#1TPG TPG Reports First Quarter 2022 Financial Results Quarter Ended March 31, 2022#2TPG Reports First Quarter 2022 Financial Results GAAP net income attributable to TPG Inc. of $41 million for the first quarter ended March 31, 2022 Announced first dividend as a public company of $0.44 per share of Class A common stock for the first quarter of 2022 After-tax Distributable Earnings of $199 million (or $0.52 per share of Class A common stock) for the first quarter ended March 31, 2022 more than tripled compared to $65 million for the comparable pro forma period in 2021 Total assets under management of $120 billion as of March 31, 2022, a 26% increase compared to $95 billion as of March 31, 2021 ■ I ■ San Francisco and Fort Worth, TX - May 10, 2022 - TPG Inc. (NASDAQ: TPG), a leading global alternative asset management firm, reported unaudited first quarter 2022 results. TPG issued a full detailed presentation f its quarter ended March 31, 2022 results, which can be viewed through the Investor Relations section of TPG's website at shareholders.tpg.com. "TPG's strong financial results for the first quarter of 2022 highlight the momentum we are continuing to generate across our five multi-product platforms," said Jon Winkelried, Chief Executive Officer. "We continue to make solid progress with our broad-based fundraising campaigns and are investing capital in a range of high-quality companies globally, while managing our investment portfolios to drive growth and opportunistically seek attractive realization opportunities. I'm proud of our team and confident in our ability to build long term value for our investors." Dividend TPG has declared a quarterly dividend of $0.44 per share of Class A common stock to holders of record at the close of business on May 20, 2022, payable on June 3, 2022. Conference Call TPG will host a conference call and live webcast at 11:00 a.m. ET. It may be accessed by dialing (866) 342-8591 (US toll-free) or (203) 518- 9713 (international), using the conference ID TPGQ122. The number should be dialed at least ten minutes prior to the start of the call. A simultaneous webcast will also be available and can be accessed through the Investor Relations section of TPG's website at shareholders.tpg.com. A webcast replay will be made available on the Events page in the Investor Relations section of TPG's website. Shareholder contact: Gary Stein 212 601 4750 [email protected] Media contact: Luke Barrett 415 743 1550 [email protected] TPG | 2#3TPG Reports First Quarter 2022 Financial Results About TPG TPG is a leading global alternative asset management firm founded in San Francisco in 1992 with $120 billion of assets under management and investment and operational teams in 12 offices globally. TPG invests across five multi-product platforms: Capital, Growth, Impact, Real Estate, and Market Solutions and our unique strategy is driven by collaboration, innovation, and inclusion. Our teams combine deep product and sector experience with broad capabilities and expertise to develop differentiated insights and add value for our fund investors, portfolio companies, management teams, and communities. Forward Looking Statements This presentation contains "forward-looking" statements based on the Company's beliefs and assumptions and on information currently available to the Company. Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects" and similar references to future periods, or by the inclusion of forecasts or projections. Examples of forward-looking statements include, but are not limited to, statements we make regarding the outlook for our future business and financial performance, business strategy and plans and objectives of management for future operations, including, among other things, statements regarding expected growth, future capital expenditures, fund performance, dividends and dividend policy, and debt service obligations. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by any forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, among various other risks. For the reasons described above, we caution you against relying on any forward-looking statements, which should be read in conjunction with the other cautionary statements included elsewhere in this presentation and risk factors discussed from time to time in the Company's filings with the SEC, which can be found at the SEC's website at http://www.sec.gov. Any forward-looking statement in this presentation speaks only as of the date of this presentation. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update or revise any forward-looking statement after the date of this presentation, whether as a result of new information, future developments or otherwise, except as may be required by law. No recipient should, therefore, rely on these forward-looking statements as representing the views of the Company or its management as of any date subsequent to the date of the presentation. This presentation does not constitute an offer of any TPG Fund. Throughout this presentation, all current period amounts are preliminary and unaudited; totals may not sum due to rounding. TPG | 3#4Comparability Statement and Pro Forma Financial Information Prior to and in connection with our initial public offering ("IPO"), we completed certain transactions as part of a corporate reorganization (the "Reorganization"), which concluded with NASDAQ listing our Class A common stock on January 13, 2022. The Reorganization included certain transfers of economic entitlements and investments that were effectuated December 31, 2021, including the transfer of certain limited partner interests in entities that (i) serve as the general partner of certain TPG funds and (ii) are, or historically were, consolidated by TPG Group Holdings (SBS), L.P. ("TPG general partner entities") to Tarrant RemainCo I, L.P., Tarrant RemainCo II, L.P. and Tarrant Remain Co III, L.P. ("RemainCo"). The transfer of certain limited partner interests in TPG general partner entities to RemainCo resulted in the deconsolidation of TPG Funds, as the TPG general partner entities are no longer considered the primary beneficiary as of December 31, 2021. While the Reorganization did not affect, on a GAAP or non-GAAP basis, our income statement activity for the fiscal year ended December 31, 2021 or our financial statements for prior periods, this presentation includes pro forma financial data giving effect to the IPO and the Reorganization as though they had occurred on January 1, 2020. As such, the pro forma information reflects certain Reorganization adjustments, including, but not limited to, the exclusion of assets that were transferred to Remain Co, increasing the amount of performance allocations our people will receive, the inclusion of an administrative services fee paid by RemainCo to the Company, additional interest on debt incurred as part of the Reorganization, and the step-up of taxes on a public-company basis. Therefore, comparability of the pro forma information included in this presentation to prior financial data or future periods may be limited. See the Supplemental Details and Reconciliations and Disclosures sections of this presentation for a full comparison of actual to pro forma financial data and adjustment descriptions. TPG | 4#5First Quarter 2022 Financial Results#6GAAP Statements of Operations Net income was $163 million for 1Q'22, compared to $412 million in 1Q'21 on a pro forma basis Net income attributable to TPG Inc. was $41 million for 1Q'22, compared to $47 million in 1Q'21 on a pro forma basis ■ ■ ($ in thousands) Revenues Fees and other Capital allocation-based income Total revenues Expenses Compensation and benefits Cash-based compensation and benefits Equity-based compensation Performance allocation compensation Total compensation and benefits General, administrative and other Depreciation and amortization Interest expense Expenses of consolidated TPG Funds and Public SPACs: Interest expense Other Total expenses Investment income Income from investments: Net gains (losses) from investment activities Interest, dividends and other Investment income of consolidated TPG Funds and Public SPACs: Net gains (losses) from investment activities Unrealized gains (losses) on derivative liabilities Interest, dividends and other Total investment income Income before income taxes Income tax expense Net income Less: Net (loss) income attributable to redeemable equity in Public SPACs prior to IPO Net (loss) income attributable to non-controlling interests in consolidated TPG Funds prior to IPO Net (loss) income attributable to other non-controlling interests prior to IPO Net income attributable to TPG Group Holdings prior to IPO Net income attributable to redeemable equity in Public SPACS Net loss attributable to non-controlling interests in TPG Operating Group Net income attributable to other non-controlling interests Net income attributable to TPG Inc. subsequent to IPO $ $ Actual 1Q'21 210,155 $ 994,578 1,204,733 127,981 127,981 53,130 1,364 3,921 192 8,058 194,646 72,404 979 (7,616) 87,600 988 154,355 1,164,442 3,128 1,161,314 63,558 (5,736) 589,311 514,181 $ Pro Forma 1Q'21 215,885 995,238 1,211,123 96,212 125,641 601,595 823,448 53,130 1,364 4,919 8,187 891,048 20,070 979 87,600 11 108,660 428,735 17,168 411,567 63,558 301,005 47,004 $ $ Actual 1Q'22 273,005 837,705 1,110,710 116,359 185,911 523,138 825,408 102,264 8,699 4,638 1,523 942,532 6,643 204 2,657 126 9,630 177,808 15,004 162,804 (517) 966 5,256 1,823 (4,912) 118,904 41,284 $ Actual FY¹21 977,904 3,998,483 4,976,387 579,698 579,698 278,590 21,223 16,291 740 20,024 916,566 353,219 6,460 23,392 211,822 10,321 605,214 4,665,035 9,038 4,655,997 155,131 19,287 2,455,825 2,025,754 $ Pro Forma FY¹21 998,711 3,989,830 4,988,541 439,420 500,607 2,538,505 3,478,532 278,590 21,223 20,282 18,395 3,817,022 260,359 6,460 211,822 6,292 484,933 1,656,452 77,979 1,578,473 155,131 1,191,994 231,348 Note: Pro forma financial measures are on an adjusted basis, assuming the Reorganization and IPO occurred on January 1, 2020; see the Supplemental Details section of this presentation for a full reconciliation and description of adjustments. See the Additional Information and Definitions pages in the Reconciliation and Disclosures section of this presentation for definitions of terms used throughout. TPG | 6#7First Quarter and Last Twelve Months Highlights Actual Non-GAAP Financial Measures ($M) Pro Forma Non-GAAP Financial Measures ($M) Operating Metrics ($B) I 1Q'22 FRE of $92 million increased 174% versus 1Q'21, and After-tax DE of $199 million doubled year-over-year Fee-Related Revenues ("FRR") Fee-Related Earnings ("FRE") Realized Performance Allocations, Net After-Tax Distributable Earnings ■ Fee-Related Revenues Fee-Related Earnings Realized Performance Allocations, Net After-Tax Distributable Earnings Assets Under Management ("AUM") Fee Earning Assets Under Management ("FAUM") Net Accrued Performance Allocations (1) Available Capital 1Q'21 $193 34 66 99 1Q'22 After-tax DE of $199 million more than tripled compared to 1Q'21, driven by growth in realized performance allocations, net and Fee- Related Earnings Value Creation Capital Raised Capital Invested Realizations 1Q'21 $194 67 6 65 1Q'21 $95.2 51.1 0.5 Total AUM of $120 billion, up 26% in the last twelve months; Fee Earning AUM of $64 billion, up 26% during the same period 23.1 1Q'22 $241 92 122 199 1Q'21 11% $1.5 3.7 1.4 1Q'22 $241 92 122 199 4Q'21 $113.6 60.1 0.8 28.4 1Q'22 7% $5.4 1Q'22 LTM 4.4 $915 237 1,056 1,339 4.8 1Q'22 LTM $921 351 321 672 1Q'22 $120.4 64.2 0.8 30.3 1Q'22 LTM 33% $24.5 22.3 28.8 Note: Pro forma financial measures are on an adjusted basis, assuming the Reorganization and IPO occurred on January 1, 2020; see the Supplemental Details section of this presentation for a full reconciliation and description of adjustments. See the Reconciliations and Disclosures section of this presentation for a full reconciliation between GAAP and Non-GAAP Financial Measures. 1. 1Q'21 and 4Q'21 Net Accrued Performance Allocations are pro forma for the Reorganization and IPO. TPG 17#8Non-GAAP Financial Measures Fee-Related Earnings increased 38% from $67 million in 1Q'21 on a pro forma basis to $92 million in 1Q'22, and amounted to $351 million for 1Q'22 LTM on a pro forma basis; margins increased from 34% during pro forma 1Q'21 to 38% during 1Q'22 ■ ■ Realized performance allocations, net increased from pro forma 1Q'21 to 1Q'22, going from $6 million to $122 million, respectively, while 1Q'22 LTM saw realized performance allocations, net of $321 million on a pro forma basis After-tax Distributable Earnings saw 207% growth from $65 million in 1Q'21 on a pro forma basis to $199 million in 1Q'22; 1Q'22 LTM After-tax Distributable Earnings totaled $672 million on a pro form a basis, mainly driven by Fee-Related Earnings. ($ in thousands) Fee-Related Revenues Management Fees Transaction, monitoring and other fees, net Other Income Fee-Related Revenues Fee-Related Expenses Compensation and benefits, net Operating expenses, net Fee-Related Expenses Fee-Related Earnings Realized performance allocations, net Realized investment income and other, net Depreciation expense Interest expense, net Distributable Earnings Income taxes After-Tax Distributable Earnings $ Actual 1Q'21 154,229 $ 26,122 12,601 192,952 119,702 39,650 159,352 33,600 66,121 7,995 (1,355) (3,638) 102,723 (3,307) 99,416 $ Pro Forma 1Q'21 154,229 26,122 14,032 194,383 87,933 39,650 127,583 66,800 5,561 2,573 (1,355) (4,636) 68,943 (4,061) 64,882 $ $ Actual 1Q'22 202,731 26,756 11,045 240,532 98,187 50,362 148,549 91,983 122,192 7,293 (1,571) (4,431) 215,466 (16,433) 199,033 $ $ Actual FY'21 718,364 $ 102,041 46,673 867,078 521,413 167,114 688,527 178,551 999,603 92,720 (6,775) (14,928) 1,249,171 (9,308) 1,239,863 $ Pro Forma FY'21 718,364 102,041 53,957 874,362 381,135 167,114 548,249 326,113 204,664 66,720 (6,775) (18,919) 571,803 (33,684) 538,119 $ Pro Forma 1Q'22 LTM 766,867 102,675 50,969 920,511 391,389 177,827 569,216 351,295 321,296 71,438 (6,991) (18,715) 718,323 (46,055) 672,268 Note: Pro forma financial measures are on an adjusted basis, assuming the Reorganization and IPO occurred on January 1, 2020; see the Supplemental Details section of this presentation for a full reconciliation and description of adjustments. See the Reconciliations and Disclosures section of this presentation for a full reconciliation between GAAP and Non-GAAP Financial Measures. TPG 8#9Fee-Related Earnings 1Q'22 Fee-Related Earnings grew 38% over pro forma 1Q'21 Fee-Related Revenues increased 24% in 1Q'22 over pro forma 1Q'21, driven by management fee growth of 31% stemming from an increase in Fee Earning AUM of 26%, primarily in the Impact and Real Estate platforms ■ ■ ■ Fee-Related Expenses increased 16% between 1Q'22 and pro forma 1Q'21 primarily due to platform expansion Fee-Related Earnings margin increased from 34% in 1Q'21 to 38% in 1Q'22; pro forma 1Q'22 LTM Fee- Related Earnings margin was 38% Fee-Related Earnings. $34 $67 ■Actual ($M) $92 Pro Forma $237 $351 Management Fees by Platform (1) ($M) Capital Growth Impact Real Estate ■Market Solutions $767 $70 $81 $154 $12 $18 $16 $27 $81 +31% $203 $19 $28 $42 $34 $80 $132 $149 $335 1Q'21 1Q'22 1Q'22 LTM 1Q'21 1Q'22 1Q'22 LTM Note: Pro forma financial measures are on an adjusted basis, assuming the Reorganization and IPO occurred on January 1, 2020; see the Supplemental Details section of this presentation for a full reconciliation and description of adjustments. 