that inside of this firm, it would essentially step to the next level, both from the perspective of capital formation, but importantly, in terms of the overall ecosystem to originate and source transactions. And I would say that it's hitting on every cylinder in terms of the ability to scale the businesses. If you recall, one of the things that we said early on in the acquisition was that the businesses were out originating, the capital-based, essentially being undercapitalized. And that's fundamentally changing now.

Jack Weingart: That's a 2020 vintage fund, where most of those deals were done in 2021, 2022, 2023. So despite 2020 sounding like an earlier vintage, the vintage of the underlying investments are actually still pretty young. So that being said, that's what that page means, and Todd will expand more on our approach to monetizations.

So despite 2000 twenty's sounding like an earlier vintage the vintages of the underlying investments are actually still pretty young.

Um, it was interesting is 69% of your net accrued performance is now, uh, in funds that 5 years or older, uh, so I'm just curious really good monetization backdrop. Uh, according to the banks Brokers, you guys? Um, so just, how does that inform us about the realization pipeline, that you're looking at? Given the age timing and all the other comments? Uh, thank you. Yeah, good question, Glenn. Let me start with just by explaining that vintage page a little bit because I don't think we've done that in the past and then Todd will expand a bit more on our, on our outlook for, uh, for PR

So that being said that's what that's what that page means and total hotel will expand more on our approach to monetization.

The the category vintages, uh, before 20 2020 and earlier.

Just to just to Echo Jack's had.

Todd Sisitsky: Yeah, I think just to echo what Jack said, you know, these are a lot of newer deals. We are folks who drive growth in those investments. It takes sometimes a couple of years, but we feel like we're at the appropriate cycle in terms of the liquidity in those funds. And I'd say that, you know, without repeating much of what Jack said, I do feel like DPI and liquidity has been a real differentiator for us. We approach it with a lot of intentionality. I think we bring the same level of focus and intensity that we do to the investment decisions, which I think has been a differentiator for us, which is part of the reason we were net sellers at, in capital and growth in 2021, 2022.

These are and a lot of newer deals where folks who drive growth in those investments. It takes sometimes a couple of years, but we feel like we're at the appropriate cycle in terms of the liquidity in those funds and I would say that without repeating much projected I do feel like DPI and liquidity has been a real differentiator for us we approach it with a lot of intentionality I think we bring.

That refers to the vintage of the fund itself, not to the underlying portfolio companies. So, uh, the biggest category there, for example, is TBG 8, which is a 2019 vintage fund. So those investments were made largely in 2020, 2021, and 2022 before we raised TBG 9.

The same level of focus and.

And in intensity due to the investment decisions, which I think has been a differentiator for US which is part of the reason we were net sellers and capital and growth in 2021.

Two we were net buyers in 'twenty three with the market pulled back in and Thats, how its going to 24.

And then Growth 5 is a 2020 vintage fund. That's another big category in that kind of aged vintage bucket. And that's a 2020 vintage fund where most of those deals were done in 2021, 2022, and 2023. So despite 2020 sounding like an earlier vintage, the vintage of the underlying investments are actually still pretty young.

Todd Sisitsky: We were net buyers in 2023 when the market pulled back, and then net sellers again in 2024. As I look forward, I feel like we're, you know, we are constructive on the liquidity prospects, and feel like we have an... You know, at present, we have a number of assets we're exploring liquidity around. You know, John mentioned, actually, the majority of TPG Capital's investments in this last fund have been carve out some structural relationships. In many of those structural relationships, we actually know who the buyer of the business will be. In many of those cases, we have put call relationships, which I think is another interesting feature and pretty unusual set of opportunities.

Jon Winkelried: You can see it in the scale of our capital formation across all of those businesses. You can see it in the uptick in relevance of our open-ended vehicles, as well as TCAP that Jack talked about in terms of the acceleration. If you look at the inflows, for instance, into TCAP, our inflows are the slope of the line is steepening in terms of our inflows and the relevance of that product in the market. Same thing is happening in MVP and our structured credit business. What we've done is we have begun now also to really think about sort of the next level with respect to the various cost of capital of the cost of capital of various investment strategies, particularly to serve our insurance company clients. I mentioned in my comments the substantial increase in engagement with insurance clients that is continuing, continued in this past quarter.

As I look forward I still think we're.

We are constructive on the liquidity prospects and feel like we have.

And.

We have a number of assets we are exploring liquidity around.

John mentioned actually the majority of TPG capital to investments in this last one Ben.

Carve out contractual relationships and many of the structured relationships, we actually know who the buyer of the business will be.

And many of those cases, we have put call relationships, which I think is.

Is that another interesting feature in pretty unusual set of opportunities.

The majority of the deals in capital over the last many years have been sold to a strategic strategics I think are perking up.

Todd Sisitsky: The majority of the deals in capital over the last many years have been sold to strategics. The strategics, I think, are perking up, and are interactive. We've also mentioned some IPO, recent IPO, as in, yesterday. We've had more than 13 IPOs in India in the past few years, so we're taking advantage of those market opportunities as well. But overall, we feel, you know, we feel good about the momentum in the portfolio. We feel good about the dialogues we're having, and we're constructive on the liquidity front.

So that being said, that that that's what those, that's what that page means. And total total expand more on, on our, on our approach to modernizations. Yeah, I think, I think, um, just to just to Echo what Jack said, you know, these are a lot of newer deals. We are folks, who drive growth in those Investments that take sometimes a couple of years. But we feel like we're at the appropriate cycle in terms of the, the liquidity in those funds. Um, and I'd say that you know without repeating much rejected, I do feel like DPI and liquidity has been a real differentiator for us. We approach it with a lot of intentionality. I think we bring the same level of focus and uh and intensity that we do to the investment decisions which I think has been a differentiator for us which is part of the reason we were net sellers in capital and growth.

Interacted with also mentioned some IPO.

Both in 2021 22. Uh we were net buyers in 23. When the market pulled back and then that sellers getting 24

The recent IPO.

Yesterday.

We've had more than 13 ipos.

And in India in the past few years. So we're taking advantage of those market opportunities as well, but overall, we feel we feel good about the momentum in the portfolio. We feel good about the dialogues, we're having and we're constructive on the liquidity environment.

Jon Winkelried: It's continuing again. And really structuring various types of vehicles for our insurance company clients, whether they're funds of one or SMAs, and moving now into things like IG risk in terms of being able to serve the insurance client across a range of assets and across a range of returns, which is obviously what is necessary in order to serve that market. We continue to have one of the things that we're observing in that part of the market is that I think there is an increasing awareness on the part of most of the life and annuity players in the market, but it's also getting broader than that, that not having partnerships in the alternative side of the business is very dangerous from a strategic competitive position.

As I look forward. I feel like we're, you know, we are constructive on the liquidity, uh, prospects and uh, and feel like we have and, you know, at at present, we have a number of assets. We're exploring liquidity around, um, you know, John mentioned, uh, actually the majority of tbg capitals investments in this last fund have been

Glen My comments on the call are meant to basically indicate that we are still aggressive on the monetization front.

Jack Weingart: Now, Glenn, my comments on the call were meant to basically indicate that we are still aggressive on the monetization front. It's just the timing issue I described is how that flows through to PRE. If the sales were made in more mature funds that already had exits pay down the fees and expenses, which is the normal way a waterfall works, the PRE during the quarter would have been probably twice the $30 million.

The timing issue I described as how that flows through to PRA.

Sales were made in more mature funds that already.

Uh, carve us and structure relationships, and many of those structural relationships, we actually know who the buyer or the business will be in. In many of those cases. We have put call relationships, uh, which I think is, is, uh, is another interesting feature and pretty unusual set of of opportunities.

It already had exits paydown the fees and expenses, which is the normal low normally a waterfall works the PRA during the quarter would have been probably twice the $30 million right and so now essentially we cleared the decks. The next the next exit down to those funds should be should flow through the PRA.

Todd Sisitsky: Right. And so now, essentially, we've cleared the decks. The next exits out of those funds should be, should flow through to PRE.

Very helpful color. Thanks.

Okay.

Glenn Schorr: Very helpful color. Thanks.

Okay.

Thank you and our next question comes from Craig Siegenthaler with Bank of America.

Jack Weingart: Yep.

Operator: Thank you. And our next question comes from Craig Siegenthaler with Bank of America.

Good morning, John Jack whoever it is doing well.

The majority of the deals and capital over the last many years have been sold to strategic because strategic, I think are perking up. Uh, and and, and are active. We've also mentioned some IPO, uh, uh, the recent IPO, as in yesterday, uh, we've had more than 13 IP in, uh, in, in, in India, in the past few years. So, we're, we're taking advantage of those Market opportunities, as well. But overall, we feel, you know, we feel good about the momentum in the portfolio. We feel good about the, uh, the dialogue that we're having, and we're constructive on the liquidity environment.

Craig Siegenthaler: Good morning, John, Jack, whoever is doing well. We also have a question on realization, but aggregate realization, not PRE. For the first time since you IPO'd almost four years ago, it is once again raining IPO and M&A announcements. If this continues, can you help us frame the level of realization potential out of your P and growth capital businesses over the next year? And the reason I'm asking TPG this is the last time we had this backdrop in 2021, TPG was arguably the most active in the industry at monetizing. And it sounds like your commentary today is constructive, but maybe not super bullish.

Jon Winkelried: So as a result of that, because we don't own a captive at this time, we continue to see that dialogue increasing with respect to various forms of partnerships with a variety of different insurance clients, both here as well as internationally. And so I think that that's going to be. I believe that what will happen over the course of the next number of quarters, over the course of the next year or so, is we're going to continue to see sort of step function increases in the engagement that we have in that market. Likewise, I think we're working on expanding our capabilities with respect to the kind of retail wealth markets. And one of the things that we've been focused on is how do we access that part of the market more effectively, more efficiently, in much bigger size.

We also have a question on realizations, but aggregate realization PRA.

First time since you might almost four years ago. It is once again raining IPO and M&A announcements.

It continues can you help us frame the level of realization potential out of European growth capital businesses over the next year and the reason I'm asking PPG. This is the last time, we had this backdrop in 2021 TPG was arguably the most active in the industry monetizing and it sounds like your comment.

Glenn, my comments on the call Were Meant to basically indicate that we are still aggressive on the monetization front. It should the, the the timing issue I described is how that flows through to PS were made in more mature funds that already had already had already had exits, pay down the fees and expenses which is the normal. The normal way of waterfall works the pr during the quarter would have been probably twice the 30 million, right? And so now essentially we've cleared the decks, the next, the next exit down to those funds should be uh should flow through to priority.

Very helpful caller, thanks.

Today's constructive, but maybe not super bullish.

Well, maybe I'll start on that Gregg is Jack.

Thank you. And our next question comes from Craig Siegen dollar with Bank of America.

Jack Weingart: Well, maybe I'll start on that, Craig, it's Jack. The way I think about that is, you know, we don't forecast realizations and PRE for a good reason. Like, we're going to sell companies when it's the right time to sell companies, and we have all the complicated waterfall mechanics that I just talked about. That being said, the way I think about it from the top down is our accrued but unrealized PRE or performance allocation balance is now up to $1.2 billion, right? We acquired some accrued PRE from Peppertree. That was half of that increase. The other half was... So we're seeing that balance start to grow again.

