UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 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 87-29081 ...

P10, Inc. (NYSE:PX) Q2 2023 Earnings Conference Call August 10, 2023 5:00 PM ET Company Participants Mark Hood - EVP, Operations and IR Robert Alpert - Chairman and Co-CEO Fritz Souder - COO Clark Webb - Co-CEO Amanda Coussens - CFO Conference Call Participants Ken Worthington - JPM Michael Cyprys - MS Ben Budish - Barclays Brown - KBW AJ Hayes - Stephens Inc. Operator Hello and welcome to the P10 Second Quarter 2023 Conference Call. My name is Cole, and I will be coordinating your call today. All lines wil ...

P10, Inc. (NYSE:PX) Q1 2023 Earnings Conference Call May 15, 2023 5:00 PM ET Company Participants Mark Hood - Executive Vice President, Operations and IR Robert Alpert - Chairman and Co-CEO Clark Webb - Co-Chief Executive Officer Fritz Souder - Chief Operating Officer Amanda Coussens - Chief Financial Officer Conference Call Participants Kenneth Worthington - JPMorgan Michael Cyprys - Morgan Stanley Chris Kotowski - Oppenheimer Ben Budish - Barclays John Campbell - Stephens Inc Adam Beatty - UBS Operator He ...

Financial Performance - Fee-paying assets under management (FPAUM) reached $216 billion, a 23% increase compared to March 31, 2022[31] - Organic FPAUM grew by $23 billion, representing a 12% increase compared to the pro forma FPAUM as of March 31, 2022[14] - Revenue increased by 32% year-over-year, driven by $911 million in fundraising and deployment[14] - Adjusted EBITDA was $284 million, a 27% increase compared to the same period last year[12, 79] - Adjusted Net Income (ANI) was $255 million, a 14% increase year-over-year[12, 90] - Fully diluted ANI Earnings Per Share (EPS) was $021, a 17% increase compared to the previous year[12, 79] Capital Allocation - The company approved an 8% increase in the annual dividend, raising it by $001 to $013[35] - Debt paydowns of $3 million and $10 million were made on April 13, 2023, and May 1, 2023, respectively[15] - 100,000 shares were repurchased during the quarter at an average price of $851 per share, leaving $189 million available under the stock buyback program[15] FPAUM Composition - Primary Solutions accounted for 57% of the total $216 billion FPAUM as of Q1 2023[55] - Direct & Co-Investments represented 36% of the total FPAUM[55] - Secondary Investments made up 7% of the total FPAUM[55]

PART I - FINANCIAL INFORMATION This section presents the unaudited consolidated financial statements, management's analysis of financial condition and results of operations, market risk disclosures, and internal controls and procedures [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited consolidated financial statements for the three months ended March 31, 2023, show a significant decrease in net income to $0.77 million from $7.79 million year-over-year, primarily driven by a 65% increase in operating expenses, notably in compensation and benefits. Total assets grew slightly to $834.6 million, while total liabilities also increased to $404.2 million. Cash flow from operations saw a substantial increase to $20.8 million [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Presents the company's financial position, showing total assets, liabilities, and stockholders' equity as of March 31, 2023, and December 31, 2022 Consolidated Balance Sheets (in thousands) | | As of March 31, 2023 (unaudited) | As of December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$834,631** | **$826,360** | | Cash and cash equivalents | $25,050 | $20,021 | | Goodwill | $506,638 | $506,638 | | Intangibles, net | $144,577 | $151,795 | | **Total Liabilities** | **$404,222** | **$392,477** | | Debt obligations | $283,897 | $289,224 | | **Total Stockholders' Equity** | **$430,409** | **$433,883** | - Total assets increased slightly to **$834.6 million** as of March 31, 2023, from **$826.4 million** at year-end 2022[7](index=7&type=chunk) - Total liabilities also rose to **$404.2 million** from **$392.5 million**, while stockholders' equity saw a slight decrease[7](index=7&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Details the company's revenues, operating expenses, and net income for the three months ended March 31, 2023, and 2022 Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Total Revenues** | **$57,253** | **$43,281** | | Management and advisory fees | $56,587 | $43,027 | | **Total Operating Expenses** | **$52,382** | **$31,678** | | Compensation and benefits | $35,642 | $18,494 | | Amortization of intangibles | $7,248 | $6,181 | | **Income from Operations** | **$4,871** | **$11,603** | | Interest expense, net | ($5,172) | ($1,385) | | **Net Income** | **$769** | **$7,792** | | **Net Income Attributable to P10** | **$605** | **$7,792** | | **Diluted EPS** | **$0.01** | **$0.06** | - Revenues grew **32% YoY** to **$57.3 million**, but operating expenses increased by **65%** to **$52.4 million**, largely due to a **93%** rise in compensation and benefits[9](index=9&type=chunk) - This led to a significant drop in net income attributable to P10 from **$7.8 million** to **$0.6 million**[9](index=9&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Outlines the cash inflows and outflows from operating, investing, and financing activities for the three months ended March 31, 2023, and 2022 Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$20,777** | **$7,622** | | Net cash (used in) investing activities | ($701) | ($424) | | Net cash (used in) financing activities | ($13,711) | ($25,008) | | **Net change in cash, cash equivalents and restricted cash** | **$6,365** | **($17,810)** | - Cash from operating activities increased significantly to **$20.8 million** in Q1 2023 from **$7.6 million** in Q1 2022[14](index=14&type=chunk) - Cash used in financing activities decreased to **$13.7 million** from **$25.0 million**, primarily due to lower debt repayments in the current period[14](index=14&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Provides detailed explanations of the company's accounting policies, business operations, acquisitions, and financial instruments - P10 operates as a multi-asset class private market solutions provider, offering investment vehicles across private equity, venture capital, private credit, and impact investing[22](index=22&type=chunk)[32](index=32&type=chunk) - The company has grown through a series of acquisitions, including WTI in October 2022[22](index=22&type=chunk)[32](index=32&type=chunk) - The company consolidates several subsidiaries as Variable Interest Entities (VIEs) where it is the primary beneficiary, including RCP, TrueBridge, Bonaccord, Hark, and WTI[42](index=42&type=chunk) - Contingent consideration liabilities related to the Hark and Bonaccord acquisitions totaled **$17.0 million** as of March 31, 2023, and are remeasured to fair value each period[65](index=65&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) - As of March 31, 2023, the company had total debt obligations of **$283.9 million**, consisting of a **$209.8 million** term loan and **$77.9 million** drawn on its revolver facility[130](index=130&type=chunk)[134](index=134&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 32% year-over-year revenue growth to both the inorganic impact of the WTI acquisition ($7.2 million) and organic growth across other platforms ($7.0 million). The significant 93% increase in compensation and benefits expense was driven by the WTI acquisition, related earn-out accruals ($6.4 million), and higher stock compensation. Fee-Paying Assets Under Management (FPAUM) grew to $21.6 billion. The company maintains compliance with its debt covenants and believes its cash flow and financing activities are sufficient to meet liquidity needs Results of Operations Comparison (Q1 2023 vs Q1 2022) (in thousands) | Metric | Q1 2023 (in thousands) | Q1 2022 (in thousands) | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$57,253** | **$43,281** | **$13,972** | **32%** | | **Total Operating Expenses** | **$52,382** | **$31,678** | **$20,704** | **65%** | | Compensation and benefits | $35,642 | $18,494 | $17,148 | 93% | | **Income from Operations** | **$4,871** | **$11,603** | **($6,732)** | **(58)%** | | **Net Income** | **$769** | **$7,792** | **($7,023)** | **(90)%** | - Revenue growth of **32%** was driven by **$7.2 million** from the WTI acquisition and **$7.0 million** in organic growth from Bonaccord, ECG, RCP, and Truebridge[208](index=208&type=chunk) - The **93%** increase in compensation and benefits was primarily due to the WTI acquisition (**$3.2M**), stock compensation (**$5.6M**, with **$4.5M** from acquisitions), and WTI-related earn-out and bonus accruals (**$6.4M**)[213](index=213&type=chunk) Fee-Paying Assets Under Management (FPAUM) Roll-Forward (Actual Basis) (in millions) | (in millions) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | **Balance, Beginning of Period** | **$21,206** | **$17,263** | | Capital raised | $665 | $496 | | Capital deployed | $246 | $224 | | Expiration of fee period | ($427) | ($316) | | **Balance, End of period** | **$21,601** | **$17,592** | Non-GAAP Financial Measures Reconciliation (in thousands) | (in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net income | $769 | $7,792 | | Adjustments (Depreciation, Interest, Taxes, etc.) | $18,041 | $13,386 | | Earn out