RPC — Ridgepost Capital, Inc.

Summary of RPC Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Fee-Paying Assets Under Management (AUM): Increased by 15% year-over-year to $29.4 billion.
• Organic Fundraising: Raised a record $5.1 billion in 2025, exceeding guidance by $1 billion.
• Fee-Related Revenues (FRR): Increased by 13% to $297.3 million for 2025, with a core fee rate of 104 basis points.
• Adjusted Net Income (ANI): For Q4, ANI was $30.2 million, down 14% from the previous year, primarily due to high catch-up fees in 2024.
• Operating Expenses: Decreased to $55.2 million in Q4 from $62.2 million year-over-year; total operating expenses for 2025 were $231.8 million, down slightly from $235.8 million in 2024.
• GAAP Net Income: Increased to $11 million in Q4 from $5.7 million year-over-year.
• Free Cash Flow: Strong cash position with $28 million in cash and equivalents at the end of Q4.

2. Strategic Updates and Business Highlights

• Rebranding: Transitioned to P10, Inc. to reflect a cohesive growth strategy and integrated platform.
• Acquisition of Stellus: Announced acquisition of Stellus, a direct lending platform with $3.8 billion in AUM, expected to enhance capabilities and sourcing opportunities in the lower middle market.
• Global Expansion: Opened a new office in Dubai and completed the acquisition of Qualitas Funds, marking entry into the European market.
• Product Innovation: Launched new products, including an evergreen fund and a fund targeting European investors interested in North American markets.
• Cross-Selling Success: Over 10% of capital raised since the Investor Day came from cross-sales to existing clients.

3. Forward Guidance and Outlook

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

4. Bad News, Challenges, or Points of Concern

• Decline in ANI: The decrease in ANI for Q4 reflects the impact of historically high catch-up fees in the previous year.
• Step-Downs and Expirations: Exceeded expectations at 5-7% due to early paydowns in the credit business and expirations of managed accounts, which may indicate volatility in AUM.
• Exposure to AI Risks: While management expressed confidence in their portfolio, there are concerns regarding the potential impact of AI on private market managers, particularly in SaaS and software sectors.

5. Notable Q&A Insights

• AI Exposure: Management confirmed a strategic focus on investing in AI through their venture portfolio while maintaining limited exposure to traditional SaaS and software sectors.
• Private Wealth Strategy: Discussion highlighted a cautious approach to expanding in the private wealth channel, emphasizing partnerships rather than building a dedicated distribution team.
• Stellus Acquisition Details: Management refrained from providing specific blended average fee rates for Stellus until closer to the acquisition closing, indicating a careful approach to integration and financial modeling.

Overall, P10, Inc. demonstrated strong growth and strategic positioning in the private equity and credit markets, while also acknowledging challenges related to fee dynamics and market risks. The company remains optimistic about future growth and expansion opportunities.