All right. Good afternoon, everyone. Thanks for joining us for, I think, our last session, at least in this room. If any of you don't know me, I'm Ben Budish. I cover the U.S. brokers, asset managers, and exchanges. For this fireside chat session from TPG, we've got Jack Weingart, former CFO, now CEO of TPG's wealth business, and Axel André, new CFO. Gentlemen, welcome. Thanks so much for being here.
Thank you.
Thank you.
Maybe Axel, we'll start with you. You joined TPG almost two months ago. Can you maybe share some of your early observations and talk about where you've been spending your time and how do you think about your main priorities as CFO?
Yeah, sure. Thanks. First, it is great to be here. It is fantastic to have joined TPG. I have been with the firm for now about six weeks. As you can imagine, my initial focus is really to conduct a listen and learn phase. I am really digging into the various platforms and strategies of the firm, really spending time with our people and understanding what are the strategic and operational drivers of growth in the various businesses. It is important for me to get to know the people that are making a difference in this firm. To that extent, I have engaged on a mini world tour over the past few weeks. I have spent some time in Asia, spent some time in Europe, and in the U.S., meeting the investment teams. I have started to attend some of our investment committees.
It has been great to see it come to life, to see the culture of TPG come to life during those investment committee meetings. TPG is known for its distinct collaborative culture, its thematic approach to investing. It is great to see it come to life in the meetings, to see the investment teams, investment professionals come together with specialized operations professionals in evaluating the investment theses around various investments, and then articulate the drivers of value creation for LPs. In terms of my priority as CFO, my focus is really on understanding how the finance organization can support the firm in its long-term growth strategy. How can we support the scaling of our platforms? How can we support continuing to make the right investments in our people, in our capabilities, while maintaining expense discipline and driving, ultimately, operational leverage?
I am spending a lot of time with Jack and the rest of the team to ensure a seamless transition of the CFO functions and continuing to execute on our strategy.
Great. Maybe Jack, similar question. You were recently named CEO of the wealth business. Can maybe talk about your priorities for the platform, how are you thinking about distribution expansion, product development, and competing against some of your larger and more established wealth channel peers? Along the same lines, how would you say TPG is differentiating itself in the wealth market?
Sure. Well, the dirty little secret is I've been doing this for a while now. I've had two jobs. We didn't announce me as CEO of our private wealth business until we found a great new CFO to step into that role in Axel. As you know, we launched T-POP. As of a year and a half ago, we had some very distinctive private equity-focused evergreen vehicles. Mostly, we inherited those through Angelo Gordon. We had TCAP, that feeds into our direct lending business, Twin Brook. We had MBP, that's a very high-performing asset-backed finance vehicle that feeds into that asset-backed finance business.
But in private equity, for the 30-year history of the firm, we had placed one closed-end fund at a time in a world where the convenience of evergreen vehicles was becoming the predominant way that financial advisors and their clients wanted to invest in private markets. We had an excellent 30-some-odd-year track record of private equity investing, but we hadn't put the effort in to repackaging what we do into that evergreen format. The first step for us was to create what everyone now knows as T-POP. To your point on differentiation, since we launched T-POP a year and a quarter ago, on the platforms that we have been distributing through, we have been one of the most popular, and in some months, the most popular private equity evergreen vehicle on their shelf, sometimes outselling even our big peers who have much bigger brands.
The first step, to your point, was establishing TPG as a chosen partner by financial advisors. I think in the first year and change with our biggest partners that we had worked with in closed-end fund world for a long time, we've probably done business with four or five times as many financial advisors in that one-year period as we had in the 25-year history of working with them in closed-end fund world because we've created a much more user-friendly, accessible product in T-POP. So we're off to a good start. We've started building our brand. The next steps from here are, number one, expand our distribution and our brand recognition across more than just the handful of initial partners we have with T-POP. We've talked publicly about the fact that we have two new international partners launching right now.