related compensation | $6,394 | - | | **Adjusted EBITDA** | **$28,406** | **$22,453** | | Less: Cash interest & taxes | ($2,921) | ($162) | | **Adjusted Net Income** | **$25,485** | **$22,291** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposures are interest rate risk and credit risk. Management fees are generally based on committed capital, mitigating the direct impact of investment value fluctuations on revenue. A hypothetical 100-basis point increase in interest rates is estimated to increase annual interest expense by approximately $1.7 million related to its Term Loan - The company's main market risk is related to its role as a general partner/investment manager, but since management fees are typically based on committed capital, revenue is not significantly impacted by changes in investment values[263](index=263&type=chunk) - The company is exposed to interest rate risk on its **$209.8 million** Term Loan, which is based on SOFR[265](index=265&type=chunk) - A **100-basis point increase** in the interest rate would result in an approximate **$1.7 million** increase in annual interest expense[265](index=265&type=chunk) - Credit risk is managed by limiting counterparties to reputable financial institutions for financial services and transactions[266](index=266&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the Co-CEOs and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2023. There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls - Based on an evaluation as of the end of the reporting period, the Co-CEOs and CFO concluded that the company's disclosure controls and procedures are effective at a reasonable assurance level[268](index=268&type=chunk) - No material changes were made to the company's internal control over financial reporting during the quarter ended March 31, 2023[269](index=269&type=chunk) PART II - OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, other information, and a list of exhibits [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company states that information regarding legal proceedings can be found in Note 14, "Commitments and Contingencies," of the consolidated financial statements. Note 14 indicates the company is not involved in any litigation expected to have a material adverse effect - Information on legal proceedings is incorporated by reference from Note 14 of the financial statements, which states the company is not involved in any matters expected to result in material losses beyond amounts already recognized[272](index=272&type=chunk)[153](index=153&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes have occurred from the risk factors disclosed in the Form 10-K for the year ended December 31, 2022[273](index=273&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter ended March 31, 2023, the company repurchased 100,000 shares of its common stock at an average price of $8.51 per share. As of March 31, 2023, approximately $18.9 million remained available for future repurchases under the authorized stock repurchase program Share Repurchase Activity (Q1 2023) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Maximum Dollar Value Remaining for Purchase | | :--- | :--- | :--- | :--- | | January 2023 | — | — | $19,787,024 | | February 2023 | — | — | $19,787,024 | | March 2023 | 100,000 | $8.51 | $18,936,024 | | **Total** | **100,000** | **$8.51** | | - The Board of Directors has authorized a total of **$40 million** for the Stock Repurchase Program[274](index=274&type=chunk) - The program may be terminated or amended at any time[274](index=274&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) Effective May 12, 2023, the company entered into amended and restated employment agreements with Co-CEOs Robert Alpert and C. Clark Webb, and a new agreement with William F. Souder, primarily to reflect a corporate restructuring where P10 Intermediate became the employer. Additionally, a separation and severance agreement was executed with Jeff P. Gehl in connection with his retirement on May 15, 2023, which includes a severance payment of $1,025,000 and other benefits - Amended and restated employment agreements were executed for Co-CEOs Robert Alpert and C. Clark Webb, and a new agreement for William F. Souder, effective May 12, 2023, with P10 Intermediate Holdings LLC as the new employer entity[277](index=277&type=chunk)[281](index=281&type=chunk) - A Separation Agreement was entered into with Jeff P. Gehl for his retirement on May 15, 2023, providing a severance payment of **$1,025,000**, COBRA reimbursement, and immediate vesting of equity awards[286](index=286&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, rights agreements, employment and separation agreements, and required certifications by the CEO and CFO

PART I [Item 1. Business](index=7&type=section&id=Item%201.%20Business) P10 is a multi-asset private market solutions provider, generating recurring fees from specialized investment vehicles - P10 is a multi-asset class private market solutions provider in alternative asset management, offering specialized funds and customized separate accounts across Private Equity, Venture Capital, Impact Investing, and Private Credit[24](index=24&type=chunk)[26](index=26&type=chunk) - Revenue is almost entirely composed of recurring management and advisory fees, primarily earned on committed capital with typical 10-15 year lock-up agreements, providing high revenue visibility and investor retention[25](index=25&type=chunk) Fee-Paying Assets Under Management (FPAUM) as of December 31, 2022 | Metric | Amount ($B) | | :----- | :---------- | | FPAUM | 21.2 | - The company's growth is driven by strong investment performance, scale in the middle and lower-middle market, deep relationships with fund managers, and expanding data capabilities[27](index=27&type=chunk) - P10 has a global investor base of over 3,100 investors across 50 states, 59 countries, and 6 continents, including large institutional investors, family offices, and high net worth individuals, with a significant presence in North America[30](index=30&type=chunk)[47](index=47&type=chunk) - As of December 31, 2022, P10 had **234 employees**, including **107 investment professionals**, with over **100 employees** holding an equity interest (approximately **63%** on a fully-diluted basis)[31](index=31&type=chunk)[119](index=119&type=chunk) [Our Company](index=7&type=section&id=Our%20Company) P10 is a multi-asset class private market solutions provider with a recurring fee-based business model and strong free cash flow - P10 is a multi-asset class private market solutions provider, structuring, managing, and monitoring portfolios across Private Equity, Venture Capital, Impact Investing, and Private Credit[24](index=24&type=chunk) - The business model is characterized by highly recurring, diversified management and advisory fee revenues, and strong free cash flow, with fees primarily earned on committed capital[25](index=25&type=chunk) FPAUM Growth (2018-2022) | Metric | Value | | :----- | :---- | | FPAUM as of Dec 31, 2022 | $21.2 billion | | CAGR (2018-2022) | 17% | - P10 operates under established brands like RCP Advisors, Bonaccord Capital, P10 Advisors (Private Equity), TrueBridge (Venture Capital), Enhanced (Impact Investing), and Five Points, Hark Capital, WTI (Private Credit)[13](index=13&type=chunk)[26](index=26&type=chunk) [Our Solutions](index=9&type=section&id=Our%20Solutions) P10 offers specialized solutions across private equity, venture capital, impact investing, and private credit, each with distinct focus areas FPAUM by Solution (as of December 31, 2022) | Solution | FPAUM ($B) | Investment Professionals | Average Experience (Years) | | :------- | :--------- | :----------------------- | :------------------------- | | Private Equity Solutions (PES) | 10.8 | 39 | 25+ | | Venture Capital Solutions (VCS) | 5.4 | 15 | 22+ | | Impact Investing Solutions (IIS) | 1.9 | 15 | 22+ | | Private Credit Solutions (PCS) | 3.1 | 38 | 24+ | - PES focuses on middle and lower-middle market private equity, leveraging a proprietary database of over **5,000 firms** and **38,000 transactions**[36](index=36&type=chunk)[37](index=37&type=chunk) - VCS invests in North American venture capital funds, targeting high-performing, access-constrained opportunities and partners with Forbes for the Midas List[38](index=38&type=chunk) - IIS makes equity, tax equity, and debt investments in impact initiatives, deploying over **$3.3 billion** into **850+ projects** across **39 states** since 1999[39](index=39&type=chunk) - PCS primarily makes debt investments in lower middle market companies, providing capital solutions for growth-oriented companies and leveraging the PES network for sourcing[40](index=40&type=chunk) [Our Vehicles](index=10&type=section&id=Our%20Vehicles) P10 provides flexible private market solutions through various investment vehicles, including primary funds, direct/co-investment funds, and secondaries - P10 offers flexible specialized private market solutions through various investment vehicles, with an average annual fee rate of approximately **1%**[41](index=41&type=chunk) FPAUM by Investment Vehicle (as of December 31, 2022) | Vehicle | FPAUM ($B) | Description | | :---------------------- | :--------- | :---------- | | Primary Investment Funds | 11.7 | Invests in new private markets funds, fees based