P10, Inc. Q4 FY2025 earnings call

1. Introduced the new company identity P10, Inc., symbolizing stability, perspective, and protection, reflecting the company's growth trajectory and integration of strategies. 2. Announced the acquisition of Stellus, a leading direct lending platform with approximately $3,800,000,000 in assets under management, including $2,600,000,000 in fee-paying assets under management, with a strong track record. 3. In 2025, the company raised and deployed a record $5,100,000,000 of organic gross new fee-paying assets under management, ending the year at $29,400,000,000; fee-related revenues excluding direct and secondary catch-up fees increased by 13%, and FRE margins were 47%. 4. Made progress in cross-marketing, with over 10% of capital raised since the 2024 Investor Day being cross-sales. 5. Expanded the product set in 2025, including the first evergreen product, a significant SMA, and a fund for European investors targeting the North American middle and lower middle market; completed the acquisition of Qualitas Funds and opened a Dubai office. 6. Enhanced governance by appointing new independent directors and achieving dual listing on the NYSE Texas; repurchased nearly 11,000,000 shares since early 2024.

In 2025, fee-paying assets under management totaled $29,400,000,000, representing a 15% year-over-year increase. During the fourth quarter, $841,000,000 in organic fundraising and capital deployment was offset by $535,000,000 in step-downs and expirations. The private equity strategies raised and deployed $325,000,000, venture capital solutions raised and deployed $178,000,000, and private credit strategies added $338,000,000 to fee-paying assets under management.

1. Intend to more than double fee-paying AUM to $50,000,000,000 by 2029, with the majority coming from organic growth. 2. Guide organic FRE margins, excluding M&A, to the mid-40s in the near to intermediate term and closer to 50 in the long term. 3. Expect to organically raise and deploy at least $10,000,000,000 of gross fee-paying assets under management over calendar years 2026 and 2027, excluding the impact of acquisitions. 4. Anticipate FRE margins in the mid-40s for 2026, with growth throughout the year and expansion from mid-40s to 50 over the next few years.

Forward-looking statements are inherently uncertain due to numerous risks and uncertainties detailed in the earnings release and periodic reports filed with the SEC; actual results may differ materially from forward-looking statements.

Q: Can you talk about your exposures to AI and your thoughts on AI risk to private market managers?

A: Luke mentioned that the venture portfolio has meaningful AI exposure by design. There is relatively modest exposure to SaaS and software in the regular portfolio, less than 10%, and the company regularly reviews its core portfolio.

Q: Talk about the build-out of the private market wealth strategy and the expansion of the Bonaccord-CAIS relationship?

A: Luke stated that approximately 36% of clients are private wealth clients. The company focuses on product design and partnerships like with CAIS, aiming to grow the private wealth channel through creative means and partnerships.

Q: Get more details on Stellus, such as its blended average fee rate and sourcing funnel?

A: Luke said more detailed guidance on Stellus will be provided closer to the acquisition closing. Stellus' private BDC focuses on the RIA channel with a distribution team growing that business.

Q: Elaborate on Stellus' sourcing funnel and M&A gaps?

A: Luke said there is a strong fit between Stellus and P10's sponsor ecosystem, which can amplify the sourcing funnel. The strategic focus includes international analogs of U.S. strategies, private credit areas like asset-based lending, and the real assets ecosystem.