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TPG records $199 million earnings in first quarter since IPO -Breaking


© Reuters. FILE PHOTO : Jon Winkelried (CEO of private equity firm TPG) celebrates the IPO outside Nasdaq’s Market in Times Square in New York City on January 13, 2022. REUTERS/Brendan McDermid

By Chibuike Oguh

TPG reported Tuesday that its after-tax distribution earnings rose to $199million from $65 million a previous year. TPG added that the private equity and impact investing business had experienced strong sales growth.

TPG’s results exceeded Refinitiv’s average analyst estimate at $149 Million.

Blackstone (NYSE :), KKR or Carlyle reported similar results, which had all posted record profits despite soaring inflation, increasing interest rates and Russia’s invasion of Ukraine.

“We placed more emphasis on exits that result in full-company sales than first public offerings when we were weighing our exits.” Jack Weingart, TPG Chief Financial Officer stated that an IPO is not a way to lock in the equity value of our investors.

TPG claimed that it earned $4.8 billion by cashing out investments. McAfee is a cybersecurity software provider that TPG and Thoma Bravo have sold to a group of investment companies in a $14-billion deal.

Fort Worth, Texas-based company also spent $4.4 Billion on new acquisitions in the fourth quarter.

Jon Winkelried, chief executive of TPG, stated that “we’re likely in the high end in respect to our ratio monetizations to investment,” Reuters reported.

“Until very recently you’ve heard about market highs and extremely high multiples. To return capital to limited partners, we felt that this was something we needed to do. We thought it very appealing.

TPG’s Asia, private equity and healthcare business saw funds increase by 11% while real estate funds experienced a 6.2% rise. Blackstone and Carlyle saw their private equity portfolios rise by 2.8% & 7%, respectively.

TPG reported that it finished the quarter with $30.2 billion uninvested capital and $120 billion assets under management. TPG announced a share split of 44c per share. This was the first payout it has made to investors since January’s IPO.