So the way I think about that as you know we don't we don't forecast.

Good morning, John Jack. Hope everyone's doing well.

Elevations in PRT.

Reason like we're going to sell companies when is the right time to sell companies and we have all the complicated waterfall mechanics that I just talked about that being said the way I think about the top down is our crude but unrealized PRA valve.

Jon Winkelried: And Jack alluded to this in his comments, but I think that hopefully we'll have some things to talk about over the next couple of quarters where we've had some meaningful progress. And that's really all we can say about it at this time. But we're very focused on the ability to deliver return streams that, in many cases, are a combination of liquid and illiquid or liquid and alternative products. And so we're putting ourselves in a position and growing our capabilities to be able to deliver that. Lastly, I would say that other areas of growth for us there, we've talked about this before, and I think that you'll recognize this, but we have a best-in-class lower-middle market lending franchise in Twin Brook.

Performance allocation balance is now up to $1 2 billion right. We acquired some PRA from accrued carry from from.

From an opportunity that was half of that increase the other half was so were seeing that balance start to grow again and.

And as you and I have talked about one way to frame. It is through a cycle you would expect that we would monetize that balanced over call. It a three or four year time period and the more attractive the market gets the more will tend to lean into that but the most important question is what are the underlying companies that we achieved our value creation plan.

Jack Weingart: As you and I have talked about, you know, one way to frame it is through a cycle. You would expect that we would monetize that balance over, call it, a three- or four-year time period. And the more attractive the market gets, the more we'll tend to lean into that. But the most important question-

Realizations. But aggregate realization is not pure 8 for the first time since EUIPO had almost 4 years ago. It is once again raining IPO and M&A announcements. If this continues, can you help us frame the level of realization potential out of your PE and growth capital businesses over the next year? And the reason I'm asking TPG this is last time we had this backdrop in 2021, TPG was arguably the most active in the industry at monetizing, and it sounds like your commentary today is constructive but maybe not super bulky.

Jon Winkelried: And one of the things that we have identified as a result of the sourcing capability that we have in both Twin Brook as it relates to our relationship, as well as from Credit Solutions, where we're seeing larger kind of bespoke transactions and sourcing, in some cases, even that's coming through relationships we have with sponsors from our private equity business. We are building into the next level of lending. We like to call it sort of graduating companies. It's a little bit broader than that, but we like to call it graduating companies, where we have companies, over 300 portfolio companies in Twin Brook. They start life as companies that are generating $25 million of cash flow and less, and then they end up life at $40, $50, $60, $70, $80 million of cash flow.

Todd Sisitsky: ... is what are the underlying companies? Have we achieved our value creation plan? And is it the right thing to do for our funds and our investors to sell that business? And that will be our framework for thinking about each exit through the course of the year, next year.

Jack Weingart: ... is what are the underlying companies? Have we achieved our value creation plan? And is it the right thing to do for our funds and our investors to sell that business? And that will be our framework for thinking about each exit through the course of the year, next year.

And is the right thing to do for our funds or investors to sell that business and that'll be our framework for thinking about each exit through the course of the year next year and Craig its John.

Your interpretation of that is slightly off.

Jon Winkelried: Hey, Craig, it's Jon. I think your interpretation of it is slightly off. I think that, you know, when we were talking about this, I think what we were trying to communicate is this intentionality around what we do and how we do it. And when you look at how we've built our portfolios across Capital VIII, Capital IX, and now into Capital X, again, this, you know, Todd just mentioned this, you know, the dynamics of the strategic partnerships that we have, in a number of cases, actually having strategics work alongside of us to know essentially—to, because they want an opportunity to acquire an asset.

I think that what when we were talking about this I think what we were trying to communicate is.

This intentionality around what we do and how we do it.

And when you look at how we built our portfolios across capital <unk> capital nine announced capital 10.

Well, maybe I'll start on that Craig. It's Jack. Um, the way the way I think about that is, you know, we don't we don't forecast, uh, realizations and and pre for for a good reason. Like we're going to sell companies when it's the right time to sell companies and we have all the complicated waterfall mechanics that I just talked about. That being said, the way I think about it from the top down is our our accrued, but unrealized PR Bal or performance. Allocation balance is now up to 1.2 billion, right? We we acquired some PR from acred from, uh, from pepper tree. That was half of that increase the other half was so so we're seeing that balance start to grow again.

Again this Todd just mentioned is the dynamics of the strategic partnerships that we have.

I've talked about, you know, 1 way to frame it is through a cycle.

In.

In a number of cases actually having strategics work alongside of us to know essentially because they want an opportunity to acquire an asset.

Jon Winkelried: And we've been the lender to those companies for three, four, or five years. We know those companies better than anyone. And so the risk dynamics of us extending into that part of the market is something that we have a reason to win. And so we are, and we'll have more to say on this again also over the next quarter or two. Where we'll formalize this, but we are building into the next leg of growth in that. And we're already seeding a portfolio, and we already have some traction with respect to some LP partners of ours that will anchor the strategy for us. But it's just a little bit too early to kind of roll it out, but we will be rolling it out over the next couple of quarters. So hopefully, that gives you a sense for sort of what the growth drivers are.

I think that.

Jon Winkelried: I think that, you know, what we've done is try to set up our portfolios in a way where we have multiple pathways in terms of exit opportunities. You look at the size of our companies, the size of our businesses, one of the things that we focused on, obviously, is creating value, which I mentioned in my comments, in terms of, you know, revenue growth, EBITDA growth, and also trying to be intentional about where in the life cycle of that value creation, we actually start to think about selling or monetizing assets so that there's more in the tank as we think about who's ultimately gonna buy the asset. And I think that if you look at our portfolios, I think we're actually...

What we've done is try try to set up our portfolios in a way where we have.

We have multiple pathways in terms of exit opportunities. If you look at the size of our companies the size of our businesses.

You would expect that. We would monetize that balance over a call to 3 or 4 year time period and the more attractive the market gets the more we'll tend to lean into that. But the most important question is, what are the underlying companies have we achieved our value creation plan and is it the right thing to do for our funds? Our investors to sell that business. And that'll be our framework for thinking about each exit through the course of your next year. Hey Craig, it's John, um, I think your interpretation of it is slightly off. Um, I think that, you know what? Um, when we were talking about this, I think what we were trying to communicate

One of the things, we'll be focused on obviously is creating value.

Which I mentioned in my comments in terms of revenue growth EBITDA growth.

And also trying to be intentional about where.

In the in the.

In the lifecycle of that value creation, we actually start to think about selling or monetizing assets. So that there is more in the tank as we think about who is ultimately going to buy the asset.

Todd Sisitsky: I think, Alex, when you cut through all that, we're basically early in a multi-year period of growth in fee-earning AUM in credit. Right? You alluded to the fact that we're starting to see deployment pickup and fee-earning AUM pickup. While that's been happening, our dry powder in credit over the past year has also increased by 35% or more. And as John said, we have multiple channels for additional fundraising and AUM growth that will flow into fee-earning AUM. So we expect the next several years to be attractive growth years for our credit business.

And I think that if you look at our portfolios I think we're actually.

And overlaying that by the way is sort of a perspective on where valuations are you made the point about 'twenty one 'twenty two we lead and obviously, we sold our entire software portfolio back then because of the way we the way we perceive valuations in the market that turned out to be a very good decision I would say that the what we meant what we're <unk>.

Jon Winkelried: Overlaying that, by the way, is sort of a perspective on where valuations are. You know, you made the point about '21, '22. We leaned in, obviously. You know, we sold our entire software portfolio back then because of the way we, the way we perceive valuations in the market. That turned out to be a very good decision. I would say that the intent, what we meant to, what we're meaning to communicate is that, you know, we're as focused on how we think about making decisions around the buy in our portfolio as we are on the sell. And I would say that, you know, you should expect us to be active as it relates to how we think about, you know, monetizing our portfolios.

Is this intentionality around what we do and how we do it. And when you look at how we built our portfolios across Capital 8, capital n and now into Capital 10. Um, again this, you know, Todd just mentioned this, you know, the Dynamics of the Strategic Partnerships that we have um in in in in in in a number of cases actually having strategic work alongside of us to know essential to because they want an opportunity to acquire an asset. Um, I think that um you know our what we've done is trying try to set up our portfolios in a way where we have, um, we have multiple Pathways in terms of uh exit opportunities. You look at the size of our companies, the size of our businesses.

Meaning to communicate is that.

We're as focused on how we think about making decisions around the buy in our portfolio. As we are on the shelf and I would say that you should expect us to be active as it relates to how we think about monetizing our portfolios.

Ken Worthington: Yep. Very clear. Great. Thanks, guys.

Operator: We can move next to Stephen Chuckford with Wolfe Research.

Ken Worthington: So wanted to ask on FRE margin leverage. It came in above expectations in Q3, 69% incremental margin, certainly a marked improvement versus the 51% in Q2. So while you reaffirmed the mid-40s FRE margin exiting the year, thinking about this longer term, just given prior comments supporting meaningful upsides, FRE margins as the business scales, whether that higher mid-60s incremental margin is, in fact, a sustainable run rate, even with all the investments you had spoken of, and how it informs your outlook for the FRE margin trajectory next year and beyond?

So I just wanted to clarify because I think your interpretation is a little bit.

Jon Winkelried: So I just wanted to clarify, 'cause I think your interpretation is a little bit off.

It's a little bit off.

Just the last thing I would add.

Both John and Jack referenced that.

Todd Sisitsky: Just the last thing I would add, and both Jon and Jack have referenced it. One of the reasons I think we're constructive on the exits is just the strength of the portfolio performance. You know, we have a portfolio on an LTM basis across private equity that's growing EBITDA at 20%+, and none of the platforms on an LTM basis are below 15%. They're all really performing well, and that is, of course, we were thinking about these strategic exits, but also IPOs. So that's the best leading indicator.

One of the reasons I think we're constructive on the exits is just the strength of the portfolio performance.

We have a portfolio on an LTM basis across private equity that's growing EBITDA at 20% plus and under the platforms on an LTM basis and below 15% they're all.

Really performing well and that is of course, we are seeing with these strategic exits, but also IPO the best leading indicator.

Todd Sisitsky: Yeah, good question. We are reiterating our guidance to exit this year in the mid-40s. As I've said all along, that is not an endpoint for us. I think you're exactly right to be looking at the incremental margins in connection with growth in FRE. And we do see that to be well above the mid-40s. How far above will depend because we are investing and building. We want to grow in the next five or 10 years of the business. We're investing in things like building out our private wealth distribution business and many other areas. And we're going to continue to invest in our business. That being said, I would expect continued FRE margin expansion in the next couple of years. We have not yet given guidance on when we might get to, for example, 50%. But 45 is a step along the way.

