P10(US:PX)2025-05-08 21:11Fundraising and Assets Under Management - As of March 31, 2025, the Company has raised a total of $21.7 billion in assets under management (AUM) for Private Equity Solutions, with $15.0 billion classified as Fee-Paying Assets Under Management (FPAUM) [219] - Venture Capital Solutions has raised a total of $9.8 billion in AUM, with $6.5 billion as FPAUM as of March 31, 2025 [219] - Private Credit Solutions has raised a total of $6.8 billion in AUM, with $4.8 billion as FPAUM, including $4.3 billion in impact assets supporting over 1,000 projects across 40 states, Washington DC, and Puerto Rico [220] - The Company operates with approximately $14.6 billion in FPAUM from Primary Investment Funds, $10.1 billion from Direct and Co-Investment Funds, and $1.6 billion from Secondary Investment Funds as of March 31, 2025 [223] - FPAUM increased by $0.6 billion, or 3%, to $26.3 billion as of March 31, 2025, driven by increased capital raised and deployed [256] - The company expects to continue expanding fundraising efforts and grow FPAUM with the launch of new specialized investment vehicles and asset class solutions [256] Revenue and Income - Total revenues increased by $1.6 million, or 2%, to $67.7 million for the three months ended March 31, 2025, driven by higher management and advisory fees [243] - Management and advisory fees rose by $1.6 million, or 2%, to $66.7 million for the same period, supported by a 10% growth in average Fee-Paying Assets Under Management (FPAUM) [245] - Other revenue decreased by $0.1 million, or 6%, to $0.9 million, primarily due to a reduction in interest income from certain funds [246] - Total revenues for the three months ended March 31, 2025, were $67.67 million, up from $66.11 million in the same period of 2024, reflecting a growth of approximately 2.35% [263] - Adjusted net income for the three months ended March 31, 2025, was $23.46 million, compared to $25.40 million for the same period in 2024, indicating a decrease of 7.63% [263] - Net income decreased by $547,000, or 10%, to $4.7 million for the three months ended March 31, 2025, compared to the same period in 2024 [243] Operating Expenses - Total operating expenses increased by $2.4 million, or 4%, to $56.4 million, mainly due to higher professional fees and general administrative costs [248] - Professional fees surged by $2.7 million, or 73%, to $6.5 million, largely due to increased legal and professional services related to the Qualitas acquisition [249] - Interest expense increased by $0.6 million, or 11%, to $6.4 million, attributed to a larger outstanding balance on the term loan [252] - Income tax expense was $0.3 million for the three months ended March 31, 2025, a decrease of $1.5 million from $1.8 million in the prior year [253] Financial Position and Cash Flow - Cash and cash equivalents increased by $7.3 million, or 11%, to $75.41 million as of March 31, 2025, primarily due to drawing on the revolver [265] - Debt obligations rose by $37.37 million, or 12%, to $357.15 million as of March 31, 2025, driven by revolver activity related to the Qualitas acquisition [265] - Net cash used in operating activities was $(4.73) million for the three months ended March 31, 2025, a decrease of $15.69 million compared to $10.96 million provided in the same period of 2024 [273] - Cash from financing activities was $13.29 million for the three months ended March 31, 2025, compared to $(12.73) million used in financing activities in the same period of 2024, reflecting a significant change [276] Strategic Initiatives and Market Outlook - The Company anticipates continued growth driven by increasing demand for private market solutions and a shift in investor allocations towards alternative investments [227] - The Company has identified favorable dynamics in the lower and lower-middle market, which is expected to provide a larger pool of investment opportunities at attractive valuations [227] - The Company is focused on expanding its geographic reach and asset class solutions to enhance its integrated network effect across private markets [227] - The company expects continued growth in management and advisory fees due to ongoing fundraising and capital deployment efforts [244] - The company aims to leverage its data advantage and proprietary databases to differentiate its products and services in the competitive landscape [232] Compliance and Regulatory Environment - The complex regulatory environment poses potential challenges to the Company's operations and growth, necessitating careful navigation of compliance and administrative burdens [228] - As of March 31, 2025, the company was in compliance with all financial covenants required under its credit facilities [272] Risk Management - The company is exposed to various market risks, including price risk, interest-rate risk, and liquidity risk, which may impact its financial performance [299] - The company has established reserves for estimated credit losses on loans and receivables, recognizing credit losses before actual events of default [284] - The company’s management fees and advisory fee revenue are generally not significantly impacted by changes in investment values, but unfavorable changes could affect investor retention [300] Contingent Liabilities and Compensation - The company has accrued contingent liabilities related to a revenue share agreement with ECG and third parties, which will be amortized against revenue over the estimated term of the management contract [297] - The company recognizes management and advisory fees as deferred revenues until performance obligations are satisfied, with fees based on various contractual terms [286] - The company evaluates stock-based compensation expenses based on the fair market value on the grant date, with certain performance metrics affecting vesting [293] - The company has an earnout payment of up to $70.0 million related to the acquisition of WTI, contingent on achieving specific EBITDA milestones [294] Database and Investment Team - The investment team for Private Equity Solutions consists of 45 professionals with an average of over 26 years of experience, managing relationships with over 2,390 investors and 295 fund managers [219] - The Company has a proprietary database containing comprehensive information on over 6,000 investment firms, 11,200 funds, and 462,000 financial metrics, enhancing its investment decision-making capabilities [219]