Operator
thank you for your continued patience your meeting will begin shortly if you need assistance at any time please press star zero and a member of our team will be happy to help you how to begin and welcome to TPG's second quarter 2026 earnings conference call currently all colors have been placed in a listen-only mode and following management's prepared remarks the call will be open for your questions if you would like to ask a question at that time please press star 1 on your telephone keypad if you need to remove yourself from the queue press star 2 to get to as many questions as a time permits we ask that you please limit yourself to one question at any time if you should need operator
assistance press star 0 please be advised that today's call is being recorded please go to TPG ir website to obtain the earnings materials i will now turn the call over to gary stein head of investor relations at tpg thank you you may begin great thanks operator and welcome everyone joining me today are john winkelreid jack weingart jim coulter and todd susitsky as well as our new cfo axel andre i'd like to remind you this call may include forward-looking statements that do not guarantee future events or performance please refer to tpg's earnings release and sec filings for factors that could cause actual results to differ materially from these statements tpg undertakes no obligation to revise or update any forward-looking statements except as required by law within our discussion and earnings release we're presenting gap and non-gap measures and we believe certain non-gap measures that we discuss on this call are relevant in assessing the financial performance of the business. These non-GAAP measures are reconciled to the nearest GAAP figures in TPG's earnings release, which is available on our website. Please note that nothing on this call constitutes an offer to sell or a solicitation of an offer to purchase an interest in any TPG fund. Looking briefly at our results for the second quarter, we reported GAAP net income attributable to TPG Inc. of $93 million dollars and after-tax distributable and distributable earnings of 280 million dollars or 69 cents per share of class a common stock we declared a dividend of 59 cents per share of class a common stock which will be paid on august 28th 2026 holders of record as of august 14th 2026 but with that i'll turn the call over to john good morning everyone thank you for joining us KPG delivered strong results in the second quarter, capping off a record first half for So far, 2026 has been defined by a series of inflections across AI, private credit, monetary
policy and geopolitics that have reshaped the macro backdrop and investing landscape. As this environment drives a wider dispersion of performance across our industry, we believe TPG is well-positioned to continue taking share given our proven track record and differentiated investment capabilities. We're actively capitalizing on an expanding opportunity set, and our clients continue to look for ways to deepen their engagement with us across our franchise. Turning to our results, fee-related revenue grew 27 percent year-over-year to $628 million, driven by a step-up in management fees and our second-highest quarter ever for transaction and monitoring fees. Our capital markets business continues to be a powerful revenue driver as we further embed our capabilities across each of our asset classes. Our strong top-line growth and increasing operating leverage drove a 43% year-over-year increase in fee-related earnings to $315 million in the second quarter, resulting in a 50% FRE margin. Since becoming a public company four and a half years ago, our LTM FRE has grown at a 31% annualized rate, and we've expanded our margin by over 1,000 basis points. We ended the quarter with $327 billion of total assets under management, up 25% year-over-year, and have continued to set new records for capital raising and deployment on an LTM basis, which I'll highlight now. Starting with capital formation, we raised $16 billion in the second quarter, bringing our year-to-date total to more than $26 billion. given our strong progress in the first half of the year.
