PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) P10, Inc.'s unaudited consolidated financial statements for Q1 2024, detailing balance sheets, operations, equity, cash flows, and notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Details the company's financial position, including assets, liabilities, and equity, as of March 31, 2024, and December 31, 2023 | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :-------------------------------- | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $28,996 | $30,467 | | Total assets | $832,810 | $834,074 | | Total liabilities | $432,724 | $408,912 | | Debt obligations | $314,036 | $289,844 | | Total equity | $400,086 | $425,162 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Presents the company's revenues, expenses, and net income for the three months ended March 31, 2024, and 2023 | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :----------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total revenues | $66,115 | $57,253 | | Income from operations | $12,099 | $4,871 | | Net income | $5,243 | $769 | | Net income attributable to P10 | $5,021 | $605 | | Basic earnings per share | $0.04 | $0.01 | | Diluted earnings per share | $0.04 | $0.01 | [Consolidated Statements of Changes in Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Details changes in total equity, including stock repurchases, dividends, net income, and stock-based compensation, for the period - Total equity decreased from **$425,162 thousand** at December 31, 2023, to **$400,086 thousand** at March 31, 2024, primarily due to **stock repurchases ($30,038 thousand)** and **dividends paid ($3,774 thousand)**, partially offset by **net income ($5,243 thousand)** and **stock-based compensation ($6,175 thousand)**[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Presents the company's cash flows from operating, investing, and financing activities for the three months ended March 31, 2024, and 2023 | Cash Flow Activity | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :------------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net cash provided by operating activities | $10,959 | $20,777 | | Net cash used in investing activities | $(260) | $(701) | | Net cash used in financing activities | $(12,725) | $(13,711) | | Net change in cash, cash equivalents and restricted cash | $(2,026) | $6,365 | | Cash, cash equivalents and restricted cash, end of period | $30,031 | $35,857 | [Notes to Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the unaudited consolidated financial statements [Note 1. Description of Business](index=9&type=section&id=Note%201.%20Description%20of%20Business) Outlines P10, Inc.'s business as a multi-asset class private market solutions provider, detailing key acquisitions and recent corporate updates - P10, Inc. operates as a multi-asset class private market solutions provider in the alternative asset management industry, offering solutions across private equity, venture capital, private credit, and impact investing[23](index=23&type=chunk) - The company completed several key acquisitions, including RCP Advisors, Five Points, TrueBridge, Enhanced Capital Group, Bonaccord, Hark, and WTI, expanding its portfolio of solutions[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk)[33](index=33&type=chunk)[35](index=35&type=chunk) - The Board approved an additional **$40.0 million** for the share repurchase program on February 27, 2024, bringing the total spent to **$59.5 million** as of March 31, 2024[38](index=38&type=chunk) - Luke A. Sarsfield III was appointed CEO effective October 23, 2023, following an executive transition where former Co-CEOs Mr. Alpert and Mr. Webb transitioned to Executive Chairman and Executive Vice Chairman roles[39](index=39&type=chunk) [Note 2. Significant Accounting Policies](index=10&type=section&id=Note%202.%20Significant%20Accounting%20Policies) Details significant accounting policies, including basis of presentation, consolidation principles, revenue recognition, and recent accounting pronouncements - The company consolidates entities where it has a controlling financial interest, either through a variable interest model (VIEs like P10 Intermediate, RCP, TrueBridge, Hark, Bonaccord, WTI) or a voting interest model (P10 Holdings, Five Points, P10 Advisors, ECG)[46](index=46&type=chunk)[47](index=47&type=chunk) - Revenue is recognized when promised goods or services are transferred to customers, primarily from management and advisory fees based on committed or deployed capital, and other revenue from subscriptions, consulting, and referral fees[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk)[91](index=91&type=chunk) - The company adopted ASU 2022-03 on January 1, 2024, clarifying that contractual sale restrictions on equity securities are not considered in fair value measurement, with no material impact[106](index=106&type=chunk) - The company is evaluating the effects of ASU 2023-07 (Improvements to Reportable Segment Disclosure, effective 2025) and ASU 2023-09 (Improvements to Income Tax Disclosures, effective 2025)[107](index=107&type=chunk)[110](index=110&type=chunk) [Note 3. Revenue](index=22&type=section&id=Note%203.%20Revenue) Provides a disaggregation of total revenues by product offering for the three months ended March 31, 2024, and 2023 | Revenue Type | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :------------- | :--------------------------------------------- | :--------------------------------------------- | | Management fees | $63,844 | $55,536 | | Advisory fees | $1,278 | $1,051 | | Subscriptions | $169 | $134 | | Other revenue | $824 | $532 | | Total revenues | $66,115 | $57,253 | [Note 4. Strategic Alliance Expense](index=22&type=section&id=Note%204.%20Strategic%20Alliance%20Expense) Details the strategic alliance agreement related to the Bonaccord acquisition, including a third-party investor's share of earnings and equity options - Strategic alliance expense was **$0.6 million** for Q1 2024, up from **$0.4 million** in Q1 2023, due to an agreement with a third-party investor in connection with the Bonaccord acquisition[112](index=112&type=chunk) - The third-party investor has the opportunity to acquire up to **5% equity** in Bonaccord for Fund II and up to **4.9%** for Fund III based on capital commitments, with the maximum commitment for Fund II already met as of March 31, 2024[113](index=113&type=chunk)[114](index=114&type=chunk) [Note 5. Notes Receivable](index=22&type=section&id=Note%205.%20Notes%20Receivable) Describes the company's notes receivable, primarily from BCP Partners Holdings, LP and Bonaccord employees, used to fund general partner commitments - Total notes receivable remained stable at **$5.8 million** as of March 31, 2024, and December 31, 2023[119](index=119&type=chunk) - Notes receivable include an Advance Agreement with BCP for **$5.0 million** (matures Sept 2031, interest at **5.5%** or AFR) and Secured Promissory Notes with Bonaccord employees for **$1.0 million** (matures Oct 2028, interest at **SOFR + 2.10%**)[115](index=115&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) [Note 6. Variable Interest Entities](index=24&type=section&id=Note%206.%20Variable%20Interest%20Entities) Explains the company's consolidation of Variable Interest Entities (VIEs) where it is the primary beneficiary, and its interests in unconsolidated VIEs - The company consolidates VIEs such as P10 Intermediate, Holdco, RCP 2, RCP 3, TrueBridge, Hark, Bonaccord, and WTI, where it is the primary beneficiary[120](index=120&type=chunk) - Assets of consolidated VIEs totaled **$566.6 million** and liabilities **$422.6 million** as of March 31, 2024, with creditors generally having no recourse to P10's assets[120](index=120&type=chunk) [Note 7. Investment in Unconsolidated Subsidiaries](index=24&type=section&id=Note%207.%20Investment%20in%20Unconsolidated%20Subsidiaries) Details the company's equity method investments in unconsolidated subsidiaries, primarily related to ECG's tax credit finance and RCP's investment manager - Investment in unconsolidated subsidiaries increased to **$2.8 million** as of March 31, 2024, from **$1.7 million** at December 31, 2023, primarily due to RCP's investment in a privately held investment manager[123](index=123&type=chunk) - The company uses the equity method for entities where it exercises significant influence and the measurement alternative for others, such as RCP's investment in a privately held investment manager[122](index=122&type=chunk)[123](index=123&type=chunk) [Note 8. Property and Equipment](index=25&type=section&id=Note%208.%20Property%20and%20Equipment) Presents the breakdown of property and equipment, net of accumulated depreciation, as of March 31, 2024, and December 31, 2023 | Asset Category | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :----------------------- | :----------------------------- | :----------------------------- | | Computers and purchased software | $1,611 | $1,528 | | Furniture and fixtures | $1,671 | $1,666 | | Leasehold improvements | $3,058 | $2,894 | | Less: accumulated depreciation | $(2,975) | $(2,763) | | Total property and equipment, net | $3,365 | $3,325 | [Note 9. Goodwill and Intangibles](index=25&type=section&id=Note%209.