P10(US:PX)2024-11-08 14:05Asset Management - As of September 30, 2024, the Company managed $13.4 billion of Fee-Paying Assets Under Management (FPAUM) in Private Equity Solutions[165] - Venture Capital Solutions managed $6.4 billion of FPAUM as of September 30, 2024, with a focus on high-performing, access-constrained opportunities[166] - Private Credit Solutions managed approximately $5.1 billion of FPAUM as of September 30, 2024, targeting lower middle market companies[166] - Primary Investment Funds comprise approximately $13.7 billion of FPAUM as of September 30, 2024, focusing on long-term, fixed fee management contracts[168] - Direct and Co-Investment Funds account for approximately $9.6 billion of FPAUM as of September 30, 2024, with fees typically based on committed capital[169] - Secondary Funds comprise approximately $1.6 billion of FPAUM as of September 30, 2024, involving investments in existing private markets funds[169] - FPAUM increased by $1.1 million to $24.9 million for the three months ended September 30, 2024, and by $1.7 billion, or 7.2%, for the nine months ended September 30, 2024[210] Financial Performance - Total revenues for the nine months ended September 30, 2024, were $211,434,000, up 18% from $178,667,000 in the same period of 2023[185] - Total revenue for the three months ended September 30, 2024 increased by $15.3 million, or 26%, to $73.8 million compared to the same period in 2023, driven by organic FPAUM growth across multiple segments[186] - Total revenue for the three months ended September 30, 2024, were $74.2 million, compared to $58.9 million for the same period in 2023, representing a year-over-year increase of 26%[216] - Adjusted EBITDA for the three months ended September 30, 2024, was $35.3 million, up from $29.6 million in the same period of 2023, reflecting a 19% increase[216] - Total revenue for the nine months ended September 30, 2024 increased by $32.8 million, or 18%, to $215.5 million compared to the same period in 2023, primarily due to organic FPAUM growth[189] Expenses and Costs - Operating expenses increased to $173,670,000 for the nine months ended September 30, 2024, compared to $163,089,000 in 2023, reflecting a 6% rise[185] - Professional fees surged by 62% to $16,472,000 for the nine months ended September 30, 2024, compared to $10,191,000 in 2023[185] - Total operating expenses for the three months ended September 30, 2024 increased by $6.9 million, or 12%, to $65.4 million, mainly due to higher professional fees and general administrative expenses[193] - Professional fees surged by $5.8 million, or 173%, to $9.2 million for the three months ended September 30, 2024, driven by legal fees associated with debt refinancing and management transitions[195] - Compensation and benefits expenses rose to $115,893,000 for the nine months ended September 30, 2024, a 2% increase from $114,128,000 in 2023[185] Stock and Shareholder Actions - The Board approved a stock repurchase program totaling $40 million in 2022, with an additional $40 million authorized in February 2024 and $12 million in August 2024, totaling $78.1 million spent as of September 30, 2024[167] Growth and Market Outlook - The Company anticipates continued growth driven by increasing demand for private market solutions and favorable lower market dynamics[172] - The company anticipates that the demand for asset class diversification will rise as investors increase allocations to private markets investments[174] - The company aims to expand its investor presence into international markets, which could be a significant growth driver[174] - The company expects to continue expanding fundraising efforts and grow FPAUM with the launch of new specialized investment vehicles and asset class solutions[210] Compliance and Regulatory Environment - The SEC's new compliance requirements are expected to increase compliance costs and restrict certain business activities, impacting profitability[174] - As of September 30, 2024, the company was in compliance with all financial covenants required under its credit facility[222] Cash Flow and Liquidity - Net cash provided by operating activities increased by $27.5 million, or 60%, to $73.3 million for the nine months ended September 30, 2024 compared to the same period in 2023[225] - Cash used in investing activities rose by $2.6 million, or 362%, to $3.4 million for the nine months ended September 30, 2024, primarily due to purchases of leasehold improvements[226] - Cash used in financing activities decreased by $13.7 million, or 26%, to $38.7 million for the nine months ended September 30, 2024, driven by cash provided from debt refinancing[227] - The increase in cash, cash equivalents, and restricted cash was $31.2 million for the nine months ended September 30, 2024, compared to a decrease of $7.3 million in the same period in 2023, representing a change of $38.5 million or 529%[224] - The company expects to continue meeting its liquidity and capital requirements through cash flows from operating activities, existing cash, and external financing activities[228] Debt and Interest - Debt obligations rose to $319.4 million as of September 30, 2024, an increase of 10% from $289.8 million as of December 31, 2023[217] - The new senior secured revolving credit facility amounts to $175 million, with a new senior secured loan facility of $325 million established in August 2024[219] - The company incurred $17.5 million in interest expense for the nine months ended September 30, 2024[222] - The annual interest rate on the Term Loan is based on SOFR, with a floor of 0.10% plus 2.50%, resulting in an effective interest rate of 2.6% + SOFR as of September 30, 2024[250] - A 100-basis point increase in interest rates is estimated to increase interest expenses by approximately $3.2 million over the next 12 months[250] Market Risks - The company is exposed to various market risks, including price risk and interest-rate risk, which may impact its financial performance[247] - The company is exposed to credit risk due to reliance on counterparties to meet the terms of financial agreements[251] - The company aims to minimize exposure to credit risk by limiting transactions to reputable financial institutions[251] - Uncertainty in financing availability from financial institutions may arise due to market events, potentially impacting access to financing markets[251]