We have a series of additional partners that we're launching with on the back of that in multiple jurisdictions around the world: Japan, Australia, Canada. We're building teams to support that distribution and build our brand. The second piece is expanding products beyond private equity. So think about the T-POP of credit. Take the asset-backed finance access point, the direct lending access point. We have no access point yet on our higher octane credit solutions business, but a multi-strategy credit interval fund. We're one of the best-positioned credit managers to offer that, and we're actively working on that. Then think about the same kind of tent pole, T-POP of real estate in a new non-traded REIT seeded in today's valuation environment with no legacy exposure to assets purchased back in a zero rate environment. We have good demand from our partners to launch those products.
But between expanding our brand with additional partners and layering on additional products, then the third piece, I would say, is part of our strategic roadmap is once we have those building blocks to find the right partners to create the right bundled solutions, model portfolios, target date funds, et cetera. All that is kind of in the works.
Great. Maybe one for you, Axel. Just thinking about capital formation. TPG is in the middle of a pretty significant fundraising cycle. I think you guys have twice affirmed the target of over $50 billion for 2026. Can you maybe talk about the major components of that fundraising, and what should investors be looking at as we move through the rest of the year and into 2027?
Yeah. We're very pleased with the fundraising progress we've made this year. For over the first half, we raised $26 billion. Very pleased with that progress, and we continue to be confident in our ability to raise over $50 billion this year.
We'll reaffirm it for the third time.
Third reaffirm. I think what's changed is that we think we've moved beyond the super cycle of large fundraising cycles associated with the large flagship funds to more of an always-on model. That's really a result of having diversified the firm across multiple asset classes, multiple strategies. So we're always raising capital across private equity, real estate, credit. It's not only diversified across asset classes, but also when you look within that, we're raising capital for our well-established strategy. So we're raising capital for TPG Capital 10 and TPG Healthcare Partners III, for example, this year. Combined, we believe we're going to achieve significant fund-over-fund growth as well there. But also, we're raising capital for newer strategies that may be in the first generation or the second generation of the fund cycle.
For the building blocks for the remainder of the year and then into 2027, we're going to be concluding those large fundraising cycles in private equity that I talked about. We're going to also conclude the TPG Rise Climate II fund and the Global South Initiative, as well as a number of other strategies such as our sports franchise, where we have our first sports dedicated fund. We have a transition infrastructure dedicated fund. Moving on to real estate, we expect real estate to be a significant contributor to fundraising for the balance of 2026 and then into 2027. That's going to be led by our TREP V strategy, TREP V fund in addition to a number of other real estate strategies that we're raising at the same time.
We're also in the market for U.S. real estate, for Asia real estate, and for our Japan value-oriented funds. On the credit side, we're also concluding the raise on a number of funds, but also we have a steady steady inflow into our various credit strategies. For example, through the strategic partnership that we have with Jackson. So that's 2026 looking into 2027. An anecdotal. When you look at the diversification of strategies, when you think of this year, we're in the market across 35 products compared to last year, we were in the market across 25 products. That gives you a sense of the range of strategies that we're in the market for.
Behind that, in the backdrop, we have the broader trend of LPs are looking more and more to consolidate their relationships with fewer GPs that are able to provide access to really all of the asset classes that they're interested in, and also that are able to structure strategic relationships across those multiple asset classes. We believe given the way that we've built the firm, that we've expanded our capabilities, that we're very well positioned to be on the winning side of that trend.
Great. Maybe just.
It is funny you look back at, for those of you who have been with us since the IPO, you remember our dialogue on the roadshow back then. It was only 4.5 years ago, and we had 80% of our AUM was in private equity, and we spent a lot of time forecasting our drivers of growth in the coming years after our early 2022 IPO. We went kind of one fund at a time. We had a series of refreshes that we expected to accomplish in our private equity and a little bit in real estate.
