Alternative asset manager TPG reported a strong second quarter, driven by record fundraising, rising fee-related revenues, and strategic investments in AI, amid steady performance across its private equity, credit, and real estate platforms.
TPG posted a strong second quarter, helped by a sharp rise in fee-related revenue, record fundraising and continued momentum across its private equity, credit and real estate platforms, while also leaning further into artificial intelligence-related opportunities.
The alternative asset manager said fee-related revenue rose 27% from a year earlier to $628 million, while fee-related earnings climbed 43% to $315 million, lifting its fee-related earnings margin to 50%. That was above the 47% full-year margin target the company reiterated, though management said it was not changing its guidance for 2026.
Fundraising was a particular bright spot. TPG raised $16 billion during the quarter, taking first-half inflows to more than $26 billion and leaving it confident of surpassing its $50 billion goal for the year. Deployment was also robust, with about $14 billion invested in the quarter, up 33% year on year, and record trailing 12-month deployment of $62 billion.
Chief executive Jon Winkelried said the firm’s capital formation engine remained broad-based, supported by strength in credit, growth and private equity. He also pointed to the firm’s capital markets business, although chief financial officer Jack Weingart cautioned that transaction and monitoring fees are likely to ease in the third quarter after several deals closed earlier than expected.
The quarter also showed the continued expansion of TPG’s private wealth effort. Its perpetual private equity product, T-POP, has reached $2.9 billion in assets under management and generated annualised inception-to-date returns of 34%. The company said it is widening distribution through additional platforms, including international channels and a US registered investment adviser sales force, while developing similar evergreen products in real estate and credit.
Artificial intelligence is becoming a bigger strategic theme. TPG said it is leading the OpenAI Deployment Company with more than $4 billion in initial capital, a move executives described as both an investment and a sourcing advantage. Todd Sisitsky, the firm’s president, said the vehicle should deepen TPG’s understanding of AI and improve underwriting across its portfolio, particularly in software, where it says roughly 75% of its exposure is well positioned to benefit from the technology shift.
Performance across the existing portfolio remained solid. TPG said private equity portfolio value rose about 6% in the quarter, its second-strongest quarterly increase since listing, helped by EBITDA growth, multiple expansion and debt paydown. Net accrued carry rose 15% to $1.4 billion. Realised performance allocations were more modest at $35 million, which the firm attributed to a choppier macro environment and slower timing of exits.
The credit business continued to provide a steadier source of growth. TPG said non-accruals remained low at 1.4%, while its third Credit Solutions Fund delivered a 7.5% quarterly return. In insurance, the firm highlighted an expanded relationship with Jackson Financial, which has committed a further $2.5 billion in multiyear capital, taking total commitments since February to $4.5 billion.
Real estate, too, is gathering pace. TPG deployed $2.3 billion in the quarter, up 47% from a year earlier, and said it expects first closes for all four of its US and Asia real estate equity funds by year-end. Management said investor interest in the strategy is improving, supported by value opportunities and co-investment activity.
Even so, TPG flagged some near-term headwinds. The company expects a step-down in capital markets fees in the third quarter, warned that its effective tax rate should rise in the fourth quarter after tax deductions tied to RSU vesting are used up, and acknowledged that broader market volatility could continue to affect monetisations. It also said expansion into lower-fee businesses may put some pressure on average fee rates over time, even if those markets offer scale.
Still, the message from the quarter was clear: TPG sees itself in the middle of several powerful trends at once, from private wealth and insurance partnerships to AI and opportunistic credit, and believes that combination can keep driving growth well beyond 2026.