TPG Inc. (NASDAQ:TPG) Q1 2024 Earnings Call Transcript

We could be wrong about that. We could accelerate the activation earlier, but that’s our assumption. But during the course of the year, the investment we’re making in raising those funds, which will become more and more visible in the coming quarters, will set us up for more meaningful FRR growth next year as you get the annualized benefit of that plus accelerated credit deployment. So as we’re thinking about the FRE margin trajectory, we do believe that the guidance toward exceeding 40% this year is the right guidance. And then we’ll begin to see an acceleration of FRE margin expansion next year as some of those FRR drivers kick in next year. And there’s no reason we shouldn’t get back to 45% and eventually higher than that as we keep scaling our business.

Operator: This concludes the Q&A portion of today’s call. I would now like to turn the call back over to Gary Stein for closing remarks.

Gary Stein: Great. Thank you. Thank you all for joining us today. We look forward to speaking to you again next quarter. And in the meantime, if you have any questions, feel free to follow up with the IR team.

Jon Winkelried: Thanks, everyone.

Operator: This concludes today’s TPG’s First Quarter 2024 Earnings Call and webcast. You may disconnect your line at this time, and have a wonderful day.