By Maria Armental and Rob Curran
TPG is armed with more than $72 billion ready to invest and plans to accelerate investments in 2026 against what it sees as a favorable market, including in the recently battered technology sector.
"Market dislocation generally creates compelling opportunities," Chief Executive Jon Winkelried said in an earnings call with analysts, adding that a reset in valuations puts TPG in a strong position to capitalize on attractive deals.
TPG joins KKR, Ares Management, and Blue Owl Capital in reporting its latest results as fears that artificial intelligence will disrupt the software industry and the health of the U.S. labor market have roiled public stocks.
The stocks of all major publicly traded private-capital firms fell Thursday, with most firms shedding any stock gains year to date and a few, including Blue Owl, setting a 52-week low during regular trading hours.
TPG's Winkelried said software represents about 11% of the firm's total managed assets, mostly in private equity. In credit, one of the areas hardest hit by the tech selloff, software accounts for about 2% of managed assets, he said.
TPG executives echoed other investors in saying they remain bullish on the technology sector. They emphasized their ability to pick the "AI winners," businesses like TPG-controlled healthcare technology company Lyric that have valuable data accessible only by internally developed AI, as well as cybersecurity businesses, such as TPG-backed Delinea, that stand to benefit broadly from heightened cyber risks and more sophisticated cyberattacks.
TPG invested $19.3 billion in the fourth quarter, bringing the total for 2025 to $51.9 billion, Winkelried said. Both figures marked a record for the firm, he said.
In private equity, TPG invested about $21 billion in 2025, roughly double the amount invested in 2024, he said, adding that the firm's deployment pace is expected to continue to accelerate.
The firm, which generated $23.4 billion from sales of investments in 2025, slightly up from 2024 levels, recently received bids for its stake in Singapore-based school operator XCL Education.
TPG also recorded a record-year for fundraising, with a $51.9 billion annual haul, including $16.2 billion raised in the fourth quarter.
Chief Financial Officer Jack Weingart said on the conference call that TPG also expects to raise more than $50 billion in 2026, calling it "a new level of expected annual fundraising," going forward.
Overall, TPG reported a fourth-quarter profit of $77.1 million, or 29 cents a share, compared with a profit of $13 million a year earlier. Quarterly revenue rose 39% to $1.49 billion.
After-tax distributable earnings, or cash that can be returned to investors, rose almost 17% to $304 million. And fee-related earnings, a proxy for management fees, surged 72% to $326 million.
TPG ended 2025 with about $303 billion in managed assets, nearly triple the level it reported about four years ago in its first earnings report as a public company.
Write to Maria Armental at maria.armental@wsj.com and Rob Curran at rob.curran@wsj.com
(END) Dow Jones Newswires
February 05, 2026 17:45 ET (22:45 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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