Um, 1 of the things that we focus on obviously is creating value. Uh, which I mentioned in my comments in terms of, you know, Revenue growth, EBA dog growth. Um, and also trying to be intentional about where AC in the in, in the, um, in the life cycle of that, value creation. We actually start to think about selling or monetizing assets so that there's more in the tank as we think about, who's ultimately going to buy the asset. And I think that, if you look at our portfolios, I think we're actually, um, overlaying that. By the way, is sort of a prospective on where valuations are, you know, you made the point about 2122 we leaned in. Obviously, you know, we sold our entire software portfolio back then, because of the way, we, the way we perceive valuations in the market that turned out to be a very good decision. I, I would say that the intent what we meant to what we're meaning to to communicate. Is that the, you know, we're as focused on how we think about making decisions around the Buy in our

Thank you and we will take our next question from Ken Worthington with Jpmorgan Hi.

Operator: Thank you. We'll take our next question from Ken Worthington with JP Morgan.

Hi, good morning, Thanks for taking the question.

Ken Worthington: Hi. Good morning. Thanks for taking the question. We're seeing far more concern about AI disrupting certain parts of the software, technology, and business services area. So two parts here. One, as you think about your investment portfolio, do you see any risks in the investments as that theme plays out? And then maybe hopefully more interesting, how do you feel about being on the winning side of this technological shift, either through Peppertree or elsewhere in your various business verticals?

We're seeing far more concerned about AI disrupting certain parts of the software technology and business services area. So two parts here one as you think about your investment portfolio do you see any risks in the investment.

portfolio as we are on the cell and I would say that, you know, you should expect us to be active as it relates to how we think about you know, monetizing our portfolios. And um so I I just wanted to clarify because I think your interpretation is a little bit um as a little bit off just just the last thing I would add and and both John and Jack have referenced it. Um

That theme plays out and then maybe hopefully more interesting how do you feel about being on the winning side of this technological shift either through pepper tree or elsewhere in your various business verticals.

One of the reasons I think we're constructive on the exits is just the strength of the portfolio performance. We have a portfolio on a last twelve months (LTM) basis across private equity that is growing at over 20% year-over-year, and none of the platforms on an LTM basis are below 15%. They’re all above that.

Sure.

With that thanks for the question guys.

Todd Sisitsky: Sure. Well, thanks for the question, Ken. We, you know, we've been very early investors in AI. We started over a decade ago with C3 AI and have had a number of the early predecessors to today's company, as well as a number of the companies that are in the headlines today. And actually, it's not even limited to the equity side. Credit Solutions actually led what I think is the first substantial debt investment in AI by leading a raise for xAI last quarter. It helps that we're based in San Francisco. With a good arm, you can probably hit more than half of the AI companies, you know, from our building. And we've invested significantly in AI capabilities.

Really performing. Well and that is of course we were thinking about these strategic actions but also IPOs that's the best leading indicator.

We've been very early investors.

NII, we started over a decade ago with <unk> and is that number of.

Ken Worthington: Understood. Thanks so much for taking my question.

Operator: We will move next to Brian Bedell with Deutsche Bank.

The early predecessors to today's company as well as the number of the companies that are.

Thank you, and we'll take our next question from Ken Worth to, with JP Morgan.

[Analyst] (Deutsche Bank): Great. Thanks. Thanks for joining. Thanks for taking my question. Maybe just to go back to your comments on fundraising outlook. Great to see this really strong momentum here. I think, Jack, you mentioned 2026. You obviously expect to be a robust year similar to 2025. Just in terms of the new funds that you're bringing to market, just wanted to. It seems like 2026 should be even stronger than 2025. I just wanted to make sure. If I understand that correctly. And the reason I'm asking is because I think you've got Asia coming. Real estate, obviously, is a large team functioning up. Rise 4 is coming to the market. You still have capital in the market. And then probably continued growth in credit and wealth. So I just wanted to understand if that's the case.

And the headlines today and actually kind of limited to the equity side credit solutions.

Substantial debt invest in AI.

Hi, good morning, thanks for taking the question. Um, we're seeing far more concern about AI disrupting certain parts of the software technology and and business services area.

We have raised for Forex AI.

Last quarter.

It helps that were based in San Francisco with the good arm you can probably hit more than half of the AI companies.

From a from our building.

And we've invested significantly AI.

So we Havent AI center of excellence within which our operations and business building team.

So 2 parts here, 1 as you think about your Investment Portfolio, do you see any risks uh in the investment uh as that theme plays out and then maybe hopefully more interesting, how do you feel about being on the winning side of this technological shift either through Pepper Tree or elsewhere in your various uh, business verticals.

Todd Sisitsky: So we have an AI center of excellence, within which our operations and business building team drives AI adoption among each of the portfolio companies. We have a lot of investments recently in AI, specifically in capital, the former chief technology officer at Accenture, one of the co-heads of the McKinsey software business. So AI is really part of everything we're doing now. It's moving quickly. It's part of every underwriting decision. Technology in general, software in particular, are certainly in our power alleys. I think you were specifically focused on the impact of AI there. Our software portfolio is growing, earnings at, you know, 22-23%. And I do think AI is having a meaningful impact, but it's having a meaningful impact in both directions. There's some real opportunities and net beneficiaries from AI.

AI adoption on each of the portfolio companies, we have a lot of investments recently and add specific human capital of the former Chief Technology Officer at Accenture.

<unk> had some can do software business. So AI is really part of everything we're doing now it's moving quickly it's part of every underwriting decision.

[Analyst] (Deutsche Bank): And if I could just throw in a question on the deployment and the transition infrastructure fund with Kinetic. Is that continuing to increase that deployment capability in terms of how you're seeing that perform for fundraising for the Rise Climate segment of funds?

Technology in general software in particular.

Certainly in our power alleys I think you were specifically focused on the impact of AI there.

Sure. Um well that uh, thanks for the question. Can we, you know, we we've been uh very early investors in in AI. We started over a decade ago with c3ai and I've had a number of of uh, of the early uh, processors to today's company as well as the number of the companies that that are that are uh, and the headlines today. Um, and actually it's not even limited to to the equity side, Credit Solutions actually that what I

Our software portfolio is growing earnings at 20.

23%.

And I do think having a meaningful impact, but that is having a meaningful impact in both directions.

Real opportunities in net beneficiaries from AI. So for US we've been spending time in areas like vertical market software Fintech hybrid security you've seen that number of our recent investments, we've probably been a little more cautious on some of the broader horizontal seems in infrastructure software, where we see AIG changing the landscape.

Because the first substantial debt investment in AI by Leading a raise for for xai, uh, last quarter. Um, it helps that we're based in San Francisco, and it was a good arm. You can probably hit more than half of the AI companies. Uh, you know, from from, from our building,

Todd Sisitsky: So for us, we've been spending time in areas like vertical market software, fintech, cybersecurity. You've seen that in a number of our recent investments. We've probably been a little more cautious on some of the broader horizontal themes in infrastructure software, where we see AI changing the landscape very quickly. And again, every single underwriting decision, not just in software, but particularly in software, has a high intensity focus on the impact of AI. Even in companies like, you know, healthcare IT, just to use one example, one of our largest investments in the last few years was a business called Lyric, which we bought out of UnitedHealthcare. It looks at 60+% of the primary claims in the US healthcare insurance industry.

Ken Worthington: Yeah, I'll do the first. Thanks for the one question, Brian.

[Analyst] (Deutsche Bank): Sorry about that.

Todd Sisitsky: Look, on the outlook, it was intentional in my words. I think next year will be a continued robust year. There's some puts and takes versus this year. Obviously, we had a very large initial close for TPG Capital and Healthcare Partners. We do expect to raise some more money for that in Q4. So that next year will be likely less capital raised because we've already raised well over half of our target we will have by the end of this year. On the growth side, we had a big final close for growth earlier this year. And our growth franchise in the US won't be in the market next year.

Very quickly and again every single underwriting decision.

Not just in software, but particularly in software Hasnt. It has a high intensity focused on the impact of AI, even companies like health care. It just use. One example, one of our largest investments in the last few years as a business called lyric, which we bought at Unitedhealthcare.

It looks at 60 plus percent of the primary claims in the U S health care insurance industry.

So you would think it's an algorithm based business you have been excellent.

Todd Sisitsky: And so you would think as an algorithm-based business, you would have a big impact from AI. But for years and years, we've been the only ones with aggregate basis that have a proprietary look at all that data. So AI really isn't a threat. Instead, it's an opportunity for that business to expand its footprint beyond the primary claims editing space. So it's really a very company-by-company analysis.

Todd Sisitsky: On the real estate side, one of the things that might be throwing you off, I think, when I talked about our flagship real estate launch being an important launch next year, the way we're currently thinking about it is the majority of that capital will probably be raised the following year because we probably won't have our first close until the back half of 2026. And you're right that we absolutely do expect continued robust fundraising on the credit platform, as Jon mentioned. So when you cut through all that, we see some puts and takes. But this year, being as strong a year as it was, up more than 50% over last year, some might have expected a step down next year. We don't expect that.

For years and years, we were the only ones who aggregate basis that have a proprietary look at all of that data. So it really isn't a threat instead, it's an opportunity for that business to expand its footprint beyond the primary claims editing space. So it's really a very company by company analysis.

And in the companies that I think we've leaned into we really feel like it's an opportunity to your point AI has a huge impact on health care has a huge impact outside of equity.

Is really part of of everything, we're doing now. It's, it's moving quickly, it's part of every underwriting decision. Um, technology in general software in particular uh, are certainly in our power. Alleys, I think you were specifically focused on the impact of AI there. Our software portfolio is growing earnings at, you know, 22, 23%. Um, and I do think AI is having a meaningful impact, but that it's having to be, in effect in both directions, uh, there's some real opportunities in net beneficiaries from AI. So, for us, we've been spending time in, in areas like vertical Market software fintech cyber security. You've seen that number of our of our recent Investments. We've probably been a little more cautious on some of the broader horizontal themes in infrastructure software where we see AI changing the landscape, uh, very quickly and again, every single underwriting decision.

Jon Winkelried: ... and in the companies that I think we've leaned into, we really feel like it, like it's an opportunity. To your point, AI has a huge impact on healthcare. It has a huge impact outside of equity on the credit side as well. And we feel like we have assembled the right team and the right internal rigor to make sure that we're thinking, you know, quite dynamically and in an intentional way about how to make sure that we're on the right side of AI, and then leveraging AI to drive performance in our portfolio companies.

Todd Sisitsky: ... and in the companies that I think we've leaned into, we really feel like it, like it's an opportunity. To your point, AI has a huge impact on healthcare. It has a huge impact outside of equity on the credit side as well. And we feel like we have assembled the right team and the right internal rigor to make sure that we're thinking, you know, quite dynamically and in an intentional way about how to make sure that we're on the right side of AI, and then leveraging AI to drive performance in our portfolio companies.

On the credit side as well.

And we think we have assembled the right team and the right internal rigor to make sure that we're thinking.

Ken Worthington: Just on your second question on deployment around TI and climate, I guess, generally. I think first of all we're across the strategies, I would say that we are seeing really unique deployment opportunities, really unique. We like what we're seeing. We think we're going to generate differentiated returns. And again, we've said this before, but we think that across these various types of climate strategies between private equity and infrastructure, that it's a generational investment opportunity. And it's a global opportunity as well. So I think that we've been quite active. Just to put a pin in that, I think we've deployed $2.3 billion of capital this year across those strategies. Obviously, Kinetic being the most recent on the TI side. That was our second investment in TI. And so that continues to be a portfolio that we're building. And we're fundraising alongside of it contemporaneous with that.