The biggest question we got was, "What are you going to do about the 2024 cliff?" Because back then, if all we did was forecast out our need to refresh our private equity funds, we would do that, and then we would have a pause. We would not need to refresh our capital base for some period of time, and the model that did not incorporate any views on credit or inorganic growth implied that we would have a falloff in fundraising in 2024. We said, "Well, we have That is the whole idea. We are going public. We are going to fill out our asset. We are going to diversify our platform across asset classes." Of course, that is exactly what we did. Now we are raising $50 billion a year across 35 different funds.
We feel pretty good about what we have accomplished in creating in a pretty short period of time, going from $108 billion of AUM to $327 billion, and really rounding out our firm across asset classes.
Maybe one last question on the fundraising side, Jack, if you want to dig in a little bit more. Private equity specifically, maybe talk a bit about the LP appetite for traditional drawdown PE strategies. Are you guys seeing any meaningful shifts in allocations, behavior, or sentiment as a result of some of the software and AI discourse we've been hearing?
Well, first of all, if you look at institutional LPs, and I'm now living more in this world of private wealth where there's this strong preference for the efficiency of evergreen vehicles. The big institutions around the world, by and large, still want to commit to drawdown funds. They want to pick their narrow strategies, create SMAs that invest across strategies with us, but they want a more tailored solution than the diversified evergreen vehicle provides. So within that context, institutional demand is still heavily weighted toward drawdown funds. Now, demand for private equity is at different parts of the maturation curve in different parts of the world, right? Just a little anecdote.
If you look back 20 years ago when I joined the firm, 15 years ago, we probably raised, if I look back at our buyout fund that we raised back then, 50% or 60% of the capital for that buyout fund came from U.S. institutional investors. In TPG Capital 10 so far, less than 30% has come from U.S. institutions. So building a global set of relationships with the biggest pools of capital in the world, and doing more with those, as Axel just indicated, doing more with those institutions over time has become a critical differentiator for us.
Great.
On your question, what we really don't see If we see any impact of the AI impact on software, I think it's a positive impact because institutional investors still believe that investing in software is going to be something they want exposure to, but they know they need to do it with GPs who have expertise and know how to invest around AI and incorporate the benefit of AI in the companies, in their business plans, in their investment strategy. And we clearly are one of those.
Got it. Great. Maybe a couple of macro questions here, so maybe we'll stick with you, Jack. It feels like geopolitical uncertainty is likely to remain elevated. The interest rate outlook may be a little less supportive of asset valuations than maybe what was hoped earlier in the year. How would you describe the current deployment environment at TPG? Does the backdrop make it more difficult to get things done, or are opportunities improving, and where are you finding the most attractive areas to invest today?
Yeah, look, our deployment, if you just look at the numbers we reported in Q2, on an LTM basis, I think our deployment across asset classes was up something like 70% year-over-year. It was up significantly across private equity, credit, and real estate. So we're finding ways to invest. Our investing in private equity, for example, is much less tied to 100 basis point moves in interest rates. It's much more tied to very long-dated sourcing in the sectors in which we invest. The average investment we make, we probably called on that company and been developing that relationship for three to five years. Over time, those strategic partners of ours, those corporates that we do business with, decide they want to do something, and hopefully we've earned the right to be a chosen partner. So we don't see as much cyclicality.
Now, what does happen is when there's a dislocation in the market like there was earlier in the year. In Q2, private equity M&A activity was down substantially, particularly around software, because you had all the questions being asked about what's AI going to do to software companies, and you had the public comps trading way down. In that environment, buyers step back and sellers don't want to sell at depressed prices, so you have a natural bid-offer spread. What we're starting to see on both the buy side and the sell side is a narrowing in that bid-offer spread, just with the passage of time and with many of these companies not suffering degradation, and in fact, seeing the opposite, incorporating AI solutions into their solutions for their customers and using that as a way to enhance revenue growth.