%20Goodwill%20and%20Intangibles) Details the company's goodwill and intangible assets, including indefinite-lived and finite-lived assets, and their amortization schedules - Goodwill remained constant at **$506,038 thousand** as of March 31, 2024[127](index=127&type=chunk) | Intangible Asset Category | March 31, 2024 (Net Carrying Amount, in thousands) | December 31, 2023 (Net Carrying Amount, in thousands) | | :-------------------------- | :------------------------------------------------- | :------------------------------------------------- | | Indefinite-lived intangible assets | $17,405 | $17,405 | | Finite-lived intangible assets | $99,353 | $105,790 | | Total intangible assets | $116,758 | $123,195 | - Amortization expense for intangibles is projected to be **$19,175 thousand** for 2024, **$21,269 thousand** for 2025, and **$16,640 thousand** for 2026[130](index=130&type=chunk) [Note 10. Fair Value Measurements](index=27&type=section&id=Note%2010.%20Fair%20Value%20Measurements) Discusses fair value measurements of liabilities, including the credit facility and contingent consideration related to acquisitions, using a fair value hierarchy - The credit facility's estimated fair value was **$314.0 million** as of March 31, 2024, using Level 2 inputs[131](index=131&type=chunk) - Contingent consideration for the Bonaccord acquisition, a Level 3 fair value measurement, had an estimated fair value of **$6.5 million** as of March 31, 2024, down from **$6.693 million** at December 31, 2023[132](index=132&type=chunk)[134](index=134&type=chunk) - The Hark contingent consideration of **$5.4 million** was fully paid during 2023, resulting in no expense for Q1 2024[133](index=133&type=chunk) [Note 11. Debt Obligations](index=29&type=section&id=Note%2011.%20Debt%20Obligations) Provides details on the company's debt obligations, including the revolving credit facility, term loan, interest rates, and future principal maturities | Debt Type | March 31, 2024 (Net, in thousands) | December 31, 2023 (Net, in thousands) | | :---------------------- | :--------------------------------- | :--------------------------------- | | Revolver facility, net | $115,585 | $88,852 | | Term loan, net | $198,451 | $200,992 | | Total debt obligations, net | $314,036 | $289,844 | - The company's Credit Agreement includes a **$125 million** Revolver Facility and a **$125 million** Term Loan, with an exercised **$125 million** accordion feature, both with interest rates based on **SOFR plus 2.10%**[142](index=142&type=chunk)[143](index=143&type=chunk) - Future principal maturities of debt are **$7,969 thousand** in 2024 and **$308,450 thousand** in 2025, with the Revolving Credit Facility maturing on December 22, 2025[143](index=143&type=chunk)[145](index=145&type=chunk) [Note 12. Related Party Transactions](index=31&type=section&id=Note%2012.%20Related%20Party%20Transactions) Describes various transactions with related parties, including sublease agreements, receivables from funds, advisory agreements, and employee promissory notes - The company has a sublease agreement with 210 Capital, LLC, a related party, for its corporate headquarters, with rent expense of **$0.1 million** for Q1 2024[146](index=146&type=chunk) - Receivables from funds for reimbursable expenses and management fees totaled **$23.8 million** as of March 31, 2024[147](index=147&type=chunk) - Advisory fees earned from Enhanced PC under an Advisory Agreement were **$4.2 million** for Q1 2024, with **$43.9 million** in remaining performance obligations[148](index=148&type=chunk) - Advisory fees from Crossroads Impact Corp were **$2.2 million** for Q1 2024[152](index=152&type=chunk) [Note 13. Commitments and Contingencies](index=33&type=section&id=Note%2013.%20Commitments%20and%20Contingencies) Outlines the company's operating lease commitments, WTI acquisition earnout payments, revenue share arrangements, and COO severance payment - Operating lease liabilities totaled **$22.5 million** as of March 31, 2024, with a weighted-average remaining lease term of **6.92 years**[157](index=157&type=chunk) - Earnout payments related to the WTI acquisition could reach up to **$70.0 million**, contingent on EBITDA hurdles and continued employment, with **$29.2 million** accrued as of March 31, 2024[159](index=159&type=chunk) - Accrued contingent liabilities for revenue share arrangements with third parties were **$16.2 million** as of March 31, 2024, with corresponding contingent payments to customers assets of **$13.6 million**[161](index=161&type=chunk) - A severance payment of **$1.2 million** is payable to the retiring COO, accrued in Q4 2023[164](index=164&type=chunk) [Note 14. Income Taxes](index=36&type=section&id=Note%2014.%20Income%20Taxes) Discusses the company's income tax provision, effective tax rate, deferred tax assets and liabilities, and valuation allowances - The effective income tax rate was **25.11%** for Q1 2024, compared to a non-meaningful rate in Q1 2023 due to a discrete item, with a rate of **29.44%** excluding discrete items[167](index=167&type=chunk) - A valuation allowance of **$12.8 million** was recorded against deferred tax assets as of March 31, 2024, primarily related to a note impairment[168](index=168&type=chunk) [Note 15. Stockholders' Equity](index=37&type=section&id=Note%2015.%20Stockholders%27%20Equity) Details the company's equity-based compensation plans, including stock options, RSAs, and RSUs, along with associated expenses and vesting schedules - The company has **18,300,000 shares** available for grant under the P10 Holdings, Inc. 2021 Stock Incentive Plan and the 2018 Plan[173](index=173&type=chunk) - Stock option compensation expense was **$2.8 million** for Q1 2024, with **$14.2 million** in unrecognized expense remaining[174](index=174&type=chunk) - RSU compensation includes Bonaccord Units (**$0.4 million** expense in Q1 2024), Executive Transition Units (**$0.6 million** expense in Q1 2024), and Executive Market Units (**$0.7 million** expense in Q1 2024)[178](index=178&type=chunk)[180](index=180&type=chunk)[183](index=183&type=chunk) [Note 16. Earnings Per Share](index=40&type=section&id=Note%2016.%20Earnings%20Per%20Share) Provides a reconciliation of numerators and denominators for basic and diluted earnings per share for Class A and Class B common stock | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :------------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net income attributable to P10 | $5,021 | $605 | | Weighted average shares outstanding, basic | 115,129 | 115,921 | | Denominator for earnings per share assuming dilution | 122,841 | 123,926 | | Basic EPS (Class A/B) | $0.04 | $0.01 | | Diluted EPS (Class A/B) | $0.04 | $0.01 | - **12.0 million** options were excluded from diluted EPS computation for Q1 2024 as they were anti-dilutive[191](index=191&type=chunk) [Note 17. Subsequent Events](index=41&type=section&id=Note%2017.%20Subsequent%20Events) Discloses events after the balance sheet date, including a declared quarterly cash dividend and an amendment to an executive transition agreement - A quarterly cash dividend of **$0.035 per share** of Class A and Class B common stock was declared, payable on June 20, 2024[192](index=192&type=chunk) - An amendment to Robert Alpert's Transition Agreement was executed on May 9, 2024, resigning him as Executive Chairman and Chairman of the Board effective June 14, 2024[192](index=192&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis of P10, Inc.'s financial condition and results of operations for Q1 2024, including business overview, revenue, segments, market trends, and critical accounting policies [Business Overview](index=42&type=section&id=MD%26A%20-%20Business%20Overview) Provides an overview of P10's business as a multi-asset class private market solutions provider, including leadership changes and share repurchase updates - P10 is a leading multi-asset class private market solutions provider in the alternative asset management industry, aiming to offer differentiated access to investment vehicles across various asset classes and geographies[196](index=196&type=chunk) - Luke A. Sarsfield III was appointed CEO effective October 23, 2023, following the transition of former Co-CEOs Mr. Alpert and Mr. Webb to Executive Chairman and Executive Vice Chairman roles[197](index=197&type=chunk) | Solution Category | FPAUM (as of March 31, 2024, in billions) | | :------------------------ | :---------------------------------------- | | Private Equity Solutions (PES) | $12.5 | | Venture Capital Solutions (VCS) | $6.5 | | Impact Investing Solutions (IIS) | $1.9 | | Private Credit Solutions (PCS) | $2.9 | - The Board authorized an additional **$40.0 million** for the stock repurchase program on February 27, 2024, with **$59.5 million** spent as of March 31, 2024[200](index=200&type=chunk) [Sources of Revenue](index=43&type=section&id=MD%26A%20-%20Sources%20of%20Revenue) Describes the primary sources of revenue, mainly from long-term, fixed-fee management and advisory contracts based on committed capital - The majority of revenues are generated through long-term, fixed-fee management and advisory contracts, typically based on committed capital for ten to fifteen years[202](index=202&type=chunk) | Investment Vehicle | FPAUM (as of March 31, 2024, in billions) | | :-------------------------- | :---------------------------------------- | | Primary Investment Funds | $13.8 | | Direct and Co-Investment Funds | $8.4 | | Secondaries | $1.6 | [Operating