1. There are no pro forma adjustments to management fees, and therefore the by-platform breakdown does not change between actual and pro forma figures. TPG | 9#10After-Tax Distributable Earnings After-tax Distributable Earnings more than tripled from $65 million in pro forma 1Q'21 to $199 million for 1Q'22, primarily from realized performance allocations, net from the Capital and Impact platforms, with additional expansion in Fee-Related Earnings which grew 38% over the same period ■ ■ As a percentage of After-tax Distributable Earnings, Fee-Related Earnings accounted for 52% in 1Q'22 LTM on a pro forma basis $99 1Q'21 $65 After-Tax DE ($M) ■Actual ■Pro Forma $199 1Q'22 $1,339 $672 1Q'22 LTM 79% After-Tax DE Mix 1Q'22 LTM 3% 18% 48% Pro Forma 1Q'22 LTM <1% Fee-Related Earnings Realized Performance Allocations, Net Investment Income and Other Note: Pro forma financial measures are on an adjusted basis, assuming the Reorganization and IPO occurred on January 1, 2020; see the Supplemental Details section of this presentation for a full reconciliation and description of adjustments. 52% TPG | 10#11Realized Performance Allocations, Net Realized performance allocations, net were $122 million in 1Q'22, largely driven by TPG VII in the Capital platform, Rise I in the Impact platform, and TTAD I in the Growth platform M ■ Pro forma realized performance allocations, net for 1Q'22 LTM were $321 million driven by TPG VII in the Capital platform and Rise I in the Impact platform 1Q'22 Realized Performance Allocations, Net ($M) $2 $14 <$1 <$1 Total $122 $106 Pro Forma LTM 1Q'22 Realized Performance Allocations, Net ($M) $5 $15 $2 ■Capital Growth ■Impact ■Real Estate Market Solutions $6 Total $321 $293 Note: Pro forma financial measures are on an adjusted basis, assuming the Reorganization and IPO occurred on January 1, 2020; see the Supplemental Details section of this presentation for a full reconciliation and description of adjustments. TPG | 11#12Net Accrued Performance Allocations Net Accrued Performance Allocations by Fund Vintage ($M) 2016 & Prior 2017 2018 2019 2020 2021 Total $769 4Q'21 (¹) $149 4Q'21(1) $233 Value Creation & Other 268 62 ($122) 140 43 23 $769 1Q'22 $198 Realized Gains 267 Net Accrued Performance Allocations Walk ($M) 70 182 50 29 $796 $796 1Q'22 1Q'22 Net Accrued Performance Allocations 8% 20% Value Creation Capital Growth Impact Real Estate 5% Market Solutions Total ($M) Capital Growth Impact Real Estate 7% Total $796 1Q'22 10.8% 1.5% 0.7% 6.2% 0.5% 7.0% 1.4Q'21 figures are pro forma assuming the Reorganization and IPO occurred on January 1, 2020; see the Reconciliations and Disclosures section of this presentation for a full reconciliation and description of adjustments. 61% ■Market Solutions 1Q'22 LTM 39.3% 22.9% 31.1% 25.6% 16.7% 32.9% TPG | 12#13GAAP Balance Sheet (Unaudited) On a pro forma basis, our investments increased $238 million, or 4%, from 4Q'21 to 1Q'22, mainly driven by value creation of 7% in 1Q'22 ■ ■ In 4Q'21 we effectuated certain aspects of the Reorganization with respect to assets transferred to Remain Co, including cash and economic entitlements associated with certain other investments, which is reflected in our GAAP actuals; the pro forma column includes the impact of the IPO and additional Reorganization activities ($ in thousands) Assets Cash and cash equivalents Investments Other assets Assets of consolidated TPG Funds and Public SPACs Total assets Liabilities, redeemable equity and equity Liabilities Debt obligations Due to affiliates Accrued performance allocation compensation Other liabilities Liabilities of consolidated TPG Funds and Public SPACs Total liabilities Redeemable equity attributable to consolidated Public SPACs Equity Class A and B common stock Partners' capital controlling interests Other non-controlling interests Total equity Total liabilities, redeemable equity and equity GAAP 4Q'21 972,729 6,109,046 855,773 1,024,465 8,962,013 444,444 826,999 372,597 56,532 1,700,572 1,000,027 1,606,593 4,654,821 6,261,414 8,962,013 $ $ Pro Forma 4Q'21 1,376,746 6,109,046 831,785 1,024,465 9,342,042 444,444 634,324 3,848,126 348,426 56,532 5,331,852 1,000,027 498,560 2,511,603 3,010,163 9,342,042 $ $ GAAP 1Q'22 1,454,619 6,347,314 851,606 1,010,788 9,664,327 443,972 244,119 4,074,727 428,125 48,043 5,238,986 1,000,056 521,420 2,903,865 3,425,285 9,664,327 Note: Pro forma financial measures are on an adjusted basis, assuming the Reorganization and IPO occurred on January 1, 2020; see the Reconciliations and Disclosures section of this presentation for a full reconciliation and description of adjustments. TPG | 13#14Non-GAAP Balance Sheet 1Q'22 cash and cash equivalents of $583 million increased 141% over actual 4Q'21 largely driven by $391 million of net IPO proceeds ■ ■ Our borrowings include securitized notes with a principal amount of $250 million, which are backed by $498 million in pledged assets at 1Q'22, and a senior unsecured term loan with a principal amount of $200 million that was issued as part of the Reorganization At 1Q'22, our net cash (1) was $133 million, and we had an undrawn $300 million credit facility In 4Q'21 we effectuated certain aspects of the Reorganization with respect to assets transferred to RemainCo, including cash and economic entitlements associated with certain other investments, which is reflected in our Non-GAAP actuals; the pro forma column includes the impact of the IPO and additional Reorganization activities. ($ in thousands) Book Assets Cash and cash equivalents Restricted cash Accrued performance allocations Investments in funds Other assets, net Total Book Assets Book Liabilities Accounts payable, accrued expenses and other Securitized borrowing, net Senior unsecured term loan Total Book Liabilities Net Book Value Non-GAAP 4Q'21 242,370 13,135 1,344,348 559,810 733,085 2,892,748 525,267 244,950 199,494 969,711 1,923,037 $ $ Pro Forma 4Q'21 646,387 13,135 769,283 559,810 504,644 2,493,259 308,421 244,950 199,494 752,865 1,740,394 $ $ Non-GAAP 1Q'22 583,290 13,135 796,328 574,510 646,292 2,613,555 59,366 245,028 198,944 503,338 2,110,217 Note: Pro forma financial measures are on an adjusted basis, assuming the Reorganization and IPO on January 1, 2020; see the Reconciliations and Disclosures section of this presentation for a full reconciliation and description of adjustments. 1. Net cash comprised of $583 million of cash and cash equivalents less $450 million in debt principal. TPG | 14#15Operating Metrics#16Assets Under Management and Fee Earning AUM 1Q'22 AUM rose 26% over 1Q'21 to $120.4 billion, driven by value creation of 33% for the last twelve months and fundraising of $24.5 billion over the same period, which included $7.3 billion in Rise Climate within the Impact platform and $4.3 billion in TREP IV in the Real Estate platform; this was partially offset by realizations totaling $28.8 billion in the last twelve months ■ FAUM increased 26% in 1Q'22 over 1Q'21 driven primarily by Rise Climate in the Impact platform and TREP IV in the Real Estate platform Assets Under Management ($B) +26% $95 $7 $11 $6 $17 $54 1Q'21 $120 $10 $18 $14 $22 $57 1Q'22 ■Capital Growth $51 $5 $6 $5 $8 $28 1Q'21 Fee Earning AUM ($B) +26% ■Impact Real Estate ■Market Solutions $64 $6 $11 $11 $11 $25 1Q'22 TPG | 16#17Assets Under Management and Fee Earning AUM Duration At 1Q'22, approximately 84% of our AUM and 79% of our FAUM is in perpetual or long-dated funds with a duration (1) of 10 or more years (prior to any extensions) ■ ■ At 1Q'22, approximately 78% of our FAUM has a remaining lifespan (2) of 5 or more years, with more than 20% in vehicles that have 10 or more years remaining (including those considered perpetual) AUM by Duration at Inception -84% 5% 5% 2% 10% Total $120B 79% FAUM by Duration at Inception -79% 2% 7% 1% Total $64B 77% 13% FAUM by Remaining Duration -78% 18% 2% 7% Total $64B ■ 0-4 Years ■ 5-9 Years 10+ Years ■ Perpetual Note: For the grouping of years on duration, 0-4 Years represents a term equal to 4 years or less; 5-9 Years represents a term greater than 4 and less than or equal to 9; 10+ Years represents a term greater than 9. 1. Defined as the number of years between fund activation and contractual fund winddown, prior to any extensions, as of March 31, 2022. 2. Defined as the number of years between March 31, 2022 and contractual fund winddown, prior to any extensions. 14% 58% Capital Subject to Periodic Redemption TPG | 17#18AUM Subject to Fee Earning Growth AUM Subject to Fee Earning Growth totaled $8.9 billion at 1Q'22, and represents capital commitments that generate new management fees (AUM Not Yet Earning Fees) or generate a higher rate of management fees (FAUM Subject to Step-Up) when deployed ■ ■ ■ AUM Not Yet Earning Fees and FAUM Subject to Step-Up represent 6% and 4% of AUM and FAUM, respectively, for 1Q'22 Potential fee-related revenue opportunity associated with current AUM Subject to Fee Earning Growth is estimated at approximately $47 million annually at 1Q'22(1) Real Estate $1,393 AUM Not Yet Earning Fees ($M) Market Solutions $1,056 Impact $240 Total $6,656 Capital $1,039 Growth $2,928 Real Estate $767 FAUM Subject to Step-Up ($M) Total $2,275 Capital $1,508 1. Represents the sum of the gross revenue opportunity for each non-legacy fund with unallocated capital, the deployment of which would result in incremental management fees being earned. Revenue opportunity for each fund is calculated as (a) the incremental amount of unallocated capital that would be invested to achieve a range of 90%-100% total deployment of the original commitments of the fund, multiplied by (b) the incremental fee rate that we anticipate would be earned on invested capital and (c) the proportion of the fund's commitments that are expected to pay fees based on the amount of invested capital. TPG | 18#19AUM Rollforward AUM increased $6.8 billion in 1Q'22 and $25.2 billion in the last twelve months - an increase of 6% and 26%, respectively ■ AUM growth was driven by capital raised of $5.4 billion for 1Q'22 and $24.5 billion for 1Q'22 LTM, including $7.7 billion in the Impact platform and $6.0 billion in the Real Estate platform in the last twelve months Changes in Investment Value increased on both a quarter and LTM basis largely due to value creation of 7% in 1Q'22 and 33% for 1Q'22 LTM ($ in millions) AUM Balance as Beginning of Period Capital Raised Realizations Changes in Investment Value (1) AUM as of end of period ($ in millions) AUM Balance as Beginning of Period Capital Raised Realizations Changes in Investment Value (1) AUM as of end of period $ Capital $ 55,337 233 (3,893) 5,093 56,770 Capital $ 53,699 3,925 Growth Three Months Ended March 31, 2022 $ 21,960 49 (253) 343 $ 22,099 Growth Impact 17,298 4,791 (19,222) (4,164) 18,368 4,174 56,770 $ 22,099 $ 13,549 $ 12,678 528 4,564 (265) (6) 13,806 Real Estate Impact Last Twelve Months Ended March 31, 2022 (321) 891 17,812 $ 13,806 Market Solutions Real Estate $ 10,094 74 (55) (200) 9,912 Market Solutions 5,932 $ 11,131 7,689 (1,336) 1,521 6,029 (2,958) 3,610 $ 17,812 $ $ Total $ 113,618 5,448 (4,787) 6,120 $ 120,399 7,178 $ 2,019 Total 95,238 24,453 (1,095) (28,775) 1,810 29,483 9,912 $ 120,399 Note: For Market Solutions, capital raised in our SPAC vehicles represents funds raised in the SPAC IPO, including forward purchase agreements and private investment in public equity (PIPE) commitments, and realizations are considered to occur at business combination with a target, in the amount of capital raised; for our hedge funds, capital raised represents new fund subscriptions. 1. Changes in investment value consists of changes in fair value, capital invested and available capital and other investment activities, including the change in net asset value of our hedge funds. TPG | 19#20FAUM Rollforward FAUM increased $4.1 billion in 1Q'22 and $13.1 billion in the last twelve months, an increase of 7% and 26%, respectively ■ Increases over both periods were driven by fee earning capital raised in TREP IV of the Real Estate platform, with contribution from Rise Climate in the Impact platform in the last twelve months ($ in millions) FAUM Balance as of Beginning of Period Fee Earning Capital Raised (1) Net Change in Actively Invested Capital (2) Reduction in Fee Base of Certain Funds (3) FAUM as of end of period ($ in millions) FAUM Balance as of Beginning of Period Fee Earning Capital Raised (1) Net Change in Actively Invested Capital (2) Reduction in Fee Base of Certain Funds (3) FAUM as of end of period $ $ Capital 26,208 (725) 25,483 Capital 27,666 1,133 (3,316) 25,483 Growth $ Three Months Ended March 31, 2022 $ 10,514 $ 10,801 448 (27) 159 10,672 Growth Impact 8,484 $ 2,090 98 $ 10,672 11,222 Impact 4,501 7,038 (317) $ Last Twelve Months Ended March 31, 2022 11,222 Real Estate 6,235 4,267 241 10,744 Real Estate 5,742 4,309 693 10,744 Market Solutions $ 6,336 74 (326) $ 6,084 Market Solutions 4,663 325 1,096 6,084 $ $ $ Total 60,094 4,788 (677) 64,205 Total 51,056 14,895 (1,746) 64,205 1. Fee earning capital raised represents capital raised by our funds for which management fees calculated based on commitments were activated during the period. 