Dynamically.

And an intentional way about how to make sure that we're on the right side of AI and then leveraging AI to drive performance in our portfolio of companies.

Uh, not just in software but particularly in software has a has a high intensity focus on the impact of AI. Even in companies like, you know, Healthcare it just to use 1 example, 1 of our largest investments in the last few years was a business called lyric which we bought out of United Healthcare it. Uh it it looks at 60 plus percent of the primary claims in the US healthcare insurance industry. And so, you would think it's an algorithm based business, you would have a big impact from AI but

Great. Thank you.

Okay.

Operator 2: Great. Thank you.

Ken Worthington: Great. Thank you.

Thank you and we will take our next question from Alex <unk> with Goldman Sachs. Please go ahead.

Operator: Thank you. We will take our next question from Alex Blostein with Goldman Sachs. Please go ahead.

Hey, good morning. Thank you for the question I wanted to spend a minute on credit it feels like momentum in that business is finally, starting to take off we side with fund raising over the last couple of quarters, but it looks like deployment is also starting to catch up so maybe spend a minute on how you see the growth evolving from here, where the incremental benefits in fundraising are coming from.

Alex Blostein: Hey, good morning. Thank you for the question. I wanted to spend a minute on credit. It feels like momentum in that business is finally starting to take off. We saw it with fundraising for the last couple of quarters, but it looks like deployment is also starting to catch up. So maybe spend a minute on how you see the growth evolving from here, where the incremental benefits and fundraising are coming from. And I think one of the items you highlighted also launched a new product as it come, when it comes to credit into 2026, and I was hoping you could expand on that as well. Thanks.

And I think one of the items you highlighted also launch our new product as it comes when it comes to credit into 2026, and I was hoping you could expand on that as well. Thanks.

Yes sure Thanks, Alex it's Sean.

Jon Winkelried: Yeah, sure. Thanks, Alex. It's Sean. Look, I think, you know, as we said in our comments, you know, this has been, you know, the underlying thesis of when we acquired the Angelo Gordon business was that it was a platform that had a multi-strategy approach in terms of, you know, across lending, structured credit, credit solutions, you know, total return opportunities. And that, you know, inside of this firm, it would essentially step to the next level, both from a from the perspective of capital formation, but importantly, in terms of the overall ecosystem to originate and source transactions.

Look I think.

As we said in our comments.

For years and years. We were the only ones with and for aggregated basis that have a proprietary. Look at all that data. So AI really isn't a threat instead. It's an opportunity for that business to expand, its footprint beyond the primary claims editing space. So it's really a very Company by company analysis. And uh, and and in the companies that I think we've leaned into, we really feel like it like it's an opportunity to your point. AI has a huge impact on Healthcare. It has a huge impact outside of equity in the, in the in on the on the credit side as well. Uh and we feel like we have assembled the right team and the right internal rigor to make sure that we're thinking uh you know quite dynamically and in in an intentional way about how to make sure that we're on the right side of AI and then leveraging AI to drive performance in our portfolio companies.

This is Ben.

Great. Thank you.

The underlying thesis of.

When we acquired the Angelo Gordon business was that.

It was a platform that had multi strategy.

Thank you. And we will take our next question from Alex losing. With Goldman Sachs, please go ahead.

In terms of.

Ken Worthington: And I think when you look at the trends going on around in the world in terms of the demand for power on a global basis, electrification, colocation opportunity, storage, etc. We're seeing really interesting opportunities. And again, we're seeing it on a global scale. So we're very enthusiastic about what that ultimately will look like. And it's a very active strategy.

Across across lending structured credit credit solutions.

Total return opportunities and in that inside of this firm.

It would it would essentially step to the next level both from a from the perspective of capital formation, but importantly.

In terms of the overall ecosystem to originate.

Insurance transactions.

Hey, good morning. Thank you for the question. Um, I wanted to spend a minute on credit. It feels like momentum in that business is finally starting to take off. We saw it with fundraising for the last couple of quarters, but it looks like deployment is also starting to catch up. So maybe spend a minute on how you see the growth evolving from here, where the incremental benefits in fundraising are coming from. And I think one of the items you highlighted is that you've also launched your new products when it comes to credit in 2026, and I was hoping you could expand on that as well. Thanks.

I would say that it's hitting on every cylinder in terms of.

Jon Winkelried: I would say that it's hitting on every cylinder in terms of the ability to scale the businesses. If you recall, one of the things that we said early on in the acquisition was that the businesses were out originating the capital base, essentially being undercapitalized, and that's fundamentally changing now. You know, you can see it in the scale of our capital formation across all of those businesses. You can see it in the uptick in relevance of our open-ended vehicles, as well, like TCAP that Jack talked about in terms of the acceleration.

The ability to scale the businesses if you're if you recall one of the things that we said early on in the acquisition was that the businesses were out originating the capital base essentially being under capitalized and Thats fundamentally changing now.

[Analyst] (Deutsche Bank): That's great, Tyler. Thank you so much.

Operator: We will take our next question from Michael Steifel with Morgan Stanley.

Michael Cyprys: Hey, good morning. Thanks for taking the question. I wanted to ask about M&A. You guys have done a number of inorganic transactions already over the last couple of years. So just curious, as you look at the platform today, what's left to fill in to accelerate one's scale or presence? Where might inorganic activity be helpful? And just curious what you're seeing on that front. And how do the recent transactions inform your approach as you look forward?

You can see it in the scale of our of our capital formation.

Across all of those businesses.

You can see it in the.

Uptick in.

And relevance of our.

Our open ended vehicles as well like the gap that Jack talked about in terms of the acceleration. If you look at the inflows for instance in the T cap our inflows are.

Jon Winkelried: If you look at the inflows, for instance, into DCAP, our inflows are, you know, the slope of the line is steepening in terms of our inflows, and the relevance of that product in the market. Same thing is happening in MVP, in our structured credit business. What we've done is we have begun now also to really think about sort of the next level with respect to, you know, the various cost of capital of various investment strategies, particularly to serve our insurance company clients. I mentioned in my comments the substantial increase in engagement with insurance clients. That is continuing, you know, continued in this past quarter. It's continuing again.

The slope of the line is steepening in terms of our inflows and the relevance of that product in the market same thing is happening in MVP and our structured credit business. What we've done is we have begun now also too.

Ken Worthington: Yeah, sure. Thanks, Michael. Look, I think, first of all, I would say that we have been, as you know, we've been very focused and intentional about the type of inorganic activity that we've engaged in. We feel like where we have executed, we're executing really, really well. There's a lot. I think you have an appreciation—we've talked about this before—you have an appreciation for the fact that it begins with the deal. But that's sort of like the tip of the iceberg. Most of it is underneath from there in terms of execution, integration, and really making it work, cultural engagement, and then growth. We feel like we have been very successful at it. We feel like we've developed a lot of skills in terms of understanding how to do it.

Really.

Think about sort of the next level with respect to the.

Yeah, sure. Thanks, Alex. It's Sean. Um, look, I think, um, you know, as we said in our comments, um, you know, this has been, you know, the the underlying thesis of, um, when we acquired, uh, the Angela Gordon business was that, um, it was a platform that had, uh, a multi-strategy, uh, approach in terms of, you know, um, across across lending structured credit, uh, Credit Solutions. Uh, you know, total return, uh, uh, opportunities and, um, and that, you know, inside of this firm. Um, it would, it would, uh, essentially step to the next level, both from a, from, from the perspective of capital formation, but importantly, um, in terms of the overall ecosystem to originate, um, and Source transactions, and um, I I would say that it's hitting on every cylinder in terms of um, the ability to uh, scale the businesses. If you're, if you recall 1 of the things that we said early on in the acquisition was that the businesses were out.

The various cost of capital.

The cost of capital of areas of various.

Investment strategies.

Particularly to serve our insurance company clients I mentioned in my comments.

Substantial.

Originating the capital base, essentially being under capitalized. Um, and that's fundamentally changing. Now, you know, the uh, you can see it in the scale of our of our Capital formation um across all of those businesses.

Increase in <unk>.

Engagement with insurance clients that is continuing.

Continued in this past quarter its continuing again.

And.

Really structuring.

Jon Winkelried: And, you know, really structuring various types of vehicles for our insurance company clients, whether they're funds of one or SMAs, and moving now into things like, you know, IG risk, in terms of being able to serve the insurance client across a range of assets and across a range of returns, which is obviously what is necessary in order to serve that market. You know, we continue to have... you know, one of the things that we're observing in that part of the market is that, I think there is an increasing awareness, on, on the part of, you know, most of the life and insurance and annuity players in the market, but it's also getting broader than that, that not being...

<unk> types of vehicles for our insurance company clients, whether they are funds of one where sma's.

Moving now into things like.

Risk.

In terms of being able to serve the insurance clients across a range of assets and across a range of returns, which is obviously what is necessary in order to serve that market.

Ken Worthington: So it's something that we feel will be a kind of arrow in our quiver in terms of growth on an ongoing basis. One of the other things that I think we see happening is that because of the overall trend line in our industry, which is I think kind of the bigger getting bigger, a trend toward consolidation, I think that one of the things that we see happening is we, because of our having established our bona fides and being able to do this well, I think we are the recipient of a lot of incoming across a range of different strategies. That is very helpful because, obviously, we have a good look at what's going on.

We continue to have.

One of the things that we're observing in that part of the market is that.

I think there is an increasing awareness.

On the part of.

Most of the life and annuity players in the market, but it's also getting broader than that.

That.

Not being not having partnerships.

The alternative side of the business.

Jon Winkelried: Not having partnerships in the alternative side of the business is very dangerous from a strategic, you know, competitive position. So as a result of that, because we don't own a captive at this time, you know, we continue to see that dialogue increasing with respect to various forms of partnerships with a variety of different insurance clients, both here as well as internationally. And so I think that that's gonna be, and, you know, I believe that what will happen over the course of the next number of quarters, you know, over the course of the next year or so is, you know, we're gonna continue to see sort of step function increases in the engagement that we have in that market.

It is very dangerous from a strategic competitive position. So as a result of that because we don't own captive at this time.

We continue to see.

That dialogue, increasing with respect to various forms of partnerships with a variety of different insurance clients, both here as well as internationally.

Ken Worthington: In many cases what we're finding is that potential targets or counterparties want to engage with us on a proprietary basis, which is also an attractive way to kind of at least evaluate whether or not it's something that makes sense for us. If so, then execute on it on terms that make sense. So I would say that our overall kind of business development effort is pretty active just in terms of seeing opportunities and evaluating them. We're going to be picky, as you would expect. There are areas that I think, without getting into too much detail, I think there are areas in the market that continue to be interesting to us. Obviously, and there's not only product strategies, but also geographies as well. I think that we're continuing to focus on how to continue to broaden our footprint in Europe, as an example.

And so I think that that's going to be.

I believe that it will happen over the course of the next number of quarters now over.

Over the course of the next year or so as you know we're going to continue to see sort of step function increases in the engagement that we have in that market.

