Ridgepost Capital, Inc. Q4 FY2025 earnings call

• New company identity: The P10, Inc. name represents the expansion of the platform, integration of strategies, and commitment to delivering durable alpha. It aims to capture the growth trajectory as a cohesive enterprise.
• Stellus acquisition: Stellus is a leading direct lending platform with ~$3,800,000,000 in assets under management, ~$2,600,000,000 in fee-paying AUM, and a proven track record. The acquisition is expected to be a good fit with P10, Inc.'s strategies.
• 2025 financial performance: Raised and deployed record organic gross new fee-paying assets under management, exceeded initial organic fundraising guidance. Fee-paying AUM increased 15%. Fee-related revenues grew 13% and FRE margin was 47%.
• Cross-marketing: Made progress expanding data integration capabilities, with over 10% of capital raised since Investor Day being cross-sales.
• Product innovation: Expanded product set in 2025, created first evergreen product, landed significant SMA, launched fund for European investors in North American middle and lower middle market. Completed acquisition of Qualitas Funds and opened Dubai office.
• Governance and brand: Appointed new independent directors. Dual listed on NYSE Texas as founding member.
• Shareholder returns: Repurchased nearly 11,000,000 shares since beginning of 2024 at a weighted average price of $9.69, representing over $105,000,000 in aggregate.

In 2025, P10, Inc. raised and deployed a record $5,100,000,000 of organic gross new fee-paying assets under management, finishing the year at $29,400,000,000 in fee-paying AUM. Fee-paying AUM increased by 15% for the full year 2025. Fee-related revenues, excluding direct and secondary catch-up fees, increased by 13% and FRE margins came in at 47%. In the fourth quarter, private credit strategies added $338,000,000 to fee-paying assets under management. The Stellus acquisition has approximately $3,800,000,000 in assets under management, including $2,600,000,000 in fee-paying assets under management, and is expected to be modestly accretive to margin and ANI EPS per share in the first full year.

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. Anticipate FRE margins in the mid-40s for 2026, with margin expansion to closer to 50 in the out years. Have multiple funds in the market in 2026 from private equity, private credit, and venture capital verticals.

Forward-looking statements are inherently uncertain as actual results for future periods may differ materially from those expressed or implied due to a number of risks and uncertainties described in the earnings release and periodic reports filed with the SEC. The forward-looking statements included are made only as of the date of the call and no obligation to update or revise them is undertaken except as required by law.

Q: Can you talk about your exposures to AI given your venture exposure and direct lending exposure and your thoughts on the AI risk to private market managers?

A: Luke mentioned that in the venture portfolio, they have meaningful exposure to AI as they are investing in economic trends that are net long-term positives. In the regular-way parts of the portfolio, they have relatively modest exposure to SaaS and software, less than 10%, and their SaaS and software exposure is to business enablement focused on traditional industrial-like businesses in the middle and lower middle market. They engage in rigorous review of their core portfolio.

Q: Talk about the private market wealth strategy build-out and the Bonaccord-CAIS relationship and its expansion to other P10, Inc. managers over time?

A: Luke said that ~36% of their clients are private wealth clients. They are looking at creative and innovative product design for private wealth channels. The Bonaccord-CAIS relationship is a good example of a collaboration with a platform having relationships across private wealth and advisers allocating to alternatives. They want to do more such collaborations and think other parts of their product offering will have appeal for private wealth.

Q: Get more color on Stellus, including blended average fee rate and distribution of private BDC?

A: Luke said they gave high-level guidance that Stellus will be modestly accretive to margin and ANI EPS per share in the first full year but will hold giving greater guidance until closer to acquisition closing. RJ said the private BDC focuses on the RIA channel, started with five seed investors and is growing it with a focus on that channel.

Q: Elaborate on Stellus' sourcing funnel and origination edge and capital management and M&A gaps?

A: Luke said Stellus is focused in the middle and lower middle market GP sponsor ecosystem with a strong sourcing engine. They think they can amplify the sourcing funnel by leveraging P10, Inc.'s presence in that ecosystem. Amanda said they intend to buy back stock to offset dilution but will pay down debt after closing the Stellus acquisition. Luke said at strategic level, international analogs of U.S. strategies, private credit areas like asset-based lending, and real assets ecosystem are areas of focus for M&A