Financial Data and Key Metrics Changes - Total fee-paying assets under management (AUM) reached $29.1 billion, a 17% increase year-over-year [6][13] - Fee-related revenue (FRR) for the third quarter was $75.9 million, a 4% increase compared to the same quarter in 2024 [15] - Adjusted net income (ANI) was $28.6 million, a decrease of 7% from the third quarter of 2024 [17] - Fully diluted ANI per share was $0.24 compared to $0.26 in the prior year [17] - Operating expenses remained flat at $65.2 million compared to the third quarter of last year [16] Business Line Data and Key Metrics Changes - Private equity strategies raised and deployed $711 million, while venture capital solutions raised and deployed $12 million [16] - Private credit strategies added $192 million to fee-paying AUM [16] - The company raised and deployed $915 million in organic gross new fee-paying AUM during the third quarter [5][13] Market Data and Key Metrics Changes - The company raised and deployed $4.3 billion of organic fee-paying AUM in the first three quarters of 2025, a 48% increase compared to the same period in 2024 [6][8] - The fundraising environment remains resilient, with strong demand for secondary products and multi-strategy offerings [16] Company Strategy and Development Direction - The company aims to expand its private credit franchise, which currently represents less than 20% of fee-paying AUM [4][5] - The focus is on the middle and lower middle markets, which are seen as having significant growth opportunities [6][10] - The company plans to continue engaging with larger pools of global capital and expanding its product offerings [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the underlying business and the quality of credit portfolios [5][12] - The company anticipates a return to historical averages for step-downs and expirations in 2026 [14] - Management is optimistic about the macroeconomic environment improving, which could enhance deployment opportunities and returns across the platform [48][49] Other Important Information - The company repurchased approximately 110,000 shares at a weighted average price of $11.34, totaling $1.25 million [12] - A quarterly cash dividend of $0.033 per share was approved, payable on December 19, 2025 [18] - The company has $26 million remaining on its buyback authorization [52] Q&A Session Summary Question: Clarification on estimate-driven step-down and client commitment - Management confirmed that the new client commitment is included in fee-paying AUM and was part of a structured relationship [22] Question: Details on Qualitas US fund and insurance company contributions - The Qualitas US fund will primarily invest in the US and be marketed to European investors, showcasing platform synergies [24][26] - Management noted a focus on expanding relationships with large capital allocators, including insurance companies [27][28] Question: Steps to support accelerated growth in the credit platform - Management emphasized disciplined underwriting and identified growth opportunities in NAV lending and impact credit strategies [33][35] Question: Challenges faced by mid and lower mid-market-focused managers - Management highlighted structural advantages in the lower middle market and the importance of strategic insights provided to GPs [40][42] Question: Impact of M&A environment on the company - Management indicated that a more accommodative macro environment would benefit all players, including P10, by enhancing deployment opportunities [48][49] Question: Current buyback capacity and authorization - Management stated there is $26 million remaining on the buyback authorization and reiterated the importance of share repurchases as a capital return tool [52]