2. Net change in actively invested capital includes capital invested during the period, net of return of capital distributions and changes in net asset value of hedge funds. It also includes adjustments related to funds with a fee structure based on the lower of cost or fair value. 3. Reduction in fee base represents decreases in the fee basis for funds where the investment or commitment fee period has expired, and the fee base has reduced from commitment base to actively invested capital. It also includes reductions for funds that are no longer fee paying. TPG | 20#21Other Operating Metrics 1Q'22 and the last twelve months saw significant activity across the platform, particularly in capital raised for both the Impact and Real Estate platforms, while the Capital platform had substantial increases in capital invested and realizations; as of 1Q'22, we had $30.3 billion of available capital (All tables in $M) Capital Raised ■ Capital Growth Impact Real Estate Market Solutions (1) Total Capital Invested Capital Growth Impact Real Estate Market Solutions (2) Total $ 1Q'21 481 151 12 505 302 1Q'21 1,618 1,153 489 489 1Q'22 $ 1,451 $ 5,448 $ 3,749 233 49 528 4,564 74 1Q'22 442 1,528 587 91 1Q'21 LTM $ 1,683 $ 4,448 2,030 274 521 2,486 1Q'21 LTM 1Q'22 LTM $ 1,800 $ 6,370 $ 10,807 2,806 1Q'22 LTM $ 3,925 4,791 31 884 7,689 1,406 29 $ 6,994 $ 24,453 6,029 2,019 22 2,622 2,749 4,635 1,525 Available Capital $ 11,466 $ 22,338 8 Capital Gro Growth Impact Re Real Estate Market Solutions Total Realizations Capital Gr 35 Rea Growth Impact Real Estate Market Solutions (2) To Total $ 1Q'21 14,333 1Q'21 444 $ 23,082 512 60 385 1,968 1,974 1,401 2,649 2,158 1Q'22 253 265 321 55 4Q'21 $ 4,787 10,696 $ 4,943 $ 3,893 $ 7,951 2,278 2,552 28,420 1Q'21 LTM 6,656 1,548 128 1,823 $ 10,155 1Q'22 9,507 4,644 6,907 6,746 2,461 30,265 1Q'22 LTM $ 19,222 4,164 1,336 2,958 1,095 $ 28,775 1. Within Market Solutions, capital raised at our hedge fund represents new fund subscriptions. 2. Within Market Solutions, capital invested and realizations in our SPAC vehicles represent funds raised in the SPAC IPO, including forward purchase agreements and private investment in public equity (PIPE) commitments, which are considered to occur at business combination with a target. TPG | 21#22Supplemental Details#23GAAP and Non-GAAP Performance Allocations Three Months Ended March 31, 2022 GAAP Realized ($ in thousands) Capital TPG VII TPG VIII Asia VII THP Other Excluded Assets (1) Total Capital Growth Growth IV Growth V TDM TTAD I Other Excluded Assets (1) Total Growth Impact Rise I Other Excluded Assets (1) Total Impact Real Estate TPG RE III Other Excluded Assets (1) Total Real Estate Market Solutions TPEP Other Total Market Solutions Total $ $ GAAP Total 411,179 187,524 30,601 21,020 53,212 3,618 707,154 13,933 11,391 10,571 7,240 (27,903) 12,678 27,910 (2,628) (522) 4,887 1,737 46,067 2,555 2,190 50,812 6,501 5,844 12,345 799,958 $ $ Less: GAAP Unrealized (89,818) 187,524 30,562 21,020 52,152 3,030 204,470 13,933 11,391 10,571 (2,890) (32,215) 12,075 12,865 (68,569) (522) 3,156 (65,935) 46,067 2,555 2,190 50,812 6,197 5,844 12,041 214,253 $ $ 500,997 39 1,059 588 502,683 10,130 4,312 603 15,045 65,941 1,731 67,672 304 304 585,705 Less: Non-GAAP Adjustments (2) $ 395,398 31 (16) 1,059 588 397,060 7,943 4,312 603 12,858 51,644 1,731 53,375 (24) (24) 243 243 463,512 $ $ Non-GAAP Realized 105,599 8 16 105,623 2,187 2,187 14,297 14,297 24 24 61 61 122,192 1. The TPG Operating Group Excluded entities' performance allocations is not a component of net income attributable to TPG following the Reorganization; however, the TPG general partner entities continue to be consolidated by us. We transferred the rights to the performance allocations the TPG Operating Group historically would have received to RemainCo on December 31, 2021. As such, net income available to controlling interest holders will be zero for each of the TPG Operating Group Excluded entities beginning January 1, 2022. 2. Non-GAAP adjustments represent the exclusion of performance allocations that are not attributable to the TPG Operating Group Common Unit holders. TPG | 23#24Net Income Per Share I I Basic net income per share of $0.52 for 1Q'22 Diluted net income per share of $0.11 for 1Q'22 ($ in thousands, except share and per share amounts) Net Income Per Share Numerator: Net Income Less: Net income attributable to redeemable equity in Public SPACs prior to IPO Net income attributable to other non-controlling interests prior to IPO Net income attributable to TPG Group Holdings prior to IPO Net income subsequent to IPO Less: Net income attributable to participating securities Net income attributable to redeemable equity in Public SPACs subsequent to IPO Net income attributable to non-controlling interests in TPG Operating Group subsequent to IPO Net income attributable to other non-controlling interests subsequent to IPO Net income attributable to Class A Common Stockholders - Basic Net income attributable to non-controlling interests in TPG Operating Group subsequent to IPO Reallocation of income to Participating Securities assuming exchange of Common Units Net income attributable to Class A Common Stockholders - Diluted Denominator: Weighted-average shares of Class A common stock outstanding - Basic Exchange of Common Units to Class A common stock Weighted-average shares of Class A common stock outstanding - Diluted Net income available to Class A common stock per share: Basic net income per share Diluted net income per share $ 1Q'22 162,804 Note: Pro forma financial measures are on an adjusted basis, assuming the Reorganization and IPO occurred on January 1, 2020; see the Supplemental Details section of this presentation for a full reconciliation and description of adjustments. (517) 966 5,256 157,099 4,770 1,823 (9,721) 118,904 41,323 (8,095) 1,093 34,321 79,240,057 229,652,641 308,892,698 0.52 0.11 TPG | 24#25After-Tax DE and Dividends Per Share I I After-tax DE attributable to TPG Inc. of $0.52 per share for 1Q'22 Declared dividend of $0.44 per share for 1Q'22 on May 10, 2022, with a record date of May 20, 2022 and payable date of June 3, 2022 ($ in thousands, except share and per share amounts) Share Reconciliation Total GAAP Class A Common Stock from Offering Distributable Earnings Shares Outstanding ($ in thousands, except share and per share amounts) Non-GAAP Financial Measures Fee-Related Earnings Pre-tax Distributable Earnings After-Tax Distributable Earnings attributable to TPG Inc. common stockholders TPG Inc. ownership of TPG Operating Group TPG Inc. Pre-tax Distributable Earnings TPG Inc. taxes TPG Inc. After-tax Distributable Earnings Class A common shares TPG Inc. After-tax Distributable Earnings per share Target dividend policy Dividend per Class A common share 1Q'22 79,070,565 79,070,565 1Q'22 91,983 215,466 26% 55,185 14,319 40,867 79,070,565 Note: Pro forma financial measures are on an adjusted basis, assuming the Reorganization and IPO occurred on January 1, 2020; see the Supplemental Details section of this presentation for a full reconciliation and description of adjustments. 0.52 85% 0.44 TPG | 25#26Fund Performance Metrics ($ in millions, as of 3/31/22) Fund Platform: Capital Capital Funds Air Partners TPG I TPG II TPG III TPG IV TPG V TPG VI TPG VII TPG VIII Capital Funds Asia Funds Asia | Asia II Asia III Asia IV Asia V Asia VI Asia VII Asia Funds THP Continuation Vehicles AAF AION Continuation Vehicles Platform: Capital (excl- Legacy (15)) Legacy Funds TES I Platform: Capital Vintage Year(1) 1993 1994 1997 1999 2003 2006 2008 2015 2019 1994 1998 2000 2005 2007 2012 2017 2019 2021 2021 2016 Capital Committed (2) $ $ 64 721 2,500 4,497 5,800 15,372 18,873 10,495 11,505 69,827 96 392 724 1,561 3,841 3,270 4,630 14,514 2,704 1,317 207 1,524 88,569 303 88,872 $ $ Capital Invested (3) Note: Past performance is not indicative of future results. See notes on the following pages. 64 696 2,554 3,718 6,157 15,564 19,220 10,013 8,669 66,655 78 764 623 1,603 3,257 3,161 4,224 13,710 1,845 1,167 207 1,374 83,584 206 83,790 $ Realized Value (4) 697 3,095 5,010 12,360 13,728 22,060 32,617 16,579 1,783 107,929 71 1,669 3,316 4,089 4,977 2,418 1,385 17,925 263 61 61 126,178 71 $ 126,249 Unrealized Value (5) $ $ 6 13 1.095 8.246 11,478 20,838 665 4,926 6,291 11,882 2,672 1,489 207 1,696 37,088 290 37,378 $ Total Value (6) 697 3,095 5,010 12,360 13,734 22,073 33,712 24,825 13,261 128,767 71 1,669 3,316 4,089 5,642 7,344 7,676 29,807 2,935 1,550 207 1,757 163,266 361 $ 163,627 Gross IRR (7) 81% 47% 13% 34% 20% 6% 14% 30% 81% 24% (3%) 17% 46% 23% 10% 20% 36% 21% 78% NM NM NM 23% 30% 23% Gross MOM (7) 10.9x 4.4x 2.0x 3.3x 2.2x 1.4x 1.8x 2.4x 1.7x 2.0x 0.9x 2.2x 5.3x 2.6x 1.7x 2.3x 1.9x 2.2x 1.8x NM NM NM 2.0x 1.7x 2.0x Net IRR (8) 73% 36% 10% 26% 15% 5% 10% 23% 50% 15% (10%) 14% 31% 17% 6% 15% 24% 15% 46% NM NM NM 15% 20% 15% Investor Net MOM (⁹) 8.9x 3.5x 1.7x 2.6x 1.9x 1.4x 1.5x 2.0x 1.4x 1.7x 0.7x 1.9x 3.8x 2.1x 1.4x 1.9x 1.6x 1.8x 1.5x NM NM NM 1.7x 1.5x 1.7x TPG | 26#27Fund Performance Metrics (Cont'd) ($ in millions, as of 3/31/22) Fund Platform: Growth Growth Funds STAR Growth II Growth III Growth IV Gator Growth V Growth Funds TDM TTADI TTAD II Platform: Growth (Excl- Legacy (15)) Legacy Funds Biotech III Biotech IV Biotech V ART Platform: Growth Platform: Impact The Rise Funds Rise I Rise II The Rise Funds TSI Evercare Rise Climate Platform: Impact Vintage Year(1) 2007 2011 2015 2017 2019 2020 2017 2018 2021 2008 2012 2016 2013 2017 2020 2018 2019 2021 Capital Committed (2) $ $ 1,264 2,041 3,128 3,739 726 3,558 14,456 510 1,574 2.501 19,041 510 106 88 258 20,003 2,106 2,176 4,282 333 621 7,258 12,494 $ $ Capital Invested (3) Note: Past performance is not indicative of future results. See notes on the following pages. 1,259 2,184 3,175 3,157 685 1,843 12,303 406 1,497 797 15,003 468 99 79 239 15,888 1,821 1,597 3,418 133 407 1,064 5,022 $ Realized Value (4) 1,856 4,651 4,200 1,190 581 12,478 378 12,856 934 121 23 27 13,961 1,108 12 1,120 368 7 1,495 Unrealized Value (5) $ $ 73 634 2,644 4,738 631 2,495 11,215 870 2,362 797 15,244 605 5 75 287 16,216 2,581 2,064 4,645 555 1,072 6,272 $ $ Total Value (6) 1,929 5,285 6,844 5,928 1,212 2,495 23,693 870 2,740 797 28,100 1,539 126 98 314 30,177 3,689 2,076 5,765 368 562 1,072 7,767 Gross IRR (7) 13% 22% 30% 31% 44% NM 22% 30% 53% NM 22% 18% 8% 7% 5% 21% 30% 85% 34% 35% 14% NM 31% Gross MOM (7) 1.5x 2.5x 2.2x 1.8x 1.8x NM 2.0x 2.1x 1.9x NM 2.0x 3.3x 1.3x 1.2x 1.3x 2.0x 2.1x 1.4x 1.8x 2.8x 1.4x NM 1.8x Net IRR (8) 6% 16% 21% 21% 33% NM 15% 24% 43% NM 16% 13% 3% 3% 2% 15% 21% 44% 22% 25% 6% NM 21% Investor Net MOM (⁹) 1.3x 2.0x 1.8x 1.5x 1.5x NM 1.7x 1.9x 1.7x NM 1.7x 2.6x 1.1x 1.1x 1.1x 1.7x 1.7x 1.2x 1.5x 2.1x 1.1x NM 1.5x TPG | 27#28Fund Performance Metrics (Cont'd) ($ in millions, as of 3/31/22) Fund Platform: Real Estate TPG Real Estate Partners DASA RE TPG RE II TPG RE III TPG RE IV TPG Real Estate Partners TRTX TAC+ Platform: Real Estate Platform: Market Solutions TPEP Long/Short TPEP Long Only TSCF NewQuest (18) NewQuest II(18) New Quest III(18) NewQuest IV (18) Platform: Market Solutions (12) Discontinued Funds(16) Total Total (excl-Legacy (15) and Discontinued Funds (16)) Vintage Year(1) 2012 2014 2018 2022 2014 2021 NM NM 2021 2011 2013 2016 2020 Capital Committed (2) $ 1,078 2,065 3,722 4,308 11,173 1,916 (14) 1,797 14,886 NM NM 1,108 390 310 541 1,000 3,349 5,870 138,339 $ 145,474 $ Capital Invested (3) 576 2,197 3,753 114 6,640 Note: Past performance is not indicative of future results. See notes on the following pages. NM 651 7,291 NM NM 101 291 337 498 611 1,838 4,103 112,738 $ 117,932 $ Realized Value (4) 1,068 2,972 1,347 5,387 NM 26 5,413 NM NM 767 544 267 5 1,583 5,302 147,525 154,003 Unrealized Value (5) $ $ 16 707 3,689 114 4,526 NM 659 5,185 2,885 2,024 110 228 664 844 6,755 70,544 71,806 $ Total Value (6) 1,084 3,679 5,036 114 9,913 NM 685 10,598 NM NM 110 767 772 931 849 3,429 5,302 213,160 $ 220,900 Gross IRR (7) 21% 30% 41% NM 27% NM NM 27% NM (13) NM (13) NM 48% 27% 23% 110% 40% 7% 23% 22% Gross MOM (7) 1.9x 1.8x 1.5x NM 1.7x NM NM 1.7x NM NM NM 3.2x 2.3x 1.8x 1.4x 2.0x 1.3x 2.0x 2.0x Net IRR (8) 16% 21% 31% NM 20% NM NM 20% NM (13) NM (13) NM 37% 21% 15% 55% 28% 3% 15% 14% Investor Net MOM (⁹) 1.6x 1.5x 1.4x NM 1.5x NM NM 1.5x NM NM NM 2.3x 1.9x 1.5x 1.3x 1.6x 1.1x 1.7x 1.7x TPG | 28#29Fund Performance Metrics Notes Vintage Year, with respect to an investment or group of investments, as applicable, represents the year such investment, or the first investment in such a group, was initially consummated by the fund. For follow-on investments, Vintage Year represents the year that the fund's first investment in the relevant company was initially consummated. Vintage Year, with respect to a fund, represents the year in which the fund consummated its first investment (or, if earlier, received its first capital contributions from investors). We adopted this standard for fund Vintage Year to better align with current market and investor benchmarking practices. For consistency with prior reporting, however, the Vintage Year classification of any fund that held its initial closing before 2018 remains unchanged and represents the year of such fund's initial closing. 2) Capital Committed represents the amount of inception to date commitments a particular fund has received. 3) Capital Invested, with respect to an investment or group of investments, as applicable, represents cash outlays by the fund for such investment or investments (whether funded through investor capital contributions or borrowing under the fund's credit facility), including capitalized expenses and unrealized bridge loans allocated to such investment or investments. Capital Invested may be reduced after the date of initial investment as a result of sell-downs. This does not include proceeds eligible for recycling under fund limited partnership agreements. Capital Invested does not include interest expense on borrowing under the fund's credit facility. 