P10(PX) - 2024 Q4 - Annual Results

Financial Performance - Revenue for Q4 2024 was $85 million, representing a 35% year-over-year growth[15] - Adjusted Net Income (ANI) for Q4 2024 was $35 million, a 39% increase compared to Q4 2023[15] - Fully Diluted ANI per share was $0.30, reflecting a 44% year-over-year growth[15] - Fee-Related Revenue for Q4 2024 was $85 million, a 37% increase from the previous year[15] - Total revenues for the year ended December 31, 2024, were $296,448 thousand, a 23% increase from $241,734 thousand in 2023[29] - Net income attributable to P10 for the year ended December 31, 2024, was $18,700 thousand, compared to a net loss of $7,133 thousand in 2023[29] - Adjusted EBITDA for the year ended December 31, 2024, was $144,472 thousand, reflecting strong operational performance[30] - Adjusted Net Income for the year was $120,208, reflecting an 18% increase compared to $101,955 in 2023[32] - GAAP Net Income for Q4 2024 was $5,701, compared to a loss of $1,893 in Q4 2023, marking a significant turnaround[32] - Adjusted EBITDA for Q4 2024 increased by 40% to $42,895, up from $30,727 in Q4 2023[32] Assets and Liabilities - Fee-paying assets under management (FPAUM) reached $25.7 billion, a 10% increase from the prior year[9] - As of December 31, 2024, the company had $325 million in outstanding debt and $67 million in cash and cash equivalents[16] - Cash and cash equivalents rose to $67,455 as of December 31, 2024, up from $30,467 in 2023[36] - Total Assets increased to $869,275 in 2024, compared to $834,074 in 2023[36] - Debt obligations grew to $319,783 in 2024, up from $289,844 in 2023, indicating increased leverage[36] Fundraising and Investments - The company raised nearly $3.8 billion in FPAUM in full-year 2024, exceeding the $2.5 billion guidance[14] - Private Equity Solutions fundraising totaled $2.3 billion in FY 2024[14] - FPAUM growth from Q4 2023 to Q4 2024 is projected to be 36%[23] - Direct & Co-Investments accounted for 54% of FPAUM as of Q4'24, indicating strong growth in this segment[61] - The investor base consists of 26% from family offices/wealth managers, 21% from public pensions, and 19% from endowments/foundations[64] - The company has access to $774 billion of capital available to private equity funds over $1 billion, indicating a strong investment environment[69] Operational Metrics - Management and advisory fees increased by 35% year-over-year in Q4 2024, reaching $84,026 thousand, compared to $62,407 thousand in Q4 2023[29] - Operating expenses increased by 8% year-over-year in Q4 2024, totaling $62,158 thousand, compared to $57,724 thousand in Q4 2023[29] - The Adjusted EBITDA Margin for Q4 2024 was 50%, slightly up from 49% in Q4 2023[32] Acquisitions and Strategic Initiatives - The company announced an agreement to acquire Qualitas Funds in September 2024, enhancing its M&A strategy[14] - The company plans to pursue disciplined growth through acquisitions, which can create additional intangible assets and goodwill for tax benefits[75] Performance Metrics - Fund I (2003) achieved a net IRR of 13.6% and a net ROIC of 1.8x with a fund size of $92 million, called capital at 105%[51] - Fund IV (2007) reported a net IRR of 14.4% and a net ROIC of 2.0x, with a fund size of $265 million and called capital at 110%[51] - Fund IX (2014) delivered a net IRR of 16.5% and a net ROIC of 2.0x, with a fund size of $350 million and called capital at 115%[51] - Fund XII (2018) had a net IRR of 15.6% and a net ROIC of 1.9x, with a fund size of $382 million and called capital at 110%[51] - Fund I (1994) in private credit achieved a remarkable net IRR of 63.3% and a net ROIC of 5.9x with a fund size of $47 million, called capital at 100%[54] - Fund III (2018) in private credit reported a net IRR of 31.0% and a net ROIC of 1.8x, with a fund size of $400 million and called capital at 105%[54] - Fund II (2022) in GP Stakes Funds has a fund size of $1.6 billion with called capital at 35%[52] Market Environment - The market dynamics indicate a favorable environment for capital deployment, with limited alternatives and favorable LP/GP alignment incentives[69][70] - The company maintains a competitive edge through systematic sourcing, diligence, and monitoring processes, leveraging over 20 years of granular data[74] Tax and Regulatory Considerations - Federal net operating losses (NOLs) are expected to be fully utilized during 2026, reducing the company's tax liability[75] - Investors in the funds are typically subject to pass-through tax treatment, which may result in tax liabilities without cash distributions[101]