on committed capital (10-15 year terms). | | Direct and Co-Investment Funds | 8.0 | Acquires equity/debt in operating companies, often co-investing, fees based on committed/invested capital (10-15 year terms). | | Secondaries | 1.5 | Investments in existing private markets funds through acquisition of existing interests, fees on committed capital (typical 10-year fund life). | [Our Investors](index=11&type=section&id=Our%20Investors) P10 serves a diverse global investor base, including institutional clients, family offices, and high net worth individuals - P10 serves a global investor base of over **3,100 investors** across **50 states**, **59 countries**, and **6 continents**, including pension funds, endowments, foundations, corporate pensions, financial institutions, family offices, and high net worth individuals[47](index=47&type=chunk) [Our Distribution and Marketing](index=12&type=section&id=Our%20Distribution%20and%20Marketing) A dedicated team manages investor relationships, monitors preferences, and tailors product offerings to meet client needs - A dedicated team of business development and investor relations professionals maintains active dialogue with existing and prospective investors, monitoring preferences and tailoring product offerings[49](index=49&type=chunk) - The team leads in-depth due diligence processes for prospective investors and designs specific strategic plans for customized separate accounts[49](index=49&type=chunk) [Our Investment Performance](index=13&type=section&id=Our%20Investment%20Performance) Strong investment performance is a key differentiator, driven by broad relationships, diligent processes, and premier data capabilities - Strong investment performance is a key differentiator and retention mechanism, attributed to broad private market relationships, diligent investment processes, tenured experience, and premier data capabilities[51](index=51&type=chunk)[113](index=113&type=chunk) Selected Fund Performance (as of September 30, 2022) | Fund Type | Vintage | Fund Size ($M) | Called Capital | Net IRR | Net ROIC | | :---------- | :------ | :------------- | :------------- | :------ | :------- | | Fund-of-Funds (Fund VIII) | 2012 | $268 | 113% | 20.8% | 2.3x | | Secondary Funds (SOF III) | 2018 | $400 | 95% | 44.4% | 1.7x | | Co-Investment Funds (Direct I) | 2010 | $6015 | 82% | 42.8% | 3x | | Impact Funds (Impact Equity) | N/A | $566 | N/A | 20%+ | 1.2x | | GP Stakes Funds (Fund I) | 2019 | $724 | 72% | 19.2% | 1.3x | | Credit Funds (VLL I) | 1994 | $47 | 100% | 63.3% | 5.9x | | Equity Funds (Fund III) | 2013 | $230 | 94% | 25.4% | 2.6x | | NAV Lending Funds (Fund III) | 2021 | $400 | 71% | 13.2% | 1.1x | - Historical results are not indicative of future performance, and factors like market conditions, fund maturity, tax/regulatory changes, and competition can affect returns[55](index=55&type=chunk)[57](index=57&type=chunk) [Our History](index=14&type=section&id=Our%20History) P10 has a history of strategic acquisitions and corporate reorganization, expanding its multi-asset class offerings and market presence - P10 Holdings was founded in 1992, reincorporated in Delaware in 2000, and after a period as a non-operating company and Chapter 11 reorganization in 2017, re-entered the alternative asset management industry[59](index=59&type=chunk) - Key acquisitions include RCP Advisors (2017-2018), Five Points Capital (2020), TrueBridge (2020), Enhanced Capital Group (2020), Hark Capital and Bonaccord Capital Partners (2021), and WTI (2022), expanding its multi-asset class offerings[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk)[67](index=67&type=chunk) - P10, Inc. completed its IPO and corporate reorganization on October 18, 2021, with Class A common stock trading on the NYSE under 'PX'[65](index=65&type=chunk) - In June 2022, P10 Advisors was formed to manage investment opportunities outside existing mandates[66](index=66&type=chunk) [Organizational Structure](index=16&type=section&id=Organizational%20Structure) P10, Inc. operates with a dual-class common stock structure, where Class B holders retain significant voting control - P10, Inc. became the parent company after the IPO and reorganization in October 2021, issuing Class A common stock and converting existing equity into P10 common stock[65](index=65&type=chunk)[72](index=72&type=chunk) - The company has a dual-class common stock structure: Class A (one vote per share) and Class B (ten votes per share), with Class B holders controlling approximately **95%** of combined voting power as of December 31, 2022[76](index=76&type=chunk)[79](index=79&type=chunk)[89](index=89&type=chunk) - A 'Sunset' provision triggers the conversion of Class B to Class A common stock upon certain conditions, including a decrease in beneficial ownership by Sunset Holders or the tenth anniversary of the amended certificate of incorporation[76](index=76&type=chunk)[88](index=88&type=chunk) - P10, Inc. is a 'controlled company' under NYSE listing standards, allowing exemptions from certain corporate governance requirements[21](index=21&type=chunk)[336](index=336&type=chunk) [Our Market Opportunity](index=19&type=section&id=Our%20Market%20Opportunity) The private markets industry is experiencing significant growth, driven by increasing demand and investor allocations - The private markets industry is large and growing, driven by accelerating demand as more companies remain private and investors seek higher risk-adjusted returns away from public markets[91](index=91&type=chunk)[92](index=92&type=chunk) - Private markets AUM grew **3.1x** from **$2.4 trillion** in 2010 to **$9.8 trillion** in 2022, with a projected **10% CAGR** through 2027[93](index=93&type=chunk)[94](index=94&type=chunk) - Favorable dynamics in the middle and lower-middle markets offer a larger pool of opportunities at compelling valuations due to less capital in pursuit compared to larger companies[95](index=95&type=chunk) - Long-term investor allocations to private equity and private credit are expected to grow, with increasing interest in impact investing and ESG principles[97](index=97&type=chunk)[103](index=103&type=chunk) - The 'democratization of private markets' and proliferation of fund managers drive demand for scaled private market solutions providers with strong data, analytics, and technology capabilities[98](index=98&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk)[105](index=105&type=chunk) [Our Competitive Strengths](index=22&type=section&id=Our%20Competitive%20Strengths) P10 leverages specialized multi-asset solutions, deep market expertise, proprietary data, and a predictable financial profile - P10 offers specialized multi-asset class solutions and comprehensive vehicle offerings (primaries, secondaries, direct/co-investments) with distinct market access and wide-ranging relationships[107](index=107&type=chunk) - The company possesses distinct middle and lower-middle market expertise, with **107 investment professionals** averaging over **22 years of experience**[108](index=108&type=chunk) - Differentiated access to middle and lower-middle market private equity and venture capital firms is maintained through long-standing relationships with over **265 general partners**[109](index=109&type=chunk) - A premier proprietary database, containing information on over **4,900 investment firms**, **9,800 funds**, and **276,000 financial metrics**, supports robust sourcing and investment decisions[111](index=111&type=chunk)[112](index=112&type=chunk) - P10's financial profile is characterized by a highly predictable, recurring fee-based revenue model (**6.1 years** weighted average duration of remaining capital under management as of Dec 31, 2022), well-diversified revenue and investor base, and attractive profitability[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk) - The ownership structure aligns with investors, with over **100 employees** holding equity (**63%** fully diluted) and investment professionals receiving carried interest directly to incentivize outperformance[118](index=118&type=chunk)[119](index=119&type=chunk) [Our Growth Strategy](index=25&type=section&id=Our%20Growth%20Strategy) P10 aims to expand investor relationships, asset class solutions, and geographic reach through organic growth and strategic acquisitions - P10 aims to maximize investor relationships by enhancing existing mandates through cross-selling and capturing new investors by leveraging its differentiated sourcing and multi-asset class solutions[121](index=121&type=chunk)[122](index=122&type=chunk) - The company plans to expand distribution channels, particularly to high-net-worth individuals who are currently under-allocated to private markets[123](index=123&type=chunk)[124](index=124&type=chunk) - Growth will involve expanding asset class solutions (e.g., new vehicles in Venture Capital and Impact Investing), broadening geographic reach (Europe and Asia), and growing the private markets network effect[125](index=125&type=chunk)[126](index=126&type=chunk)[127](index=127&type=chunk) - P10 will leverage its proprietary database and analytical tools to drive performance and innovate solutions for investors[128](index=128&type=chunk) - The company will selectively pursue strategic acquisitions that expand its footprint, broaden its investor base, and strengthen its solution