TPG Inc.TPG
TPG Inc. Fair Value Disclosure
5. Fair Value Measurement
The following tables summarize the valuation of the Company’s financial assets and liabilities that fall within the fair value hierarchy (in thousands):
| December 31, 2025 | |||||||||||||||||||||||
| Level I | Level II | Level III | Total | ||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Aggregate Annual Cash Holdback Amount | $ | — | $ | — | $ | 70,875 | $ | 70,875 | |||||||||||||||
| Earnout Payment | — | — | 13,727 | 13,727 | |||||||||||||||||||
| Total liabilities | $ | — | $ | — | $ | 84,602 | $ | 84,602 | |||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Level I | Level II | Level III | Total | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
Investments held for sale and other(a) | $ | — | $ | — | $ | 121,995 | $ | 121,995 | |||||||||||||||
| Equity investments | 128 | — | — | 128 | |||||||||||||||||||
| Total assets | $ | 128 | $ | — | $ | 121,995 | $ | 122,123 | |||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Aggregate Annual Cash Holdback Amount | $ | — | $ | — | $ | 107,991 | $ | 107,991 | |||||||||||||||
| Earnout Payment | — | — | 32,769 | 32,769 | |||||||||||||||||||
| Total liabilities | $ | — | $ | — | $ | 140,760 | $ | 140,760 | |||||||||||||||
_________________
(a)Investments held for sale and other are held primarily for the purpose of selling in the near term as described in Note 2 to the Consolidated Financial Statements.
The following tables summarize the changes in the fair value of financial instruments for which the Company has used Level III inputs to determine fair value (in thousands):
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Investments held for sale and other | |||||||||||
| Balance, beginning of period | $ | 121,995 | $ | — | |||||||
| Purchases | 266,273 | 119,423 | |||||||||
| Proceeds | (386,041) | — | |||||||||
| Change in unrealized value | (2,227) | 2,572 | |||||||||
| Balance, end of period | $ | — | $ | 121,995 | |||||||
| Financial liabilities | |||||||||||
| Balance, beginning of period | $ | 140,760 | $ | 156,299 | |||||||
Unrealized gains, net | (37,512) | (15,539) | |||||||||
| Payments | (18,646) | — | |||||||||
| Balance, end of period | $ | 84,602 | $ | 140,760 | |||||||
Total realized and unrealized gains and losses recorded for Level III investments held for sale and other are reported in net gains (losses) from investment activities in the Consolidated Statements of Operations. Total realized and unrealized gains and losses recorded for Level III financial liabilities are reported in interest, dividends and other in the Consolidated Statements of Operations.
The following tables provide qualitative information about instruments categorized in Level III of the fair value hierarchy as of December 31, 2025 and 2024. In addition to the techniques and inputs noted in the table below, in accordance with the valuation policy, other valuation techniques and methodologies are used when determining fair value measurements. The below table is not intended to be all-inclusive, but rather provides information on the significant Level III inputs as they relate to the Company’s fair value measurements (fair value measurements in thousands):
| Fair Value as of December 31, 2025 | Valuation Technique(s) | Unobservable Input(s)(a) | Range (Weighted Average)(b) | ||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Aggregate Annual Cash Holdback Amount | $ | 70,875 | Present value | Discount rate | 8.0% | ||||||||||||||||||
| Earnout Payment | 13,727 | Multiple probability simulation | Estimated revenue volatility | 20.1% | |||||||||||||||||||
| $ | 84,602 | ||||||||||||||||||||||
_________________
(a)In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies and company-specific developments including exit strategies and realization opportunities. Management has determined that market participants would take these inputs into account when valuing the instruments.
(b)Inputs weighted based on fair value of instruments in range.
| Fair Value as of December 31, 2024 | Valuation Technique(s) | Unobservable Input(s)(a) | Range (Weighted Average)(b) | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Investments held for sale and other | $ | 121,995 | Discounted cash flow | Yield | 18.6% - 24.7% (20.8%) | ||||||||||||||||||
| Market comparable | Adjusted EBITDA multiple | 9.25x - 10.00x (9.30x) | |||||||||||||||||||||
| $ | 121,995 | ||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||
| Aggregate Annual Cash Holdback Amount | $ | 107,991 | Present value | Discount rate | 8.0% | ||||||||||||||||||
| Earnout Payment | 32,769 | Multiple probability simulation | Estimated revenue volatility | 20.8% | |||||||||||||||||||
| $ | 140,760 | ||||||||||||||||||||||
______________
(a)In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies and company-specific developments including exit strategies and realization opportunities. Management has determined that market participants would take these inputs into account when valuing the instruments.
(b)Inputs weighted based on fair value of instruments in range.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.