Segments](index=44&type=section&id=MD%26A%20-%20Operating%20Segments) Explains that P10 operates as a single operating segment, reflecting how the CEO evaluates financial performance and allocates resources - P10 operates its business as a single operating segment, which is how the CEO evaluates financial performance and allocates resources[206](index=206&type=chunk) [Trends Affecting Our Business](index=44&type=section&id=MD%26A%20-%20Trends%20Affecting%20Our%20Business) Discusses key market trends, including demand for private markets solutions, regulatory changes, growth strategies, and the impact of interest rates - Key trends include accelerating demand for private markets solutions, favorable lower/lower-middle market dynamics, and the need to expand asset class solutions and geographic reach[209](index=209&type=chunk)[211](index=211&type=chunk) - Increasing regulatory requirements are expected to raise compliance costs and potentially restrict business activities[211](index=211&type=chunk) - The company's growth depends on its ability to raise capital for acquisitions and strategic initiatives, with data advantage crucial for competitive positioning[211](index=211&type=chunk) - Counter-cyclical strategies, particularly private credit products with floating rates, benefit from a higher interest rate environment[212](index=212&type=chunk) [Key Financial & Operating Metrics](index=46&type=section&id=MD%26A%20-%20Key%20Financial%20%26%20Operating%20Metrics) Highlights key financial and operating metrics, including revenue sources, compensation expenses, and the nature of FPAUM - Revenues are primarily from long-term, fixed management and advisory fees, typically based on committed capital, with an average fee rate of approximately **1%**[215](index=215&type=chunk)[226](index=226&type=chunk) - Compensation and benefits are the largest expense, expected to rise with headcount growth and competitive compensation needs, with investment professionals retaining carried interests[218](index=218&type=chunk) - FPAUM reflects assets from which management and advisory fees are earned, primarily based on committed capital, making it less susceptible to market fluctuations[223](index=223&type=chunk) [Results of Operations](index=47&type=section&id=MD%26A%20-%20Results%20of%20Operations) Analyzes the company's financial performance for Q1 2024, focusing on total revenues, operating expenses, income from operations, and FPAUM growth | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | $ Change | % Change | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------- | :------- | | Total revenues | $66,115 | $57,253 | $8,862 | 15% | | Total operating expenses | $54,016 | $52,382 | $1,634 | 3% | | Income from operations | $12,099 | $4,871 | $7,228 | 148% | | Net income | $5,243 | $769 | $4,474 | 582% | - Total revenues increased by **$8.9 million (15%)** driven by organic FPAUM growth at Bonaccord and TrueBridge, with catch-up fees contributing **$7.7 million** in Q1 2024[226](index=226&type=chunk)[227](index=227&type=chunk) - Operating expenses increased by **$1.6 million (3%)**, primarily due to higher general, administrative, and other expenses (**+25%**) and compensation and benefits (**+4%**), partially offset by lower amortization of intangibles (**-11%**) and contingent consideration expense (**-92%**)[230](index=230&type=chunk)[231](index=231&type=chunk)[232](index=232&type=chunk)[233](index=233&type=chunk)[235](index=235&type=chunk) - FPAUM increased by **$0.6 billion (2.5%)** to **$23.8 billion** as of March 31, 2024, driven by capital raised and deployed from private equity and venture capital solutions[239](index=239&type=chunk)[240](index=240&type=chunk) [Non-GAAP Financial Measures](index=53&type=section&id=MD%26A%20-%20Non-GAAP%20Financial%20Measures) Discusses the use of non-GAAP measures like Fee-Related Revenue, Fee-Related Earnings, Adjusted Net Income, and Adjusted EBITDA to assess performance - Non-GAAP measures like Fee-Related Revenue (FRR), Fee-Related Earnings (FRE), Adjusted Net Income (ANI), and Adjusted EBITDA are used to assess performance, excluding non-cash expenses, financing costs, and acquisition-related expenses[243](index=243&type=chunk)[244](index=244&type=chunk) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :---------------------- | :--------------------------------------------- | :--------------------------------------------- | | Adjusted EBITDA | $30,825 | $28,406 | | Adjusted Net Income | $25,400 | $25,485 | | Fee-Related Revenue | $65,007 | $56,133 | | Fee-Related Earnings | $30,741 | $28,190 | [Financial Position, Liquidity and Capital Resources](index=54&type=section&id=MD%26A%20-%20Financial%20Position%2C%20Liquidity%20and%20Capital%20Resources) Analyzes the company's financial position, liquidity, and capital resources, including cash, assets, liabilities, debt, and equity changes | Metric | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | $ Change | % Change | | :------------------------------------------ | :----------------------------- | :----------------------------- | :------- | :------- | | Cash and cash equivalents (including restricted cash) | $30,031 | $32,057 | $(2,026) | (6)% | | Goodwill and other intangibles | $622,796 | $629,233 | $(6,437) | (1)% | | Total assets | $832,810 | $834,074 | $(1,264) | (0)% | | Debt obligations | $314,036 | $289,844 | $24,192 | 8% | | Equity | $400,086 | $425,162 | $(25,076) | (6)% | - Cash from operating activities decreased by **$9.8 million (47%)** to **$11.0 million** in Q1 2024, primarily due to increased income tax expense, compensation, and general & administrative expenses, and changes in working capital[253](index=253&type=chunk)[254](index=254&type=chunk)[261](index=261&type=chunk) - Debt obligations increased by **$24.2 million** due to revolver activity for common stock repurchases[247](index=247&type=chunk) - The company expects to meet liquidity needs through operating cash flows, existing cash, and external financing, including potential refinancing or equity offerings[257](index=257&type=chunk) [Critical Accounting Policies and Estimates](index=56&type=section&id=MD%26A%20-%20Critical%20Accounting%20Policies%20and%20Estimates) Outlines critical accounting policies and estimates, including basis of presentation, consolidation, revenue recognition, stock-based compensation, and income taxes - Key critical accounting policies include the basis of presentation, principles of consolidation, revenue recognition for management and advisory fees, stock-based compensation expense, and income taxes[260](index=260&type=chunk)[261](index=261&type=chunk)[263](index=263&type=chunk)[268](index=268&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk) - Management makes estimates and assumptions that affect reported amounts, and actual results could differ[260](index=260&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses the company's exposure to market risks, including interest rate risk and credit risk, and how these risks are managed - The company is exposed to market risks such as price risk, interest-rate risk, access to financing risk, liquidity risk, and counterparty risk[275](index=275&type=chunk) - Management fees are generally based on commitments or net invested capital, so revenue is not significantly impacted by changes in investment values, but unfavorable changes could affect investor attraction/retention[276](index=276&type=chunk) - A **100-basis point** increase in interest rates would result in an approximately **$2.0 million** increase in interest expense over the next 12 months, given **$316.4 million** in outstanding principal on Term Loans and Revolving Credit Facility[279](index=279&type=chunk)[141](index=141&type=chunk) - Credit risk is managed by limiting counterparties to reputable financial institutions[280](index=280&type=chunk) [Item 4. Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Assesses the effectiveness of the company's disclosure controls and procedures and reports on any changes in internal controls over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2024, providing reasonable assurance that required information is recorded, processed, summarized, and reported timely[282](index=282&type=chunk) - There have been no material changes in internal control over financial reporting during the quarter ended March 31, 2024[283](index=283&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 13, "Commitments and Contingencies," for information regarding legal proceedings - Information on legal proceedings is incorporated by reference from "Contingencies" in Note 13 of the consolidated financial statements[285](index=285&type=chunk) [Item 1A. Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) States no material changes to risk factors from the Form 10-K for the year ended December 31, 2023 - No material changes to risk factors from the Form 10-K for the year ended December 31, 2023[286](index=286&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Provides information on the company's common stock repurchase activity for Q1 2024 under its Stock Repurchase Program | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan or Program | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | | :-------------------- | :------------------------------- | :--------------------------- | :--------------------------------------------------------------------------- | :--------------------------------------------------------------------------------------------- | | January 1 - 31, 2024 | — | $ - | — | $10,566,370 | | February 1 - 29, 2024 | — | $ - | — | $50,566,370 | | March 1 - 31, 2024 | 3,683,400 | $8.15 | 3,683,400 | $20,524,759 | | Total | 3,683,400 | $8.15 | 3,683,400 | | - The Board authorized an additional **$40 million** for repurchases under the Stock Repurchase Program on February 27, 2024[287](index=287&type=chunk) [Item 3. Other Information](index=61&type=section&id=Item%203.