offerings, targeting differentiated platforms with strong margins and management teams[129](index=129&type=chunk) - Recent acquisitions like Hark and Bonaccord (2021) and WTI (2022) added approximately **$900 million** in FPAUM and strengthened its market position, particularly in venture debt[129](index=129&type=chunk)[130](index=130&type=chunk)[131](index=131&type=chunk) [Our Investment Process](index=27&type=section&id=Our%20Investment%20Process) P10 maintains rigorous investment, monitoring, and risk management processes, unified by a common philosophy and comprehensive analysis - P10 maintains rigorous investment, monitoring, and risk management processes across all solutions, unified by a common philosophy and comprehensive analysis of fund managers and portfolio companies[133](index=133&type=chunk) - The process includes tracking thousands of opportunities, initial screening using an extensive database, annual due diligence (operational and legal), and investment committee review for final approval[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) [Our Risk Management Process](index=28&type=section&id=Our%20Risk%20Management%20Process) Risk management covers identification, measurement, mitigation, monitoring, and reporting, tailored by solution, vehicle, and client - Risk management covers identification, measurement, mitigation, monitoring, and reporting, tailored by solution, vehicle, and client, applied across general partners, investment funds, and portfolio companies[142](index=142&type=chunk) - Ongoing monitoring includes reviewing historical strategy, track record, team composition, decision-making, deal flow, fund terms for general partners, and performance metrics for investment funds and portfolio companies[143](index=143&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) [Our Responsible Investment Philosophy](index=29&type=section&id=Our%20Responsible%20Investment%20Philosophy) P10 integrates an ESG framework into its investment process and internal operations, believing it improves long-term, risk-adjusted returns - P10 integrates an ESG framework into its investment process and internal operations, believing it improves long-term, risk-adjusted returns for clients[149](index=149&type=chunk) - Two subsidiaries are signatories to the United Nations Principles for Responsible Investment (UNPRI), with an annual policy review[149](index=149&type=chunk) [Our Fee-Paying AUM](index=29&type=section&id=Our%20Fee-Paying%20AUM) Fee-Paying AUM (FPAUM) represents assets generating management and advisory fees, typically based on committed capital - Fee-Paying AUM (FPAUM) represents assets from which management and advisory fees are earned, typically based on committed capital, making it unaffected by market appreciation or depreciation[152](index=152&type=chunk) FPAUM Growth (2018-2022) | Year | FPAUM ($B) | | :--- | :--------- | | 2018 | 9.9 | | 2022 | 21.2 | - FPAUM grew from **$9.9 billion** in 2018 to **$21.2 billion** in 2022 on a pro forma basis, reflecting a **17% CAGR**[31](index=31&type=chunk)[153](index=153&type=chunk) [Our Fees and Other Key Contractual Terms](index=30&type=section&id=Our%20Fees%20and%20Other%20Key%20Contractual%20Terms) Fees for investment vehicles are typically based on committed capital over long terms, with separate accounts offering flexible fee structures - For commingled investment vehicles, investors make capital commitments (typically 10-15 years) and fees are based on committed capital, often stepping down after the investment period[156](index=156&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk) - Separate accounts involve contractual arrangements with investment management agreements, where fees are based on committed capital, net invested capital, or NAV, and can decrease over time[161](index=161&type=chunk)[163](index=163&type=chunk) - Separate account contracts are typically terminable by investors with **5 to 90 days' notice**[164](index=164&type=chunk) [Our Competition](index=32&type=section&id=Our%20Competition) P10 competes with a wide range of financial institutions and private markets solutions providers based on various factors - P10 competes with a wide range of asset management firms, commercial banks, broker-dealers, insurance companies, and other financial institutions, primarily other private markets solutions providers in North America[166](index=166&type=chunk) - Competition factors include access to investment opportunities, brand recognition, investment performance, service quality, data analytics, and ability to customize offerings[167](index=167&type=chunk) [Regulatory and Compliance Matters](index=32&type=section&id=Regulatory%20and%20Compliance%20Matters) P10's business is subject to extensive regulation in the US and internationally, requiring robust compliance programs - P10's business is subject to extensive regulation in the United States (federal and state) and internationally, including SEC, ERISA, SBA, and foreign regulatory agencies[168](index=168&type=chunk)[171](index=171&type=chunk)[173](index=173&type=chunk)[175](index=175&type=chunk)[178](index=178&type=chunk) - Compliance requirements cover fiduciary duties, transactions with investors, compliance programs, political contributions, personal trading, incentive fees, custody, advertising, recordkeeping, reporting, and disclosure[171](index=171&type=chunk) - The company is subject to stringent privacy and cybersecurity regulations (e.g., GLBA, GDPR, CCPA), requiring robust information security policies and procedures[179](index=179&type=chunk) - P10 maintains Chief Compliance Officers, in-house legal staff, and an outsourced Internal Audit group to ensure compliance with applicable laws and regulations[182](index=182&type=chunk)[185](index=185&type=chunk) [Legal Proceedings](index=35&type=section&id=Legal%20Proceedings) There are no material legal, judicial, or administrative proceedings currently pending or threatened against P10 - Currently, there are no material legal, judicial, or administrative proceedings pending or threatened against P10[186](index=186&type=chunk) [Employees](index=35&type=section&id=Employees) As of December 31, 2022, P10 had 234 employees, including 107 investment professionals, and maintains good employee relations - As of December 31, 2022, P10 had **234 total employees**, including **107 investment professionals**, and considers its relationship with employees to be good[187](index=187&type=chunk) [Facilities](index=35&type=section&id=Facilities) P10 leases its corporate headquarters in Dallas, TX, and additional office spaces across nine states - P10 leases its corporate headquarters in Dallas, TX, and additional office spaces in **9 states**, believing current facilities are adequate and suitable additional space will be available[188](index=188&type=chunk) [Human Capital](index=35&type=section&id=Human%20Capital) P10 prioritizes human capital, focusing on attracting, developing, and retaining diverse talent with competitive compensation and benefits - P10 prioritizes human capital, focusing on attracting, recruiting, developing, and retaining diverse talent, with oversight from its Board of Directors[190](index=190&type=chunk)[191](index=191&type=chunk) - The company offers competitive compensation, benefits (medical, dental, vision, life, disability, parental leave, 401(k)-match), and education reimbursement[193](index=193&type=chunk) - P10 is committed to Diversity and Inclusion (D&I), with approximately **39% female** and **17% minority** representation in its total workforce as of December 31, 2022[195](index=195&type=chunk) [AVAILABLE INFORMATION](index=36&type=section&id=AVAILABLE%20INFORMATION) P10 makes its annual, quarterly, and current reports available free of charge on its investor relations website - P10 makes its annual, quarterly, and current reports available free of charge on its investor relations website (https://ir.p10alts.com/)[197](index=197&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) This section outlines risks including investor dependence, poor investment performance, intense competition, and regulatory and organizational structure challenges - Revenue is dependent on fee-paying investors, and early withdrawals or termination of advisory agreements could adversely affect fees[200](index=200&type=chunk) - Poor performance of specialized investment vehicles can hinder future capital raising, and historical performance is not indicative of future results[201](index=201&type=chunk)[202](index=202&type=chunk) - The business relies on identifying suitable investment opportunities, and intense competition for access to top-performing fund managers is a significant challenge[203](index=203&type=chunk)[206](index=206&type=chunk) - Conflicts of interest, inability to retain senior leadership, and risks associated with expanding into new lines of business or geographic markets (including acquisitions) pose threats to reputation and resources[209](index=209&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[215](index=215&type=chunk) - Valuation methodologies for illiquid assets are subjective, and actual realizations may differ, potentially leading to losses and reputational harm[233](index=233&type=chunk)[234](index=234&type=chunk) - Operational risks, data security breaches, and reliance on third-party service providers