Quarter. It's continuing uh again um and um, you know, really structuring um various types of vehicles for our insurance company clients, whether they're funds of 1 or smas. Um, and moving now into things like, you know, um, IG risk. Um, in terms of being able to serve the insurance client across a range of assets and across a range of returns, which is obviously, what is necessary in order to serve that market. Um, you know, we continue to have. We, we, you know, 1 of the things that we're observing in that part of the market is that, um, I think there is an increasing awareness, um, on the, on the part of

Likewise, I think we're working on expanding our capabilities.

Jon Winkelried: Likewise, I think, you know, we're working on expanding our capabilities with respect to the kind of retail wealth markets. And you know, one of the things that we've been focused on is how do we access that part of the market more effectively, more efficiently, in much bigger size? And Jack alluded to this in his comments, but I think that hopefully, we'll have some things to talk about over the next couple of quarters where we've had some meaningful progress. And that's really all we can say about it at this time. But you know, we're very focused on the ability to deliver return streams that, in many cases, are a combination of liquid and illiquid or, you know, liquid and alternative products.

With respect to the kind of retail wealth markets and.

One of the things that we've been.

Focused on is how do we access that part of the market.

More effectively more efficiently and much bigger size and Jack alluded to this in his comments, but I think that.

Hopefully, we'll have some things to talk about over the next couple of quarters, where.

Where we've had some meaningful progress.

And that's really all we can say about it at this time, but.

We're very focused on.

The ability to deliver return streams that in many cases are a combination of liquid and illiquid or liquid and alternative products and so we're putting ourselves in a position and growing our capabilities to be able to deliver that lastly, I would say that other areas of growth for us there we.

Ken Worthington: There may be sort of opportunities there that develop for us. Nothing to do right now today, but I mean, that's just an area that interests us because we are a global firm. We could find opportunities that I would describe as kind of tuck-ins or fill-ins in our credit strategy that might be interesting to us. There are areas potentially related to the build and infrastructure that might be interesting to us because, obviously, we have two pieces to that now, TI and then also Peppertree. And I think we want to continue to think about how does that part of the market expand for us. There's a lot of interesting developments going on in the market as it relates to secondaries in our market.

You know, most of the life and and annuity players in the market, but it's also getting broader than that. Um, that um, not being not not having Partnerships um, in the alternative side of the business, um, is it is is very dangerous from a strategic, you know, competitive position. So as a result of that, because we don't own a captive at this time, um, you know, we continue to see, um, uh, that dialogue increasing with respect to various forms of Partnerships, um, with a variety of different Insurance clients, both here as well as internationally. Um, and so I think that that's going to be um in, you know, I I I believe that what will happen over the course of the. Next number of quarters that, you know, over the course of the next year or so is, you know, we're going to continue to see sort of Step function increases in the engagement that we have in that market. Um, likewise I think you know, we're

Jon Winkelried: And so we're putting ourselves in a position and growing our capabilities to be able to deliver that. Lastly, I would say that, you know, other areas of growth for us there, we've talked about this before, and I think that you'll recognize this, but, you know, we have a best-in-class, lower middle-market lending franchise in Twinbrook. And one of the things that we have identified as a result of the sourcing capability that we have in both Twinbrook as it relates to our relationship, as well as from credit solutions, where we're seeing larger kind of bespoke transactions and sourcing, in some cases, even that's coming through relationships we have with sponsors, from our private equity business. We are building into the next level of lending. You know, we, you know, we like to call it sort of graduating companies.

Talked about this before I think that you will recognize this but we have a best in class lower middle market lending franchise.

In Twinbrook.

And one of the things that we have identified as a result of the sourcing capability that we have in both twinbrook as it relates to our relationship as well as from credit solutions, where we're seeing larger kind of bespoke transactions and sourcing in some cases, even thats coming through relationships, we have with sponsors.

From our private equity business, we are.

Ken Worthington: As the primary markets across all the asset classes grow, I think the secondary flows are going to become more and more important to the market. So that's another really interesting area.

Building into the next level.

Lending.

We like to call it sort of graduating companies, it's a little bit broader than that but we like to call. A graduating companies where we have companies over 300 portfolio companies Twinbrook. They start life is as companies that are generating $25 million of cash flow and less and then they end up life at 40, 50, 60 $70 million to $80 million of cash flow.

Michael Cyprys: Great. Thanks so much.

Jon Winkelried: It's a little bit broader than that, but we like to call it graduating companies, where we have companies, you know, over 300 portfolio companies at Twinbrook. They start life as companies that are generating $25 million of cash flow and less, and then they end up life, you know, at 40, 50, 60, 70, 80 million dollars of cash flow. And we've been the lender to those companies for 3, 4, 5 years. We know those companies better than anyone. And so the risk dynamics of us extending into that part of the market is something that we have a reason to win.

Operator: We will take our next question from Bill Katz with TD Cowen.

Michael Cyprys: Great. Thank you very much for taking the question. Appreciate all the guidance and discussion so far. Maybe just two areas of growth seem to still be in the wealth and the capital markets areas. I wanted to maybe update us on maybe where you see the incremental spend. And then on the wealth side in particular, just sort of curious, you mentioned a number of times new products, new geographies. Maybe unpack that a little bit in terms of where you see the greatest opportunity in the near term. Thank you.

Working on expanding our, our, our, uh, our capabilities, um, with respect to the kind of retail wealth markets and um you know, 1 of the things that we've been um focused on is how do we access that part of the market? Um, more effectively more efficiently in much bigger size and Jack alluded to this in his comments. But I think that, um, hopefully we'll have some things to talk about over the next couple of quarters, um, where we've had some meaningful progress. Um, and that's really all we can say about it at this time, but, um, you know, we're we're very focused on, um, the ability to deliver return streams. That in many cases are a combination of liquid and illiquid or, you know, liquid and alternative products. Um, and so we're putting ourselves in a position and growing our capabilities to be able to deliver that. Um, lastly, I would say that, you know, other areas of growth for us there, we've talked about this before and I think that you'll recognize this, but, you know, we have a best-in-class

lower Middle Market lending franchise.

And we've been a lender to those companies for 345 years, we know those companies better than anyone.

So the risk dynamics of us extending into that part of the market is something that we have a reason to win and so we are and we'll have more to say on this again also over the next quarter or two.

Ken Worthington: Jack, why don't you start with wealth?

Jon Winkelried: And so we are, and we'll have more to say on this again, also over the next quarter or two, where we'll formalize this, but we are building into the next leg of growth in that, and we're already seeding a portfolio, and we already have some traction with respect to some LP partners of ours that will anchor the strategy for us. But it's just a little bit too early to you know to kind of roll it out, but we will be rolling it out over the next couple of quarters. So, hopefully, that gives you a sense for sort of what the growth drivers are.

Todd Sisitsky: Sure. Hey, Bill. Thanks for the question. Look, wealth is a multi-year build for us. The starting point was launching TPOP alongside our existing products, the existing Evergreen products, MVP, and TCAP, and getting kind of the flagship private equity product in the wealth channel on the Evergreen side launched effectively. And that, as I mentioned, is off to a great start with lots of room to grow from here. $900 million is the latest AUM number we've announced there. And we see substantial continued growth through the rest of this year and next year. Part of that growth, all of that so far has been almost entirely on three platforms. In the platforms in which we're selling TPOP, we are one of the most attractive or high-volume private equity Evergreen products, if not the most active. So it's extremely well received.

Where we will formalize this but we are building into the next leg of growth in that and we're already seeing a portfolio and we already have some traction with respect to some LP partners of ours that will anchor the strategy for us.

In twinbrook. Um, and um, 1 of the things that we have identified as a result of the sourcing capability that we have in both twinbrook as it relates to our relationship as well as from Credit Solutions where we're seeing larger kind of bespoke transactions and sourcing in some cases even that's coming through relationships, we have with sponsors, um, from our private Equity business, we are um, uh, building into the next level of Lending.

But it's just a little bit too early to.

Kind of roll it out, but we will be rolling it out over the next couple of quarters. So.

Hopefully that gives you a sense for sort of what the growth drivers are.

Thank you Alex when you cut through all of that we're basically early in a multiyear.

Jack Weingart: I think, Alex, when you cut through all that, we're basically early in a multiyear period of growth in fee earning AUM in credit. Right? As you alluded to the fact that we're starting to see deployment pick up and fee earning AUM pick up. While that's been happening, our dry powder in credit over the past year has also increased by 35% or more. And as John said, we have multiple channels for additional fundraising and AUM growth that will flow into FAUM. So we expect the next several years to be attractive growth years for our credit business.

<unk> of growth in fee, earning AUM in credit.

But as you alluded to the fact that we're starting to see deployment pick up in fee, earning AUM pick up.

While that's been happening our dry powder in credit over the past year has also increased by 35% or more percent and as John said, we have multiple channels for additional fundraising and AUM growth that will flow into AUM. So we expect the next several years to be attractive growth years for our credit business.

Todd Sisitsky: But we're very early in the expansion across additional distribution partners. So through the course of next year, you'll see that. You'll see us expanding partnerships to broaden out and globalize effectively the placement of TPOP. Along with that, there are several additional products that we feel like we're well suited to bring to market. The first would probably be a multi-strategy credit interval fund. We've talked about how well-received TCAP is as a direct lending BDC. The other businesses, as we've talked about, that we have in credit through Angela Gordon are also distinctive businesses in structured credit, credit solutions, etc. So having a credit interval fund that, much like TPOP, feeds on all of our private equity deal flow, that benefits from all of the deal flow across our credit platform.

Yes, very clear great. Thanks, guys.

Jon Winkelried: Yep, very clear. Great. Thanks, guys.

And we can move next to Steven <unk> with Wolfe research.

Operator 2: We can move next to Steven Chubak with Wolfe Research.

Operator: We can move next to Steven Chubak with Wolfe Research.

Ing. Um, you know we you know we like to call it sort of graduating companies. It's a little bit broader than that but we like to call it graduating companies where we have companies you know, over 300 portfolio companies and twinbrook they start life as as as companies that are generating 25 million of cash flow and less. And then they end up life, you know, at 40 50, 60, 70, 80 million dollars of cash flow. And we've been the lender to those companies for 3, 4 5 years. We know those companies better than anyone. Um, and so the risk dynamics of us extending into that part of the market is something that we have a reason to win. And so we are, um, and we'll have more to say on this again, also over the next quarter or 2, um, where we'll formalize this. But we are building into the next leg of growth in that and we're already, um, seating a portfolio. And we already have some traction with respect, to some LP partners of ours that will anchor the strategy for us. Um, but it's just a little bit too early to, to, you know, to kind of roll it out, but we will be rolling it out over the next couple of

So wanted to ask on FRE margin leverage it came in above expectations at <unk>, 69% incremental margin is certainly a market improvement versus <unk> 51 in Q2, so while you've reaffirmed the mid 40% FRE margin exiting the year.

Steven Chubak: I wanted to ask on FRE margin leverage. It came in above expectations in Q3, 69% incremental margin, certainly a marked improvement versus the 51% in Q2. While you've reaffirmed the mid-40s FRE margin exiting the year, thinking about this longer term, just given prior comments supporting meaningful upsides to FRE margins as the business scales, whether that higher mid-60s incremental margin is, in fact, a sustainable runway, even with all the investments you had spoken of, and how it informs your outlook for the FRE margin trajectory next year and beyond?

