P10, Inc. Q2 FY2025 earnings call

Fundraising

• Raised and deployed $1.9 billion in organic gross new fee-paying AUM in Q2, second consecutive quarter of record organic growth. Combined with Qualitas Funds transaction and FX tailwinds, gross fee-paying AUM increased by $3 billion.

Product Highlights

• RCP's Secondary Fund V raised almost $1 billion; TrueBridge launched Secondaries Fund II; RCP closed 19th primary fund with $314 million; credit business contributed $568 million; Enhanced Capital launched first evergreen fund.

Market Dynamics

• Target markets have structural advantages (larger opportunity sets, lower valuations, higher growth rates). Fundraising in middle and lower middle market is healthier; M&A market is active.

Client Franchise

• Expanding distribution, using proprietary data, expanding product offerings. Integration of Qualitas Funds gives P10 over 4,900 investors globally.

M&A Update

• Launched Qualitas Funds US1; better positioned on global RFPs; actively pursuing inorganic growth opportunities.

Share Buybacks

• Repurchased ~2.5 million shares in Q2 at an average price of $10.49; $25 million additional authorization for buybacks.

Private Equity Strategies raised and deployed $1.25 billion; Venture Capital Solution raised and deployed $114 million; Private Credit Strategies added $568 million to fee-paying assets under management, including the launch of an evergreen fund at Enhanced Capital and growth in Hark's NAV lending business. Revenue contribution details aren't explicitly provided in absolute percentage terms but the breakdown by segment is as described.

AUM

• AUM was $41.9 billion as of June 30, 2025, including Qualitas funds.

Dividend

• Quarterly cash dividend of $0.075 per share payable September 19, 2025.

Earnout

• WTI reached first earnout hurdle; $35 million earn-out payment to be paid by end of September.

Margin

• Expect peer-leading margins in mid-40s for the year.

Step-downs/Expirations

• Still expect upper end of 5%-7% fee-paying AUM step-downs/expirations range, with 2/3 in first half.

• Forward-looking statements: Actual results may differ due to risks/uncertainties in earnings release/SEC filings.
• Market Conditions: Macro environment/M&A market could impact growth/fundraising.
• Integration Risks: Risks associated with integrating Qualitas Funds/other acquisitions.

Q: Thoughts on financial capacity for additional acquisitions, leverage multiples?

A: Luke and Arjay discussed being disciplined, prudent on strategy, cultural fit, and using credit facilities and stock appropriately.

Q: Evergreen fund at Enhanced, targeting wealth channel?

A: Sarita and Luke discussed Evergreen fund targeting credit investors, open-ended format, and engaging with wealth manager/high net worth segment.

Q: Fee-paying AUM deployment, Hark dry powder?

A: Luke explained deployment is mix of Hark and committed capital raised, Hark IV fund is primary, with capacity for tack-ons.

Q: Qualitas flagship funds, cross-sell opportunities?

A: Arjay mentioned Qualitas Fund VI was $250 million, starting Fund VII, and ongoing collaboration for cross-sell and new revenue opportunities.