could disrupt business, compromise sensitive information, and result in financial or reputational damage[248](index=248&type=chunk)[250](index=250&type=chunk)[253](index=253&type=chunk) - The investment management industry is intensely competitive, with factors like greater resources of competitors, low barriers to entry, and potential lower cost of capital for rivals[278](index=278&type=chunk)[279](index=279&type=chunk) - Difficult market conditions, including rising interest rates and economic downturns, can reduce asset values, investor allocations, and profitability due to fixed costs[281](index=281&type=chunk)[282](index=282&type=chunk)[284](index=284&type=chunk) - Increased government regulation, compliance failures, and changes in tax laws (e.g., TCJA, CARES Act, Inflation Reduction Act) could adversely affect operations, increase costs, and impact financial performance[285](index=285&type=chunk)[287](index=287&type=chunk)[306](index=306&type=chunk)[308](index=308&type=chunk) - A change of control, including a 'Sunset' event, could trigger an assignment of investment advisory agreements, requiring investor consent which may not be obtained[320](index=320&type=chunk) - The dual-class stock structure (Class A: one vote, Class B: ten votes) gives Class B holders significant control, potentially depressing the trading price of Class A common stock and limiting stockholder influence[339](index=339&type=chunk)[340](index=340&type=chunk) [Summary Risk Factors](index=5&type=section&id=Summary%20Risk%20Factors) This section summarizes key risks including revenue dependence, investment performance, competition, human capital, and regulatory challenges - Revenue depends on fee-paying investors; poor investment vehicle performance can hinder future capital raising[20](index=20&type=chunk) - Success relies on suitable investment opportunities, facing intense competition for access[20](index=20&type=chunk) - Failure to manage conflicts of interest or retain human capital could damage reputation and business[20](index=20&type=chunk) - Business expansion and acquisitions pose risks, and due diligence may not reveal all relevant facts[20](index=20&type=chunk) - Indebtedness terms, dependence on leverage, and investor defaults can adversely affect operations and returns[20](index=20&type=chunk) - Subjective asset valuation, illiquid investments, and undiversified portfolios can lead to significant losses[20](index=20&type=chunk) - Inability to maintain desired fee structure, data restrictions, and operational/cybersecurity risks can disrupt business[21](index=21&type=chunk) - Intense competition, difficult market conditions, and regulatory changes pose significant industry risks[21](index=21&type=chunk) - Organizational risks include assignment of advisory agreements upon change of control and the impact of dual-class stock structure[21](index=21&type=chunk) [Risks Related to Our Business](index=37&type=section&id=Risks%20Related%20to%20Our%20Business) P10 faces risks related to revenue dependence, investment performance, competition, human capital, acquisitions, and operational vulnerabilities - P10's revenue is highly dependent on fee-paying investors, and early termination rights or non-renewal of contracts could lead to revenue decline[200](index=200&type=chunk) - Poor investment performance of specialized vehicles can negatively impact future capital raising and management/advisory fee revenue[201](index=201&type=chunk) - The success of the business relies on identifying suitable investment opportunities, which are subject to market conditions and intense competition[203](index=203&type=chunk)[206](index=206&type=chunk) - Conflicts of interest, the ability to retain key personnel, and risks associated with expanding into new business lines or geographic markets (including acquisitions) are critical for P10's success[209](index=209&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk)[215](index=215&type=chunk) - Valuation methodologies for illiquid assets are subjective, and actual realized values may differ, potentially causing significant losses and reputational damage[233](index=233&type=chunk)[234](index=234&type=chunk) - Operational risks, data security breaches, and reliance on third-party service providers can disrupt business, compromise sensitive information, and lead to financial or reputational harm[248](index=248&type=chunk)[250](index=250&type=chunk)[253](index=253&type=chunk) - The company may not fully utilize its net operating loss (NOL) and other tax carryforwards due to ownership changes or insufficient future taxable income, devaluing significant deferred tax assets[270](index=270&type=chunk)[272](index=272&type=chunk) [Risks Related to Our Industry](index=51&type=section&id=Risks%20Related%20to%20Our%20Industry) The investment management industry is intensely competitive, subject to difficult market conditions, and increasing regulatory scrutiny - The investment management and advisory business is intensely competitive, with numerous firms vying for investment performance, service quality, and brand recognition[278](index=278&type=chunk) - Difficult market conditions, including rising interest rates, inflation, and global economic instability, can reduce asset values, investor commitments, and overall profitability[281](index=281&type=chunk)[282](index=282&type=chunk)[283](index=283&type=chunk) - Increased government regulation, compliance failures, and changes in laws (e.g., Dodd-Frank Act, SEC proposed rules on private funds, climate-related disclosure) could increase costs and restrict operations[285](index=285&type=chunk)[287](index=287&type=chunk)[288](index=288&type=chunk) - P10 is subject to stringent and evolving data privacy and protection obligations (e.g., GLBA, CCPA, GDPR), with non-compliance potentially leading to investigations, fines, and reputational harm[292](index=292&type=chunk)[294](index=294&type=chunk)[296](index=296&type=chunk) - Federal, state, and foreign anti-corruption and sanctions laws (e.g., FCPA, OFAC, UK Bribery Act) create potential for significant liabilities and reputational damage if violated[309](index=309&type=chunk)[311](index=311&type=chunk) - Increasing scrutiny from institutional investors regarding ESG implications of investments may constrain opportunities and affect P10's ability to raise capital[314](index=314&type=chunk)[315](index=315&type=chunk) [Risks Related to Our Organizational Structure](index=59&type=section&id=Risks%20Related%20to%20Our%20Organizational%20Structure) P10's organizational structure presents risks related to change of control, investment company status, anti-takeover provisions, and dual-class stock - A change of control, including the occurrence of a 'Sunset' event, could be deemed an assignment of investment advisory agreements, requiring investor consent which may not be obtained[320](index=320&type=chunk) - If P10 were deemed an 'investment company' under the Investment Company Act of 1940, applicable restrictions could make it impractical to continue business as contemplated[321](index=321&type=chunk)[322](index=322&type=chunk) - Protective provisions in the Certificate of Incorporation and a shareholder rights plan, designed to preserve NOLs, may have unintended anti-takeover effects and impact stock liquidity[323](index=323&type=chunk)[324](index=324&type=chunk)[326](index=326&type=chunk) - The dual-class stock structure, with Class B holders having superior voting rights, may depress the trading price of Class A common stock and limit stockholder influence[339](index=339&type=chunk)[340](index=340&type=chunk) - As an emerging growth company, reduced reporting and disclosure requirements may make Class A common stock less attractive to some investors[341](index=341&type=chunk) [General Risk Factors](index=61&type=section&id=General%20Risk%20Factors) General risks include the impact of the COVID-19 pandemic, public company compliance costs, internal control deficiencies, and anti-takeover provisions - The COVID-19 pandemic severely disrupted global financial markets and business climate, and its future adverse impact on P10's business, financial condition, and results of operations remains uncertain[329](index=329&type=chunk)[330](index=330&type=chunk) - Fulfilling public company financial reporting and regulatory obligations is expensive and time-consuming, increasing legal and financial compliance costs[331](index=331&type=chunk)[332](index=332&type=chunk) - P10's internal controls over financial reporting do not yet meet all Sarbanes-Oxley Act Section 404 standards, and any material weakness could harm its reputation and stock price[337](index=337&type=chunk)[338](index=338&type=chunk) - Anti-takeover provisions in charter documents and Delaware law could make an acquisition more difficult and limit stockholders' ability to replace management[343](index=343&type=chunk)[345](index=345&type=chunk) [Item 1B. Unresolved Staff Comments](index=66&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments to report [Item 2. Properties](index=66&type=section&id=Item%202.