Quarters. So, um, hopefully that gives you a sense for sort of what the growth drivers are.

I think Alex when you, when you cut through all that, we're basically early in a multi-year period of growth in fear and in AUM in credit.

Thinking about this longer term just given prior comments supporting meaningful upside to FRE margins as the business scales.

I hear mid 60% incremental margin is in fact, the sustainable run rate.

Even with all the investments you had spoken of and how it informs your outlook for the FRE margin trajectory next year and beyond.

Yes, good question.

Right as you, you you alluded to the fact that we're starting to see deployment pickup and fear in the AUM pickup while that's been happening, our dry powder and credit. Over the past year has also increased by 35 or more percent. And as John said, we have multiple channels for additional fundraising and AUM growth that will flow into faum. So we we expect that the the next several years to be attractive growth years for our credit business.

We are.

Todd Sisitsky: We're seeing strong demand for that in early, I'd say, mid-stage discussions with potential channel partners who want to see that product. And then the next tentpole would be in real estate. We have no non-traded REIT at this point. We have an excellent real estate business that's diversified across lots of different components. So we're in active discussions with channel partners who would like to see a real estate product from us. So that's kind of a near-term roadmap with more to come.

Yeah, very clear. Great thanks guys.

Jack Weingart: Yeah, good question. We are reiterating our guidance to exit this year in the mid-40s. As I've said, you know, all along, that is not an endpoint for us. I think you're exactly right to be looking at the incremental margins in connection with, you know, growth in FRR, and we do see that to be well above the mid-40s. How far above will depend because we are investing in building. We wanna, you know, grow in the next five or 10 years as a business. We're investing in things like building out our private wealth distribution business and many other areas, and we're gonna continue to invest in our business. That being said, I would expect continued FRE margin expansion in the next couple of years.

We are raising our guidance to exit this year in the mid Forty's as I've said, all along that is not an endpoint for us I think youre exactly right to be looking at the incremental margins.

In connection with growth in Fr and we do see that to be well above the mid forty's.

Madison Madison.

How far above will depend because we are investing in building and we want to.

And we can move next to Steven chukar with Wolfe research.

Grow in the next five or 10 years of the business, we're investing in things like building out our private wealth distribution business and many other areas and we're going to we're going to continue to invest in our business that being said I would expect continued FRE margin expansion in the next couple of years, we have not yet given guidance on when we might get.

Hi, good morning.

Morning.

Ken Worthington: I think on capital markets, I think that you should expect that our capital markets business will continue to grow. Obviously, it's a transactional business. The general flow of opportunities is correlated. Capital markets will be correlated to that. But one of the things that has happened over the course of, and I'm sure you've seen it in the trajectory of our revenues over the course of the last several years, is that as we have been embedding our capital markets capabilities into each of our platforms and each of our product areas we're involved in as a capital provider, as a capital arranger across almost all of our businesses now. And with the addition of our credit franchise, it's taken sort of a next step with respect to our ability to use the broker-dealer and use our capital markets capabilities to distribute at the source.

To ask a question.

Jack Weingart: We, we have not yet given guidance on when we might get to, for example, 50%, but 45 is a step along the way.

For example, 50%.

And we will go back to you guys. Hear me, okay?

But 45 is a step along the way.

We yeah, we go ahead.

I understand thanks, so much for taking my question.

Steven Chubak: Understood. Thanks so much for taking my question.

Okay.

And we will move next to Brian Bedell with Deutsche Bank.

Jack Weingart: Mm-hmm.

Operator 2: We will move next to Brian Bedell with Deutsche Bank.

Operator: We will move next to Brian Bedell with Deutsche Bank.

Great. Thanks. Thanks, Good morning, Thanks for taking the question maybe.

Brian Bedell: Great. Thanks. Thanks for waiting. Thanks for taking my question. Maybe just to go back to your comments on fundraising outlook. Great, great to see the really strong momentum here. I think, Jack, you mentioned 2026. You obviously expect to be a robust year, similar to 2025. Just in terms of the new funds that you're bringing to market, just wanted to, it seems like 2026 should be even stronger than 2025. I just wanted to make sure I under-- if I understand that correctly. And the reason I'm asking is because you've-- I think you've got Asia coming. Real estate, obviously, is a large step function up. Rise Four is coming to the market. You still have capital in the market, and then, you know, probably continued growth in credit and wealth.

Maybe just to go back to your comments on fundraising outlook.

Great to see that.

Strong momentum here I think Jack you mentioned 2006, you, obviously expect to be a robust youre similar to 'twenty five.

Just in terms of the new funds that you're bringing to market just wanted to.

It seems like it should be even stronger than 2005, I just wanted to make sure.

Ken Worthington: So I think that our outlook for that is that as the firm grows, it'll continue to grow.

Yes, can you hear us? Uh, yes, a lot of the player. Um, so wanted to ask on FR margin leverage, it came in above expectations in 3Q. 69% incremental margins. Certainly a market Improvement versus the 51 and 2q. So while you reaffirm the mid-40s FR margin, exiting the year, um, thinking about this longer term just giving prior comments, supporting meaningful upside to fare margins as the business scales, whether that's higher or mid-60s incremental margin is, in fact, the sustainable run rate. Um, even with all the Investments, you had spoken of and how it informs your outlook for the F margin trajectory next year, and Beyond

If I understand that correctly and the reason I'm asking is because I think you've got Asia coming real estate. Obviously is a large step function up rise four is coming to the market you still have capital in the market and then probably continued growth in credit and well so I just wanted to.

Michael Cyprys: Thank you.

Operator: This concludes the Q&A portion of today's call. I would now like to turn the call back over to Gary Stein for closing remarks.

Yeah, good question. We are. We are um reiterating our guidance to to exit this year in the mid-40s. As I've said, you know, all along. That is not an endpoint for us. I think you're exactly right to be looking at the incremental margins.

Michael Cyprys: Great. Thanks, operator. Thank you all for joining us today. If you have any additional questions, please feel free to follow up directly with the IR team.

And if thats the case and if I could just throw in a.

Brian Bedell: So just wanted to understand if that's the case, and if I could just throw in a question on the deployment and the transition infrastructure fund with Kinetic. Is that, you know, continuing to increase that deployment capability in terms of how you're seeing that form for fundraising for the Rise Climate segment of funds?

Sure.

<unk>.

<unk> on the deployment in the transmission infrastructure.

Operator: This concludes today's TPG's Q3 2025 earnings call and webcast. You may disconnect your line at this time and have a wonderful day.

Fund with kinetic.

Is that.

Continuing to increase that.

Deployment.

Capability in terms of how youre seeing that form for fund raising for the rise climate.

The funds.

Yes.

Thanks for the one question Brian.

Jack Weingart: Yeah, I'll do this first. Thanks for the one question, Brian.

Sorry about that.

Sure.

Uh, in connection with, you know, growth in frr. And we do see that to be well above the mid-40s, uh, how how far above will depend because we are investing in building what we want to, you know, grow in the next 5 or 10 years as business, we're investing in things like building out, our private wealth, distribution business, and many other areas. And we're going to we're going to continue to invest in our business. That being said I would expect continued FR, margin expansion in the next couple of years. I we we have not yet given guidance on when we might get for example, 50% but 45 is, is a is a is a step along the way.

Brian Bedell: Sorry about that.

We look on the outlook I was intentional in my words I think next year will be a continued robust year.

Jack Weingart: Look, on the outlook, I was intentional in my words. I think next year will be a continued robust year. There are some puts and takes versus this year. Obviously, we had a very large initial close for TPG Capital and TPG Healthcare Partners. We do expect to raise some more money for that in the Q4, so that next year will be likely less capital raised, because we've already raised well over half, you know, half of our target, we will have by the end of this year. On the growth side, we had a big final close for growth earlier this year, and our growth franchise in the US won't be in the market next year.

I understood. Thanks so much for taking my question.

There's puts and takes versus this year, obviously, we had a very large initial close for TG capital Health care partners, we do expect to raise some more money for that in the in the fourth quarter. So that next year will be like.

And we will move next to Brian Bedell with Deutsche Bank.

Likely less capital raise because we've already raised well over half of our target. We will have by the end of this year on the growth side, we had a big final close for growth earlier, this year and our growth franchise in the U S won't be in the market.

Uh, great, thanks. Good morning, and thanks for taking my question. Um, maybe just to go back to, um, your comments on fundraising outlook. It’s great to see the really strong momentum here. I think Jack, you mentioned 2026; you obviously expect it to be robust, similar to 2025. Um, just in terms of the new funds that you're bringing to market, just wanted to, um, it seems like 2026 should be even stronger.

Next year.

On the real estate side, one of the things that might be going up I think when I talked about our flagship real estate launch being an important launch next year.

Jack Weingart: On the real estate side, one of the things that might be throwing you off, I think, when I talked about our flagship real estate launch being an important launch next year. The way we're currently thinking about it is the majority of that capital will probably be raised the following year, because we probably won't have our first close until the back half.

The way we're currently thinking about it is the majority of that capital will probably raise the following year, because we probably won't have a first close until the back half.

<unk> 26, so and Youre right that we absolutely do expect continued robust fundraising on the credit platform as John mentioned, so when you cut through all that we see.

Jon Winkelried: ... of 26. So, you're right, that we absolutely do expect continued robust fundraising on the credit platform, as John mentioned. So when you cut through all that, we see some, you know, some puts and takes. But this year, being as strong a year as it was, up more than 50% over last year, you know, some might have expected a step down next year. We don't expect that. Just on your sneak in second question, on deployment, around TI and climate, I guess, generally. I think, first of all, you know, we're across the strategies, I would say that, you know, we are seeing really unique deployment opportunities, really unique. And, we like what we're seeing. We think we're going to generate differentiated returns.

Jack Weingart: ... of 26. So, you're right, that we absolutely do expect continued robust fundraising on the credit platform, as John mentioned. So when you cut through all that, we see some, you know, some puts and takes. But this year, being as strong a year as it was, up more than 50% over last year, you know, some might have expected a step down next year. We don't expect that.

Some puts and takes but this year being as strong years. It was up more than 50% over last year. Some might have expected a step down next year, we don't expect that.

Just on the on your on your.

Jon Winkelried: Just on your sneak in second question, on deployment, around TI and climate, I guess, generally. I think, first of all, you know, we're across the strategies, I would say that, you know, we are seeing really unique deployment opportunities, really unique. And, we like what we're seeing. We think we're going to generate differentiated returns.

Sneak a second question.

Yes.

On deployment around Ti and climate I guess generally I think first of all.

25, I just wanted to make sure I if I understand that correctly and the reason I'm asking is because you I think you've got Asia coming real estate, obviously is a is a large stem function up rise, for is coming to the market. You still have capital in the market and then, you know, probably continued growth in credit and well. So I just wanted to understand if that's the case. And if I could just throw in a, uh, um, uh, a uh, question on, uh, the deployment in the transition infrastructure, uh, fund with Kinetic, um, is that, uh, you know, continuing to increase that, um, uh, deployment, uh, capability, in terms of how you're seeing that form for fundraising for the rise, uh, climate, um, segment of funds.