%20Other%20Information) Confirms no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by the company or its officers/directors during the last fiscal quarter - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted or terminated by the company or its officers/directors during the last fiscal quarter[288](index=288&type=chunk) [Item 4. Exhibits](index=62&type=section&id=Item%204.%20Exhibits) Lists the exhibits filed with the Form 10-Q, including employment agreements, certifications, and XBRL documents - The exhibits include employment agreements (10.1, 10.2, 10.3), CEO/CFO certifications (31.1, 31.2, 32.1, 32.2), and Inline XBRL documents (101.INS, 101.SCH, 104)[289](index=289&type=chunk) [Signatures](index=63&type=section&id=Signatures) Contains the signatures of the Chief Executive Officer and Chief Financial Officer, certifying the report - The report is signed by Luke A. Sarsfield III, Chief Executive Officer and Director, and Amanda Coussens, Chief Financial Officer, on May 9, 2024[291](index=291&type=chunk)

[Introduction & Corporate Information](index=2&type=section&id=Introduction%20%26%20Corporate%20Information) P10, Inc. provides legal disclaimers, forward-looking statement caveats, non-GAAP measure definitions, and introduces key presenters [Legal Disclaimers](index=2&type=section&id=Legal%20Disclaimers) This section provides standard legal disclaimers, clarifying P10, Inc.'s role as a holding company and that investment advisory services are provided by its registered subsidiaries - P10, Inc. acts as a holding company; investment advisory services are provided by its registered investment adviser subsidiaries[2](index=2&type=chunk) - The presentation is for informational purposes only and does not constitute an offer to sell securities or investment advice[2](index=2&type=chunk) [Forward-Looking Statements & Projections](index=2&type=section&id=Forward-Looking%20Statements%20%26%20Projections) The report contains forward-looking statements and financial/operating projections that are inherently uncertain and based on estimates and assumptions - Forward-looking statements discuss management's current expectations and projections, subject to various risks, uncertainties, and assumptions[3](index=3&type=chunk) - Financial and operating projections are speculative and based on estimates, with actual results potentially differing substantially and possibly being materially worse[4](index=4&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements or projections, except as required by law[3](index=3&type=chunk)[4](index=4&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and explains the use of non-GAAP financial measures such as Adjusted EBITDA, Adjusted Net Income (ANI), and Fee-Paying Assets Under Management (FPAUM) - Non-GAAP financial measures (Adjusted EBITDA, Adjusted EBITDA Margin, Fee-Related Revenue, Fee-Related Earnings, Fee-Related Earnings Margin, Adjusted Net Income, Fully Diluted ANI EPS, and fee-paying assets under management) are used to provide useful additional information and better comparability of ongoing operating performance[6](index=6&type=chunk) - These non-GAAP measures should not be considered substitutes for net income or cash flows from operating, investing, or financing activities[6](index=6&type=chunk) [Presenters](index=3&type=section&id=Presenters) The presentation features key executives: Luke Sarsfield as CEO & Director, Amanda Coussens as EVP, CFO & CCO, and Mark Hood as EVP & CAO - Key presenters for the First Quarter 2024 Earnings Presentation include Luke Sarsfield (CEO & Director), Amanda Coussens (EVP, CFO & CCO), and Mark Hood (EVP & CAO)[9](index=9&type=chunk) [First Quarter 2024 Highlights](index=4&type=section&id=First%20Quarter%202024%20Highlights) P10, Inc. reports strong Q1 2024 financial performance, driven by FPAUM growth and fundraising, alongside capital market actions and corporate governance updates [Financial Performance Highlights](index=4&type=section&id=Financial%20Performance%20Highlights) P10, Inc. demonstrated strong financial performance in Q1 2024, with significant year-over-year growth in GAAP Net Income and EPS, driven by a 15% increase in revenue Q1 2024 Financial Highlights (YoY) | Financial Metric ($ in Millions) | March 31, 2024 | March 31, 2023 | Q1'24 vs Q1'23 Change | | :----------------------------- | :------------- | :------------- | :-------------------- | | Actual FPAUM ($ Billions) | $23.8 | $21.6 | 10% | | Revenue | $66.1 | $57.3 | 15% | | Operating Expenses | $54.0 | $52.4 | 3% | | GAAP Net Income | $5.2 | $0.8 | 582% | | Fully Diluted GAAP EPS | $0.04 | $0.01 | 300% | | Adjusted EBITDA | $30.8 | $28.4 | 9% | | Adjusted EBITDA Margin | 47% | 50% | N/A | | Adjusted Net Income | $25.4 | $25.5 | 0% | | Fully Diluted ANI EPS | $0.21 | $0.21 | 0% | | Fee-Related Revenue | $65.0 | $56.1 | 16% | | Fee-Related Earnings | $30.7 | $28.2 | 9% | | Fee-Related Earnings Margin | 47% | 50% | N/A | [Key Business Drivers](index=5&type=section&id=Key%20Business%20Drivers) The company's Q1 2024 performance was primarily driven by a 10% increase in Fee-Paying Assets Under Management (FPAUM) to **$23.8 billion** and a 15% year-over-year revenue growth - Fee-paying assets under management (FPAUM) increased by **10% to $23.8 billion** compared to March 31, 2023[13](index=13&type=chunk)[15](index=15&type=chunk) - Year-over-year quarterly revenue growth of **15%** was driven by **$667 million** of fundraising and deployment[15](index=15&type=chunk) - Catch-up fees in the first quarter amounted to **$7.7 million**[15](index=15&type=chunk) [Capital Markets & Shareholder Actions](index=5&type=section&id=Capital%20Markets%20%26%20Shareholder%20Actions) P10, Inc. approved a 7.7% increase in its annual dividend to **$0.14 per share** and declared a quarterly cash dividend of **$0.035 per share** - Approved a **7.7% increase** in the annual dividend by **$0.01 per share to $0.14 per share**, with a quarterly cash dividend of **$0.035 per share** declared[15](index=15&type=chunk) - **3,683,400 shares** were repurchased in the quarter at an average price of **$8.15 per share**, with **$20.5 million** available under the stock buyback program[15](index=15&type=chunk) - Outstanding debt is **$298.3 million**, with **$199.2 million** on the term portion and **$99.1 million** on the revolver, leaving **$63.4 million** available on the credit facility[15](index=15&type=chunk) [Corporate Governance Updates](index=6&type=section&id=Corporate%20Governance%20Updates) P10, Inc. announced several corporate governance changes, including new appointments to its leadership and Board of Directors, and the termination of its stockholder rights plan - Melodie Craft was hired as General Counsel, and Tracey Benford was appointed as an independent Class II director to the Board[16](index=16&type=chunk) - Robert Alpert will step down as Executive Chairman on June 14, 2024, and Luke Sarsfield was appointed as Chairman of the Board, effective the same date[18](index=18&type=chunk) - The Board of Directors voted to terminate the company's stockholder rights plan, effective May 8, 2024[18](index=18&type=chunk) [Investment Team Performance Summary](index=8&type=section&id=Investment%20Team%20Performance%20Summary) This section details the historical investment performance across P10's various advisory firms, including RCP Advisors, TrueBridge, Enhanced Capital, Bonaccord, WTI, Five Points Capital, and Hark Capital [RCP Advisors Performance](index=8&type=section&id=RCP%20Advisors%20Performance) RCP Advisors manages a diverse portfolio of fund-of-funds, secondary funds, co-investment funds, and combination funds, demonstrating strong historical performance RCP Advisors Fund-of-Funds Performance (as of 9/30/23) | Fund | Vintage | Fund Size ($ Millions) | Called Capital | Net IRR | Net ROIC | | :-------- | :------ | :--------------------- | :------------- | :------ | :------- | | Fund I | 2003 | $92 | 105% | 13.6% | 1.8x | | Fund IV | 2007 | $265 | 110% | 14.5% | 2.0x | | Fund VIII | 2012 | $268 | 114% | 20.3% | 2.3x | | Fund X | 2015 | $332 | 112% | 17.6% | 1.9x | | Fund XII | 2018 | $382 | 103% | 17.9% | 1.6x | RCP Advisors Secondary Funds Performance (as of 9/30/23) | Fund | Vintage | Fund Size ($ Millions) | Called Capital | Net IRR | Net ROIC | | :------ | :------ | :--------------------- | :------------- | :------ | :------- | | SOF I | 2009 | $264 | 112% | 21.1% | 1.7x | | SOF III | 2018 | $400 | 102% | 35.8% | 1.7x | RCP Advisors Co-Investment Funds Performance (as of 9/30/23) | Fund | Vintage | Fund Size ($ Millions) | Called Capital | Net IRR | Net ROIC | | :------- | :------ | :--------------------- | :------------- | :------ | :------- | | Direct I | 2010 | $109 | 82% | 42.7% | 2.9x | | Direct II| 2014 | $250 | 88% | 25.9% | 2.5x | [TrueBridge