TPG’s result exceeded analysts’ average estimate of $149 million calculated by financial data provider Refinitiv.
This performance is in line with that of Blackstone, KKR and Carlyle, which all announced huge profits despite runaway inflation, rising interest rates and Russia’s invasion of Ukraine.
“We have geared our outflows towards selling whole companies rather than initial public offerings. This is because an IPO does not lock in equity value for investors in our funds,” said Jack Weingart, Chief Financial Officer of TPG.
TPG said it generated $4.8 billion from its investments. That includes cybersecurity software provider McAfee, which TPG and Thoma Bravo sold to a consortium of investment firms in a $14 billion deal.
The Fort Worth, Texas-based company also spent $4.4 billion on new acquisitions during the quarter.
“We’re probably in the upper range when it comes to our ratio of monetizations to new investments,” TPG chief executive Jon Winkelried said in a Reuters interview.
“Until recently, you’d hear about skyrocketing market valuations and very high multiples. We felt we needed to address this issue in order to return capital to our limited partners at very attractive valuations.”
Funds managed in TPG’s private equity, healthcare and Asia businesses rose 11%, while its property funds gained 6.2%. Blackstone’s and Carlyle’s private equity portfolios grew 2.8% and 7%, respectively.
TPG said it ended the quarter with $120 billion in assets under management and $30.2 billion in unspent capital. TPG declared a dividend of 44 cents per share, the first time it announced a payout to investors since its IPO in January.