TPG reported strong fourth-quarter after-tax distributable earnings of $304 million, with a $0.71 per share dividend. The firm raised a record $51 billion in 2025, grew total AUM to $303 billion, and saw a record Q4 FRE margin of 52%. TPG also significantly expanded its credit platform and emphasized selective private equity exposure.

Full-year fee-related revenue totaled $2.1 billion, with a 36% YoY increase in the fourth quarter. Transaction and monitoring fees more than tripled YoY in Q4. Fee-related earnings were $953 million for the year, up 25% from 2024. CEO Jon Winkelried called 2025 a “breakout year” with record fundraising and investing activity.

TPG ended 2025 with $303 billion of total AUM, up 23% YoY, and deployed a record $52 billion for the year. The firm raised $21 billion of credit capital and launched TPG Advantage Direct Lending with an $875 million first close. Private equity fundraising grew over 80% to $28 billion, outpacing industry trends.

Management emphasized selective private equity exposure to software amid AI disruption concerns. TPG has not heavily invested in software within direct lending and has avoided ARR-based loans. The firm sees opportunities in vertical market software and cybersecurity companies benefiting from AI adoption.

Looking ahead, TPG expects 2026 fundraising to exceed $50 billion with a 47% FRE margin. Real estate is expected to enter a major fundraising cycle. The firm also discussed strategic partnerships and plans to expand the private wealth product suite. TPG continues to diversify and expand its investment offerings.

Read more at Yahoo Finance: TPG Q4 Earnings Call Highlights