By Maria Armental and Connor Hart
Private-markets firm TPG wants to capitalize on market turmoil with nearly $73 billion ready to invest, but it also is looking for opportunities to sell earlier investments as the industry confronts swollen backlogs that have strained fundraising.
"We view the current environment as an opportunity," TPG Chief Executive Jon Winkelried said on the firm's quarterly earnings call Friday, citing deals such as a $450 million debt transaction with Xerox.
Winkelried, a former Goldman Sachs executive, said TPG has delivered some of its best performance from investments made during difficult periods like the present.
A year after the initial shocks of tariff moves and policy uncertainty, firms are now confronting AI disruption, private-credit stress and geopolitical conflict.
TPG executives told analysts that while market volatility may affect the timing of investment sales, the firm has an active pipeline and recent exits. They include the recently closed $4.75 billion sale of renewable-energy company Intersect Power to Google and Cencora's roughly $7.4 billion acquisition of cancer specialist OneOncology. Both sales took place at premiums to the firm's most recent valuations, TPG President Todd Sisitsky said.
Overall, TPG generated about $8.7 billion from investment sales in the quarter, more than double the year-ago period and well ahead of the $4.8 billion generated in the fourth quarter.
The firm, which posted record fundraising and investment volumes in 2025, nearly doubled the amount it invested in the first quarter to $14.37 billion compared with $7.35 billion a year earlier. It was shy, however, of the money invested in the fourth quarter.
A similar trend played out in fundraising, with the first quarter's $10.35 billion haul solidly outpacing the year-ago $5.91 billion, but trailing the $16.2 billion raised in the fourth quarter.
TPG ended the quarter with about $72.8 billion of dry powder, slightly more money ready to invest than the previous quarter.
First-quarter financials, however, showed some pressure points in private equity and collateralized loan obligations, or CLOs, which are backed by bundles of corporate loans.
The value of the firm's private-equity portfolio declined about 1% during the quarter. Firm executives said this reflected valuation contractions in public markets through March 31, partially offset by earnings growth in those businesses.
Credit investments remained strong in the quarter, with appreciation of about 2.2%, according to the firm.
Credit is TPG's largest platform by assets under management, just ahead of the TPG Capital flagship buyout strategy. The two strategies combined account for more than half of TPG's $306.2 billion in assets under management as of March 31.
The private-credit market has been buffeted by redemption requests from investors, particularly in business-development companies, or BDCs. In some cases, investors are nervous about the loans those funds hold, while others look to capitalize on the differences in how they are valued.
For TPG, those credit outflows have been small, although they did increase over the latest quarter. TPG executives noted that TPG Twin Brook Capital Income Fund, or TCAP, a nontraded BDC, saw nearly $31 million in redemptions during the latest quarter but saw $193 million in gross inflows.
Overall, TPG disclosed credit outflows of $635 million in the first quarter and $158 million in the fourth quarter. The firm said it remains on track to raise more than $50 billion this year across all of its investment strategies.
Overall, TPG swung to a $1.5 million loss, or 22 cents a share, from a year-earlier profit of $25.4 million. Revenue in the quarter was $500 million, roughly half the prior year's $1.03 billion.
After-tax distributable earnings, a key industry performance metric, rose nearly 51% to $281.6 million.
Fee-related earnings, a proxy for management fees, rose 36% to $246.9 million and for the first time exceeded $1 billion over the previous 12 months.
TPG shares recently were up 2.2% at $44.57.
Write to Maria Armental at maria.armental@wsj.com and Connor Hart at Connor.Hart@wsj.com
(END) Dow Jones Newswires
May 01, 2026 16:03 ET (20:03 GMT)
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