1) 4) 6) 7) Realized Value, with respect to an investment or group of investments, as applicable, represents total cash received or earned by the fund in respect of such investment or investments through the quarter end, including all interest, dividends and other proceeds. Receipts are recognized when cash proceeds are received or earned. Proceeds from an investment that is subject to pending disposition are not included in Realized Value and remain in Unrealized Value until the disposition has been completed and cash has been received. Similarly, any proceeds from an investment that is pending liquidation, or a similar event are not included in Realized Value until the liquidation or similar event has been completed. In addition, monitoring, transaction and other fees are not included in Realized Value but are applied to offset management fees to the extent provided in the fund's partnership agreement. Unrealized Value, with respect to an investment in a publicly traded security, is based on the closing market price of the security as of the quarter end on the principal exchange on which the security trades, as adjusted by the general partner for any restrictions on disposition. Unrealized Value, with respect to an investment that is not a publicly traded security, represents the general partner's estimate of the unrealized fair value of the fund's investment, assuming a reasonable period of time for liquidation of the investment, and taking into consideration the financial condition and operating results of the portfolio company, the nature of the investment, applicable restrictions on marketability, market conditions, foreign currency exposures and other factors the general partner may deem appropriate. Where applicable, such estimate has been adjusted from cost to reflect (i) company performance relative to internal performance markers and the performance of comparable companies; (ii) market performance of comparable companies; and (iii) recent, pending or proposed transactions involving us, such as recapitalizations, initial public offerings or mergers and acquisitions. Given the nature of private investments, valuations necessarily entail a degree of uncertainty and/or subjectivity. There can be no assurance that expected transactions will actually occur or that performance markers will be achieved, and therefore actual value may differ from such estimated value and these differences may be material and adverse. Except as otherwise noted, valuations are as of the quarte end. Total Value, with respect to an investment or group of investments, as applicable, is the sum of Realized Value and Unrealized Value of such investment or investments. Gross IRR and Gross MoM are calculated by adjusting Net IRR and Investor Net MoM to generally approximate investor performance metrics excluding management fees, fund expenses (other than interest expense and other fees arising from amounts borrowed under the fund's credit facility to fund investments) and performance allocations. With respect to interest expense and other fees arising from amounts borrowed under the fund's credit facility to fund investments, we have assumed that investor capital contributions were made in respect thereof as of the midpoint of each relevant quarter in which such amounts were incurred. We have further assumed that distributions to investors occurred in the middle of the month in which the related proceeds were received by the fund. Like the Net IRR, Gross IRR and Gross MoM (i) do not reflect the effect of taxes borne, or to be borne, by investors and (ii) excludes amounts attributable to the fund's general partner, its affiliated entities and "friends of the firm" entities that generally pay no or reduced management fees and performance allocations. Such Gross IRR and Gross MoM represent an average of returns for all included investors and does not necessarily reflect the actual return of any particular investor. Gross IRR and Gross MoM are an approximation calculated by adjusting historical data using estimates and assumptions that we believe are appropriate for the relevant fund, but that inherently involve significant judgment. For funds that engaged in de minimis or no fund-level borrowing, Gross IRR is the discount rate at which (i) the present value of all Capital Invested in an investment or investments is equal to (ii) the present value of all realized and unrealized returns from such investment or investments. In this scenario, Gross IRR, with respect to an investment or investments, has been calculated based on the time that capital was invested by the fund in such investment or investments and that distributions were received by the fund in respect of such investment or investments, regardless of when capital was contributed to or distributed from the fund. Gross IRR does not reflect the effect of management fees, fund expenses, performance allocations or taxes borne, or to be borne, borne, by investors in the fund and would be lower if it did. For funds that engaged in de minimis or no fund-level borrowing, Gross MoM represents the multiple-of-money on capital invested by the fund for an investment or investments and is calculated as Total Value divided by Capital Invested (i.e., cash outlays by the fund for such investment or investments, whether funded through investor capital contributions or borrowing under the fund's credit facility). Gross MoM is calculated on a gross basis and does not reflect the effect of management fees, fund expenses, performance allocations or taxes borne, or to be borne, by investors in the fund, and would be lower if it did. TPG | 29#30Fund Performance Metrics Notes (Cont'd) 8) Net IRR represents the compound annualized return rate (i.e., the implied discount rate) of a fund, which is calculated using investor cash flows in the fund, including cash received from capital called from investors, cash distributed to investors and the investors' ending capital balances as of the quarter end. Net IRR is the discount rate at which (i) the present value of all capital contributed by investors to the fund (which excludes, for the avoidance of doubt, any amounts borrowed by the fund in lieu of calling capital) is equal to (ii) the present value of all cash distributed to investors and the investors' ending capital balances. Net IRR reflects the impact of management fees, fund expenses (including interest expense arising from amounts borrowed under the fund's credit facility) and performance allocations, but does not reflect the effect of taxes borne, or to be borne, by investors. The Net IRR calculation assumes that investor contributions and distributions occurred in the middle of the month in which they were made. The Net IRR calculation excludes amounts attributable to the general partner, its affiliated entities and "friends of the firm" entities that generally pay no or reduced management fees and performance allocations. Net IRR represents an average return for all included investors and does not necessarily reflect the actual return of any particular investor. Net IRR for a platform does not include the cash flows for funds that are not currently presenting a Net IRR to their investors. 9) Investor Net MoM, with respect to a fund, represents the multiple-of-money on contributions to the fund by investors. Investor Net MoM is calculated as the sum of cash distributed to investors and the investors' ending capital balances as of the quarter end, divided by the amount of capital contributed to the fund by investors (which amount excludes, for the avoidance of doubt, any amounts borrowed by the fund in lieu of calling capital). Investor Net MoM reflects the impact of management fees, fund expenses (including interest expense arising from amounts borrowed under the fund's credit facility) and performance allocations, but does not reflect the effect of taxes borne, or to be borne, by investors. The Investor Net MoM calculation excludes amounts attributable to the fund's general partner, its affiliated entities and "friends of the firm" entities that generally pay no or reduced management fees and performance allocations. Investor Net MoM represents an average multiple-of-money for all included investors and does not necessarily reflect the actual return of any particular investor. 10) "NM" signifies that the relevant data would not be meaningful. Gross IRR and Gross MoM generally deemed "NM" during its initial period of operation, but in no event for more than two years after the date of the fund's first investment; in this period, we believe that these metrics do not accurately represent a fund's overall performance given the impact of organizational costs and other fees and expenses that are typically incurred early in the life of a fund. NM can also be used when the presented metric is not applicable to the product being shown. Net IRR and Investor Net MoM for a fund are generally deemed "NM" during its initial period of operation, but in no event for more than two years after the date of the fund's first investment; in this period, TPG believes that these metrics do not accurately represent a fund's overall performance given the impact of organizational costs and other fees and expenses that are typically incurred early in the life of a fund. 11) Amounts shown are in US dollars. When an investment is made in another currency, (i) Capital Invested is calculated using the exchange rate at the time of the investment, (ii) Unrealized Value is calculated using the exchange rate at the quarter end and (iii) Realized Value reflects actual US dollar proceeds to the fund. A fund may enter into foreign currency hedges in connection with an investment made in a currency other than US dollars. Capital Invested with respect to such investment includes the cost of establishing foreign currency es. For he ges entered into to facilitate payment of the purchase price for an investment, gains or losses on such hedges are applied, respectively, to reduce or increase Capital Invested with respect to such investment. Thereafter during the life of such investment, (i) Capital Invested includes any inception-to-date net realized losses on such hedges, (ii) Unrealized Value includes the unrealized fair value of such hedges as estimated by the general partner and (iii) Realized Value includes any inception-to-date net realized gain on such hedges. For hedges entered into in anticipation of receipt of exit proceeds, (i) losses on such hedges are first applied to offset exit proceeds, with any remaining losses applied to increase Capital Invested and (ii) gains on such hedges are first applied to reverse any inception-to-date net realized losses that were previously included in Capital Invested, with any remaining gains applied to increase Realized Value. Where a foreign currency hedge is implemented as part of the investment structure below the fund, such hedge is similarly reflected in Capital Invested and Realized Value to the extent that there are corresponding cash outflows from and inflows to the fund in respect of such hedge, and otherwise is included in Unrealized Value. 12) Our special purpose acquisition companies ("SPACS") which include Pace Holdings Corp., TPG Pace Holdings Corp., TPG Pace Tech Opportunities Corp., TPG Pace Beneficial Finance Corp., TPG Pace Energy Holdings Corp., TPG Pace Solutions Corp., TPG Pace Beneficial II Corp. and AfterNext Health Tech Acquisition Corp. within the Market Solutions platform are not reflected. Gross IRR, Gross MoM and Net IRR are not meaningful for SPAC products as they are designed to identify an investment and merge to become a public company. TPG | 30#31Fund Performance Metrics Notes (Cont'd) 13) As of March 31, 2022, TPEP Long/Short had estimated inception-to-date gross returns of 150% and net returns of 111%. These performance estimates represent the composite performance of TPG Public Equity Partners, LP and TPG Public Equity Partners Master Fund, L.P., adjusted as described below. The performance estimates are based on an investment in TPG Public Equity Partners, LP made on September 1, 2013, the date of TPEP's inception, with the performance estimates for the period from January 1, 2016 to present being based on an investment in TPG Public Equity Partners Master Fund, L.P. made through TPG Public Equity Partners-A, L.P., the "onshore feeder." Gross performance figures (i) are presented after any investment-related expenses, net interest, other expenses and the reinvestment of dividends; (ii) include any gains or losses from "new issue" securities; and (iii) are adjusted for illustration purposes to reflect the reduction of a hypothetical 1.5% annual management fee. Net performance assumes a 20% performance allocation. Performance results for a particular investor may vary from the performance stated as a result of, among other things, the timing of its investment(s) in TPEP, different performance allocation terms, different management fees, the feeder through which the investor invests and the investor's eligibility to participate in gains and losses from "new issue" securities. Unrealized Value represents net asset value before redemptions. As of March 31, 2022, TPEP Long Only had estimated inception-to-date gross returns of 29% and net returns of 29%. These performance estimates represent performance for TPEP Long Only and are based on an investment in TPEP Long Only made on May 1, 2019, the date of TPEP Long Only's inception, through TPG Public Equity Partners Long Opportunities - A, L.P., the "onshore feeder." Gross performance figures are presented after any investment-related expenses, a 1% annual management fee, net interest, other expenses and the reinvestment of dividends, and include any gains or losses from "new issue" securities. Net performance assumes a 20% performance allocation, with the performance allocation only received upon outperforming the relevant benchmark. Performance results for a particular investor may vary from the performance stated as a result of, among other things, the timing of its investment(s) in TPEP Long Only, different performance allocation terms, different management fees, the feeder through which the investor invests and the investor's eligibility to participate in gains and losses from "new issue" securities. Unrealized Value represents net asset value before redemptions. 14) Capital Committed for TRTX includes $1,201 million of private capital raised prior to TRTX's initial public offering and $716 million issued during and subsequent to TRTX's initial public offering. 