We talked about that on the Q2 call, Boomi, Delinea, Lyric. Lots of examples in our portfolio where we see accelerating revenue growth through the use of AI. The question for us is: how do we underwrite that as a buyer, but also on the sell side, as we look to monetize some of these investments, do we feel like a buyer is prepared to pay fair value that incorporates that growth as opposed to discounting risk that isn't as great as they thought it was? What we're starting to see is a narrowing of that bid-offer spread, and we're starting to see strategic and financial buyers come back to the table.
Along the same lines, maybe I will direct this one to you, Axel. On the realization side, similar question, what impact are the current macro and geopolitical factors having on your ability to exit investments?
Yeah. I think it is fair to say that the realization environment overall has been relatively muted for the industry because of the elevated market volatility. That said, we are very focused on driving monetization. I think we talked about realizing about $14 billion of exits in the first half of the year, $26 billion on an LTM basis. I hope that demonstrates our focus and our ability on generating DPI for LPs. I think we are pleased with the pickup in activity and dialogue that we have seen through August and September. We think that, like Jack was saying, that bid-offer spread is narrowing, so the ability to realize is coming back. We continue to believe that the realization environment will improve as we get towards the end of the year and into 2027.
That is based on actual discussions, ongoing discussions that are happening with specific portfolio companies in our portfolios. We are very pleased with the outlook, the environment for realizations.
Great.
Maybe one, I would add another thing is it is important to also recognize, and you may already appreciate this, that TPG is very well known for its approach to both the sourcing of investments and the exits through corporate partnerships. We are known for sourcing investments through corporate carve-outs and then for exits through selling to corporates, to strategic corporates. As an example for our Capital franchise, over 50% of-
Are we there? Oh, here we go.
Back in business.
Thank you. Sorry about that, everyone.
Our approach to, essentially our approach to strategic exits is well known. Over 50% of our exits in our capital franchise is through strategic exits. That said, of course, we utilize the IPO market when it's there, but we're not obviously overly reliant on that. Overall, we're positively inclined in terms of the realization environment as we get towards the end of the year and into next.
Maybe just one more question on realization. You talked about how you guys have been using AI and that's driving value creation in a lot of your portfolio companies. In terms of realizations, though, you historically have maintained greater concentration in software investments in the PE business relative to many peers. For the software sleeve in particular, how does the realization outlook compare to the broader portfolio? Where are you seeing the most attractive opportunities to monetize there?
Yeah. I think Jack touched upon that. We obviously went through this period over the last six months of a lot of focus on the so-called SaaSpocalypse. What is AI going to do to the software sector? Frankly, we kind of lost all of the nuance. It was really, is it software or is it not? I think we're back now in a more rational environment where there's an understanding and there's actually a lot of appetite from buyers for quality software companies. So quality software companies means really companies that are in a market-leading position, that have robust operating performance, and that are firm-footed in terms of embedding AI within their offering to further strengthen growth opportunities to really create new growth pathways for their offerings. We're seeing that interest from buyers.
We're seeing that opportunity for ourselves, for our portfolio of software companies, where the vast majority of them are really on that side of the spectrum where AI is an opportunity, is a way to further strengthen the growth opportunity. As kind of that bid-offer spread narrows we're confident that ultimately we'll be able to monetize those investments.
Great. Maybe one more kind of AI-related question, maybe for Jack. AI's been a pretty defining theme across this space. Beyond the implications for software portfolio companies, where else is TPG participating? To what extent are portfolio companies adopting AI, and where else are you investing across that sort of ecosystem?
Yeah, that's a good question. I mean, if you step back and think about how we invest in private equity from the beginning, from when David and Jim created the company, their thesis was, we need to be more than financial investors. We need to add operational excellence to our portfolio companies, help them build better businesses. That went to the first hire they made. We've since then built one of the leading operating groups in the industry. We are well-known among our LPs for helping companies improve their operations under our ownership through lots of tools, right?