%20Properties) No information is reported as the company does not own real property and facilities data is covered elsewhere [Item 3. Legal Proceedings](index=66&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently involved in any material legal, regulatory, or administrative proceedings - P10 is not currently subject to any material legal, regulatory, or administrative proceedings[349](index=349&type=chunk) [Item 4. Mine Safety Disclosures](index=66&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) No mine safety disclosures are applicable to the company PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=67&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) P10's Class A common stock trades on NYSE, with dividends declared and stock repurchases executed in fiscal 2022 - P10's Class A common stock is traded on the NYSE under the symbol 'PX'; there is no established public trading market for Class B common stock[353](index=353&type=chunk) Common Stock Holders of Record (as of December 31, 2022) | Class | Holders of Record | | :---- | :---------------- | | Class A | 3,104 | | Class B | 2,930 | - P10 declared a quarterly dividend of **$0.30 per share** of common stock in each fiscal quarter of 2022, with the board intending to continue comparable cash dividends[355](index=355&type=chunk)[356](index=356&type=chunk) Issuer Purchases of Equity Securities (Q4 2022) | Period | Total Shares Purchased | Average Price Paid per Share | Total Shares Purchased (Publicly Announced Plan) | Dollar Value Remaining (Publicly Announced Plan) | | :----- | :--------------------- | :--------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Oct 2022 | 192,654 | $10.30 | 192,654 | | | Nov 2022 | 994,950 | $9.45 | 994,950 | | | Dec 2022 | 759,161 | $9.68 | 759,161 | $19,787,024 | | Total | 1,946,765 | $9.62 | 1,946,765 | | - The Board authorized a **$20 million** stock repurchase program on May 12, 2022, with an additional **$20 million** authorized on December 27, 2022[357](index=357&type=chunk) [Item 6. [Reserved]](index=68&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=69&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes P10's financial condition, results of operations, and liquidity, covering revenue, expenses, FPAUM, and non-GAAP measures - P10 is a leading multi-asset class private market solutions provider, growing through strategic acquisitions like Five Points, TrueBridge, ECG, Hark, Bonaccord, and WTI[365](index=365&type=chunk)[366](index=366&type=chunk)[367](index=367&type=chunk)[371](index=371&type=chunk) - The company's revenue is primarily generated from long-term, fixed-fee management and advisory contracts, typically 10-15 years, based on committed or deployed capital[376](index=376&type=chunk) - Key market trends affecting the business include accelerating demand for private markets, favorable lower-middle market dynamics, data-driven sourcing, and increasing investor allocations to private markets[381](index=381&type=chunk) Consolidated Statements of Operations Summary (in thousands) | Metric | 2022 ($) | 2021 ($) | 2020 ($) | | :-------------------------- | :------- | :------- | :------- | | Total Revenues | 198,360 | 150,534 | 67,368 | | Total Operating Expenses | 154,937 | 110,188 | 58,679 | | Income From Operations | 43,423 | 40,346 | 8,689 | | Total Other (Expense)/Income | (7,960) | (36,649) | (11,720) | | Net Income | 29,399 | 10,767 | 23,806 | Fee-Paying Assets Under Management (FPAUM) Roll-Forward (in millions) | Metric | 2022 ($) | 2021 ($) | | :------------------------ | :------- | :------- | | Balance, Beginning of period | 19,031 | 14,567 | | Add: Capital raised | 2,454 | 4,294 | | Add: Capital deployed | 1,056 | 735 | | Add: Net Asset Value Change | (151) | (4) | | Less: Scheduled fee base stepdowns | (578) | (499) | | Less: Expiration of fee period | (607) | (62) | | Balance, End of period | 21,205 | 19,031 | Adjusted EBITDA and Adjusted Net Income (in thousands) | Metric | 2022 ($) | 2021 ($) | 2020 ($) | | :-------------------- | :------- | :------- | :------- | | Adjusted EBITDA | 106,811 | 83,120 | 34,806 | | Less: Cash interest expense | (6,784) | (17,997) | (9,699) | | Less: Cash income taxes, net | (2,114) | (2,308) | (1,169) | | Adjusted Net Income | 97,913 | 62,815 | 23,938 | [Business Overview](index=69&type=section&id=Business%20Overview) P10 is a multi-asset class private market solutions provider, expanding through strategic acquisitions and corporate reorganization - P10 is a multi-asset class private market solutions provider, expanding through acquisitions of Five Points (Private Credit), TrueBridge (Venture Capital), ECG (Impact Investing), Hark, Bonaccord (expanded solutions), and WTI (venture debt)[365](index=365&type=chunk)[366](index=366&type=chunk)[367](index=367&type=chunk)[371](index=371&type=chunk) - The company completed an IPO and reorganization on October 20, 2021, becoming the parent company with Class A and Class B common stock[368](index=368&type=chunk)[369](index=369&type=chunk) - P10 entered a **$250 million** credit agreement in December 2021, expanding to **$375 million** in 2022 to fund the WTI acquisition[370](index=370&type=chunk) - The Board approved up to **$40 million** for stock repurchases in 2022, spending **$19.8 million**[372](index=372&type=chunk) Private Market Solutions Overview (as of December 31, 2022) | Solution | FPAUM ($B) | Key Activities | | :------- | :--------- | :------------- | | Private Equity Solutions (PES) | 10.8 | Direct/indirect investments in middle/lower-middle market PE, minority equity in mid-sized managers. | | Venture Capital Solutions (VCS) | 5.4 | Investments in North American venture capital funds, targeting high-performing opportunities. | | Impact Investing Solutions (IIS) | 1.9 | Equity, tax equity, and debt investments in impact initiatives (renewable energy, historic renovation, small businesses). | | Private Credit Solutions (PCS) | 3.1 | Debt investments in lower middle market companies, loans to mid-life funds, financing for growth-oriented companies. | [Sources of Revenue](index=71&type=section&id=Sources%20of%20Revenue) P10's primary revenue sources are recurring management and advisory fees, typically based on committed or deployed capital - Primary revenue sources include fund management fee contracts, advisory service fee contracts, consulting agreements, referral fees, and subscriptions[376](index=376&type=chunk) - Management and advisory fees are typically based on a percentage of committed capital or deployed capital, with fee schedules generally fixed for 10-15 years and often stepping down over time[376](index=376&type=chunk) - Catch-up fees are earned from investors joining funds after the first closing, requiring payment as if they committed earlier[385](index=385&type=chunk) - Other revenue includes subscription and consulting agreements (recognized ratably) and referral fees (recognized upon closing of opportunities)[386](index=386&type=chunk) [Operating Segments](index=72&type=section&id=Operating%20Segments) P10 operates as a single operating segment, with Co-Chief Executive Officers evaluating financial performance and allocating resources - P10 operates as a single operating segment, with Co-Chief Executive Officers evaluating financial performance and allocating resources[378](index=378&type=chunk) [Trends Affecting Our Business](index=72&type=section&id=Trends%20Affecting%20Our%20Business) Business growth is influenced by accelerating demand for private markets, favorable lower-middle market dynamics, and strategic expansion - Business growth is influenced by accelerating demand for private markets solutions, favorable lower-middle market dynamics, and the ability to expand asset class solutions and geographic reach[381](index=381&type=chunk) - Factors like increasing regulatory requirements, political uncertainty, competition for top fund managers, and the ability to raise capital for acquisitions also impact the business[381](index=381&type=chunk) - P10 benefits from its data advantage and the trend of consolidating manager relationships, with counter-cyclical strategies like private credit thriving in higher-rate environments[381](index=381&type=chunk) [Key Financial & Operating Metrics](index=73&type=section&id=Key%20Financial%20%26%20Operating%20Metrics) P10's key metrics include stable average fee rates, compensation as the largest expense, and FPAUM reflecting fee-generating assets - Revenues are primarily management and advisory fees, with average fee rates stable at approximately **1%**[383](index=383&type=chunk)[397](index=397&type=chunk) - Compensation and benefits are the largest expense, expected to rise with headcount and market competitiveness, with carried interest typically staying with investment professionals[388](index=388&type=chunk) - Professional fees fluctuate with strategic objectives and acquisitions, while general, administrative, and other expenses include occupancy, travel, and technology costs[389](index=389&type=chunk)[390](index=390&type=chunk) - Fee-Paying Assets Under Management (FPAUM) reflects assets generating management and advisory fees, typically based on committed capital and not affected by market fluctuations[394](index=394&type=chunk) [Results of Operations](index=75&type=section&id=Results%20of%20Operations) Total revenues increased significantly in 2022 due to organic growth and acquisitions, despite a rise in operating expenses Total Revenues (in thousands) | Metric | 2022 ($) | 2021 ($) | 2020 ($) | | :----- | :------- | :------- | :------- | | Management and advisory fees | 196,546 | 149,424 | 