15) Legacy funds represent funds whose strategies are not expected to have successor funds but that have not yet been substantially wound down. 16) Discontinued funds represent legacy funds that have substantially been wound down or are fully liquidated. The following TPG funds are considered discontinued: Latin America, Aqua I, Aqua II, Ventures, Biotech I, Biotech II, TPG TFP, TAC 2007 and DASA PE. 17) Total TPG track record amounts do not include results from RMB - Shanghai and RMB - Chongqing or China Ventures, a joint venture partnership. 18) Unless otherwise specified, the fund performance information presented above for New Quest I, New Quest II, New Quest III and New Quest IV is, due to the nature of NewQuest's strategy, as of and for the quarter ended December 31, 2021. Accordingly, the fund performance information presented above for the NewQuest funds does not reflect any fund activity for the quarter ended March 31, 2022 and therefore does not cover the same period presented for other funds. Any activity occurring during the quarter ended March 31, 2022 will be reflected in the performance information presented in future reporting. TPG | 31#32GAAP Statements of Operations Expanded ($ in thousands) Revenues Fees and other Capital allocation-based income. Total revenues Expenses Compensation and benefits Cash-based compensation and benefits Equity-based compensation Performance allocation compensation Total compensation and benefits General, administrative and other Depreciation and amortization Interest expense Expenses of consolidated TPG Funds and Public SPACs: Interest expense Other Total expenses Investment income Income from investments: Net gains (losses) from investment activities Interest, dividends and other Investment income of consolidated TPG Funds and Public SPACs: Net gains (losses) from investment activities Unrealized gains (losses) on derivative liabilities Interest, dividends and other Total investment income Income before income taxes Income tax expense Net income Less: Net (loss) income attributable to redeemable equity in Public SPACs prior to IPO Net (loss) income attributable to non-controlling interests in consolidated TPG Funds prior to IPO Net (loss) income attributable to other non-controlling interests prior to IPO Net income attributable to TPG Group Holdings prior to IPO Net income attributable to redeemable equity in Public SPACs Net loss attributable to non-controlling interests in TPG Operating Group Net income attributable to other non-controlling interests Net income attributable to TPG Inc. subsequent to IPO Note: Due to the Reorganization in 1Q'22, comparability of prior periods may be limited. $ $ 1Q'21 210,155 $ 994,578 1,204,733 127,981 127,981 53,130 1,364 3,921 192 8,058 194,646 72,404 979 (7,616) 87,600 988 154,355 1,164,442 3,128 1,161,314 63,558 (5,736) 589,311 514,181 $ 2Q'21 195,052 $ 1,986,011 2,181,063 128,546 128,546 61,166 1,522 4,026 155 3,305 198,720 41,801 5,508 14,675 96,723 1,073 159,780 2,142,123 1,681 2,140,442 73,901 12,634 1,162,989 890,918 $ 3Q'21 279,908 $ 231,356 511,264 136,139 136,139 68,634 2,251 4,371 226 12,556 224,177 224,141 472 1,949 7,205 910 234,677 521,764 1,281 520,483 (4,250) 1,293 228,646 294,794 $ 4Q'21 292,789 $ 786,538 1,079,327 187,032 187,032 95,660 16,086 3,973 167 (3,895) 299,023 14,873 (499) 14,384 20,294 7,350 56,402 836,706 2,948 833,758 21,922 11,096 474,879 325,861 $ 1Q'22 273,005 837,705 1,110,710 116,359 185,911 523,138 825,408 102,264 8,699 4,638 1,523 942,532 6,643 204 2,657 126 9,630 177,808 15,004 162,804 (517) 966 5,256 1,823 (4,912) 118,904 41,284 TPG | 32#33GAAP Statements of Operations Pro Forma Adjustments ($ in thousands) Revenues Fees and other Capital allocation-based income Total revenues Expenses Compensation and benefits Cash-based compensation and benefits Equity-based compensation Performance allocation compensation Total compensation and benefits General, administrative and other Depreciation and amortization Interest expense Expenses of consolidated TPG Funds and Public SPACs: Interest expense Other Total expenses Investment income Income from investments: Net gains (losses) from investment activities Interest, dividends and other Investment income of consolidated TPG Funds and Public SPACs: Net gains (losses) from investment activities Unrealized gains (losses) on derivative liabilities Interest, dividends and other Total investment income Income before income taxes Income tax expense Net income Less: Net (loss) income attributable to redeemable equity in Public SPACs prior to IPO Net (loss) income attributable to non-controlling interests in consolidated TPG Funds prior to IPO Net (loss) income attributable to other non-controlling interests prior to IPO Net income attributable to TPG Group Holdings prior to IPO Net income attributable to redeemable equity in Public SPACs Net loss attributable to non-controlling interests in TPG Operating Group Net income attributable to other non-controlling interests Net income attributable to TPG Inc. subsequent to IPO See notes on the following pages. $ 1Q'21 5,730 $ 660 6,390 (31,769) 125,641 601,595 695,467 998 (192) 129 696,402 (52,334) 7,616 (977) (45,695) (735,707) 14,040 (749,747) (63,558) 5,736 (589,311) (514,181) 63,558 301,005 47,004 $ 2Q'21 5,620 $ (6,804) (1,184) (32,445) 125,643 1,244,323 1,337,521 998 (155) (426) 1,337,938 (34,229) (14,675) (1,060) (49,964) (1,389,086) 25,352 (1,414,438) (73,901) (12,634) (1,162,989) (890,918) 73,901 567,229 84,874 $ 3Q'21 5,507 4,938 10,445 (33,144) 125,004 190,279 282,139 997 (226) (898) 282,012 (23,716) (1,949) (899) (26,564) (298,131) 17,251 (315,382) 4,250 (1,293) (228,646) (294,794) (4,250) 151,128 58,223 $ $ 4Q¹21 3,950 $ (7,447) (3,497) (42,920) 124,319 502,308 583,707 998 (167) (434) 584,104 17,419 (14,384) (1,093) 1,942 (585,659) 12,298 (597,957) (21,922) (11,096) (474,879) (325,861) 21,922 172,632 41,247 $ 1Q'22 - (3) (1) (5) (6, 7) (5) (4) (1) (1) (1) (1) (1) (8) (1) (1-5), (9) TPG | 33#34Pro Forma GAAP Statements of Operations Expanded ($ in thousands) Pro Forma Revenues Fees and other Capital allocation-based income. Total revenues Pro Forma Expenses Compensation and benefits Cash-based compensation and benefits Equity-based compensation Performance allocation compensation Total compensation and benefits General, administrative and other. Depreciation and amortization Interest expense Expenses of consolidated TPG Funds and Public SPACs: Interest expense Other Total expenses Pro Forma Investment income Income from investments: Net gains (losses) from investment activities Interest, dividends and other Investment income of consolidated TPG Funds and Public SPACs: Net gains (losses) from investment activities Unrealized gains (losses) on derivative liabilities Interest, dividends and other Total investment income Income before income taxes Income tax expense Net income Less: Net (loss) income attributable to redeemable equity in Public SPACs prior to IPO Net (loss) income attributable to non-controlling interests in consolidated TPG Funds prior to IPO Net (loss) income attributable to other non-controlling interests prior to IPO Net income attributable to TPG Group Holdings prior to IPO Net income attributable to redeemable equity in Public SPACs Net loss attributable to non-controlling interests in TPG Operating Group Net income attributable to other non-controlling interests Net income attributable to TPG Inc. subsequent to IPO See notes on the following pages. $ $ 1Q'21 215,885 $ 995,238 1,211,123 96,212 125,641 601,595 823,448 53,130 1,364 4,919 8,187 891,048 20,070 979 87,600 11 108,660 428,735 17.168 411,567 63,558 301,005 47,004 $ 2Q'21 200,672 1,979,207 2,179,879 96,101 125,643 1,244,323 1,466,067 61,166 1,522 5,024 2,879 1,536,658 7,572 5,508 96,723 13 109,816 753,037 27,033 726,004 73,901 $ 567,229 84,874 $ 3Q'21 285,415 $ 236,294 521,709 102,995 125,004 190,279 418,278 68,634 2,251 5,368 11,658 506,189 200,425 472 7,205 11 208,113 223,633 18,532 205,101 (4,250) 151,128 58,223 $ 4Q'21 296,739 779,091 1,075,830 144,112 124,319 502,308 770,739 95,660 16,086 4,971 (4,329) 883,127 32,292 (499) 20,294 6,257 58,344 251,047 15,246 235,801 21,922 172,632 41,247 $ $ 1Q'22 273,005 837,705 1,110,710 116,359 185,911 523,138 825,408 102,264 8,699 4,638 1,523 942,532 6,643 204 2,657 126 9,630 177,808 15,004 162,804 (517) 966 5,256 1,823 (4,912) 118,904 41,284 TPG | 34#35Pro Forma GAAP Statements of Operations Notes Notes to the Unaudited Pro Forma Condensed Consolidated Statement of Operations and Other Data 1) This adjustment relates to Excluded Assets and is made up of the following components: 2) Impact of changes in economics of certain TPG general partner interests in TPG Funds: The TPG Operating Group transferred to RemainCo certain performance allocation economic entitlements from certain of the TPG general partner entities that are defined as Excluded Assets, as well as certain cash and amounts due to affiliates of the TPG Operating Group that relate to these TPG general partner entities' economic entitlements. We continue to consolidate these TPG general partner entities because we maintain control and have an implicit variable interest. Transfer of other investments: The TPG Operating Group also transferred the economic entitlements associated with certain other investments, including our investment in our former affiliate. This does not include certain of our strategic equity method investments, including Harlem Capital Partners, Vamos Ventures and LandSpire Group, as the economics of these investments continue to be part of the TPG Operating Group after the Reorganization. 5) Deconsolidation of consolidated TPG Funds: We transferred the TPG Operating Group's co-investment interests in certain TPG Funds to Remain Co. These TPG Funds were historically consolidated and as a result of the transfer to RemainCo, are deconsolidated because we no longer hold a more than insignificant economic interest. This adjustment relates to the changes in economic entitlements that the holders of TPG Operating Group Common Units retain, and the associated reallocation of interests after the Reorganization. Specified Company Assets include certain TPG general partner entities to which the TPG Operating Group retained an economic entitlement and that are consolidated both before and after the Reorganization. As part of the Reorganization, the sharing percentage of the associated performance allocation income was reallocated between controlling and non-controlling interests. Subject to certain exceptions, RemainCo is entitled to between 10% and 15% of these Specified Company Assets' related performance allocations, which we treat as non-controlling interests, and to allocate generally between 65% and 70% indirectly to our partners and professionals through performance allocation vehicles and Promote Units, with the remaining 20% available for distribution to the TPG Operating Group Common Unit holders. RemainCo's entitlement to performance allocations associated with future funds will step down over time. In conjunction with allocating between 65% and 70% of performance allocations associated with the Specified Company Assets to our partners and professionals, we have reduced the amount of cash-based bonuses historically paid to these individuals as further described in Note 5 below. The primary impact of this is a reallocation from income attributable to controlling interests to income attributable to non-controlling interests. 3) This amount reflects an administrative services fee that we receive for managing the Excluded Assets transferred to RemainCo that are not part of the TPG Operating Group. The fee is based on 1% of the net asset value of Remain Co. 4) This adjustment reflects incremental interest expense related to additional financing the TPG Operating Group used to declare a distribution of $200 million to our controlling and non- controlling interest holders prior to the Reorganization and the IPO. The distribution was made with $200 million of proceeds from the senior unsecured term loan issuance. The Senior Unsecured Term Loan carries an interest rate of LIBOR plus 1.00% and matures in December 2024. Reflects the reclassification of performance allocation amounts owed to senior professionals from other non-controlling interests to performance allocation compensation. Following the IPO, we account for partnership distributions to our partners and professionals as performance allocation compensation expense. As described in Note 2 above, we have adjusted our performance allocation sharing percentage and in conjunction with allocating between 65% and 70% of performance allocations associated with the Specified Company Assets to certain of our people, we are reducing the amounts of cash-based bonuses and increasing the performance allocation compensation expense. TPG | 35#36Pro Forma GAAP Statements of Operations Notes (Cont'd) Notes to the Unaudited Pro Forma Condensed Consolidated Statement of Operations and Other Data continued 6) Our current partners hold restricted indirect interests in Common Units through TPG Partner Holdings and indirect economic interests in RemainCo as a result of the Reorganization and the IPO. The number of TPG Partner Holdings units outstanding at the time of the IPO total 245,397,431, of which 73,849,986 are unvested. The number of units outstanding related to our existing partners' indirect economic interests in Remain Co at the time of the IPO total 198,040,459, of which 26,922,374 are unvested. In conjunction with the Reorganization, TPG Partner Holdings distributed its interest in Remain Co and the underlying assets as part of a common control transaction to its existing owners, which are our current and former partners. No changes were made to the terms of the unvested units. TPG Partner Holdings and Remain Co are both presented as non-controlling interest holders within our consolidated financial statements. We account for the TPG Partner Holdings units and indirect economic interests in RemainCo as compensation expense in accordance with Accounting Standards Codification Topic 718 Compensation - Stock Compensation. The unvested TPG Partner Holdings units and unvested indirect economic interests in RemainCo will be charged to compensation and benefits as they vest over the remaining requisite service period on a straight-line basis. The vesting periods range from immediate vesting up to