In the early days, it was more cost-focused, and over the next couple of decades, we converted that group more to focus on helping drive faster revenue growth through things like pricing optimization, digital marketing, lots of ways to use new tools to drive faster revenue growth than companies might have been doing on their own. The biggest tool in that toolbox now is agentic AI, and there's unending demand from our CEOs of our portfolio companies to have us help them drive operational excellence through the use of AI. We're actively doing that, both internally at TPG and with our portfolio companies. We talked about some of the software examples of that, Boomi, Lyric, et cetera, but there's lots of examples across business services companies.
On the investing side, we're applying the same lens of what can we do with a given company that we're looking to acquire to improve the business and drive better returns through that acquisition, right? AI has become, not surprisingly, a firm-wide investment thesis, and we look at things like AI infrastructure. We look at vertical market AI applications. Some of that is happening in our portfolio. Some of it's through new acquisitions, business services companies that we can acquire and AI-enable and drive thousands of basis points of margin improvement. Cybersecurity is, we think, all you have to do is read the headlines to realize how dangerous some of this can be, if not controlled well in a security environment. The cybersecurity opportunity to help control this risk, we're seeing that through Delinea, like accelerating growth.
Those are some of the themes that we're deploying in our new acquisitions that we're making. It includes, we partner with Tata in India to invest $1 billion in their data center business. Everything from infrastructure to vertical market applications to services transformations. The other investment we've talked about is partnering. We're obviously already investors in the major platforms, OpenAI, Anthropic, SpaceX, et cetera. We also partnered with OpenAI to create a brand new company inelegantly called DeployGo for now, which is basically a go-to-market deployment company, majority owned by OpenAI. We're the biggest outside financial investor to kind of a picks and shovels play on enterprise AI deployment. Think about it as a next-generation services company employing forward-deployed engineers that are organized by industry vertical and by business process to accelerate the adoption of agentic AI solutions by businesses across the economy with good forward-deployed engineers.
That's a brand new business we're creating.
Right.
Lots of ways to, we hope, intelligently invest around this secular trend.
Right. Maybe we'll switch gears a little bit and talk about credit. Maybe Axel, just to start. You joined TPG after a long career in the insurance industry. How does that background influence the way you think about TPG's opportunity set with that set of LPs? Beyond the firm's existing partnerships, you mentioned Jackson, I know there's many others, but what are your longer-term ambitions for that part of the business?
Yeah. Having been in the insurance industry for a bit, I've seen really the different models in which the alternative investment industry can partner with the insurance industry. I think that our approach, which is kind of a balance sheet light approach focused on strategic partnership is really very beneficial to the business model of the firm and also to shareholders. I think the strategic partnership approach enables us to grow significantly our fee-paying AUM, significantly scale our origination capabilities across the whole credit spectrum without the kind of burden of volatility and capital intensity that comes with owning an insurance company. I think the partnership with Jackson is off to a terrific start, where we have $4.5 billion of commitments to date across our investment-grade asset-backed finance platform and our direct lending platform. We're actively deploying in those strategies.
We're looking for ways to expand the relationship across some of our other asset classes. Things such as real estate credits would be a natural fit for an insurance balance sheet and could meet Jackson's objectives. It's fair to say that we're early in our journey of partnering with the insurance industry. We have a number of SMAs, and then we have the strategic relationship with Jackson. I think the opportunity to scale that is clearly there. The opportunity to scale with further SMAs, of course, that partly are the beneficiaries of the new capabilities and origination capabilities we're building in the context of the Jackson relationship, but also other forms of strategic partnership that may look like the Jackson relationship or may look somewhat slightly different.
Ultimately, I think the balance sheet approach, the FRE-centric approach of TPG is really beneficial and ultimately will really drive value creation for TPG shareholders.
Maybe expanding on that. You guys have discussed further expanding your IG and ABF capabilities to better serve insurance clients. What's the current scale of that part of the business and your origination capabilities? Similarly, how do you see that evolving over time?
