P10(US:PX)2025-02-28 21:36Assets Under Management - As of December 31, 2024, the Company managed $14.1 billion in Fee-Paying Assets Under Management (FPAUM) for Private Equity Solutions, $6.4 billion for Venture Capital Solutions, and approximately $5.2 billion for Private Credit Solutions[301][302]. - FPAUM increased by $2.4 billion or 10% to $25.7 billion for the year ended December 31, 2024, driven by capital raised and deployed from private equity and venture capital solutions[349]. Investment Strategies - The Company has a proprietary private markets database containing comprehensive information on over 6,000 investment firms, 11,100 funds, and 49,000 individual transactions, which enhances its investment strategies[301][313]. - The Company’s investment strategy is influenced by trends such as increasing allocations towards private market asset classes and the adoption of ESG and impact investing[312]. - The Company’s ability to generate strong returns is supported by favorable lower and lower-middle market dynamics, with a focus on data-driven sourcing for investment opportunities[312][313]. - The company plans to leverage its data advantage to provide customized solutions across private markets asset classes, enhancing its competitive position[314]. Financial Performance - Total revenues for the year ended December 31, 2024, were $296.4 million, reflecting an increase of $54.7 million or 23% compared to the previous year[330]. - Management and advisory fees increased by $51.5 million, or 22%, to $290.2 million for the year ended December 31, 2024, driven by continued fundraising and a 10% growth in average Fee-Paying Assets Under Management (FPAUM) across the company[332]. - Net income for the year ended December 31, 2024, was $19.7 million, a turnaround from a net loss of $7.8 million in 2023[330]. - Adjusted EBITDA increased by $20.9 million to $144.5 million for the year ended December 31, 2024, compared to $123.6 million in 2023[355]. - Fee-Related Revenue reached $291.3 million for the year ended December 31, 2024, up from $237.0 million in 2023[355]. Operating Expenses - Operating expenses rose by 7% to $235.8 million for the year ended December 31, 2024, with significant increases in professional fees (69%) and general administrative costs (27%)[330]. - Compensation and benefits expense increased by $1.0 million, or 1%, to $155.3 million, driven by $21.6 million in headcount increases and merit-based salary raises[338]. - Professional fees surged by $8.8 million, or 69%, to $21.5 million, mainly due to debt refinancing and management team transitions[339]. - Total operating expenses rose by $15.0 million, or 7%, to $235.8 million for the year ended December 31, 2024, primarily due to increases in professional fees and general administrative expenses[337]. Cash Flow and Liquidity - Cash and cash equivalents increased from $32.1 million as of December 31, 2023 to $68.1 million as of December 31, 2024, representing a 112% increase[357]. - Net cash provided by operating activities increased by $53.3 million, or 112%, to $101.0 million for the year ended December 31, 2024 compared to 2023[363]. - The company expects to meet its liquidity and capital requirements through operating cash flows, existing cash, and external financing activities[367]. Debt and Financing - As of December 31, 2024, the Term Loan balance was $325.0 million with a weighted average interest rate of 7.68%[361]. - The company incurred $24.1 million in interest expense for the year ended December 31, 2024[362]. - The new senior secured revolving credit facility amounts to $175.0 million, with a $10.0 million sublimit for letters of credit[359]. - A 100-basis point increase in interest rates is estimated to result in an additional $3.4 million in interest expense over the next 12 months[388]. Compliance and Regulatory Environment - The company expects to face increased compliance costs due to new SEC regulations, which may impact profitability and operational capabilities[314]. - The Company has recognized a liability for a revenue share agreement with third parties, which includes options for repurchase starting in July 2025[383]. Strategic Initiatives - The company aims to expand its presence in international markets to drive growth as investors seek geographically diverse private market exposure[314]. - The company anticipates that the trend of consolidating managers will benefit its strategies, which have long track records of success[315]. - The acquisition-related earnout for WTI could total up to $70.0 million, contingent on achieving specific EBITDA milestones of $20.0 million, $22.5 million, and $25.0 million, with payments expected by October 2027[381]. - A one-time bonus payment of up to $10.0 million may be awarded to certain employees if they remain employed by the Company for five years and WTI's trailing-twelve month EBITDA is at least $20.0 million[382].