RPC — Ridgepost Capital, Inc.

Summary of RPC Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Fee-Paying Assets Under Management (AUM): Ended Q4 2025 at $29.4 billion, a 15% increase year-over-year.
• Revenue: Fee-related revenues (FRR) for Q4 were $81 million, up 20% year-over-year when excluding direct and secondary catch-up fees. Total FRR for 2025 was $297.3 million, a 13% increase from 2024.
• Adjusted Net Income (ANI): Q4 ANI was $30.2 million, down 14% from the prior year. Fully diluted ANI per share decreased to $0.26 from $0.30.
• Free Cash Flow and Operating Expenses: Operating expenses for Q4 were $55.2 million, down from $62.2 million in Q4 2024. Total operating expenses for 2025 were $231.8 million, a slight decrease from $235.8 million in 2024.
• Net Income: GAAP net income for Q4 was $11 million, up from $5.7 million in Q4 2024.

2. Strategic Updates and Business Highlights

• Rebranding: Transitioned to P10, Inc. to reflect a cohesive, integrated enterprise.
• Acquisition of Stellus: Announced acquisition of Stellus, a direct lending platform with $3.8 billion in AUM, aimed at enhancing direct lending capabilities and expanding market reach.
• Global Expansion: Opened a new office in Dubai and completed the acquisition of Qualitas Funds, establishing a presence outside the U.S.
• Product Development: Launched an evergreen product and a fund targeting European investors interested in North American markets.
• Cross-Selling Success: Over 10% of capital raised since the previous Investor Day came from successful cross-sales among existing clients.

3. Forward Guidance and Outlook

• 2026 and 2027 Fundraising Targets: Expect to raise and deploy at least $10 billion in gross fee-paying AUM over the next two years, excluding the impact of acquisitions.
• FRE Margins: Anticipate FRE margins in the mid-40s for 2026, with potential growth towards 50% in subsequent years.
• Dividend: A quarterly cash dividend of $0.0375 per share was approved, payable on March 20, 2026.

4. Bad News, Challenges, or Points of Concern

• Decline in ANI: The decrease in ANI was attributed to historically high catch-up fee revenue in 2024, which is not expected to recur.
• Step-Downs and Expirations: Exceeded initial expectations, primarily due to early paydowns in the credit business and a large separately managed account expiration. Expected to remain in the mid-range of 5% to 7% for 2026.
• Market Risks: Concerns regarding AI's impact on private market managers were raised, although management expressed confidence in their portfolio's positioning.

5. Notable Q&A Insights

• AI Exposure: Management indicated a strategic focus on investing in AI through their venture portfolio while maintaining limited exposure to SaaS and software sectors at risk of disintermediation.
• Private Wealth Strategy: Management clarified their approach to private wealth, emphasizing partnerships like the collaboration with CAIS to expand distribution without building a dedicated sales team.
• Stellus Acquisition Details: Further guidance on Stellus's financial impact will be provided closer to the acquisition's closing date, with expectations of modest accretion to margins and ANI per share.

This summary encapsulates the key takeaways from RPC's Q4 2025 earnings call, highlighting both the company's achievements and the challenges it faces moving forward.