six years. Expense amounts for TPG Partner Holdings units have been derived utilizing a per unit value of $29.50 (the IPO price) and adjusting for factors unique to those units, multiplied by the number of unvested units, and will be expensed over the remaining requisite service period. Expense amounts for the unvested indirect interests in RemainCo have been derived based on the fair value of Remain Co, utilizing a discounted cash flow valuation approach, multiplied by the number of unvested interests, and will be expensed over the remaining requisite service period. There is no additional dilution to our stockholders, contractually these units are only related to our non-controlling interest holders, and there is no impact to the allocation of income and distributions to our stockholders. Therefore, we have allocated these expense amounts to our non-controlling interest holders. At IPO, we granted to certain of our people RSUs with respect to approximately 9,280,000 shares of Class A common stock (although we are authorized to grant up to 4% of our shares of Class A common stock, measured on a fully-diluted, as converted basis, which would be 12,277,912 shares of Class A common stock). Of these RSUS, we granted 8,229,960 shares of Class A common stock immediately following the completion of the IPO. These RSUS generally vest over four years in three equal installments on the second through fourth anniversaries of the grant date (with some grants vesting on shorter alternate vesting schedules), subject to the recipient's continued provision of services to the Company or its affiliates through the vesting date. In addition, under the TPG Inc. Omnibus Equity Incentive Plan, which was approved by our board of directors on December 7, 2021 and our shareholders on December 20, 2021 (the "Omnibus Plan"), we granted immediately following the IPO long-term performance incentive awards to certain of our key executives in the form of RSUS (certain of which have performance-vesting criteria) with respect to a total of 2,203,390 shares of Class A common stock. Furthermore, we have currently named two of our three independent directors, and granted RSUS to the two named independent directors with respect to 20,340 shares of Class A common stock, immediately following the IPO. This adjustment reflects compensation expense associated with the grants described above had they occurred at the beginning of the period presented. These expenses are non-cash in nature and allocated to the Common Unit holders. Not included in the above adjustment are RSUS (which are part of the RSUS with respect to approximately 9,280,000 shares of Class A common stock referred to above) with respect to 1,050,040 shares that were granted in 2022 after the IPO, including those to people hired for new roles created in connection with the IPO. In addition, we plan to grant RSUS of 10,170 shares to our third independent director when named. These additional grants will have similar vesting terms and conditions as the RSUS mentioned above. 8) The TPG Operating Group partnerships continue to be treated as partnerships for U.S. federal and state income tax purposes. Following the IPO, we are subject to U.S. federal income taxes, in addition to state, local and foreign income taxes with respect to our allocable share of any taxable income generated by the TPG Operating Group that flows through to its interest holders, including us. As a result, the unaudited pro forma condensed consolidated statement of operations reflects adjustments to our income tax expense to reflect a blended statutory tax rate of 23.0% at TPG, which was calculated assuming the U.S. federal rates currently in effect and the statutory rates applicable to each state, local and foreign jurisdiction where we estimate our income will be apportioned. TPG | 36#37Pro Forma GAAP Statements of Operations Notes (Cont'd) Notes to the Unaudited Pro Forma Condensed Consolidated Statement of Operations and Other Data continued 9) Prior to the IPO, TPG held Common Units representing 78.1% of the Common Units and 100% of the interests in certain intermediate holding companies. In our capacity as the sole indirect owner of the entities serving as the general partner of the TPG Operating Group partnerships, we indirectly control all of the TPG Operating Group's business and affairs. As a result, we consolidate the financial results of the TPG Operating Group and its consolidated subsidiaries and report non-controlling interests related to the interests held by the other partners of the TPG Operating Group and its consolidated subsidiaries in our consolidated statements of operations. Following the IPO, TPG owns 25.6% of the Common Units, and the other partners of the TPG Operating Group own the remaining 74.4%, excluding the equity-based compensation expense related to our partners' unvested TPG Partner Holdings units and indirect economic interests in Remain Co, which has been allocated only to non-controlling interest holders. Net income attributable to non-controlling interests represent 74.4% of the consolidated income before taxes of the TPG Operating Group. Promote Units are not included in this calculation of ownership interest. TPG | 37#38Non-GAAP Financial Measures Expanded ($ in thousands) Fee-Related Revenues Management Fees Transaction, monitoring and other fees, net Other Income Fee-Related Revenues Fee-Related Expenses Compensation and benefits, net Operating expenses, net Fee-Related Expenses Fee-Related Earnings Realized performance allocations, net Realized investment income and other, net Depreciation expense Interest expense, net Distributable Earnings Income taxes After-Tax Distributable Earnings $ $ 1Q'21 154,229 $ 26,122 12,601 192,952 119,702 39,650 159,352 33,600 66,121 7,995 (1,355) (3,638) 102,723 (3,307) 99,416 $ 2Q¹21 155,265 9,044 11,186 175,495 121,707 44,548 166,255 9,240 176,698 20,441 (1,525) (3,801) 201,054 $ (3,089) 197,965 $ 3Q'21 206,994 $ 42,208 10,304 259,507 125,530 47,090 172,620 86,886 505,626 48,312 (1,737) (3,806) 635,282 (3) 635,279 $ 4Q'21 201,877 $ 24,667 12,582 239,125 154,474 35,827 190,301 48,824 251,158 15,972 (2,157) (3,683) 310,113 (2,909) 307,204 $ 1Q'22 202,731 $ 26,756 11,045 240,532 98,187 50,362 148,549 91,983 122,192 7,293 (1,571) (4,431) 215,466 (16,433) 199,033 $ Note: Due to the Reorganization in 1Q'22, comparability of prior periods may be limited. See the Reconciliations and Disclosures section of this presentation for a full reconciliation between GAAP and Non-GAAP Financial Measures. 1Q'22 LTM 766,867 102,675 45,117 914,659 499,898 177,827 677,725 236,934 1,055,674 92,018 (6,990) (15,721) 1,361,914 (22,434) 1,339,480 TPG | 38#39Non-GAAP Financial Measures Adjustments ($ in thousands) Fee-Related Revenues Management Fees Transaction, monitoring and other fees, net Other Income Fee-Related Revenues Fee-Related Expenses Compensation and benefits, net Operating expenses, net Fee-Related Expenses Fee-Related Earnings Realized performance allocations, net Realized investment income and other, net Depreciation expense Interest expense, net Distributable Earnings Income taxes After-Tax Distributable Earnings See notes on the following pages. $ $ 1Q'21 1,431 1,431 (31,769) (31,769) 33,200 (60,560) (5,422) $ (998) (33,780) (754) (34,534) $ 2Q'21 3,216 3,216 (32,445) (32,445) 35,661 (172,459) (7,224) $ (997) (145,019) (212) (145,231) $ 3Q'21 3,395 3,395 (33,144) (33,144) 36,539 (364,427) (5,548) $ (998) (334,434) (17,719) (352,153) $ 4Q'21 (758) (758) (42,920) (42,920) 42,162 (197,493) (7,808) (998) (164,137) (5,690) (169,827) $ $ 1Q'22 I . $ $ 1Q'22 LTM 5,853 (1) 5,853 (108,509) (2) (108,509) 114,362 (734,379) (2,3) (20,580) (2,993) (643,590) (23,621) (667,211) (4) (5) (6) TPG | 39#40Pro Forma Non-GAAP Financial Measures Expanded ($ in thousands) Pro Forma Fee-Related Revenues Management Fees Transaction, monitoring and other fees, net Other Income Pro Forma Fee-Related Revenues Pro Forma Fee-Related Expenses Compensation and benefits, net Operating expenses, net Pro Forma Fee-Related Expenses Pro Forma Fee-Related Earnings Realized performance allocations, net Realized investment income and other, net Depreciation expense Interest expense, net Pro Forma Distributable Earnings Income taxes Pro Forma After-Tax Distributable Earnings See notes on the following pages. $ $ 1Q'21 154,229 26,122 14,032 194,383 87,933 39,650 127,583 66,800 5,561 2,573 (1,355) (4,636) 68,943 (4,061) 64,882 $ $ 2Q'21 155,265 $ 9,044 14,402 178,711 89,262 44,548 133,810 44,901 4,239 13,217 (1,525) (4,798) 56,034 (3,301) 52,733 $ 3Q'21 206,994 $ 42,208 13,699 262,901 92,386 47,090 139,476 123,425 141,199 42,764 (1,737) (4,804) 300,847 (17,722) 283,125 $ 4Q'21 201,877 $ 24,667 11,823 238,367 111,554 35,827 147,381 90,986 53,665 8,164 (2,157) (4,681) 145,977 (8,599) 137,378 $ 1Q'22 202,731 26,756 11,045 240,532 98,187 50,362 148,549 91,983 122,192 7,293 (1,571) (4,431) 215,466 (16,433) 199,033 $ $ 1Q'22 LTM 766,867 102,675 50,969 920,511 391,389 177,827 569,216 351,295 321,296 71,438 (6,991) (18,715) 718,323 (46,055) 672,268 TPG | 40#41Pro Forma Non-GAAP Financial Notes to the Unaudited Quarterly Pro Forma Non-GAAP Financial Measures 1) The difference in other income between non-GAAP and pro form a non-GAAP financial measures is attributable to: (i) removing the other income associated with the other investments that were transferred to Remain Co and (ii) an administrative services fee that we receive for managing the Excluded Assets transferred to Remain Co that are not part of the TPG Operating Group. The fee is based on 1% of the net asset value of Remain Co. 2) 3) Financial Measures Notes 5) 6) This adjustment reflects the reduction of our cash-based bonuses we historically paid to our partners and professionals within compensation and benefits, net. Through the Reorganization, we have increased certain of our people's share of performance allocations associated with the Specified Company Assets from approximately 50% to between 65% and 70%. 4) The difference in realized investment income and other, net is related to the transfer to RemainCo of certain other investments that make up the Excluded Assets. The TPG Operating Group retained its interests in our strategic investments in New Quest, Harlem Capital Partners, Vamos Ventures and LandSpire Group. Realized performance allocations, net only include the amounts the TPG Operating Group is entitled to after gross realized performance allocations has been reduced by realized performance allocation compensation and non-controlling interests. Following the Reorganization, the TPG Operating Group receives approximately 20% of the future performance allocations associated with the general partner entities that we retained an economic interest in. This adjustment to our sharing percentage was made to allow us to reduce cash-based bonuses paid to our partners. This difference relates to additional interest expense from new financing the TPG Operating Group used to declare a distribution of $200 million to our controlling and non-controlling interest holders prior to the Reorganization and the IPO. The distribution was made with $200 million proceeds from the senior unsecured term loan issuance. The Senior Unsecured Term Loan carries an interest rate of LIBOR plus 1.00% and matures in December 2024. The difference in income tax expense is attributable to the corporate conversion. The income tax expense adjustment reflects TPG Inc.'s share of pro form a pre-tax distributable earnings, which equals 25.6%, multiplied by TPG Inc.'s effective tax rate of 23.0%. TPG | 41#42Reconciliations and Disclosures#43GAAP to Non-GAAP Financial Measures Reconciliation ($ in thousands) GAAP Revenue Capital-allocation Income Expense Reimbursements Investment income and other Fee-Related Revenue GAAP Expense Depreciation and amortization expense Interest expense Expense related to consolidated TPG Funds and Public SPACs Expense Reimbursements Performance allocation compensation Equity based compensation Non-core expenses and other Fee-Related Expenses ($ in thousands) Net Income Net (income) loss attributable to redeemable interests in Public SPACS Net (income) loss attributable to non-controlling interests in consolidated TPG Funds Net (income) loss attributable to other non-controlling interests Amortization expense Equity-based compensation Unrealized performance allocations, net Unrealized investment income Unrealized (gain) loss on derivatives Income tax Non-recurring and other After-tax Distributable Earnings Income taxes Distributable Earnings Realized performance allocations, net Realized investment income and other, net Depreciation expense Interest expense, net Fee-Related Earnings $ $ $ $ $ $ 1Q'21 1,204,733 $ 2,181,063 $ (994,578) (1,986,011) (30,385) 13,182 192,952 $ 194,646 (1,364) (3,921) (8,250) (30,385) 8,626 159,352 $ $ 1Q'21 1,161,314 $ (63,558) 5,736 (489,065) (402,568) (126,603) 14,160 99,416 3,307 102,723 (66,121) (7,995) 1,355 3,638 33,600 2Q'21 $ (30,357) 10,800 175,495 $ 198,720 $ (1,522) (4,026) (3,460) (30,356) 6,899 166,255 $ 2Q'21 2,140,442 $ (73,901) (12,634) (998,500) (748,072) (92,398) (16,972) 197,965 3,089 201,054 (176,698) (20,441) 1,525 3,801 9,240 $ 3Q'21 511,264 $ 1,079,327 (231,356) (786,538) (21,959) 1,558 259,507 224,177 (2,251) (4,371) (12,782) (21,960) 3Q'21 (10,194) 172,620 $ $ 390,552 (85,607) (13,907) $ 520,483 $ 4,250 (1,293) (179,199) 635,279 3 635,282 (505,626) (48,312) 1,737 3,806 86,886 4Q'21 $ (50,109) (3,556) 239,125 $ 299,023 (16,086) (3,973) 3,728 (50,109) 4Q'21 (42,282) 190,301 $ (96,417) 9,218 (3,907) $ 1,110,710 833,758 $ (21,922) (11,096) (414,406) 14,195 (2,220) 307,204 2,909 $ 310,113 (251,158) (15,972) 2,157 3,684 48,825 1Q'22 $ (837,704) (32,677) 204 240,532 $ 942,532 $ (8,699) (4,638) (1,523) (32,677) (523,138) (185,911) (37,397) 148,549 $ (118,904) 3,272 190,462 (35,949) (2,591) (685) (1,301) 3,231 199,033 16,433 215,466 (122,192) (7,293) 1,571 4,431 91,983 $ 1Q'22 LTM $ 4,882,363 (3,841,609) (135,102) 9,006 914,659 1Q'22 1Q'22 LTM 162,804 $ 3,657,487 (1,306) (92,879) (25,023) (1,711,009) 17,467 190,462 (489,886) (171,378) (35,471) 1,664,451 (28,558) (17,008) (14,037) (135,102) (523,138) 185,911) (82,972) 677,725 (1,301) 1,011 1,339,480 22,434 1,361,914 (1,055,674) (92,018) 6,991 15,721 236,934 TPG | 43#44GAAP