Performance](index=8&type=section&id=TrueBridge%20Performance) TrueBridge manages fund-of-funds, secondary funds, and co-investment funds, primarily focused on venture capital, demonstrating strong returns TrueBridge Fund-of-Funds Performance (as of 12/31/23) | Fund | Vintage | Fund Size ($ Millions) | Called Capital | Net IRR | Net ROIC | | :-------- | :------ | :--------------------- | :------------- | :------ | :------- | | Fund II | 2010 | $342 | 83% | 20.3% | 5.0x | | Fund IV | 2015 | $408 | 91% | 26.1% | 3.4x | | Fund V | 2017 | $460 | 90% | 24.6% | 2.3x | TrueBridge Co-Investment Funds Performance (as of 12/31/23) | Fund | Vintage | Fund Size ($ Millions) | Called Capital | Net IRR | Net ROIC | | :------------ | :------ | :--------------------- | :------------- | :------ | :------- | | Direct Fund I | 2015 | $125 | 96% | 31.4% | 2.9x | [Enhanced Capital Performance](index=8&type=section&id=Enhanced%20Capital%20Performance) Enhanced Capital focuses on Impact Funds, including Impact Credit and Impact Equity, showing robust performance in both categories Enhanced Capital Impact Funds Performance (as of 12/31/23) | Fund | Fund Size ($ Millions) | Net IRR | Net ROIC | | :------------ | :--------------------- | :------ | :------- | | Impact Credit | $1,186 | 7.2% | 1.1x | | Impact Equity | $658 | 20%+ | 1.2x | [Bonaccord Capital Partners Performance](index=8&type=section&id=Bonaccord%20Capital%20Partners%20Performance) Bonaccord Capital Partners specializes in GP Stakes Funds, with Fund I demonstrating strong performance since its 2019 vintage Bonaccord Capital Partners GP Stakes Funds Performance (as of 12/31/23) | Fund | Vintage | Fund Size ($ Millions) | Called Capital | Net IRR | Net ROIC | | :----- | :------ | :--------------------- | :------------- | :------ | :------- | | Fund I | 2019 | $724 | 77% | 16.1% | 1.4x | [WTI Performance](index=9&type=section&id=WTI%20Performance) WTI manages Credit Funds (VLL series) with a long track record of high returns, including exceptional performance from older vintages WTI Credit Funds Performance (as of 12/31/23) | Fund | Vintage | Fund Size ($ Millions) | Called Capital | Net IRR | Net ROIC | | :----- | :------ | :--------------------- | :------------- | :------ | :------- | | VLL I | 1994 | $47 | 100% | 63.3% | 5.9x | | VLL II | 1997 | $110 | 100% | 61.4% | 2.7x | | VLL IV | 2004 | $250 | 100% | 15.9% | 2.2x | | VLL IX | 2018 | $460 | 100% | 11.5% | 1.4x | | WTI X | 2021 | $500 | 61% | 11.1% | 1.1x | [Five Points Capital Performance](index=9&type=section&id=Five%20Points%20Capital%20Performance) Five Points Capital manages both Equity and Credit Funds, with both categories showing strong performance across their respective vintages Five Points Capital Equity Funds Performance (as of 12/31/23) | Fund | Vintage | Fund Size ($ Millions) | Called Capital | Net IRR | Net ROIC | | :------- | :------ | :--------------------- | :------------- | :------ | :------- | | Fund III | 2013 | $230 | 94% | 25.3% | 2.6x | Five Points Capital Credit Funds Performance (as of 12/31/23) | Fund | Vintage | Fund Size ($ Millions) | Called Capital | Net IRR | Net ROIC | | :------- | :------ | :--------------------- | :------------- | :------------- | :------- | | Fund III | 2016 | $289 | 74% | 25.9% | 2.8x | [Hark Capital Performance](index=9&type=section&id=Hark%20Capital%20Performance) Hark Capital specializes in NAV Lending Funds, with Fund III demonstrating consistent performance in this asset class Hark Capital NAV Lending Funds Performance (as of 12/31/23) | Fund | Vintage | Fund Size ($ Millions) | Called Capital | Net IRR | Net ROIC | | :------- | :------ | :--------------------- | :------------- | :------ | :------- | | Fund III | 2021 | $400 | 77% | 12.2% | 1.2x | [Business Model & Market Strategy](index=10&type=section&id=Business%20Model%20%26%20Market%20Strategy) P10's strategy focuses on specialized private markets, leveraging proprietary data, a diversified platform, and a broad investor base to offer multi-asset solutions [Market Opportunity & Positioning](index=10&type=section&id=Market%20Opportunity%20%26%20Positioning) P10 is strategically positioned in attractive, specialized, and growing private markets, particularly the lower middle market, offering compelling investment opportunities - The lower middle market benefits from a large pool of opportunities (**111,371 companies** with revenues between **$10 million and $250 million**), favorable purchase price valuations, and limited alternatives for capital[31](index=31&type=chunk) - **$774 billion** of capital is available to PE Funds, with **$141 billion** specifically for funds between **$10 million and $250 million**[31](index=31&type=chunk) [Data & Analytics Advantage](index=11&type=section&id=Data%20%26%20Analytics%20Advantage) P10 leverages a unique and extensive proprietary analytics database as a competitive differentiator, supporting data-driven underwriting and robust monitoring processes - P10 possesses an extensive proprietary analytics database with over **47,000 private companies**, **1,000 investment firms**, and **317,000 individual investment transactions**[34](index=34&type=chunk) - Data capabilities provide a competitive edge for systematic sourcing, diligence, and monitoring, supported by **20+ years** of granular data and unique analytical tools[35](index=35&type=chunk) [Diversified Investment Platform & Investor Base](index=12&type=section&id=Diversified%20Investment%20Platform%20%26%20Investor%20Base) P10 operates a highly diversified, multi-asset investment platform with a broad investor base spanning 60 states and 6 continents - P10 has a diversified investor base across **60 states and 6 continents**[37](index=37&type=chunk) Investor Base by Channel (As of Q1 '24) | Investor Channel | FPAUM Percentage | | :--------------------------- | :--------------- | | Family Offices / Wealth Managers | 25% | | Public Pensions | 21% | | Financial Institutions | 17% | | Endowments / Foundations | 16% | | Corporate Pensions | 8% | | Insurance Companies | 7% | | Other | 6% | [Private Markets Ecosystem & Solutions Overview](index=16&type=section&id=Private%20Markets%20Ecosystem%20%26%20Solutions%20Overview) P10 positions itself as a premier private markets solutions provider, connecting Limited Partners (LPs) with high-performing fund managers through a unified network of **270+ General Partners (GPs)** - P10 is a specialized private markets solutions provider, strengthening relationships with high-performing fund managers and attracting new LPs[49](index=49&type=chunk) - The company has a global LP base of **3,600+ institutional and HNW investors** and a unified private markets solutions network of **270+ GPs**[50](index=50&type=chunk) FPAUM by Solution Type (As of Q1'24) | Solution Type | FPAUM (Billions) | FPAUM Composition | Organic FPAUM CAGR (Q4'20 PF - Q1'24) | | :---------------------- | :--------------- | :---------------- | :------------------------------------ | | Primary Solutions | $13.8 | 58% | 17% | | Direct & Co-Investments | $8.4 | 35% | 15% | | Secondary Investments | $1.6 | 7% | 22% | | **Total FPAUM** | **$23.8** | **100%** | | [Fee Paying Assets Under Management (FPAUM) Analysis](index=13&type=section&id=Fee%20Paying%20Assets%20Under%20Management%20%28FPAUM%29%20Analysis) Analysis of P10's FPAUM growth, average fee rates, and the drivers behind its highly sticky, long-term capital base [FPAUM Growth & Average Fee Rate](index=14&type=section&id=FPAUM%20Growth%20%26%20Average%20Fee%20Rate) P10 demonstrates robust organic FPAUM growth, reaching **$23.8 billion** in Q1 2024, with a stable and attractive average fee rate of **110 basis points** - Organic FPAUM grew to **$23.8 billion** in Q1 2024, achieving a **15% CAGR** from 2018PF to Q1 2024PF[43](index=43&type=chunk) - The average fee rate for Q1 2024 was **110 basis points**, indicating stable and attractive fee generation[43](index=43&type=chunk) [Organic FPAUM Roll Forward & Flow Breakdown](index=15&type=section&id=Organic%20FPAUM%20Roll%20Forward%20%26%20Flow%20Breakdown) P10's FPAUM growth is driven by new capital raised and deployed, which are long-term and contractually locked-up, ensuring a highly sticky FPAUM base - FPAUM increased from **$23.3 billion** (Dec-23 PF) to **$23.8 billion** (Mar-24 PF) in Q1 2024[47](index=47&type=chunk) - Q1 2024 FPAUM flows included **$0.9 billion** in capital raised and **$0.4 billion** in capital deployed, with **$0.1 billion** in stepdowns and expirations[47](index=47&type=chunk) - The FPAUM base is highly sticky due to long-term, contractually locked-up funds, with fees primarily based on committed capital[46](index=46&type=chunk)[47](index=47&type=chunk) [Consolidated Financial Statements](index=19&type=section&id=Consolidated%20Financial%20Statements) Overview of P10's Q1 2024 unaudited financial statements, including statements of operations, non-GAAP adjustments, balance sheets, and cash flows [Statements of Operations (Unaudited)](index=20&type=section&id=Statements%20of%20Operations%20%28Unaudited%29) P10, Inc. reported a significant increase in net income for Q1 2024, reaching **$5.2 million**, up **582%** from Q1 2023, driven by a **12%** growth in total revenues Consolidated Statements of Operations (Unaudited) - Q1 2024 vs Q1 2023 | Metric ($ in thousands) | March 31, 2024 | March 31, 2023 | % Change | | :------------------------------ | :------------- | :------------- | :------- | | Management and advisory fees | $65,122 | $56,587 | 15% | | Other revenue | $993 | $666 | 49% | | **Total revenues** | **$66,115** | **$57,253** | **12%** | | Total operating expenses | $54,016 | $52,382 | 3% | | **Income From Operations** | **$12,099** | **$4,871** | **148%** | | Net Income | $5,243 | $769 | 582% | | Net Income Attributable to P10 | $5,021 | $605 | 730% | | Basic earnings per share | $0.04 | $0.01 | 300% | | Diluted earnings per share | $0.04 | $0.01 | 300% | | Dividends paid per share | $0.03 | $0.03 | 8% | [Non-GAAP Financial Measures & Adjustments (Unaudited)](index=21&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Adjustments%20%28Unaudited%29) P10's Adjusted EBITDA increased by **9% to $30.8 million** in Q1 2024, while Adjusted Net Income (ANI) remained stable at **$25.4 million** Adjustments to EBITDA (Unaudited) - Q1 2024 | Metric ($ in thousands) | March 31, 2024 (GAAP) | Adjustments to EBITDA | Adjusted Line Item | | :---------------------------------- | :-------------------- | :-------------------- | :----------------- | | Management and advisory fees | $65,122 | $410 | $65,532 | | Total revenues | $66,115 | | $66,525 | | Compensation and benefits (excl. non-cash stock) | $30,393 | ($3,558) | $26,835 | | Non-cash stock based compensation | $6,716 | ($6,716) | $0 | | Professional fees | $3,768 | ($611) | $3,157 | | Depreciation | $236 | ($236) | $0 | | Contingent consideration expense | $30 | ($30) | $0 | | Amortization of intangibles | $6,437 | ($6,437) | $0 | | Total operating expenses | $54,016 | | $36,378 | | Income From Operations | $12,099 | | $30,147 | | Interest expense, net | ($5,776) | $5,776 | $0 | | **Adjusted EBITDA** | | | **$30,825** | Non-GAAP Financial Measures (Unaudited) - Q1 2024 vs Q1 2023 | Metric ($ in thousands) | March 31, 2024 | March 31, 2023 | % Change | | :-------------------------- | :------------- | :------------- | :------- | | Adjusted EBITDA | $30,825 | $28,406 | 9% | | Adjusted Net Income | $25,400 | $25,485 | 0% | | Fully diluted ANI per share | $0.21 | $0.21 | 0% | | Adjusted EBITDA Margin | 47% | 50% | N/A | | Fee-Related Revenue | $65,007 | $56,133 | 16% | | Fee-Related Earnings | $30,741 | $28,190 | 9% | | Fee-Related Earnings Margin | 47% | 50% | N/A | [Balance Sheets (Unaudited)](index=23&type=section&id=Balance%20Sheets%20%28Unaudited%29) As of March 31, 2024, P10 reported total assets of **$832.8 million**, a slight decrease from **$834.1 million** at December 31, 2023, with total liabilities increasing to **$432.7 million** Consolidated Balance Sheets (Unaudited) - March 31, 2024 vs December 31, 2023 | Metric ($ in thousands) | March 31, 2024 | December 31, 2023 | | :------------------------------ | :------------- | :---------------- | | Cash and cash equivalents | $28,996 | $30,467 | | Accounts receivable | $23,293 | $20,620 | | Intangibles, net | $116,758 | $123,195 | | Goodwill | $506,038 | $506,038 | | **Total assets** | **$832,810** | **$834,074** | | Accounts payable and accrued expenses | $14,313 | $15,054 | | Debt obligations | $314,036 | $289,844 | | **Total liabilities** | **$432,724** | **$408,912** | | Total equity | $400,086 | $425,162 | [Statements of Cash Flows (Unaudited)](index=24&type=section&id=Statements%20of%20Cash%20Flows%20%28Unaudited%29) Net cash provided by operating activities decreased significantly to **$10.9 million** in Q1 2024 from **$20.8 million** in Q1 2023 Consolidated Statements of Cash Flows (Unaudited) - Q1 2024 vs Q1 2023 | Metric ($ in thousands) | March 31, 2024 | March 31, 2023 | | :------------------------------------------ | :------------- | :------------- | | Net cash provided by operating activities | $10,959 | $20,777 | | Net cash used in investing activities | ($260) | ($701) | | Net cash used in financing activities | ($12,725) | ($13,711) | | Net change in cash, cash equivalents and restricted cash | ($2,026) | $6,365 | | Cash And Cash Equivalents And Restricted Cash, End of Period | $30,031 | $35,857 | - Borrowings on debt obligations increased to **$47.5 million** in Q1 2024 from **$16.0 million** in Q1 2023[67](index=67&type=chunk) - The company repurchased **$30.0 million** of Class A common stock in Q1 2024[67](index=67&type=chunk) [Strategic Financials & Value Proposition](index=25&type=section&id=Strategic%20Financials%20%26%20Value%20Proposition) P10's strategic financial advantages, including significant tax assets and a compelling value proposition as a premier private markets solutions provider [Tax Assets & Long-Term Benefits](index=25&type=section&id=Tax%20Assets%20%26%20Long-Term%20Benefits) P10 possesses significant tax assets totaling **$504 million**, primarily composed of **$356 million** in goodwill and intangibles and **$148 million** in federal Net Operating Losses (NOLs) - Total tax assets are **$504 million**, comprising **$356 million** in goodwill and intangibles and **$148 million** in federal NOLs[70](index=70&type=chunk) - Tax basis intangible assets and tax-deductible goodwill are available to reduce federal income tax ratably over fifteen years[70](index=70&type=chunk) - The company anticipates federal taxable income at **$0** for several years due to annual tax amortization and NOL utilization[70](index=70&type=chunk) [Highly Compelling Value Proposition](index=26&type=section&id=Highly%20Compelling%20Value%20Proposition) P10 presents a compelling value proposition characterized by its position as a premier private markets solutions provider, highly recurring revenue, and superior investment performance - P10 is a premier, specialized private markets solutions provider operating in large and growing markets with increasing investor allocations[73](index=73&type=chunk) - The company benefits from highly recurring revenue, almost entirely composed of management and advisory fees earned primarily on committed capital from long-term, contractually locked-up funds[74](index=74&type=chunk) - P10 boasts an attractive and growing revenue base with strong margins, supported by an experienced management team and superior investment performance driven by a data advantage[75](index=75&type=chunk)[76](index=76&type=chunk) [Supplemental Information & Disclosures](index=27&type=section&id=Supplemental%20Information%20%26%20Disclosures) This section provides definitions for key financial terms and extensive disclaimers regarding historical investment performance data [Key Terms & Non-GAAP Definitions](index=27&type=section&id=Key%20Terms%20%26%20Non-GAAP%20Definitions) This section provides definitions for key financial and operational terms used in the presentation, including FPAUM, Adjusted EBITDA, ANI, and various performance metrics - FPAUM reflects assets from which management and advisory fees are earned, typically based on committed capital and not affected by market appreciation or depreciation[78](index=78&type=chunk) - Adjusted EBITDA and Adjusted Net Income (ANI) are non-GAAP measures used to assess performance, with ANI reflecting actual cash flows generated by core operations[81](index=81&type=chunk) - Fee-Related Revenues excludes incentive fees, and Fee-Related Earnings monitors baseline earnings excluding incentive fee revenue and related expenses[82](index=82&type=chunk) [Performance Disclaimers](index=28&type=section&id=Performance%20Disclaimers) This section provides extensive disclaimers regarding historical performance data, emphasizing that past results are not indicative of future performance - The historical performance of investments should not be considered indicative of future results, as past performance is not a guarantee[87](index=87&type=chunk)[89](index=89&type=chunk) - Performance calculations often include unrealized gains, which may never be realized, and are subject to various factors like market conditions and fund-specific fees[89](index=89&type=chunk)[92](index=92&type=chunk)[95](index=95&type=chunk)[99](index=99&type=chunk) - The use of subscription-based credit facilities can impact IRR calculations by delaying capital calls, potentially increasing reported IRRs[94](index=94&type=chunk)[99](index=99&type=chunk)[101](index=101&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________________ to ____________________ Commission File Number: 001-40937 P10, Inc. (Exact Name of Registrant as Specified in its Charter) | Delaware | | 87-290 ...

P10, Inc. (NYSE:PX) Q4 2023 Earnings Conference Call February 29, 2024 5:00 PM ET Company Participants Mark Hood - Executive Vice President-Operations & Investor Relations Luke Sarsfield - Chief Executive Officer Amanda Coussens - Chief Financial Officer Conference Call Participants Michael Cyprys - Morgan Stanley Kenneth Worthington - JPMorgan Mike Brown - KBW Benjamin Budish - Barclays John Campbell - Stephens Operator Hello, and welcome to P10 Fourth Quarter and Year-End 2023 Conference Call. My name is ...

Fourth Quarter and Full Year 2023 Results $ 57.7 $ 52.6 10% $ 220.8 $ 154.9 43% EARNINGS PRESENTATION CAUTION REGARDING FINANCIAL AND OPERATING PROJECTIONS All financial and operating projections, forecasts or estimates about or relating to the Company included in this document, including statements regarding pro-forma valuation and ownership, have been prepared based on various estimates, assumptions and hypothetical scenarios. Forecasts and projections of financial performance, valuation and operating res ...

