9 Tetragon Financial Group | Annual Report 2024
SNAPSHOT LETTER TO SHAREHOLDERS MANAGER’S REVIEW INVESTMENT REVIEW FINANCIAL REVIEW GOVERNANCE OTHER INFORMATION AUDITED FINANCIAL STATEMENTS
Ripple Labs Inc.:
+$153M 2024 performance
Hawke’s Point funds
and co-investments:
+$126M 2024 performance
Equitix:
+$279M 2024 performance
Letter to our shareholders
2024 performance was mainly driven by investments in Equitix,
Ripple Labs Inc., and funds managed by Hawke’s Point.
2024 performance summary
Performance was mainly driven by three investments:
• Firstly, TFG Asset Management’s investment in Equitix, a
leading international investor, developer and fund manager
in infrastructure, was the strongest positive contributor
in 2024 with a gain of approximately $279 million and
remains the largest position. The company continues to
grow and also had strong cash distributions during the
year. TFG Asset Management’s assumed ownership level
increased from approximately 75% to 81.48% as described
in Tetragon’s 30 September 2024 Monthly Factsheet. In
addition, there was an increase in observable market
comparables.
• Secondly, Tetragon’s investment in Ripple Labs, a top U.S.
enterprise blockchain company which supports the XRP
cryptocurrency ledger, gained over $150 million in 2024
due to favourable developments in the cryptocurrency
regulatory landscape and tender offers conducted by
the company.
• And thirdly, investments in funds managed by Hawke’s
Point, TFG Asset Management’s resource finance
business, generated a gain of $126 million led by their
largest strategic investment, an Australian gold mining,
exploration and development company.
These three investments exemplify our diversified approach
and our focus on identifying attractive alternative investment
strategies that may be more likely to have low correlation to
markets and to each other.
Please refer to the Investment Review section for more detailed
commentary on Tetragon’s investments during 2024.
2024 market context
Despite pockets of turbulence in 2024, a “soft landing”
narrative continued to unfold in the United States across three
key areas:
• Economic growth: real GDP grew at 2.8% annualised,
above long-term trend.
• Inflation: both Headline and Core CPI rose approximately
3% in 2024. Although both remain vexingly above the Fed’s
2% target, there has been clear progress since Headline
CPI peaked at over 9% annualised in mid-2022.
• Jobs: the labour market softened gradually, with
unemployment rising from January’s low of 3.7% to
stabilise between 4.1% to 4.2% in the second half of the
year. Measures of tightness such as job openings per
seeker and “Quits” rate returned to pre-pandemic level