to Non-GAAP Balance Sheet Reconciliation ($ in thousands) Total GAAP Assets Impact of consolidated TPG Funds and Public SPACs Cash and cash equivalents Assets held in Trust Accounts Due from affiliates Other assets Subtotal for impact of consolidated TPG Funds and Public SPACs Impact of other consolidated entities Cash and cash equivalents Due from affiliates Investments Other assets Subtotal for impact of other consolidated entities Reclassification adjustments Due from affiliates Investments Accrued performance allocations Investments in funds Other assets Subtotal for reclassification adjustments Total Book Assets 4Q'21 $ 8,962,013 $ (5,371) (1,000,027) (74) (18,993) (1,024,465) (730,359) 81,557 (4,204,888) (282,272) (5,135,962) (13,930) (1,904,158) 1,344,348 559,810 105,092 91,162 2,892,748 1Q'22 $ 9,664,327 (9,494) (1,000,056) (74) (1,164) (1,010,788) (871,328) (9,485) (4,976,476) (193,344) (6,050,633) (76,495) (1,370,838) 796,328 574,510 87,144 10,649 $ 2,613,555 ($ in thousands) Total GAAP Liabilities Impact of consolidated TPG Funds and Public SPACS Accounts payable and accrued expenses Derivative liabilities of Public SPACs Deferred underwriting Subtotal for impact of consolidated TPG Funds and Public SPACs Impact of other consolidated entities Accounts payable and accrued expenses Due to affiliates Accrued performance allocation compensation Other liabilities Subtotal for impact of other consolidated entities Reclassification adjustments Accounts payable and accrued expenses Due to affiliates Other liabilities Subtotal for reclassification adjustments Total Book Liabilities $ $ 4Q'21 1,700,572 (8,484) (13,048) (35,000) (56,532) (131,737) (820,998) (238,055) (1,190,790) 522,653 (6,001) (191) 516,461 969,711 $ $ 1Q'22 5,238,986 (2,652) (10,391) (35,000) (48,043) (171,052) (235,658) (4,074,727) (220,224) (4,701,661) 43,668 (8,461) (21,151) 14,056 503,338 TPG | 44#454Q'21 Pro Forma GAAP Balance Sheet ($ in thousands) Assets Cash and cash equivalents Restricted cash Due from affiliates Investments Right-of-use assets Other assets Assets of consolidated TPG Funds and Public SPACs: Cash and cash equivalents Investments held in Trust Accounts Due from affiliates Other assets Total assets Liabilities, redeemable equity and partners' capital Accounts payable and accrued expenses Due to affiliates Secured borrowings, net Revolving credit facility to affiliate Accrued performance allocation compensation Operating lease liabilities Other liabilities Liabilities of consolidated TPG Funds and Public SPACs: Accounts payable and accrued expenses Derivative liabilities of Public SPACs Deferred underwriting Total liabilities Commitments and contingencies Redeemable equity from consolidated Public SPACs Equity Class A common stock Class B common stock Additional paid-in-capital Partners' capital controlling interests Retained earnings Total partners' / stockholders' equity attributable to TPG Inc. Non-Controlling interests in consolidated TPG Funds Other non-controlling interests Total equity Total liabilities, redeemable equity and equity See notes on the following pages. TPG Group Holdings Historical 4Q'21 $ $ 972,729 13,135 185,321 6,109,046 157,467 499,850 5,371 1,000,027 74 18,993 8,962,013 134,351 826,999 244,950 199,494 177,003 61,243 8,484 13,048 35,000 1,700,572 1,000,027 1,606,593 1,606,593 4,654,821 6,261,414 8,962,013 Reorganization and Other Transaction Adjustments $ $ (27,200) (27,200) (203,286) 3,848,126 o 3,644,840 (439,196) (439,196) (3,232,844) (3,672,040) (27,200) Offering Transaction Adjustments $ $ 431,217 (23,988) 407,229 10,611 (24,171) (13,560) 79 230 498,251 (1,167,397) (668,837) 1,089,626 420,789 407,229 TPG Inc. Pro Forma 4Q'21 $ $ 1,376,746 (1), (3), (8) 13,135 185,321 6,109,046 157,467 475,862 (8) 5,371 1,000,027 74 18,993 9,342,042 134,351 634,324 (1). (6) 244,950 199,494 3,848,126 (2) 177,003 37,072 (8) 8,484 13,048 35,000 5,331,852 1,000,027 79 (4) 230 (5) 498,251 (7) - (1), (9) 498,560 2,511,603 (1), (2), (9) 3,010,163 9,342,042 TPG | 45#464Q'21 Pro Forma GAAP Balance Balance Sheet Notes Notes to the Unaudited Pro Forma Condensed Consolidated GAAP Balance Sheet Measures as of December 31, 2021 1) The TPG Operating Group transferred to Remain Co certain performance allocation economic entitlements from certain of the TPG general partner entities that are defined as Excluded Assets, as well as certain cash and due to affiliate amounts at the TPG Operating Group that relate to these TPG general partner entities' economic entitlements. We continue to consolidate these TPG general partner entities because we maintain control and have an implicit variable interest. These transfers resulted in the reduction of cash of $27.2 million and due to affiliate amounts of $203.3 million, which increased partners' capital by $148.5 million and non-controlling interests of $27.6 million. In addition, the transfer of performance allocation economic entitlements resulted in a transfer of $587.7 million from partners' capital to non-controlling interests. 2) This adjustment relates to accrued performance allocation amounts owed to our partners and professionals. Prior to the Reorganization and the IPO, the entities that comprise the consolidated financial statements of TPG Group Holdings have been partnerships or limited liability companies, and our senior professionals were part of the ownership group of those entities. As such, their share of accrued performance allocations was reflected within "other non-controlling interests" on the TPG Group Holdings consolidated statement of financial condition, as these interests existed through the individuals' ownership interests, and the income attributable to these performance allocation rights were included in "net income attributable to other non-controlling interests" on the TPG Group Holdings consolidated statement of operations. Additionally, we have adjusted the sharing percentages associated with certain performance allocations between our controlling and non-controlling interest holders, which resulted in an increase to amounts attributable to our historic non-controlling interest holders and a further increase to accrued performance allocation compensation. As of December 31, 2021, the carrying value of these performance allocations totaled approximately $3,848.1 million. An adjustment has been recorded to reclassify this balance from other non-controlling interests to a liability on the unaudited pro forma condensed consolidated statement of financial condition. Subsequent to the Reorganization, the amounts owed to our senior professionals are treated as compensatory profit-sharing arrangements and reflected as a liability on our unaudited pro forma condensed consolidated statement of financial condition. 3) The adjustment reflects i) proceeds, net of estimated underwriting discounts, of $820.7 million from the IPO based on the issuance of 30,085,604 shares of Class A common stock at the IPO price of $29.50 per share, with a corresponding increase to additional paid-in capital and (ii) of the proceeds noted above, we used approximately $380.1 million to purchase Common Units from certain existing owners of the TPG Operating Group (none of whom is an active TPG partner or Founder), at the IPO price of $29.50 per share paid by the underwriters for shares of our Class A common stock in the IPO. 4) Reflects 70,811,664 shares of Class A common stock and 8,258,901 shares of nonvoting Class A common stock with a par value of $0.001 outstanding immediately after the IPO. This includes 30,085,604 shares of our Class A common stock issued in the IPO to new investors and 40,726,060 shares of Class A common stock and 8,258,901 shares of nonvoting Class A common stock received in exchange for Common Units by the holders of Common Units (other than TPG Inc.). 5) In connection with the IPO, we issued 229,652,641 shares of Class B common stock with a par value of $0.001 to the TPG Operating Group owners, other than us or our wholly-owned subsidiaries, on a one-to-one basis with the number of Common Units they own across each of the three TPG Operating Group entities. Each share of our Class B common stock entitles its holder to ten votes. As part of the IPO and pursuant to the Exchange Agreement, each Common Unit that is not held by us or our wholly-owned subsidiaries is exchangeable for either (i) cash equal to the value of one share of Class A common stock from a substantially concurrent public offering or private sale based on the closing price per share of the Class A common stock on the day before the pricing of such public offering or private sale (taking into account customary brokerage commissions or underwriting discounts actually incurred); or (ii) at our election, for one share of our Class A common stock (or, in certain cases, for shares of nonvoting Class A common stock). We are reflecting the TPG Operating Group Common Units held by our affiliates as non-controlling interests on the unaudited pro forma GAAP balance sheet since they relate to equity in the TPG Operating Group that is not attributable to us. TPG | 46#474Q'21 Pro Forma GAAP Balance Sheet Notes (Cont'd) Notes to the Unaudited Pro Forma Condensed Consolidated GAAP Balance Sheet Measures as of December 31, 2021 continued 6) In connection with the IPO, we entered into the Tax Receivable Agreement with certain of our pre-IPO owners that provides for the payment by us (or our subsidiary) to such pre-IPO owners of 85% of cash tax savings, if any, that we actually realize, or we are deemed to realize (calculated using certain assumptions) as a result of the Covered Tax Items. We retain the benefit of the remaining 15% of these net cash tax savings under the Tax Receivable Agreement. Pursuant to the corporate conversion and the IPO, $10.6 million was recognized in due to affiliates for the Tax Receivable Agreement, which assumes: (i) only exchanges associated with the IPO, (ii) a share price equal to $29.50 per share less any underwriting discounts and commissions, (iii) a constant U.S. federal and state income tax rate of 23.0% (iv) no material changes in tax law, (v) the ability to utilize tax attributes, (vi) no adjustment for potential remedial allocations and (vii) future Tax Receivable Agreement payments. The impact of the Tax Receivable Agreement liability is reflected within additional paid-in capital. 7) Reflects adjustments to additional paid-in capital as a result of: (i) proceeds from offering, net of underwriting discounts and unpaid offering costs, (ii) exchange of common units, (iii) reclassifying partners' capital to additional paid-in capital, (iv) tax receivable agreement, (v) payment of offering costs, (vi) par value of common stock, and (vii) transfer to non-controlling interest holders. 8) We are deferring certain costs associated with this offering, including certain legal, accounting and other related expenses, which have been recorded in other assets, net in our unaudited pro forma condensed consolidated statement of financial condition. Upon completion of the IPO, we incurred approximately $31.8 million of offering costs that will be reflected as a reduction to additional paid-in capital, of which $24.2 million was recorded to other assets, net as of December 31, 2021. The remaining $9.4 million of offering costs are presented as an offset to proceeds from the IPO. 9) Following the IPO, we hold approximately 25.6% of the Common Units and 100% of the interests in certain intermediate holding companies. In our capacity as the sole indirect owner of the entities serving as the general partner of the TPG Operating Group partnerships, we indirectly control all of the TPG Operating Group's business and affairs. As a result, we continue to consolidate the financial results of the TPG Operating Group and report non-controlling interests related to the interests held by the other partners of the TPG Operating Group, which represents a majority of the economic interest in the TPG Operating Group on our consolidated statement of financial condition. TPG | 47#484Q'21 Pro Forma Non-GAAP Balance Sheet and Notes ($ in thousands) Book Assets Cash and cash equivalents Restricted Cash Accrued performance allocations Investments in funds Other assets, net Total Book Assets Book Liabilities Accounts payable, accrued expenses and other Securitized borrowing, net Senior unsecured term loan Total Book Liabilities 2) 3) Net Book Value 4) $ 5) $ Non-GAAP 4Q'21 242,370 13,135 1,344,348 559,810 733,085 2,892,748 525,267 244,950 199,494 969,711 1,923,037 Reorganization and Other Transaction Adjustments $ $ (27,200) (575,065) Notes to the Unaudited Pro Forma Condensed Consolidated Non-GAAP Balance Sheet Measures as of December 31, 2021 (204,453) (806,718) (203,286) (203,286) Represents the impact to the net book value of the TPG Operating Group after the IPO transaction adjustments. (603,432) Offering Transaction Adjustments $ $ 431,217 (23,988) 407,229 (13,560) (13,560) 420,789 $ $ Reflects a Tax Receivable Agreement liability of $10.4 million related to the Reorganization of TPG into a corporation and associated offering transactions. Pro Forma Non-GAAP 4Q'21 1) The difference between non-GAAP and pro form a non-GAAP balance sheet measures relates to the transfer of Excluded Assets, which consist of rights to future performance allocations related to certain general partner entities. Additionally, certain of our other investments and investments into TPG Funds have been excluded, because such interests are not part of the TPG Operating Group. We would have transferred (i) $27.2 million of cash; (ii) $204.5 million of other assets; and (iii) $203.3 million of other liabilities to Remain Co. 646,387 (1), (2) 13,135 769,283 (3) 559,810 504,644 (1), (2) 2,493,259 308,421 (1), (2), (4) 244,950 199,494 752,865 1,740,394 (5) Includes $431.2 million of proceeds, net of estimated underwriting discounts and unpaid offering costs of $31.8 million, of which $24.0 million was previously capitalized and accrued in Other Assets, net and Accounts payable, accrued expenses and other, respectively. Following the Reorganization, the TPG Operating Group and Common Unit holders receive approximately 20% of the future performance allocations associated with the general partner entities that we retain an economic interest in as described in Note 2 