Core Insights - Ridgepost Capital reported a strong financial performance for the fourth quarter and fiscal year 2025, with significant growth in fee-paying assets under management and record fundraising achievements [2][6]. Financial Highlights - Fourth Quarter 2025 Revenue was $81.0 million, a decrease of 5% compared to $85.0 million in the prior year [10]. - Fee-Related Revenue for the fourth quarter was $81.0 million, down from $85.0 million year-over-year [10]. - Fee-Paying Assets Under Management reached $29.4 billion, reflecting a 15% increase year-over-year [10]. - GAAP Net Income for the fourth quarter was $11.0 million, compared to $5.7 million in the prior year, marking a 94% increase [10]. - Fee-Related Earnings for the fourth quarter were $39.0 million, down from $42.7 million year-over-year [10]. - Adjusted Net Income for the fourth quarter was $30.2 million, compared to $35.3 million in the prior year [10]. Annual Performance - Total Revenue for the fiscal year 2025 was $297.3 million, slightly up from $296.4 million in the prior year [10]. - Fee-Related Revenue for the fiscal year was $297.3 million, an increase from $291.3 million year-over-year [10]. - GAAP Net Income for the fiscal year was $23.0 million, compared to $19.7 million in the prior year, representing a 17% increase [10]. - Fee-Related Earnings for the fiscal year were $141.1 million, down from $142.1 million year-over-year [10]. - Adjusted Net Income for the fiscal year was $108.9 million, compared to $120.2 million in the prior year [10]. Share Repurchase and Dividend - In the fourth quarter, the company repurchased approximately 522,728 shares at an average price of $9.54 per share, totaling $47.4 million for the year [7]. - The Board of Directors declared a quarterly cash dividend of $0.0375 per share, payable on March 20, 2026 [8]. Strategic Developments - The company raised and deployed a record $5.1 billion in organic gross new fee-paying assets during 2025, exceeding its initial fundraising guidance by over $1 billion [6]. - The acquisition of Stellus Capital Management was announced, enhancing the company's direct lending capabilities [6]. - The opening of a new office in Dubai and collaboration with CAIS are expected to expand the company's global footprint [6].

Core Viewpoint - Stellus Capital Management has entered into a definitive agreement to be acquired by P10, Inc., enhancing Stellus' resources and expertise while maintaining its existing investment processes and operations [1][2]. Group 1: Company Overview - Stellus Capital Management specializes in senior secured loans in the lower-middle market, with $3.8 billion in assets under management (AUM) and a track record of over $10.3 billion invested in more than 375 portfolio companies [5]. - P10, Inc. is a private markets solutions provider with over $40 billion in AUM, focusing on the middle and lower-middle market across various investment strategies [6]. Group 2: Strategic Rationale - The acquisition is seen as a strategic partnership that will broaden access to direct lending opportunities for Stellus' clients while preserving its core investment philosophy [2][3]. - Stellus' management team will retain control over day-to-day operations, ensuring continuity in investment decisions and processes [1]. Group 3: Leadership Insights - Robert Ladd, Managing Partner of Stellus, emphasized the alignment of investment approaches between Stellus and P10, which will enhance their ability to develop new strategies and investment vehicles [3]. - Luke Sarsfield, Chairman and CEO of P10, highlighted the acquisition as part of P10's long-term strategy to partner with specialized investment managers, adding a strong direct lending franchise to their platform [3]. Group 4: Transaction Details - The transaction is expected to close in mid-2026, pending shareholder approvals and customary closing conditions [3]. - Goldman, Sachs & Co. is acting as the exclusive financial advisor for Stellus, while legal advisors include Eversheds Sutherland (US) LLP and Winston & Strawn LLP [4].