[Fourth Quarter and Full Year 2023 Results](index=1&type=section&id=Fourth%20Quarter%20and%20Full%20Year%202023%20Results) P10 reported strong full-year revenue growth and increased FPAUM, alongside strategic capital management and leadership changes [Financial Highlights](index=4&type=section&id=Fourth%20Quarter%202023%20Financial%20Highlights) P10 reported strong Q4 and FY2023 organic growth, with FPAUM up 10% to $23.3 billion and revenue growing 22% - Fee Paying Assets Under Management (FPAUM) reached **$23.3 billion** as of December 31, 2023, a **10% increase** from the previous year[11](index=11&type=chunk) Q4 and Full Year 2023 Financial Results ($ in Millions, except EPS) | Financial Metric | Q4 2023 | Q4 2022 | YoY Change | FY 2023 | FY 2022 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $63.1 | $58.3 | 8% | $241.7 | $198.4 | 22% | | **GAAP Net (Loss) Income** | $(1.9) | $4.8 | -139% | $(7.8) | $29.4 | -126% | | **Adjusted EBITDA** | $30.7 | $30.8 | 0% | $123.6 | $106.8 | 16% | | **Adjusted EBITDA Margin** | 49% | 53% | N/A | 51% | 54% | N/A | | **Adjusted Net Income (ANI)** | $25.5 | $27.3 | -7% | $102.0 | $97.9 | 4% | | **Fully Diluted ANI EPS** | $0.21 | $0.22 | -5% | $0.82 | $0.80 | 2% | - In Q4 2023, the company generated **$860 million** from fundraising and capital deployment, partially offset by **$297 million** in stepdowns and expirations[11](index=11&type=chunk) [Business, Capital Markets, and Governance Highlights](index=5&type=section&id=Fourth%20Quarter%202023%20Highlights) P10 actively managed capital in Q4 2023 through share repurchases and increased buyback authorization, alongside key leadership changes - Key capital market activities in Q4 2023 include: repurchased **859,600 shares** at an average price of **$9.74**, authorized an additional **$40 million** for the stock buyback program, and declared a quarterly cash dividend of **$0.0325 per share**[15](index=15&type=chunk) - As of the end of 2023, the company had **$273.6 million** in outstanding debt, with **$90.8 million** available on its credit facility[15](index=15&type=chunk) - Significant corporate governance changes were implemented: Luke Sarsfield was appointed as Chief Executive Officer and a board member, Co-Founder Robert Alpert was elected Executive Chairman, Co-Founder Clark Webb was elected Executive Vice Chairman, and Arjay Jensen was hired as EVP, Head of Strategy and M&A[19](index=19&type=chunk) [Performance Summary](index=7&type=section&id=Performance%20Summary) P10's investment teams consistently demonstrate superior performance across diverse fund strategies, achieving strong Net IRRs and Net ROICs [Fund Performance Overview](index=7&type=section&id=Fund%20Performance%20Overview) P10's investment teams consistently demonstrate a superior track record across diverse fund strategies, showing strong Net IRRs and ROICs - RCP Advisors' funds show consistent performance, with its 2010 vintage Direct I fund achieving a **42.7% Net IRR** and **2.9x Net ROIC**[20](index=20&type=chunk) - TrueBridge's venture capital funds exhibit strong returns, for example, the 2015 vintage Fund IV generated a **26.8% Net IRR** and a **3.3x Net ROIC**[20](index=20&type=chunk) - WTI's credit funds have a long history of performance, with vintages dating back to 1994; more recent funds like the 2018 vintage VLL IX delivered a **13.1% Net IRR** and **1.4x Net ROIC**[25](index=25&type=chunk) - Specialized funds such as Bonaccord's GP Stakes Fund I (2019 vintage) and Hark Capital's NAV Lending Fund III (2021 vintage) also show solid performance with Net IRRs of **16.1%** and **12.2%** respectively[22](index=22&type=chunk)[27](index=27&type=chunk) [Business Overview and Strategy](index=9&type=section&id=Business%20Overview%20and%20Strategy) P10 strategically targets the lower middle market, leveraging proprietary data and a diversified platform to gain a competitive edge and serve a broad global investor base [Market Position](index=9&type=section&id=Well%20Positioned%20in%20Attractive%2C%20Specialized%2C%20and%20Growing%20Markets) P10 is strategically positioned in the lower middle market, offering significant opportunities due to favorable valuations and less competition - The company focuses on the lower middle market, which comprises **93% of U.S. companies** with revenues between **$10 million and $250 million**, representing a vast pool of opportunities[31](index=31&type=chunk) - This target market is less saturated, with only **19% ($141 billion)** of available private equity capital targeting this segment, compared to **81% ($774 billion)** for funds over $1 billion[31](index=31&type=chunk)[32](index=32&type=chunk) [Competitive Differentiators](index=10&type=section&id=Distinct%20Market%20Access%2C%20Deal%20Flow%2C%20and%20Data%20Analytics%20to%20Navigate%20Private%20Markets) P10 leverages a proprietary analytics database, built over 20+ years, as a key competitive differentiator for informed investment decisions - The company's competitive edge is driven by a powerful proprietary database and business intelligence platform[33](index=33&type=chunk)[34](index=34&type=chunk) Proprietary Analytics Database Metrics | Database Component | Scale | | :--- | :--- | | Individual Financial Metrics | 317K+ | | Investment Transactions | 47K+ | | Private Companies | 6K+ | | Investment Funds | 1K+ | [Diversified Platform and Investor Base](index=11&type=section&id=Highly%20Diversified%2C%20Multi-Asset%20Investment%20Platform%20and%20Investor%20Base) P10 maintains a highly diversified global investor base across various channels, serving over 3,600 limited partners - The company has a global investor base spanning **6 continents, 50 states, and 60 countries**[36](index=36&type=chunk) Investor Base by Channel (Q4 2023) | Channel | Percentage of FPAUM | | :--- | :--- | | Family Offices / Wealth Managers | 26% | | Public Pensions | 21% | | Endowments / Foundations | 17% | | Financial Institutions | 15% | | Corporate Pensions | 9% | | Insurance Companies | 7% | | Other | 5% | [Fee Paying Assets Under Management (FPAUM)](index=12&type=section&id=Fee%20Paying%20Assets%20Under%20Management) P10 demonstrates robust FPAUM growth driven by new capital and strategic solutions, maintaining a stable fee rate and serving a broad global LP base [FPAUM Growth and Fee Rate](index=13&type=section&id=FPAUM%20and%20Average%20Fee%20Rate%20Detail) P10 achieved robust organic FPAUM growth, reaching $23.3 billion in Q4 2023 with a 16% CAGR and a stable 109 basis point fee rate FPAUM Growth ($Bn) | Period | FPAUM ($Bn) | | :--- | :--- | | 2018 PF | 12.0 | | 2022 PF | 21.2 | | Q3 2023 PF | 22.7 | | Q4 2023 PF | 23.3 | - The average fee rate in Q4 2023 was **109 basis points (1.09%)**, a slight increase from **104 bps** in Q3 2023[41](index=41&type=chunk) [FPAUM Roll Forward](index=14&type=section&id=Organic%20Fee%20Paying%20AUM%20Growth%20Model1) P10's FPAUM growth is consistently driven by new capital raised and deployed, offsetting stepdowns and expirations for net expansion Annual FPAUM Roll Forward ($Bn) | Period | Beginning FPAUM | Raised & Deployed | Stepdowns & Expirations | Ending FPAUM | | :--- | :--- | :--- | :--- | :--- | | **2022** | 19.0 | 3.5 | (1.3) | 21.2 | | **2023** | 21.2 | 3.5 | (1.4) | 23.3 | - In the trailing twelve months, stepdowns and expirations totaled **$1.7 billion**; for the full year 2024, the company estimates **$1.5 billion** in stepdowns and expirations[12](index=12&type=chunk)[46](index=46&type=chunk) [Private Markets Solutions](index=15&type=section&id=Premier%20Private%20Markets%20Solutions%20Provider) P10 is a premier private markets solutions provider, offering comprehensive primary, direct/co-investment, and secondary strategies to a global LP base FPAUM by Solution Type (as of Dec 31, 2023) | Solution Type | FPAUM ($Bn) | Description | | :--- | :--- | :--- | | **Primary Solutions** | $3.5 | Invests in a diversified portfolio of funds | | **Direct and Co-Investments** | $8.3 | Direct investments alongside leading GPs in private equity, credit, and impact | | **Secondary Investments** | $1.5 | Secondary purchases of LP interests in private equity funds | - The company's position in the private markets ecosystem is reinforced by its synergistic multi-asset class solutions and a vast network of over **270+ General Partners (GPs)** that drives sourcing[47](index=47&type=chunk)[48](index=48&type=chunk) [Financial Results](index=18&type=section&id=Financial%20Highlights) P10's full-year 2023 financial results show increased revenue but a GAAP net loss due to higher operating expenses, while non-GAAP metrics indicate growth, supported by a stable balance sheet and significant tax assets [Consolidated Statements of Operations](index=19&type=section&id=Consolidated%20Statements%20of%20Operations%20%28unaudited%29) P10's FY2023 total revenues increased 22% to $241.7 million, but a 43% surge in operating expenses led to a $7.8 million GAAP net loss Full Year 2023 vs 2022 Statement of Operations ($ in Millions) | Line Item | FY 2023 | FY 2022 | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $241.7 | $198.4 | 22% | | **Total Operating Expenses** | $220.8 | $154.9 | 43% | | *Compensation and benefits* | *$154.3* | *$94.3* | *64%* | | **Income From Operations** | $20.9 | $43.4 | -52% | | **Net (Loss) / Income** | $(7.8) | $29.4 | -126% | [Non-GAAP Financial Measures](index=20&type=section&id=Non-GAAP%20Financial%20Measures%20%28unaudited%29) P10's FY2023 non-GAAP results show Adjusted EBITDA grew 16% to $123.6 million and ANI increased 4% to $102.0 million Full Year 2023 vs 2022 Non-GAAP Reconciliation ($ in Millions) | Line Item | FY 2023 | FY 2022 | YoY Change | | :--- | :--- | :--- | :--- | | **GAAP Net (Loss) / Income** | $(7.8) | $29.4 | -126% | | **Adjustments** | $131.4 | $77.4 | 70% | | *Depreciation & Amortization* | *$31.5* | *$28.0* | *12%* | | *Non-cash stock based compensation* | *$36.5* | *$18.6* | *96%* | | *Earn out related compensation* | *$23.0* | *$5.6* | *310%* | | **Adjusted EBITDA** | $123.6 | $106.8 | 16% | | **Adjusted Net Income (ANI)** | $102.0 | $97.9 | 4% | [Consolidated Balance Sheet](index=22&type=section&id=Consolidated%20Balance%20Sheets%20%28unaudited%29) P10's balance sheet remained stable as of Dec 31, 2023, with total assets of $834.1 million and total liabilities of $408.9 million Balance Sheet Summary ($ in Millions) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$834.1** | **$826.4** | | Goodwill | $506.0 | $506.6 | | Intangibles, net | $123.2 | $151.8 | | **Total Liabilities** | **$408.9** | **$392.5** | | Debt obligations | $289.8 | $289.2 | | **Total Stockholders' Equity** | **$425.2** | **$433.9** | [Consolidated