P10(US:PX)2025-11-06 11:45Financial Performance - Fee-paying assets under management (FPAUM) reached $29.1 billion, a 17% increase from the prior year[13] - Fee-Related Revenue was $75.9 million, representing a 4% year-over-year growth[13] - Fee-Related Earnings amounted to $36.0 million, reflecting a 3% year-over-year growth[13] - Adjusted Net Income (ANI) was $28.6 million, a 7% decrease year-over-year[13] - Fully Diluted ANI per share was $0.24, a decrease of $0.02 year-over-year[13] - Total revenues for Q3 2025 were $75.9 million, a 2% increase compared to $74.2 million in Q3 2024[30] - Management and advisory fees increased by 2% year-over-year to $74.3 million in Q3 2025, up from $72.6 million in Q3 2024[30] - Net income attributable to P10 for Q3 2025 was $2.1 million, representing a 53% increase from $1.4 million in Q3 2024[30] - Adjusted net income for the nine months ended September 30, 2025, was $78.8 million, a 7% decrease from $84.9 million in the same period of 2024[32] - Fee-related earnings for Q3 2025 were $36.0 million, a 3% increase compared to $35.1 million in Q3 2024[32] - The company reported a 4% increase in fee-related revenue for the nine months ended September 30, 2025, totaling $216.3 million compared to $206.2 million in 2024[32] - Basic earnings per share for Q3 2025 were $0.02, a 55% increase from $0.01 in Q3 2024[30] Debt and Equity - As of September 30, 2025, the company had $387 million in outstanding debt, with $113 million available on credit facilities[15] - The company repurchased 110,032 shares at a weighted average price of $11.34, totaling over $1 million[15] - Total liabilities rose to $539,220,000 as of September 30, 2025, compared to $482,385,000 at the end of 2024, marking an increase of about 11.8%[34] - Debt obligations increased to $393,394,000 from $319,783,000, an increase of approximately 23%[34] - The company’s total equity increased to $396,790,000 from $386,890,000, reflecting a growth of about 2.3%[34] Cash Flow and Investments - Cash and cash equivalents decreased to $39,991,000 from $67,455,000, a decline of about 40.7%[34] - Net income for the nine months ended September 30, 2025, was $11,929,000, down from $13,966,000 for the same period in 2024, reflecting a decrease of approximately 14.7%[35] - Net cash provided by operating activities significantly dropped to $54,000 from $73,258,000 year-over-year[35] - The company reported a net cash used in investing activities of $41,061,000 for the nine months ended September 30, 2025, compared to $3,358,000 in the same period of 2024[35] - Borrowings on debt obligations amounted to $93,000,000, while repayments totaled $20,500,000, indicating a net increase in debt financing[35] Fund Performance and Strategy - Fund VI, launched in 2023, has a size of €250 million with 35% called capital and a net IRR of 15.6%[50] - Fund III, established in 2019, has a size of €130 million, 100% called capital, and a net IRR of 13.8%[50] - VLL I, initiated in 1994, has a size of $47 million with 100% called capital and a net IRR of 63.3%[52] - VLL IV, launched in 2004, has a size of $250 million with 100% called capital and a net IRR of 15.9%[52] - Fund III from Five Points Capital, established in 2013, has a size of $230 million with 97% called capital and a net IRR of 25.2%[53] - Hark Capital's Fund IV, initiated in 2022, has a size of $646 million with 57% called capital and a net IRR of 11.6%[55] - Enhanced Capital's Project Finance fund, launched in 2021, has a size of $386 million with 100% called capital and a net IRR of 9.8%[56] - TrueBridge's Fund II, established in 2010, has a size of $342 million with 83% called capital and a net IRR of 20.2%[58] Operational Insights - The company has a unique and extensive proprietary analytics database that provides a competitive edge for systematic sourcing, diligence, and monitoring processes, enabling more informed investment decisions[74] - The company manages over 52,000 investment transactions and 1,600 individual firms, reflecting extensive data collection capabilities[71] - The company emphasizes disciplined growth through acquisitions, which can create additional intangibles and goodwill amortization[75] - The company utilizes Adjusted Net Income (ANI) to assess profitability, which reflects cash flows generated by core operations[82] - The company’s performance measures, such as Net IRR and Net ROIC, are calculated net of fees and expenses, providing a clearer picture of investment returns[84] Risks and Considerations - RCP's investment strategy is subject to significant risks, and past performance is not indicative of future results[94] - All investments bear the risk of loss, including the risk of non-payment of loans by borrowers[93] - The performance data represents past performance only and is not a guarantee of future results, with all investments involving risks including loss of principal[102] - Future realizations of investments may vary materially from current estimates, affecting final returns[103]