TPG Inc. and Jackson Financial Inc. have entered into a long‑term partnership that will see TPG manage a minimum of $12 billion in assets for Jackson, with an economic incentive structure that could lift the mandate to $20 billion over time. The deal includes a $500 million minority equity investment in Jackson and a $150 million allocation of TPG common stock to Jackson’s shareholders. In addition, TPG has committed $1 billion to support the recapitalization of Quarterra, a multifamily developer acquired by Lennar and now backed by TPG Real Estate.
TPG’s Q3 2025 earnings fell short of expectations, with earnings per share of $0.53 versus a consensus of $0.57. The miss was driven by higher operating costs and a modest decline in fee‑earning assets, which slipped to $163 billion from $179 billion year‑over‑year. Despite the earnings miss, CEO Jon Winkelried highlighted the partnership as “an important step in the evolution of our franchise and insurance practice,” underscoring TPG’s confidence that the new mandate will generate long‑duration capital and expand its product capabilities in the insurance‑capital market.
Jackson Financial’s Q3 2025 results beat expectations, reporting adjusted operating earnings per share of $6.16 versus a consensus of $5.45—a $0.71, or 13%, beat. Revenue also topped forecasts at $2.03 billion against a $1.89 billion estimate, driven by a 2% year‑over‑year rise in retail annuity sales and a 34% jump in institutional product sales. CEO Laura Prieskorn described the partnership as “a significant milestone for Jackson’s next phase of growth,” noting that the deal will provide access to TPG’s deep capital base and broaden Jackson’s distribution network.
The strategic rationale behind the partnership is twofold. First, TPG’s insurance practice will gain a new source of long‑duration capital, allowing it to deepen its product offering and scale its fee‑earning AUM. Second, Jackson will benefit from TPG’s expertise in asset‑based finance and direct‑lending, which will support the expansion of its PPM America unit—an institutional asset manager that oversees $90 billion in assets as of September 30, 2025. The deal reflects a broader industry trend in which alternative asset managers partner with life insurers to secure stable capital and insurers gain exposure to higher‑yielding private‑market opportunities.
The $1 billion commitment to Quarterra is part of TPG’s strategy to strengthen its real‑estate platform. Quarterra, a multifamily developer acquired by Lennar, will receive the capital to expand its portfolio of high‑quality rental housing nationwide, addressing the growing demand for affordable rental units. This move complements TPG’s broader real‑estate investment strategy and enhances its ability to deliver quality rental housing across the United States.
Market analysts have responded positively to the partnership. UBS reiterated a “Buy” rating for TPG with a price target of $82, citing the deal’s potential to drive fee‑stable growth. Evercore ISI upgraded Jackson Financial to “In Line” from “Underperform,” raising its price target to $118 and highlighting the company’s solid capital position and the strategic value of the partnership.
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