Yeah. Our investment-grade asset-backed finance platform serves the insurance clients and other institutional clients across residential, commercial, and consumer assets. The investment-grade part of that equation is really part of the capital structure that naturally comes with the capabilities that Angelo Gordon had built over many, many years. Really what we're doing in the investment grade side is we're benefiting and leveraging the same capabilities. The sourcing, underwriting, and structuring capabilities that Angelo Gordon had built over decades are now put to work and towards the higher quality part of the capital structure. We're very pleased with the level of origination that we've been able to accomplish. We've reviewed, for example, year to date, over 70 potential transactions on the IG/ABF side, representing about $25 billion of potential transaction volume. We have a very healthy pipeline looking out towards the end of the year.
Very pleased with the progress thus far. I think we're kind of pleased with the flywheel effect that we're seeing through insurance relationships, partners that trust us, that enable us to further scale and develop our capabilities and then be able to provide a more attractive offering to the insurance sector and to other potential LPs.
Jack, for you, can you talk a bit about what you're seeing on the direct lending side, a bit of an update on borrower fundamentals, portfolio company health, and maybe touch on TCAP a bit, which has seen much lower redemption requests than a lot of your competitor funds, and maybe what factors do you think have contributed to that this year?
Sure. Let's start with, for those of you who don't know, defining what we do and we don't do in direct lending, because that feeds into what TCAP is, right? When we acquired Angelo Gordon, I have to admit, I didn't know as much as I should have known about Twin Brook, because I've been around leverage finance markets for almost 40 years, but always operating at a little bit larger scale. Twin Brook, to their credit, had stayed totally true to their discipline approach of lending only to lower middle market companies, which in their vernacular is less than $25 million of EBITDA. I never operated down that space on the private equity side. The more I studied it during our diligence, the more I appreciated the differentiation of the business.
Because that's kind of what I think of what direct lending used to be, lending to smaller companies that don't have access to the big liquid syndicated loan markets. Twin Brook is not held accountable to providing competitive terms with that market. Right? We lend on average at probably 4x EBITDA, not 6x or 7x EBITDA. Coverage ratios are higher. We control the revolver in almost every loan we make. We have maintenance financial covenants that let us actively manage risk. Now, in return for that, we're lending to smaller companies. We have to be a good credit underwriter and make sure we manage that risk effectively. In fact, we have. So we've seen very little deterioration in credit quality. The current interest coverage ratio in the portfolio is still running around 2.4x. The non-accrual rate is 1.4%. The PIK rate is almost nonexistent.
In a world where companies, often larger companies that started with tighter capital structures with higher degrees of leverage in a lower rate environment, have seen rates move higher, and the lender has often had to offer the borrower the right to PIK. You see PIK rates elsewhere in BDC land going a little higher. Twin Brook has virtually no PIK. It's those credit fundamentals, along with continuing to generate about a 10% return. TCAP is our BDC that feeds into Twin Brook, is one of the sources of capital for us in Twin Brook. I think it's that stability of the portfolio, the consistent returns, the outperformance versus the leverage loan market. We also have a balanced mix of institutions and retail in TCAP. I think any institution or individual investor who chooses to invest in Twin Brook or TCAP is doing it for an express purpose.
You don't trip across TCAP and choose to invest in it because it's easy to buy. You do it because you want to lend to the lower middle market companies. As long as you're getting the bargain you wanted from that investment, good returns and well-managed risk and low risk metrics, the incentive to redeem is just much, much lower. You're right, in Q1, Q2, and Q3 respectively, roughly we saw 1%, 2%, and 1% redemption rates. So far below the 5%. The LPs base is very stable and happy with what they've invested in.
Why don't we move to real estate real quick? There's a bunch of flagship funds as part of this year's guidance. You've indicated a lot of confidence here and previously in your expectations for underlying demand. Maybe talk a bit about your conviction in the real estate platform at a time when the asset class has been a bit more challenging for some competitors.