Statement of Cash Flows](index=23&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20%28unaudited%29) P10 generated $47.7 million in net cash from operating activities in FY2023, ending the year with $32.1 million in cash Statement of Cash Flows Summary ($ in Millions) | Cash Flow Activity | FY 2023 | FY 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $47.7 | $61.7 | | **Net cash used in investing activities** | $(2.3) | $(98.6) | | **Net cash provided by/(used in) financing activities** | $(42.9) | $22.9 | | **Net change in cash** | $2.6 | $(14.0) | | **Cash, End of Period** | $32.1 | $29.5 | [Tax Assets](index=24&type=section&id=Tax%20Assets) P10 holds significant tax assets, including goodwill, intangibles, and federal NOLs, anticipating zero federal taxable income for several years Composition of Tax Assets ($ in Millions) | Asset Type | Amount | | :--- | :--- | | Goodwill & Intangibles (Remaining Tax Amortization) | $364.0 | | Federal NOLs | $160.0 | | **Total Tax Assets** | **$524.0** | - The company anticipates having **$0 of federal taxable income** for several years due to the annual tax amortization and the utilization of its NOL balance[66](index=66&type=chunk)[67](index=67&type=chunk) [Value Proposition](index=25&type=section&id=Highly%20Compelling%20Value%20Proposition) P10 offers a compelling value proposition built on its premier market position, unrivaled access, superior performance, data advantage, and deep talent with significant insider ownership [Investment Thesis](index=25&type=section&id=Investment%20Thesis) P10's compelling investment thesis is founded on its premier market position, unrivaled access, superior performance, and data advantage - P10's investment thesis is built on the following pillars: **Meaningful Partnerships** (premier, specialized private markets solutions provider), **Unrivaled Access** (highly recurring revenue from long-term, contractually locked-up funds), **Superior Track Record** (attractive, growing, and diversified revenue base with strong margins), **Data Advantage** (strong investment performance driven by experience and a proprietary data platform), and **Deep Talent** (experienced management team with significant insider ownership and a proven M&A track record)[69](index=69&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk)[72](index=72&type=chunk) [Appendix](index=26&type=section&id=Key%20Terms%20%26%20Supplemental%20Information) The appendix provides essential definitions for non-GAAP financial measures and operational terms, alongside comprehensive performance disclaimers for investment advisors [Definitions and Disclaimers](index=26&type=section&id=Definitions%20and%20Disclaimers) The appendix defines key non-GAAP financial measures and operational terms, alongside extensive performance disclaimers for investment advisors - Key non-GAAP and operational terms are defined, including **Fee Paying Assets Under Management (FPAUM)**, **Adjusted EBITDA**, **Adjusted Net Income (ANI)**, **Net IRR**, and **Net ROIC**[74](index=74&type=chunk)[75](index=75&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) - The report includes detailed performance disclaimers for its subsidiaries (RCP Advisors, Enhanced Capital, Hark, Bonaccord, WTI), emphasizing that historical returns are not a guarantee of future results and can be influenced by factors like fee structures, leverage, and valuation estimates[82](index=82&type=chunk)[86](index=86&type=chunk)[91](index=91&type=chunk)[93](index=93&type=chunk)

Dekdoyjaidee P10 (NYSE:PX) shares have meaningfully underperformed the broader market over the past year, falling 18% while the Russell 2000 small cap index (IWM) has increased 11%. Weakness in the stock is attributable to: Slowdown in organic growth in assets under management (sub 10% in 2023 versus 16% CAGR since 2018 as shown below) as investor appetite for new private equity offerings in 2023 was below what we've seen over the past 5 years. Some of this is due to the denominator effect - throughout much ...

Financial Performance - Total revenues for Q3 2023 were $58.9 million, an increase of $8.9 million or 18% from Q3 2022, primarily due to higher management fees[209]. - Management and advisory fees increased by $8.6 million, or 17%, to $58.1 million for Q3 2023 compared to Q3 2022, driven by $6.6 million from the acquisition of WTI and $2.5 million from organic growth[210]. - Revenue increased by $38.7 million, or 28%, to $176.3 million for the nine months ended September 30, 2023, driven by $20.7 million from the acquisition of WTI and $18.0 million of organic growth[212]. - Management and advisory fees rose by $37.4 million, or 27%, to $176.3 million for the nine months ended September 30, 2023, with $20.6 million attributed to WTI and $16.7 million from organic growth[213]. - Other revenues increased by $0.3 million or 67% to $0.9 million for Q3 2023, attributed to a rise in interest income[211]. - Other revenues increased by $1.3 million, or 122%, to $2.3 million for the nine months ended September 30, 2023, driven by an increase in interest income[214]. Expenses and Losses - Total operating expenses rose by $18.8 million or 47% to $58.6 million for Q3 2023 compared to Q3 2022, with compensation and benefits being the largest expense[208]. - Compensation and benefits expenses increased by $18.2 million or 76% to $42.2 million for Q3 2023, reflecting growth in headcount and competitive compensation levels[208]. - Total operating expenses increased by $60.7 million, or 59%, to $163.1 million for the nine months ended September 30, 2023, primarily due to higher compensation and benefits expenses[221]. - Compensation and benefits expense surged by $53.8 million, or 89%, to $114.1 million for the nine months ended September 30, 2023, influenced by the acquisition of WTI and increased headcount[222]. - Interest expense increased by $3.1 million or 132% to $5.5 million for Q3 2023, reflecting higher outstanding debt[208]. - The company incurred $16.1 million in interest expense for the nine months ended September 30, 2023[251]. - Other expenses increased by $14.7 million, or 370%, to $18.7 million for the nine months ended September 30, 2023, mainly due to a rise in interest expense of $10.8 million[228]. Net Income and Loss - Net loss for Q3 2023 was $8.8 million, a decrease of $14.4 million or 256% compared to a net income of $5.6 million in Q3 2022[208]. - Adjusted Net Income for the nine months ended September 30, 2023, was $76.5 million, compared to $70.6 million for the same period in 2022[243]. Assets and Liabilities - Total assets decreased by $11.6 million or 1% to $814.8 million as of September 30, 2023, compared to December 31, 2022[245]. - Debt obligations declined by $27.3 million to $261.9 million as of September 30, 2023, due to payments on the revolver and term loan balances[246]. - Cash and cash equivalents decreased by $7.3 million to $22.2 million as of September 30, 2023, primarily due to timing of debt facility interest periods[245]. - Total contractual obligations amount to $289.2 million, with $265.0 million related to debt obligations and $24.2 million for operating lease obligations[257][258]. Market and Investment Insights - P10's business is influenced by rising interest rates and a shift in investor preference towards alternative investments for consistent and higher yields[190]. - The demand for private market solutions is expected to grow as fewer companies go public, and investors seek higher risk-adjusted returns through private market investments[191]. - P10 aims to expand its geographic reach and asset class solutions to enhance its integrated network effect and better serve investors seeking diverse private market exposure[192]. - The company expects to continue expanding fundraising efforts and grow FPAUM with the launch of new specialized investment vehicles[237]. Company Operations and Strategy - The company operates as a single operating segment, which is how its chief operating decision makers evaluate financial performance and allocate resources[188]. - P10's proprietary private markets database contains comprehensive information on over 4,900 investment firms, 9,800 funds, 44,000 individual transactions, 29,000 private companies, and 276,000 financial metrics, enhancing its investment capabilities[182]. - The company is focused on leveraging its data advantage and analytical capabilities to differentiate its products and services in a competitive market[35]. - The company has determined that it is the primary beneficiary of certain VIEs, consolidating their assets and liabilities in its financial statements[266]. Interest Rate and Tax Considerations - A 100-basis point increase in interest rates is estimated to result in an additional $2.0 million in interest expense over the next 12 months[277]. - Income tax expense decreased by $6.3 million to $2.8 million for the nine months ended September 30, 2023, due to lower taxable income[230]. - Uncertain tax positions are recognized only when it is more likely than not that the position will be upheld, with interest and penalties recognized in income tax expense[273]. Compliance and Risk Management - The company remains in compliance with its financial covenants required under the credit facility as of September 30, 2023[251]. - The company aims to minimize credit risk by limiting transactions to reputable financial institutions, although market events may affect financing availability[278]. - The company is exposed to various market risks, including price risk and interest rate risk, which may impact its financial performance[274][275].

| --- | --- | --- | --- | --- | --- | |----------|---------|------------------------------------------------------------------------|----------------|---------|----------| | Fund | Vintage | Fund Size ($M) | Called Capital | Net IRR | Net ROIC | | | | NAV Lending Funds (Fund size as of 9/30/23, performance as of 6/30/23) | | | | | Fund I | 2013 | $106 | 119% | 11.0% | 1.3x | | Fund II | 2017 | $202 | 75% | 11.3% | 1.5x | | Fund III | 2021 | $400 | 77% | 12.2% | 1.1x | | Fund IV | 2022 | $336 | 11% | - | - | ...

P10, Inc. (NYSE:PX) Q3 2023 Earnings Conference Call November 9, 2023 5:00 PM ET Company Participants Mark Hood – Executive Vice President-Operations and Investor Relations Robert Alpert – Executive Chairman Clark Webb – Executive Vice Chairman Luke Sarsfield – Chief Executive Officer Fritz Souder – Chief Operating Officer Amanda Coussens – Chief Financial Officer Conference Call Participants Kenneth Worthington – JPMorgan Mike Brown – KBW Ben Budish – Barclays Michael Cyprys – Morgan Stanley John Campbell ...