Global alternative asset manager TPG is weighing potential property investments in the United States, Europe and Asia with $13 billion of dry powder earmarked for spending on real estate.
TPG CEO Jon Winkelried did not disclose specifics of the "number of interesting investments" being considered by the firm during a first-quarter earnings call Wednesday. TPG's real estate deployment pace in the first quarter was "intentionally modest," but the firm is prepared to invest heavily in real estate, Winkelried said.
"The impact of recent market volatility, uncertainty around interest rates and a potential recession are creating increasing flows of actionable opportunities," Winkelried said during the call.
"As we look ahead, our experience has been that periods of dislocation often create some of the most interesting investment opportunities," he added. "With $57 billion of total dry powder across the firm, we're in a strong position to take advantage of this environment."
TPG has been adding to its business capabilities with plans for a real estate credit strategy in the wake of the ongoing pullback of bank lending and more volatile credit conditions in the debt capital markets, Winkelried said. TPG AG Real Estate also closed its fourth European fund totaling nearly $2.3 billion in capital commitments, a 50% increase from its predecessor fund, to invest in European real estate.
This week, TPG also announced it would acquire Peppertree Capital Management, a digital infrastructure firm with a focus on wireless communications towers. The investment firm is paying $242 million in cash and up to $418 million in equity once the deal closes, TPG officials said in a statement.
TPG's real estate portfolio appreciated 7% in the first quarter and nearly 13% in the past 12 months, the company said. The firm places funds where it has "strong thematic conviction," including data centers, industrial and residential.
Tariffs and general policy uncertainty have upended the environment and created significant volatility, Winkelried said. Still, TPG's assets have very limited exposure to tariffs, the company's executives said.
"We're seeing unusual market correlations, renewed fears of inflation, and concerns around slowing economic growth," he said. "Our leadership team has navigated through many cycles, and one of our core beliefs is that staying engaged and highly connected is critical during times like these."