Demo
TPG Nasdaq· TPG Inc
FundamentalsNews digest Peer analysis
Login
TPG Nasdaq· TPG Inc
Earnings report Q3 2023

TPG Reports Decrease in Revenues for the Latest Quarter

Segments of revenue

TPG's revenues for the latest quarter amounted to $160.36 million, a significant decrease from the previous year's quarter revenue of $561.12 million. The breakdown of the different revenue segments is as follows:

  • Fees and other: This segment generated $366.15 million in revenue, compared to $333.50 million in the previous year's quarter. The increase in revenue can be attributed to higher management fees, which amounted to $278.97 million, up from $252.65 million in the previous year's quarter.

  • Performance allocations: This segment reported a loss of $205.79 million, compared to a gain of $227.63 million in the previous year's quarter. The decrease in revenue can be attributed to losses from various TPG operating groups, including TPG IV, TPG VI, Asia V, and others.

  • Capital interests: This segment reported a loss of $5.71 million, compared to a gain of $4.32 million in the previous year's quarter. The decrease in revenue can be attributed to losses from TPG's capital interests.

Strengths

Despite the overall decrease in revenues, TPG's fees and other segment showed growth, primarily driven by higher management fees. This indicates a strong performance in managing client assets and generating fee-based income. Additionally, TPG's accrued performance allocations for common unit holders in TPG Operating Group shared TPG general partner entities totaled $4.2 billion, highlighting the company's ability to generate returns for its investors.

Challenges

TPG faced challenges in the performance allocations and capital interests segments, which resulted in significant losses. The losses were primarily driven by underperformance in various TPG operating groups, including TPG IV, TPG VI, Asia V, and others. These challenges highlight the volatility and risks associated with TPG's investment strategies.

Noteworthy

It is worth mentioning that TPG's revenues for the latest quarter were significantly lower compared to the previous year's quarter. This decrease can be attributed to losses in the performance allocations and capital interests segments, offsetting the growth in the fees and other segment. TPG's performance allocations also experienced a significant decline of 41% compared to the previous year's quarter.

Summary

TPG reported a decrease in revenues for the latest quarter, primarily driven by losses in the performance allocations and capital interests segments. However, the fees and other segment showed growth, mainly due to higher management fees. TPG faced challenges in various operating groups, resulting in significant losses. Despite these challenges, TPG's ability to generate returns for its investors is evident through the accrued performance allocations for common unit holders. Overall, TPG's latest quarter performance reflects the volatility and risks associated with its investment strategies.

Source documents

Form 10-Q  filed on Nov 07, 2023
6 pages scanned

Reference data

Company financials Q3 revenue 983M
Analyst estimates Q3 EPS beat by 26.36%
Sign up to Fey

Get in-depth analysis on thousands of stocks for just $30/month. Cancel anytime.