RPC

• Executive Team Updates & Announcements

  • Brian McKenna, former senior equity research analyst covering alternative assets, joined as Vice President of Investor Relations to prioritize transparency and shareholder engagement
  • Long-serving board member Robert Stewart Jr. recently passed away unexpectedly, with condolences extended to his family by the entire firm
  • This is the first full quarter operating under the new Ridge Post Capital brand (formerly P10)

• Investment Performance & Milestones

  • The firm hit two key milestones: AUM crossed $50 billion (up 25% YoY), and fee-paying AUM reached almost $35 billion (up 19% YoY)
  • Net IRRs for mature funds (over 5 years old) across strategies: private equity primary 14.1%, secondary/co-invest 23.1%, Bon Accord GP stakes 18.9%, TrueBridge venture flagship 18.7%, private credit 10.9%

• Fundraising & Deployment

  • The firm had ~20 funds in market during Q2, raising and deploying $1.1 billion in the quarter, bringing the trailing four quarter total to nearly $5 billion
  • First half 2026 organic fundraising and deployment totaled over $3 billion, in line with expectations for the firm's 2026-2027 $10 billion total target
  • TrueBridge (venture strategy) has seen particularly strong demand, raising and deploying ~$1.5 billion in H1 2026, driven by its long differentiated track record
  • Direct, co-investment, and secondary funds (non-fund-to-fund vehicles) represented 55% of total capital raising over the past four quarters, totaling over $2.7 billion

• Stellis Acquisition Integration

  • The Stellis acquisition closed on June 22, 2026, and integration is underway. Early cross-team collaboration between Stellis and RCP (lower middle market private equity) is focused on expanding Stellis' origination funnel
  • If Stellis captures 10-20% of the $5 billion in annual equity capital deployed by GPs in RCP's ecosystem, it could add $500 million to $1 billion in incremental annual commitments for Stellis long-term
  • Stellis' own origination pipeline has grown meaningfully in the 30 days post-close, and private credit origination pipelines across the firm are broadly strong

• Exit Activity Update

  • Year-to-date distributions from RCP funds (through July 24) have more than doubled year-over-year, and are up 25% compared to the same period in 2024, indicating increased capital return velocity in the lower middle market
  • Higher exit activity supports future fundraising for RCP and boosts origination for private credit strategies including Stellis

• AI & Technology Investment

  • The firm is investing in AI adoption to drive operational efficiency and better investment decision making, with three early high-impact use cases already delivering results:
  1. AI reduced NDA review time from ~60 minutes to 5-10 minutes, projected to save thousands of labor hours annually
  2. AI streamlined production of investment tear sheets and GP profiles at RCP, cutting process time from 1-2 days to 1 hour, allowing redeployment of human capital
  3. Firm-wide weekly AI drop-in hours improve cross-team collaboration and knowledge sharing
  • Management expects long-term incremental margin expansion from AI efficiency gains, and plans to reinvest near-term savings into additional AI initiatives

• Capital Structure & Capital Management

  • The revolving credit facility was expanded by $20 million to $195 million to improve financial flexibility. $20 million of debt has already been paid down in Q3 2026 post-acquisition
  • The firm expects to reach its target long-term leverage ratio of ~2.5x EBITDA by the end of 2026, down from 2.8x pro forma for the Stellis acquisition at quarter end
  • Capital allocation priorities are: maintaining the $0.04 per share quarterly dividend, offsetting dilution from employee stock grants, managing leverage, and opportunistic share repurchases when valuations are viewed as dislocated

• Firm growth targets: The 2029 year-end fee-paying AUM target of $50 billion remains unchanged. Through Q2 2026, fee-paying AUM has delivered a 20% compound annual growth rate, ahead of the original 15% implied CAGR from the 2024 Investor Day target.
• 2026 full year core fee rate is expected to total 103 basis points, unchanged from prior guidance. Direct and secondary catch-up fees are projected to be between $6 million and $8 million for 2026, also unchanged.
• The 2026 full year FRE margin is expected to be in the mid-40s, maintained from prior guidance even after the addition of Stellis.
• The firm expects to fully utilize its net operating losses (NOLs) by the end of 2026. The 2026 cash tax rate is projected to be in the high single digit to low double digit range, with a mid-teen cash tax rate expected for 2027.
• The 2026-2027 total fundraising and deployment target of $10 billion remains unchanged.

