v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) before Income Taxes
The income (loss) before income taxes includes the following components (in thousands):
Year Ended December 31,
202520242023
Income (loss) before income taxes
United States$130,081 $(144,214)$18,303 
Foreign536,497 119,390 65,350 
$666,578 $(24,824)$83,653 
Schedule of Provision for Income Taxes
The Company has provided U.S. federal, foreign and state and local corporate income tax for certain consolidated subsidiaries. The provision for income taxes consists of the following (in thousands):
Year Ended December 31,
202520242023
Current income taxes (benefit)
Federal$10,266 $26,460 $24,314 
State and local11,583 8,368 6,680 
Foreign15,327 11,906 9,198 
37,176 46,734 40,192 
Deferred income taxes (benefit)
Federal56,528 15,412 18,258 
State and local(14,758)88 1,570 
Foreign(11,953)(10,143)248 
29,817 5,357 20,076 
Income tax expense (benefit)$66,993 $52,091 $60,268 
Schedule of Effective Income Tax Rate A reconciliation of the U.S. federal statutory income tax rate to our effective tax rate pursuant to the disclosure requirements of ASU 2023-09 for the year ended December 31, 2025 is as follows (in thousands, except percentages):
Year Ended December 31, 2025
Provision for income taxes at U.S. federal statutory rate$139,981 21.0%
State and local income taxes, net of federal benefit(a)
(3,579)(0.5)
Foreign tax effects:
Cayman Islands
Income not subject to tax(90,307)(13.6)
Luxembourg
Income not subject to tax(15,962)(2.4)
Other reconciling items(63)—
Other foreign jurisdictions(1,995)(0.3)
Effect of changes in tax laws or rates enacted in the current period— —
Effect of cross-border tax laws:
Foreign branch108,824 16.3
Tax credits:
Foreign tax credits(4,160)(0.6)
Changes in valuation allowances6,960 1.0
Nontaxable or nondeductible items:
Non-deductible compensation34,524 5.2
Equity-based compensation windfall(14,209)(2.1)
Other(776)(0.1)
Changes in unrecognized tax benefits1,492 0.2
Other adjustments:
Income passed through to partners(89,445)(13.4)
Other(4,292)(0.6)
Total tax provision and effective tax rate$66,993 10.1%
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(a)State and local taxes in New York, California, Minnesota, and New York City made up the majority (greater than 50%) of the tax effect in this category.
The following table reconciles the U.S. federal statutory tax rate to the effective income tax rate of the Company’s income tax expense for the years ended December 31, 2024 and December 31, 2023:
Year Ended December 31,
20242023
U.S. federal taxes at statutory rate21.0%21.0%
Income passed through to partners(73.5)9.6
State and local income taxes(35.5)12.0
Foreign taxes, net of U.S. foreign tax credits(36.8)7.7
Equity-based compensation(104.0)(1.3)
Change in TPG Operating Group tax basis estimate
——
Return to Provision13.9(0.9)
Change in valuation allowance33.620.8
Change in tax status of statutory subsidiaries—2.9
Other reconciling items(28.5)0.2
Effective income tax rate(209.8%)72.0%
Schedule of Deferred Tax Assets and Liabilities
Income taxes are provided at the applicable statutory rates. The tax effects of temporary differences resulted in the following deferred tax assets and liabilities (in thousands):
December 31,
20252024
Deferred tax assets
Investment in TPG Operating Group$944,708 $406,730 
Accruals13,621 10,782 
Fixed assets1,177 1,220 
Net operating loss carryforwards1,913 248 
Equity-based compensation37,034 21,752 
Operating lease liabilities5,283 2,116 
Foreign tax credits2,815 1,111 
Other712 236 
1,007,263 444,195 
Less: valuation allowance(141,265)(89,321)
Deferred tax assets, net$865,998 $354,874 
Deferred tax liabilities
Right-of-use assets$4,812 $1,869 
Intangible assets, net8,010 6,298 
Other514 53 
Deferred tax liabilities, net$13,336 $8,220 
Schedule of Reconciliation of Unrecognized Tax Benefits
The following is a tabular reconciliation of unrecognized tax benefits, excluding interest and penalties (in thousands):
Year Ended December 31,
202520242023
Unrecognized tax benefits - January 1$1,998 $1,987 $2,024 
Additions related to current year positions581 28 711 
Additions related to prior year positions
338 — — 
Reductions for tax positions of prior years— — (360)
Lapse of statute of limitations— — (386)
Exchange rate fluctuations(78)(17)(2)
Unrecognized tax benefits - December 31$2,839 $1,998 $1,987 
Schedule of Cash Paid
Pursuant to the disclosure requirements of ASU 2023-09, the following table summarizes income taxes paid (net of refunds) exceeding 5 percent of total income taxes paid (net of refunds) in the following jurisdictions (in thousands):
Year Ended December 31, 2025
US Federal$4,783 
 
US State and Local
California1,693 
New York City10,125 
Texas1,692 
Other3,611 
 
Foreign
India1,611 
Singapore3,666 
Other3,105 
Total income taxes paid (net of refunds)$30,286 
The supplemental non-cash financing activities related to equity for the Consolidated Statements of Cash Flows are as follows (in thousands):
Year Ended December 31,
202520242023
Distributions to holders of other non-controlling interests$462 $13,504 $17,779 
Deferred tax assets540,201 335,529 — 
Due to affiliates189,935 297,085 — 
Other liabilities286,131 — — 
Additional paid-in-capital64,135 38,444 — 
Contributions from holders of other non-controlling interests280,636 — — 
Distributions in-kind to holders of other non-controlling interests75,000 — — 
Deconsolidation of previously consolidated entities258,359 — —