above. This adjustment reduces our share of accrued performance allocations by $575.1 million. TPG | 48#49Additional Information Dividend Policy Our current intention is to pay holders of our Class A common stock and nonvoting Class A common stock a quarterly dividend representing at least 85% of TPG Inc.'s share of distributable earnings attributable to the TPG Operating Group, subject to adjustment as determined by the Executive Committee of our board of directors to be necessary or appropriate to provide for the conduct of our business, to make appropriate investments in our business and funds, to comply with applicable law, any of our debt instruments or other agreements, or to provide for future cash requirements such as tax-related payments and clawback obligations. Although we expect to pay at least 85% of our DE as a dividend, the percentage of our DE paid out as a dividend could fall below that target minimum. All of the foregoing is subject to the further qualification that the declaration and payment of any dividends are at the sole discretion of the Executive Committee prior to the Sunset and the Executive Committee may change our dividend policy at any time, including, without limitation, to reduce such dividends or even to eliminate such dividends entirely. Any future determination as to the declaration and payment of dividends, if any, will be at the discretion of the Executive Committee after taking into account various factors, including our business, operating results and financial condition, current and anticipated cash needs, plans for expansion and any legal or contractual limitations on our ability to pay dividends. Certain of our existing credit facilities include, and any financing arrangement that we enter into in the future may include restrictive covenants that limit our ability to pay dividends. In addition, the TPG Operating Group is generally prohibited under Delaware law from making a distribution to a limited partner to the extent that, at the time of the distribution, after giving effect to the distribution, liabilities of the TPG Operating Group (with certain exceptions) exceed the fair value of its assets. Subsidiaries of the TPG Operating Group are generally subject to similar legal limitations on their ability to make distributions to the TPG Operating Group. Non-GAAP Financial Measures In this press release, we disclose non-GAAP financial measures, including Distributable Earnings ("DE"), After-tax DE, Fee-Related Earnings ("FRE"), Fee-Related Revenues ("FRR"), and Fee-Related Expenses. These measures are not financial measures under GAAP and should not be considered as substitutes for net income, revenues or total expenses, and they may not be comparable to similarly titled measures reported by other companies. These measures should be considered in addition to GAAP measures. We use these measures to assess the core operating performance of our business, and further definitions can be found on the following pages. TPG | 49#50Definitions After-tax Distributable Earnings ("After-tax DE") is a non-GAAP performance measure of our distributable earnings after reflecting the impact of income taxes. We use it to assess how income tax expense affects amounts available to be distributed to our Class A common stock holders and Common Unit holders. After-tax DE differs from GAAP net income computed in accordance with GAAP in that it does not include the items described in the definition of DE herein; however, unlike DE it does reflect the impact of income taxes. Income taxes, for purposes of determining After-tax DE, represent the total GAAP income tax expense adjusted to include only the current tax expense (benefit) calculated on GAAP net income before income tax and includes the current payable under our Tax Receivable Agreement, which is recorded within other liabilities in our consolidated statement of financial condition. Further, the current tax expense (benefit) utilized when determining After-tax DE reflects the benefit of deductions available to the Company on certain expense items that are excluded from the underlying calculation of DE, such as equity-based compensation charges. We believe that including the amount currently payable under the Tax Receivable Agreement and utilizing the current income tax expense (benefit), as described above, when determining After-tax DE is meaningful as it increases comparability between periods and more accurately reflects earnings that are available for distribution to shareholders. Assets Under Management ("AUM") represents the sum of (i) fair value of the investments and financial instruments held by our TPG funds managed by us, plus the capital that we are entitled to call from investors in those funds and co-investors, pursuant to the terms of their respective capital commitments, net of outstanding leverage, including capital commitments to funds that have yet to commence their investment periods; (ii) the net asset value of our hedge funds and funds of hedge funds; (iii) the gross amount of assets (including leverage) for our mortgage REITs; and (iv) IPO proceeds held in trust, excluding interest, as well as forward purchase agreements and proceeds associated with the private investment in public equity related to our SPACs upon the consummation of a business combination. Our definition of AUM is not based on any definition of AUM that may be set forth in the agreements governing the investment funds that we manage or calculated pursuant to any regulatory definitions. AUM Not Yet Earning Fees represents the amount of capital commitments to TPG investment funds and co-investment vehicles that has not yet been invested or considered active, and as this capital is invested or activated, the fee-paying portion will be included in FAUM. FAUM Subject to Step-Up represents capital raised within certain funds where the management fee rate increases once capital is invested. Subject to certain limitations, limited partners in these funds pay a lower fee on committed and undrawn capital. As capital is drawn down for investments, the fees paid on that capital increases. FAUM Subject to Step-Up is included within FAUM. AUM Subject to Fee Earning Growth represents capital commitments that can grow fees when deployed through earning new management fees (AUM Not Yet Earning Fees) or when invested from a higher rate of management fees (FAUM Subject to Step-Up). Available capital is the aggregate amount of unfunded capital commitments that partners have committed to our funds and co-invest vehicles to fund future investments, as well as IPO and forward purchase agreement proceeds associated with our Public SPACs, and private investment in public equity commitments by investors upon the consummation of a business combination associated with our Public SPACs. Available capital is reduced for investments completed using fund-level financing arrangements; however, it is not reduced for investments that we have committed to make yet remain unfunded at the reporting date. We believe this measure is useful to investors as it provides additional insight into the amount of capital that is available to our investment funds and co-investment vehicles to make future investments. Capital invested is the aggregate amount of capital invested during a given period by TPG's investment funds, co-investment vehicles and SPACs in conjunction with the completion of a business combination. It excludes hedge fund activity. We believe this measure is useful to investors as it measures capital deployment across TPG. Capital invested includes investments made using investment financing arrangements like credit facilities, as applicable. Capital raised is the aggregate amount of capital commitments raised by TPG's investment funds and co-investment vehicles during a given period, as well as IPO and forward purchase agreements associated with our Public SPACs and private investment in public equity upon the consummation of a business combination associated with one of our Public SPACs. We believe this measure is useful to investors as it measures access to capital across TPG and our ability to grow our management fee base. Distributable Earnings ("DE") is used to assess performance and amounts potentially available for distributions to partners. DE is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of net income. DE differs from GAAP net income computed in accordance with GAAP in that it does not include (i) unrealized performance allocations and related compensation and benefit expense, (ii) unrealized investment income, (iii) equity-based compensation expense, (iv) net income (loss) attributable to non- controlling interests in consolidated entities, or (v) certain non-cash items, such as contingent reserves. Excluded Assets refers to the assets and economic entitlements transferred to RemainCo listed in Schedule A to the master contribution agreement entered into in connection with the Reorganization (as defined herein), which primarily include (i) minority interests in certain sponsors unaffiliated with TPG, (ii) the right to certain performance allocations in TPG funds, (iii) certain co-invest interests and (iv) cash. TPG | 50#51Definitions (Cont'd) Fee-Related Earnings ("FRE") is a supplemental performance measure and is used to evaluate our business and make resource deployment and other operational decisions. FRE differs from net income computed in accordance with GAAP in that it adjusts for the items included in the calculation of DE and also adjusts to exclude (i) realized performance allocations and related compensation expense, (ii) realized investment income from investments and financial instruments, (iii) net interest (interest expense less interest income), (iv) depreciation, (v) amortization and (vi) certain non-recurring income and expenses. We use FRE to measure the ability of our business to cover compensation and operating expenses from fee revenues other than capital allocation-based income. The use of FRE without consideration of the related GAAP measures is not adequate due to the adjustments described herein. Fee-Related Expenses differs from expenses computed in accordance with GAAP in that it is net of certain reimbursement arrangements. Fee-related expenses is used in management's review of the business. Fee-Related Revenues ("FRR") is comprised of (i) management fees, (ii) transaction, monitoring and other fees, net, and (iii) other income. Fee-related revenue differs from revenue computed in accordance with GAAP in that it excludes certain reimbursement expense arrangements. Fee earning AUM ("FAUM") represents only the AUM from which we are entitled to receive management fees. FAUM is the sum of all the individual fee bases that are used to calculate our management fees and differs from AUM in the following respects: (i) assets and commitments from which we are not entitled to receive a management fee are excluded (e.g., assets and commitments with respect to which we are entitled to receive only performance allocations or are otherwise not currently entitled to receive a management fee) and (ii) certain assets, primarily in our private equity funds, are reflected based on capital commitments and invested capital as opposed to fair value because fees are generally not impacted by changes in the fair value of underlying investments. We believe this measure is useful to investors as it provides additional insight into the capital base upon which we earn management fees. Our definition of FAUM is not based on any definition of AUM or FAUM that is set forth in the agreements governing the investment funds and products that we manage. Net accrued performance allocations represents both unrealized and undistributed performance allocations resulting from our general partner interests in our TPG funds. We believe this measure is useful to investors as it provides additional insight into the accrued performance allocations to which the TPG Operating Group Common Unit holders are expected to receive. Non-GAAP Financial Measures represent financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America. These non-GAAP financial measures should be considered in addition to and not as a substitute for, or superior to, financial measures presented in accordance with U.S. GAAP. We use these measures to assess the core operating performance of our business. Realizations represent the aggregate investment proceeds generated by our TPG investment funds and co-investment vehicles and Public SPACs in conjunction with the completion of a business combination. We believe this measure is useful to investors as it drives investment gains and performance allocations. RemainCo refers to, collectively, Tarrant RemainCo I, L.P., a Delaware limited partnership, Tarrant RemainCo II, L.P., a Delaware limited partnership, and Tarrant RemainCo III, L.P., a Delaware limited partnership, which owns the Excluded Assets, and Tarrant RemainCo GP LLC, a Delaware limited liability company serving as their general partner. TPG Operating Group refers (i) for periods prior to giving effect to the Reorganization, to the TPG Operating Group partnerships and their respective consolidated subsidiaries and (ii) for periods beginning after giving effect to the Reorganization, (A) to the TPG Operating Group partnerships and their respective consolidated subsidiaries and (B) not to RemainCo. TPG Operating Group partnerships refers to TPG Operating Group I, L.P., a Delaware limited partnership formerly named TPG Holdings I, L.P., TPG Operating Group II, L.P., a Delaware limited partnership formerly named TPG Holdings II, L.P., and TPG Operating Group III, L.P., a Delaware limited partnership formerly named TPG Holdings III, L.P. Value creation, with respect to an investment or group of investments, represents the appreciation or depreciation of value during a given measurement period, with the numerator being the total change in value reduced by capital invested during the measurement period, and the denominator being the sum of (i) the unrealized value at the beginning of the measurement period plus (ii) capital invested in follow-on investments made during the measurement period plus (iii) capital invested in new investments made during the measurement period if the new investment had a change in value. TPG | 51