We're across the strategies I would say that.

We are seeing really unique deployment opportunities really unique and.

We like what we're seeing we think we're going to generate differentiated returns and again, we've said this before but we think that across.

Jon Winkelried: And again, we've said this before, but we think that, you know, across these various types of climate strategies, between private equity and infrastructure, that is a generational investment opportunity, and it's a global opportunity as well. So I think that, you know, we've been quite active. Just to give, you know, just to put a pin in that, you know, I think we've deployed $2.3 billion of capital this year across those strategies. And, you know, and obviously, you know, Kinetic being the most recent on the TI side, that was our second investment in TI. And so, you know, that continues to be a portfolio that we're building, and we're fundraising alongside of it, contemporaneous with that.

Ross these various types of climate strategies between private equity and infrastructure that is a generational investment opportunity.

And it's a global opportunity as well so I think that.

We have been quite active just to give just just to put a pin in that I think we've deployed.

Yeah, I'll I'll first thanks for the 1 question, Brian. Sorry about that. We look on the Outlook. I I was intentional in my words, I think next year will be a continued robust year. Um there are some puts and takes versus this year. Obviously we had a very large initial clothes for TG capital and HealthCare Partners. We do expect to raise some more money for that in the, in the fourth quarter. So that next year we'll be uh likely less Capital raised because we've already raised well over half, you know, half of our Target. We will have by the end of this year. Uh, on the growth side, we had a big Final close for for growth earlier this year and our growth franchise.

$2 3 billion of capital this year across those strategies.

And <unk>.

Obviously kinetic being the most recent on the Ti side that was our second.

In the U.S., we won't be in the market next year on the real estate side. One of the things that might be throwing you off, I think, is when I talked about our flagship real estate launch being an important launch next year.

Investment in Ti.

And so that continues to be.

A portfolio that we're building and we're fundraising alongside of a contemporaneous with that.

And.

I think when you look at the trends going on around in the world in terms of.

Jon Winkelried: You know, I think when you look at the trends going on around in the world in terms of, you know, the demand for power on a global basis, electrification, co-location opportunity, storage, et cetera, you know, we're seeing really interesting opportunities. And again, we're seeing it on a global scale. So, you know, we're very enthusiastic about what that ultimately will look like. And, you know, it's a very active strategy.

The demand for power on a global basis electrification co location opportunity.

Storage et cetera.

We're we're seeing.

Expect that.

Really interesting opportunities.

Again, we're seeing it on a global scale so.

We are.

We're very enthusiastic about what that ultimately will look like and.

It's very active.

Strategy.

That's great color. Thank you so much.

Operator 2: That's great, Tyler. Thank you so much. We will take our next question from Michael Cyprys of Morgan Stanley.

Brian Bedell: That's great, Tyler. Thank you so much. We will take our next question from Michael Cyprys of Morgan Stanley.

Okay.

And we will take our next question from Michael Cyprus Morgan Stanley.

Hey, good morning, Thanks for taking the question I wanted to ask about M&A you guys have done a number of inorganic transactions already over the last couple of years. So just curious as you look at the platform today and what's left to fill in.

Michael Cyprys: Hey, good morning. Thanks for taking the question. I wanted to ask about M&A. You guys have done a number of inorganic transactions already over the last couple of years. So just curious, as you look at the platform today, what's left to fill in to accelerate one's scale or presence? Where might inorganic activity be helpful? And just curious what you're seeing on that front, and how do the recent transactions inform your approach as you look forward?

To accelerate one scale, our presence where my inorganic activity would be helpful and just curious what youre seeing on that front and how do the recent transactions inform your approach as you look forward.

Sure. Thanks, Michael.

Look I think first of all I would say that.

Jon Winkelried: Yeah, sure. Thanks, Michael. Look, I think first of all, I would say that, we have been, as you know, we've been very focused and intentional about the type of inorganic activity that we've engaged in, and we feel like, where we have executed, we're executing really, really well. And, you know, there's a lot, you know, there's a-- We've talked about this before. You have an appreciation for the fact that, you know, it's, it begins with, you know, the deal and, but, you know, that's sort of like the tip of the iceberg, and most of it is underneath from there in terms of execution, integration, and really making it work, cultural engagement, and then, you know, and then growth.

We.

Have been as you know, we've been very focused and intentional about the type of.

Um, just on the, on your, on your, uh, sneak in. Second question on deployment, um, around TI and, and, and climate, I guess generally. I think, first of all, um, you know, we're, we're ac across the strategies. I would say that, you know, we are seeing really unique deployment opportunities, really unique, and um, we like what we're seeing, we think we're going to generate differentiated returns. And again, we've said this before, but we think that, you know, across these various types of climate strategies between private equity and infrastructure that it's a generational investment opportunity, um, and it's a global opportunity as well. So I think that, um, you know, we we've been quite active. Um, just to give, you know, just just to, to put a pin in that, you know, I think we've deployed, um, 2.3 billion of capital this year, um, across those strategies, um, and, um, you know, and obviously, you know, kinetic being the most recent

Inorganic activity that we've engaged in.

We feel like.

Where we have executed were executing really really well.

Sure.

Theres a lot.

I think you have you have and appreciate we've talked about this before you have an appreciation for the fact that.

It begins with.

The deal and but that's sort of like the tip of the iceberg and most of it is underneath from there in terms of execution and integration and really making it work cultural engagement.

On the ti side that was our second um investment in TI uh and so you know, that continues to be um a portfolio that we're building um and we're fundraising alongside of a contemporaneous with that. Uh and um you know, I think when you look at the trends going on around in the world, in terms of, um, you know, the demand for power on a global basis electrification, um, collocation opportunity, um,

And then and then growth and we feel like we have been very successful at it and we feel like we've developed a lot of skills in terms of understanding how to do it.

Jon Winkelried: You know, we feel like we have been very successful at it, and we feel like we've developed a lot of skills in terms of understanding how to do it. So, you know, it's something that we feel will be a kind of arrow in our quiver in terms of growth on an ongoing basis. One of the other things that I think we see happening is that because of the overall trend line in our industry, which is, you know, I think the bigger getting bigger, a trend toward consolidation.

Uh, storage Etc. Um, you know, we're, you know, we're seeing, um, really interesting opportunities. Um, and again, we're seeing it on a global scale. So, um, you know, we're, uh, we're, we're very enthusiastic about what that ultimately will look like. And, um, you know, we're uh, you know, it's very, it's a very active strategy.

So it's something that we feel will be a kind of arrow in our quiver in terms of growth on an ongoing basis.

That's a great color. Thank you so much.

And we will take our next question from Michael Cyprus at Morgan Stanley.

One of the other things that I think we see happening.

Yes.

Because of the overall trend line in our industry, which as you know.

The kind of the big are getting bigger.

<unk> consolidation I think that one of the things that we see happening as we.

Jon Winkelried: I think that one of the things that we see happening is we, because of our having established our bona fides and being able to do this well, I think we are the recipient of a lot of incoming across a range of different strategies. And, you know, that is very helpful because, you know, obviously, we have a good look at what's going on. And in many cases, what we're finding is that potential targets or counterparties want to engage with us on a proprietary basis, which is also an attractive way to kind of at least evaluate whether or not it's something that makes sense for us. And if so, then execute on it on, you know, terms that make sense.

Because of our because of our our having established our bona fide ease in being able to do this well.

We are.

Hey, good morning, thanks for taking the question. I want you to ask about m&a, you guys have done a number of inorganic transactions already over the last couple of years. So, just curious, as you look at the platform today, what's left to fill in uh, to accelerate 1 scale, or or presence where my inorganic activity be helpful and just curious what you're seeing on that front and how do the recent transactions? Inform your approach as you look forward.

The recipient of a lot of incoming.

Across a range of different strategies and.

<unk> is very helpful. Because obviously, we have a good look at what's going on.

And.

And in many cases.

What we're finding is that potential.

Targets are counterparties want to engage with us on a proprietary basis.

Which is also an attractive way to kind of evaluate whether or not it's something that makes sense for us.

Yeah, sure, thanks, Michael. Um, look, I think first of all I would say that um we, um, have been, as you know, we've been very focused and intentional about the type of um, inorganic activity that we've engaged in. And um, we feel like um where we have uh executed, we're executing really, really well.

And and if so then execute on it on terms that makes sense. So.

So we're I would say that our overall kind of business development efforts pretty active just in terms of seeing opportunities and evaluating that we're going to be picky as you would expect.

Jon Winkelried: So, you know, I would say that our overall kind of business development effort is pretty active, just in terms of, you know, seeing opportunities and evaluating them. We're going to be picky, as you would expect. There are areas that I think, you know, without getting into too much detail, I think there are areas in the market that continue to be interesting to us. You know, obviously, there's not only product strategies, but also geographies as well. I think that, you know, we're continuing to focus on how to continue to broaden our footprint in Europe as an example. And there may be sort of opportunities there that develop for us.

There are areas that I think.

Without getting into too much detail I think there are areas of the market that continue to be interesting to us.

Obviously, and there is not only product strategies, but also geographies as well I think that we're continuing to focus.

And um, you know, there's a lot, you know, there's I think you have a you have an appreciate, we've talked about this before you have an appreciation for the fact that, you know, it's uh, it begins with um, you know, the deal and uh but you know, that's sort of like the tip of the iceberg. And most of it is underneath, from there, in terms of execution integration and really making it work cultural engagement. Um, uh, and then, you know, and then growth and, um, you know, we feel like we have been very successful at it and we feel like we've developed a lot of skills in terms of understanding how to do it. Um, so, you know, it's something that we feel will be a kind of arrow in our quiver, in terms of growth on an ongoing basis.

On how to continue to broaden our footprint in Europe as an example.

One of the other things that I think we see happening is that

And there may be sort of opportunities there that developed for us nothing.

Nothing nothing.

To do right now today, but that's just an area that interests us because we are a global firm.

Jon Winkelried: Nothing, you know, nothing, you know, to do right now today, but I mean, that's just an area that interests us because we are a global firm. We could find opportunities that I would describe as kind of tuck-ins or fill-ins in our credit strategy that might be interesting to us. There are areas, potentially, related to the build and infrastructure that might be interesting to us, because obviously, we have two pieces to that now, TI and then also Peppertree. And I think we want to continue to think about how does that part of the market expand for us? You know, there's a lot of interesting developments going on in the market as it relates to secondaries in our market.

We could find opportunities that I would describe as kind of tuck ins or fill ins in our credit strategy that might be interesting to us.

There are areas.

Potentially related to build an infrastructure that might be interesting to us because obviously, we have two pieces to that now Ti and then also peppertree.

And I think we want to continue to think about how does that part of the market expand for us.

There's a lot of interesting.

Because of the overall trend line in our industry, which is, you know, um, I think the kind of, the, the bigger getting bigger, um, a trend toward consolidation. I think that 1 of the things that we see happening is we, um, because of our rep because of our, our, our, our having established, our, our Bonafide, and being able to do this well. Um, I think we are, um, uh, the recipient of a lot of incoming, um, across a range of different strategies. And um, you know, that is very helpful because I, you know, obviously we have a good look at what's going on. Um, and um, and, and in many cases, um, what we're finding is that, um, potential targets are counterparties want to engage with us on a proprietary.