Sure. Our real estate business. You're right, we've talked about the fact that we are entering, again, back to the theme of having diversified our fundraising across many more businesses. We've been through a period of raising a lot of credit capital. We're still raising a lot of credit. It's kind of an always-on business. As we finish refreshing our big buyout fund, TPG Capital, fortunately, we're now about 80% invested in our largest flagship real estate fund that Axel referred to, TREP, TPG Real Estate Partners. We're ready to have a first close there relatively soon. We'll talk about that on either the third or fourth quarter call. But the confidence we have in that, if you step back and look at it. It's got to be based on returns.
The returns we've generated from that business since we organically built it in the financial crisis, 2007, 2008, 2009, we saw the dislocation in the market. We took some of our team members who had a history in real estate, had them build a team, and build a business from scratch. That ended up being a great thing to do. We've scaled it since then. We've generated good returns. Our current TREP fund is a $6.8 billion fund, and we've talked about having a lot of confidence that we're going to raise more than that in this wave of funds. That is now informed by a lot of our dialogue with our LPs because we're approaching a first close.
All right. Maybe one last one for you, Axel, and I'll squeeze a couple in here because we just have a few minutes left. I guess first, we've got this large fundraising cycle and accelerating deployment, which should be supportive of revenue growth. As those drivers play out, how do you think about the implications for TPG's earnings profile? How should investors think about the longer-term margin expansion potential? The other, if there's time, I want us to squeeze it in, as new CFO, TPG has expanded inorganically into credit digital infrastructure. How are you thinking about additional or incremental inorganic growth opportunities and what might be most strategically attractive?
Okay, I'll try and do this really quick. On FRE margin, we kind of restated on the second call our guidance of a 40% margin for 2026. Rest assured, that is a milestone, not a stopping point. As we look out, we believe that our margin should expand into the 50s over time. That's really kind of supported by a few kind of structural drivers. We've talked again and again here about fund-over-fund growth, whether it's in well-established strategies, whether it's in generation two versus generation one. That fundamentally enables us to generate more revenues with either the same size teams that we have or small addition to the team. Number two, we've raised significant amount of capital towards the credit strategies that start earning revenue upon deployment. As we deploy that dry powder, we're going to significantly add to the revenue stream.
We talked a lot on the last quarter about our record revenues for our capital markets business. We believe we're really only in the middle innings of the potential for revenue generation from that business. We've been very intentional about embedding our broker-dealer capabilities across our entire platform and strategies. For example, in the second quarter, we had 20 different transactions contributing to a revenue stream across 14 strategies across all platforms. Lastly, there's kind of the natural operating leverage that comes with operating at a larger scale. That includes, just like for a lot of other industries, the use of AI. The use of AI towards data-intensive and workflow-intensive tasks that as we deploy AI, should enable us to really get more productivity, more efficiency, and gain ability to have better resource allocation of our people. Maybe moving on quickly to the inorganic side.
Look, inorganic, we believe is a component of how we deliver upon our long-term growth strategy. We have a clear track record of executing on that and successfully integrating the AG transaction, the Peppertree transaction, are great examples of how we've added to our platform. We've added to our ability to scale our platform. We've added keep nice kind of tuck-in capabilities that came into very specific verticals. As we think about inorganic opportunities, number one, we want to maintain a very high discipline as we evaluate potential opportunities, and we really look for kind of three core components: strategic fit, cultural fit, and the potential for long-term value creation. Some of the areas that we find particularly interesting are, I think, around the L.P. secondary space, where kind of having that scale and that information advantage really matters. Then infrastructure.
Infrastructure, we continue to believe with high conviction is one of those long-term secular opportunities across the globe. These are kind of examples of the types of things where we would be considering potential inorganic additions to our platform.
Great. Well, we're out of time, so we'll have to leave it there. Jack, Axel, thank you. Thanks so much for being here. Appreciate your time.