This earning call does not break out separate financial performance for individual product segments in absolute revenue or revenue contribution percentage terms. Aggregate firm-wide results are as follows: adjusted net income came in at $0.24 per share, compared to $0.23 per share in Q2 2025. Total fee-related earnings (FRE) hit $39 million, representing a 10% year-over-year increase, with a FRE margin of 48%. Total fee-related revenue reached $81 million, an 11% year-over-year rise. 98% of fee-related revenue came from management and advisory fees ($80 million total), consistent with the firm's capital-light, stable fee-based model. Total AUM surpassed $50 billion at quarter end, up 25% year-over-year, while fee-paying AUM totaled nearly $35 billion, up 19% year-over-year. The average core fee rate (excluding direct and secondary catch-up fees) was 100 basis points, up 3 basis points from Q1 2026.

The call does not explicitly discuss material current risks or operational failures. Management notes that forward-looking statements are inherently uncertain, and actual results may differ materially from expectations due to unidentified risks and uncertainties referenced in the firm's SEC filings.

Q: The call noted that Stellis could reach $500 million to $1 billion in incremental annual commitments by capturing 10-20% of equity capital deployed by GPs in RCP's existing ecosystem. What steps are needed to achieve this, what is a realistic timeline, and what is the current baseline of Stellis' existing service to these GPs? / A: Management notes the acquisition closed only six weeks prior to the call, so the firm is still very early in the integration process. RCP has 25 years of deep relationships with middle and lower middle market GPs that deploy an average of $5 billion in equity annually, which is the basis for the incremental opportunity estimate. A broader origination funnel will allow Stellis to be more selective on deployed capital, improving its long-term investment profile. Full achievement of the incremental target will take multiple years, though near-term progress on new opportunities is already underway.

Q: Looking at long-term capital allocation beyond near-term deleveraging, what types of M&A opportunities look attractive to add to the Ridge Post platform? / A: Management plans to continue prioritizing three main types of opportunities: further geographic expansion, specifically European private credit that would mirror the Stellis franchise in the U.S., standalone asset-based platforms, and real asset strategies including infrastructure and real estate. M&A activity has picked up in the second half of 2026 after a slower first half, so more announcements are expected in coming quarters.

Q: How does the Stellis acquisition impact the firm's $10 billion 2026-2027 fundraising target, and what modeling context should be considered for Stellis' contribution to second half 2026 margins? / A: Stellis recently completed a $1.5 billion fundraising cycle for its Fund 4 and associated separate accounts, so its near-term focus is on deploying existing dry powder rather than active fundraising, so its contribution to the current 2026-2027 target will be modest. Once current capital is deployed and the origination funnel expands, Stellis will return to fundraising for its next vehicle, driving future fee-paying AUM growth. On margins, Q2 2026 margin was lifted by higher fee rates, steady compensation costs, and lower professional fees, but full year 2026 guidance of mid-40s margin is unchanged due to expected placement agent costs and fundraising-related hires in the second half. Stellis has a similar margin profile to the existing Ridge Post business.

Q: How many flagship fund launches are planned before the end of 2026, or are most planned for 2027? / A: The firm consistently has 15-20 active funds in market at any time, including multiple flagship funds across strategies. As of Q2 2026, active flagship funds include Bonaccord's BCP3, Hart's Flagship Fund 5, TrueBridge's flagship venture fund, and newly launched RCP Flagship Fund 21, with Enhanced Capital's evergreen fund as its perpetual flagship offering. Additional launches are expected in the second half of 2026, with more planned for 2027, keeping the total number of active funds in the 15-20 range long-term.