Developments going on in the market as it relates to secondaries in our market.

As far as the primary markets across all the asset classes grow I think the secondary flows are going to become more and more important to the market. So that's another really interesting area.

Jon Winkelried: As the primary markets across all the asset classes grow, I think the secondary flows are going to become more and more important to the market. So that's another really interesting area.

Great. Thanks, so much.

Operator 2: Great. Thanks so much.

Michael Cyprys: Great. Thanks so much.

And we will take our next question from Bill Katz with TD Cowen.

Operator 3: We will take our next question from Bill Katz with TD Cowen.

Operator: We will take our next question from Bill Katz with TD Cowen.

Great. Thank you very much for taking the question for sure the guidance.

Bill Katz: Great. Thank you very much for taking the question. Appreciate all the guidance and discussion so far. Maybe just two areas of growth seem to still be in the wealth and the capital markets areas. I'm wondering if you maybe update us on maybe where you see the incremental spend, and then on the wealth side, in particular, just sort of curious, you mentioned a number of times, new products, new geographies. Maybe unpack that a little bit in terms of where you see the greatest opportunity in the near term. Thank you.

So far.

Just two areas of growth seems still being a wealth in the capital markets areas. I'm wondering if you maybe update us on maybe where you see the incremental spend and then on the wealth side in particular, just sort of curious you mentioned a number of times new products, new geographies, maybe unpack that a little bit in terms of where you see the greatest opportunity in near term. Thank you.

Jeff why don't you start with well sure.

Hey, Bill Thanks for the question.

Jon Winkelried: Jack, why don't you start with wealth?

Jack Weingart: Sure. Hey, Bill, thanks for the question. Look, wealth is a multiyear build for us, right? The starting point was launching TPOP alongside our existing products and the existing evergreen products, MVP and TCAP, and getting kind of the flagship private equity product in the wealth channel on the evergreen side, launched effectively. And that, as I mentioned, is off to a great start with lots of room to grow from here. You know, $900 million is the latest AUM number we've announced there, and we see substantial continued growth through the rest of this year and next year. Part of that growth... Well, all of that so far has been almost entirely on three platforms.

Wealth is a multiyear build for us, but the starting point was launching deepak alongside our existing products.

Listing evergreen products MVP and T cap.

And getting kind of the flagship private equity products in the wealth channel on the Evergreen site launched effectively and that as I mentioned is off to a great start with lots of room to grow from here $900 million of the latest AUM number we've announced there and we see substantial continued growth.

Through the rest of this year and next year.

Part of that growth will all of that so far has been almost entirely on three platforms in the platforms in which we're selling chief up.

Jack Weingart: In the platforms in which we're selling TPOP, we are one of the most attractive or high volume private equity evergreen products, if not the most active. So it's extremely well received, but we're very early in the expansion across additional distribution partners. So through the course of next year, you'll see that. You'll see us expanding partnerships to broaden out and globalize effectively the placement of TPOP. Along with that, there are several additional products that we feel like we're well suited to bring to market. The first would probably be a multi-strategy credit interval fund. We've talked about how well received TCAP is as a direct lending BDC.

We are one of the most.

Um, you know, uh, obviously and, and, and there's not only product strategies, but also geographies as well. I think that, you know, we're continuing to focus, um, on, um, how to continue to to broaden our footprint in Europe as an example. Um, and there may be sort of, uh, opportunities there that develop for us. Um, nothing, you know, nothing, you know, to do right now today. But I mean that's just an area that interests us because we are a global firm. Um, we could, um, find opportunities that I would describe as kind of tuck in or fill-ins in our credit strategy, that might be interesting to us. Um, there are areas, uh, potentially, um, related to the build and infrastructure that might be interesting to us because obviously, we have 2 pieces to that now. TI and then also Pepper Tree. Um, and I think we want to continue to think about how does that part of the market expand for us? Um, you know, there's a lot of interesting um uh, developments going on in the market as it relates to secondaries in

Attractive or high volume.

Private equity evergreen products, if not the most active.

So it's extremely well received but we're very early in the expansion across additional distribution partners. So through the course of next year, you'll see that you'll see us expanding partnerships to broaden out and globalize effectively the placement of cheap hub along with that.

Our market, um, as our primary markets across all the asset classes grow, I think the secondary flows are going to become more and more important to the market. So that's another really interesting area.

Great. Thanks so much.

And we will take our next question from Bill Cats with TD Cowen.

There are several additional products that we feel like we're well suited to bring to market. The first would probably be a multi strategy credit credit interval fund you talked about how well received T cap is as a direct lending BDC.

The other businesses as we've talked about that we have in credit through Angela Gordon are also distinctive businesses in structured credit credit solutions et cetera.

Jack Weingart: The other businesses, as we've talked about, that we have in credit through Angelo Gordon, are also distinctive businesses in structured credit, credit solutions, et cetera. So having a credit interval fund that, much like TPOP, feeds on all of our private equity deal flow, that benefits from all of the deal flow across our credit platform, we're seeing strong demand for that in the early, in early mid-, I'd say, mid-stage discussions with potential channel partners who want to see that product. And then the next tent pole would be in real estate. We have no non-traded REIT at this point. We have an excellent real estate business that's diversified across lots of different components. So we're in active discussions with channel partners who would like to see a real estate product from us.

So having a credit interval fund debt much like key pop feeds on all of our private equity deal flow that that benefits from all of the deal flow across our credit platform.

Great. Thank you very much for taking the question. I'm pretty sure all the guidance uh, and discussion so far maybe just 2 areas of growth. Seems to still be in the wealth and the capital markets, uh, areas. I wonder if you maybe update us on maybe where you see the incremental spend and then on the website in particular, just sort of curious. You mentioned a number of times new products, new geographies, maybe unpack that a little bit in terms of where you see the greatest opportunity in your term. Thank you. Well Jack, why don't you start? Well sure. Hey Bill thanks for the question. Um look what wealth is a multi-year build for us, right? The first the starting point was launching teapop. Alongside our existing products and be the existing uh, Evergreen products, MVP and tap

We're seeing strong demand for that in the early in early.

Mid stage discussions with potential channel partners, who want to see that product and then and then the next tentpole would be real estate.

And getting kind of the flagship private equity product in the wealth channel on the Evergreen side launched effectively. As I mentioned, that is off to a great start with lots of room to grow from here. You know, $900 million is the latest AUM number we've announced, and we see substantial continued growth.

We had no non traded REIT at this point, we have an excellent real estate business that is diversified across lots of different <unk>.

Components. So we're in active discussions with channel partners, who would like to see a real estate products from us. So that's kind of a near term roadmap with with more to come.

Jack Weingart: So that's kind of a near-term roadmap with more to come.

I think on capital markets I think that.

You should expect that our capital markets business will continue to grow.

Jon Winkelried: I think on capital markets, I think that, you know, you should expect that our capital markets business will continue to grow. Obviously, it's a transactional business, so the general flow of opportunities is correlated, you know, capital markets will be correlated to that. But one of the things that has happened over the course of, and I'm sure you've seen it in the trajectory of our revenues over the course of the last several years, is that as we have been embedding our capital markets capabilities into each of our platforms in each of our product areas, you know, we're involved in as a capital provider, as a capital arranger, across almost all of our businesses now.

Through the rest of this year. And next year, um, part of that growth will all of that. So far has been almost entirely on 3 Platforms in the Platforms in which we are selling teapop. We are 1 of the most um attract attractive or or high volume.

Obviously, it's a transactional business.

So.

The general flow of opportunities is correlated capital markets will be correlated to that but one of the things that has happened over the course of and I'm sure you've seen it in the trajectory of our revenues over the course of the last several years is that as we have been embedding our capital markets capabilities into <unk>.

Each of our platforms in each of our product areas.

We're involved in.

As a as a capital provider capital Ranger.

Across almost all of our businesses now and with the addition of our credit franchise. It is.

Jon Winkelried: With the addition of our credit franchise, it's taken sort of a next step with respect to our ability to use the broker-dealer and use our capital markets capabilities to distribute and to source. I think that our outlook for that is that as the firm grows, it'll continue to grow.

Taken sort of a next step with respect to our ability to use the broker dealer and use of our capital markets capabilities.

Private Equity Evergreen products, if not the most active, uh, that. So it's it's extremely well-received but we're very early in the expansion across additional, uh, distribution Partners. So through the course of next year, you'll see that you'll see us expanding Partnerships to broaden out and and and globalize effectively, the placement of teapop along with that. There's a there are several additional products that we feel like we're well suited to bring to market. The first would probably be a multi-strategy credit credit interval fund. We've talked about how well-received TCAP is as a direct lending BDC, we the other businesses as we've talked about that, we have in credit through Angelo, Gordon are also distinctive businesses and structured Credit Credit Credit Solutions, Etc,

Distribute as a source.

So.

Think that our outlook for that is that is.

The firm grows it will continue to grow.

Thank you.

Okay.

Bill Katz: Thank you.

This concludes the Q&A portion of today's call I would now like to turn the call back over to Gary Stein for closing remarks.

Operator 3: This concludes the Q&A portion of today's call. I would now like to turn the call back over to Gary Stein for closing remarks.

Operator: This concludes the Q&A portion of today's call. I would now like to turn the call back over to Gary Stein for closing remarks.

Great. Thanks, operator, thank you all for joining US today, if you have any additional questions. Please feel free to follow up directly with the IR team.

Jack Weingart: Great. Thanks, operator. Thank you all for joining us today. If you have any additional questions, please feel free to follow up directly with the IR team.

Gary Stein: Great. Thanks, operator. Thank you all for joining us today. If you have any additional questions, please feel free to follow up directly with the IR team.

This conclude todays Tpg's third quarter 2025 earnings call and webcast. You may disconnect. Your lines at this time and have a wonderful day.

Operator 3: This concludes today's TPG's Q3 2025 earnings call and webcast. You may disconnect your line at this time and have a wonderful day.

Operator: This concludes today's TPG's Q3 2025 earnings call and webcast. You may disconnect your line at this time and have a wonderful day.

So, having a creditable fund that much like teapot feeds on all of our private Equity deal flow that that benefits from all of the deal flow across our credit platform. Uh, we're seeing strong demand for that. In the early, in early mid, I'd say mid-stage discussions with potential Channel Partners, who want to see that product and then, and then the next 10th poll would be in real estate. We have no non-traded, Reit. At this point, we have an excellent real estate business that's Diversified across lots of different, uh, components. So, we're an active discussion with Channel Partners who would like to see a real estate product from us. So that's kind of a near-term roadmap with uh with more to come.

Dealer and use our Capital markets capabilities, um, to distribute and to Source. Um, so, um, I think that um, our outlook for that is that um, as the firm grows, it'll continue to grow.

Thank you.

This concludes the Q&A portion of today's call. I would now like to turn the call back over to Gary Stein for closing remarks.

Great. Thanks, operator. Thank you all for joining us today. If you have any additional questions, please feel free to follow up directly with the art team.

This concludes today's tpg's third quarter 2025 earnings call and webcast. You may disconnect your line at this time and have a wonderful day.

Q3 2025 TPG Inc Earnings Call

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