66,125 | | Other revenue | 1,814 | 1,110 | 1,243 | | Total revenues | 198,360 | 150,534 | 67,368 | - Total revenues increased by **$47.8 million** (**32%**) in 2022 compared to 2021, primarily due to organic growth and the full-year impact of Hark and Bonaccord acquisitions, and partial-year impact of WTI[397](index=397&type=chunk)[398](index=398&type=chunk) Total Operating Expenses (in thousands) | Metric | 2022 ($) | 2021 ($) | 2020 ($) | | :-------------------------- | :------- | :------- | :------- | | Compensation and benefits | 94,297 | 54,755 | 24,529 | | Professional fees | 12,856 | 11,508 | 13,953 | | General, administrative and other | 18,522 | 9,870 | 4,710 | | Contingent consideration expense | 1,717 | 3,472 | 21 | | Amortization of intangibles | 26,867 | 30,431 | 15,466 | | Strategic alliance expense | 678 | 152 | — | | Total operating expenses | 154,937 | 110,188 | 58,679 | - Total operating expenses increased by **$44.7 million** (**41%**) in 2022, driven by higher compensation and benefits (including **$18.6 million** in stock compensation) and increased general, administrative, and other expenses due to acquisitions and public company costs[405](index=405&type=chunk)[406](index=406&type=chunk)[408](index=408&type=chunk) - Other expenses decreased by **$28.7 million** (**78%**) in 2022, primarily due to the non-recurring loss on early extinguishment of debt in 2021 and lower interest rates from debt refinancing[417](index=417&type=chunk) - Income tax expense increased by **$13.1 million** in 2022 to **$6.1 million**, compared to a benefit of **$7.1 million** in 2021, mainly due to a decrease in deferred tax assets[420](index=420&type=chunk) [FPAUM](index=79&type=section&id=FPAUM) FPAUM increased by $2.2 billion in 2022, driven by capital raised from private equity and venture capital solutions and the WTI acquisition FPAUM Roll-Forward (Pro Forma, in millions) | Metric | 2022 ($) | 2021 ($) | | :------------------------ | :------- | :------- | | Balance, Beginning of period | 19,031 | 14,567 | | Add: Capital raised | 2,454 | 4,294 | | Add: Capital deployed | 1,056 | 735 | | Add: Net Asset Value Change | (151) | (4) | | Less: Scheduled fee base stepdowns | (578) | (499) | | Less: Expiration of fee period | (607) | (62) | | Balance, End of period | 21,205 | 19,031 | - FPAUM increased by **$2.2 billion** (**11.4%**) to **$21.2 billion** on a pro forma basis in 2022, driven by capital raised from private equity and venture capital solutions, and the WTI acquisition[428](index=428&type=chunk) - FPAUM growth is influenced by systematic fundraising cycles of new funds, typically lasting 12-24 months[428](index=428&type=chunk) [Non-GAAP Financial Measures](index=80&type=section&id=Non-GAAP%20Financial%20Measures) P10 uses Adjusted Net Income (ANI) and Adjusted EBITDA as non-GAAP measures to assess profitability and performance - P10 uses Adjusted Net Income (ANI) and Adjusted EBITDA as non-GAAP measures to assess profitability and performance, reflecting cash flows from core operations[432](index=432&type=chunk) - Adjusted EBITDA is calculated by adjusting GAAP net income for non-cash expenses (depreciation, amortization, stock-based compensation) and non-recurring acquisition-related expenses[433](index=433&type=chunk) Adjusted EBITDA and Adjusted Net Income Reconciliation (in thousands) | Metric | 2022 ($) | 2021 ($) | 2020 ($) | | :-------------------------- | :------- | :------- | :------- | | Net income | 29,399 | 10,767 | 23,806 | | Add back (subtract): | | | | | Depreciation & amortization | 28,028 | 30,703 | 15,571 | | Interest expense, net | 9,505 | 37,497 | 11,720 | | Income tax expense/(benefit) | 6,064 | (7,070) | (26,837) | | Non-recurring expenses | 9,587 | 8,807 | 9,832 | | Non-cash stock based compensation | 9,587 | 2,416 | 714 | | Acquisition based compensation | 9,029 | — | — | | Earn out related compensation | 5,612 | — | — | | **Adjusted EBITDA** | **106,811**| **83,120** | **34,806** | | Less: Cash interest expense | (6,784) | (17,997) | (9,699) | | Less: Cash income taxes, net | (2,114) | (2,308) | (1,169) | | **Adjusted Net Income** | **97,913** | **62,815** | **23,938** | [Financial Position, Liquidity and Capital Resources](index=81&type=section&id=Financial%20Position%2C%20Liquidity%20and%20Capital%20Resources) P10's financial position reflects growth in assets and debt, with operating cash flows supporting strategic acquisitions and shareholder returns Selected Statements of Financial Position (in thousands) | Metric | Dec 31, 2022 ($) | Dec 31, 2021 ($) | $ Change | % Change | | :------------------------------------ | :--------------- | :--------------- | :------- | :------- | | Cash and cash equivalents (incl. restricted cash) | 29,492 | 43,482 | (13,990) | (32)% | | Goodwill and other intangibles | 658,433 | 547,489 | 110,944 | 20% | | Total assets | 826,360 | 676,217 | 150,143 | 22% | | Debt obligations | 289,224 | 212,496 | 76,728 | 36% | | Stockholders' equity | 433,883 | 395,164 | 38,719 | 10% | - Cash and cash equivalents decreased by **$13.99 million** in 2022 due to operating cash flows, financing activities, and the WTI acquisition[437](index=437&type=chunk) - Goodwill and intangible assets increased by **$110.9 million**, primarily from the WTI acquisition[437](index=437&type=chunk) - P10 utilizes debt and equity raises to fund growth, with a **$250 million** Term Loan and Revolving Credit Facility (expanded to **$375 million**) in place as of December 31, 2022[439](index=439&type=chunk)[440](index=440&type=chunk) Cash Flows Summary (in thousands) | Metric | 2022 ($) | 2021 ($) | 2020 ($) | | :------------------------------------ | :------- | :------- | :------- | | Net cash provided by operating activities | 61,675 | 49,019 | 10,669 | | Net cash used in investing activities | (98,590) | (47,400) | (214,193) | | Net cash provided by (used in) financing activities | 22,925 | 29,080 | 196,841 | | Increase (decrease) in cash and cash equivalents and restricted cash | (13,990) | 30,699 | (6,683) | - Operating cash flows increased by **$12.6 million** (**26%**) in 2022, while investing activities used **$98.6 million**, primarily for the WTI acquisition[447](index=447&type=chunk)[448](index=448&type=chunk) - Financing activities provided **$22.9 million** in 2022, including debt borrowings, stock repurchases, and dividend payments[450](index=450&type=chunk) Contractual Obligations (as of December 31, 2022, in thousands) | Obligation | Total ($) | 2023 ($) | 2024 ($) | 2025 ($) | 2026 ($) | 2027 ($) | Thereafter ($) | | :---------------------- | :-------- | :------- | :------- | :------- | :------- | :------- | :------------- | | Operating lease obligations | 21,581 | 3,003 | 3,881 | 2,741 | 2,417 | 2,338 | 7,201 | | Debt obligations | 293,400 | 10,625 | 10,625 | 272,150 | — | — | — | | Total | 314,981 | 13,628 | 14,506 | 274,891 | 2,417 | 2,338 | 7,201 | [Critical Accounting Policies and Estimates](index=84&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) P10's financial statements adhere to U.S. GAAP, with key policies for consolidation, revenue recognition, and income taxes - Consolidated Financial Statements are prepared in accordance with U.S. GAAP, including accounts of wholly-owned/majority-owned subsidiaries and entities with controlling financial interest (VIEs or voting interest model)[460](index=460&type=chunk)[461](index=461&type=chunk)[465](index=465&type=chunk) - Revenue recognition for management and advisory fees is based on transferring promised goods/services over time, typically calculated on committed or invested capital[466](index=466&type=chunk)[468](index=468&type=chunk)[470](index=470&type=chunk) - Income taxes are recognized using ASC 740, accounting for current and deferred tax benefit/expense, with valuation allowances recorded against deferred tax assets if realization is not probable[471](index=471&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=86&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) P10 faces market risks including price, interest rate, financing, liquidity, and counterparty risks, with interest rate sensitivity on its debt obligations - P10 is exposed to market risks including price, interest-rate, access to and cost of financing, liquidity, and counterparty risk[473](index=473&type=chunk) - Management fees are generally based on commitments or net invested capital, so they are not significantly impacted by changes in investment values, but unfavorable changes could affect investor attraction and retention[474](index=474&type=chunk) - As of December 31, 2022, P10 had **$293.4 million** in outstanding principal under its Term Loan and Revolving Credit Facility, with an interest rate based on SOFR plus **2.00%**[476](index=476&type=chunk) - A **100-basis point increase** in the interest rate is estimated to result in an approximately **$2.1 million** increase in interest expense over the next 12 months[476](index=476&type=chunk) - Credit risk is minimized by engaging reputable financial institutions as counterparties[477](index=477&type=chunk)[478](index=478&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=88&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section provides audited consolidated financial statements, including balance sheets, statements of operations, equity changes, cash flows, and detailed notes [Report of Independent Registered Public Accounting Firm](index=89&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) KPMG LLP issued an unqualified opinion on P10's consolidated financial statements for the three-year period ended December 31, 2022 - KPMG LLP provided an unqualified opinion on the consolidated financial statements for the three-year period ended December 31, 2022[482](index=482&type=chunk) - The financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows in conformity with U.S. GAAP[482](index=482&type=chunk) - The audit was conducted in accordance with PCAOB standards, but an audit of internal control over financial reporting was not performed due to the company's emerging growth company status[484](index=484&type=chunk) [Consolidated Balance Sheets](index=90&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets show P10's financial position, with increased assets and debt, and a decrease in cash and cash equivalents in 2022 Consolidated Balance Sheets (in thousands) | ASSETS | Dec 31, 2022 ($) | Dec 31, 2021 ($) | | :------------------------------------ | :--------------- | :--------------- | | Cash and cash equivalents | 20,021 | 40,916 | | Restricted cash | 9,471 | 2,566 | | Accounts receivable | 16,551 | 2,854 | | Note receivable | 4,231 | 2,552 | | Due from related parties | 36,538 | 12,357 | | Investment in unconsolidated subsidiaries | 2,321 | 1,803 | | Prepaid expenses and other assets | 5,089 | 4,759 | | Property and equipment, net | 2,878 | 981 | | Right-of-use assets | 15,923 | 14,789 | | Contingent payments to customers | 13,629 | — | | Deferred tax assets, net | 41,275 | 45,151 | | Intangibles, net | 151,795 | 128,788 | | Goodwill | 506,638 | 418,701 | | **Total assets** | **826,360** | **676,217** | | LIABILITIES: | | | | Accounts payable | 2,578 | 401 | | Accrued expenses | 8,052 | 6,009 | | Accrued compensation and benefits | 18,900 | 6,465 | | Due to related parties | 2,157 | 2,258 | | Other liabilities | 8,715 | 1,808 | | Contingent consideration | 17,337 | 22,963 | | Accrued contingent liability | 14,305 | — | | Deferred revenues | 12,651 | 12,953 | | Lease liabilities | 18,558 | 15,700 | | Debt obligations | 289,224 | 212,496 | | **Total liabilities** | **392,477** | **281,053** | | STOCKHOLDERS' EQUITY: | | | | Class A common stock | 42 | 34 | | Class B common stock | 73 | 83 | | Treasury stock | (9,926) | (273) | | Additional paid-in-capital | 628,828 | 650,405 | | Accumulated deficit | (225,879) | (255,085) | | Noncontrolling interest | 40,745 | — | | **Total stockholders' equity** | **433,883** | **395,164** | | **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | **826,360** | **676,217** | - Cash and cash equivalents (including restricted cash) decreased by **$13.99 million** (**32%**) from **$43.48 million** in 2021 to **$29.49 million** in 2022[437](index=437&type=chunk)[488](index=488&type=chunk) - Goodwill and other intangibles increased by **$110.94 million** (**20%**) to **$658.43 million** in 2022, primarily due to the WTI acquisition[437](index=437&type=chunk)[488](index=488&type=chunk) - Debt obligations increased by **$76.73 million** (**36%**) to **$289.22 million** in 2022[437](index=437&type=chunk)[488](index=488&type=chunk) [Consolidated VIE Balance Sheets](index=91&type=section&id=Consolidated%20VIE%20Balance%20Sheets) The Consolidated VIE Balance Sheets show a significant increase in both assets and liabilities for P10's consolidated Variable Interest Entities in 2022 Consolidated VIE Balance Sheets (in thousands) | ASSETS | Dec 31, 2022 ($) | Dec 31, 2021 ($) | | :------------------------------------ | :--------------- | :--------------- | | Cash and cash equivalents | 12,654 | 18,536 | | Restricted cash | 756 | 756 | | Accounts receivable | 3,264 | 1,060 | | Note receivable | 808 | 2,552 | | Due from related parties | 16,029 | 3,243 | | Prepaid expenses and other assets | 3,823 | 1,330 | | Property and equipment, net | 1,409 | 866 | | Right-of-use assets | 15,081 | 4,976 | | Contingent payments to customers | 13,629 | - | | Intangibles, net | 117,142 | 84,339 | | Goodwill | 383,444 | 295,507 | | **Total assets** | **568,039** | **413,165** | | LIABILITIES | | | | Accounts payable | 2,418 | 121 | | Accrued expenses | 16,690 | 4,818 | | Accrued compensation and benefits | 14,191 | 4,326 | | Contingent consideration | 17,337 | 22,963 | | Accrued contingent liability | 14,305 | - | | Deferred revenues | 11,265 | 10,676 | | Lease liabilities | 16,798 | 5,944 | | Deferred tax liabilities, net | 3,316 | 4,769 | | **Total liabilities** | **96,320** | **53,617** | - Total assets of consolidated VIEs increased by **$154.87 million** (**37%**) to **$568.04 million** in 2022[490](index=490&type=chunk) - Total liabilities of consolidated VIEs increased by **$42.70 million** (**79%**) to **$96.32 million** in 2022[490](index=490&type=chunk) [Consolidated Statements of Operations](index=92&type=section&id=Consolidated%20Statements%20of%20Operations) P10's Consolidated Statements of Operations show significant revenue growth and increased net income attributable to P10 in 2022 Consolidated Statements of Operations (in thousands) | Metric | 2022 ($) | 2021 ($) | 2020 ($) | | :------------------------------------ | :------- | :------- | :------- | | Management and advisory fees | 196,546 | 149,424 | 66,125 | | Other revenue | 1,814 | 1,110 | 1,243 | | **Total revenues** | **198,360**| **150,534**| **67,368** | | OPERATING EXPENSES | | | | | Compensation and benefits | 94,297 | 54,755 | 24,529 | | Professional fees | 12,856 | 11,508 | 13,953 | | General, administrative and other | 18,522 | 9,870 | 4,710 | | Contingent consideration expense | 1,717 | 3,472 | 21 | | Amortization of intangibles | 26,867 | 30,431 | 15,466 | | Strategic alliance expense | 678 | 152 | — | | **Total operating expenses** | **154,937**| **110,188**| **58,679** | | **INCOME FROM OPERATIONS** | **43,423** | **40,346** | **8,689** | | OTHER (EXPENSE)/INCOME | | | | | Interest expense implied on notes payable to sellers | — | (825) | (988) | | Interest expense, net | (9,505) | (21,360) | (10,732) | | Loss on extinguishment of debt | — | (15,312) | — | | Other income | 1,545 | 848 | — | | **Total other (expense)** | **(7,960)**| **(36,649)**| **(11,720)**| | **Net income before income taxes** | **35,463** | **3,697** | **(3,031)**| | Income tax benefit/(expense) | (6,064) | 7,070 | 26,837 | | **NET INCOME** | **29,399** | **10,767** | **23,806** | | Less: preferred dividends attributable to redeemable noncontrolling interest | - | (1,593) | (720) | | Less: net income attributable to noncontrolling interest in P10 Intermediate | (193) | - | - | | **NET INCOME ATTRIBUTABLE TO P10** | **29,206** | **9,174** | **23,086** | | Earnings per share | | | | | Basic earnings per share | 0.25 | 0.13 | 0.37 | | Diluted earnings per share | 0.24 | 0.08 | 0.36 | | Dividends paid per share | 0.09 | — | — | | Weighted average shares outstanding, basic | 116,751 | 72,660 | 62,465 | | Weighted average shares outstanding, diluted | 121,655 | 112,332 | 64,905 | - Total revenues increased by **$47.8 million** (**32%**) in 2022, primarily from higher management and advisory fees due to organic growth and acquisitions[397](index=397&type=chunk)[398](index=398&type=chunk) - Net income attributable to P10 increased from **$9.17 million** in 2021 to **$29.21 million** in 2022[493](index=493&type=chunk) - Basic EPS increased to **$0.25** in 2022 from **$0.13** in 2021, and diluted EPS increased to **$0.24** from **$0.08**[493](index=493&type=chunk)

P10, Inc. (NYSE:PX) Q4 2022 Earnings Conference Call March 6, 2023 5:00 PM ET Company Participants Robert Alpert - Chairman & Co-CEO Mark Hood - EVP, Operations & IR William Souder - Director Clark Webb - Co-CEO & Director Amanda Coussens - CFO & Chief Compliance Officer Conference Call Participants Adam Beatty - UBS Kenneth Worthington - JPMorgan Chase & Co. Michael Brown - KBW Benjamin Budish - Barclays Bank John Campbell - Stephens Inc. Christoph Kotowski - Oppenheimer Michael Cyprys - Morgan Stanley Ope ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) 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 87-2908160 ( State or other jurisdiction of incorporation or organization) 4514 Cole Ave, Suite 1600 Dallas, TX (Address of principal executive ...

P10, Inc. (NYSE:PX) Q3 2022 Earnings Call Transcript November 10, 2022 8:30 AM ET Company Participants Mark Hood - Executive Vice President of Operations & Investor Relations Robert Alpert - Chairman & Co-Chief Executive Officer Fritz Souder - Chief Operating Officer Clark Webb - Co-Chief Executive Officer Amanda Coussens - Chief Financial Officer Conference Call Participants Ken Worthington - JPMorgan Michael Cyprys - Morgan Stanley John Campbell - Stephens Chris Kotowski - Oppenheimer Adam Beatty - UBS Ma ...

Third Quarter 2022 Results Earnings Presentation Legal Disclaimer IMPORTANT NOTICES The inclusion of references to P10, Inc. (the "Company") in this presentation is for information purposes only as the holding company of various subsidiaries. P10 does not offer investment advisory services and this presentation is neither an offer of any investment products nor an offer of advisory services by P10. By accepting this presentation, you acknowledge that P10 is not offering investment advisory services. All inv ...