P10(US:PX)2022-08-13 01:13Financial Data and Key Metrics Changes - Gross fee paying assets under management increased by $1.2 billion, ending the quarter at $18.5 billion, representing a 30% year-over-year increase [9] - Revenue increased by 38% year-over-year, reaching $46.7 million [30] - GAAP net income increased by 351% to $11.2 million [33] - Adjusted EBITDA rose by 52% to $25.7 million, with an adjusted EBITDA margin of 55% [34] - Adjusted net income nearly doubled to $23.2 million, a 99% increase [35] Business Line Data and Key Metrics Changes - Organic fee paying assets under management grew by $3.4 million, or 22% year-over-year [10] - Significant contributors to fee-paying assets included Bonaccord Fund II with a first close at $367 million and RCPDirect IV with a final close at $645 million [18] Market Data and Key Metrics Changes - The company noted strong deal flow in quality assets, particularly in credit and NAV loans as private equity exits slowed [19] - The impact investing segment, Enhanced Capital, is positioned to leverage a permanent capital vehicle with Crossroads Impact Corporation, potentially providing nearly $500 million in dry powder [25] Company Strategy and Development Direction - The company focuses on a diverse range of strategies and does not rely on any single fund for growth, which allows for resilience in various market conditions [17] - The company is evaluating acquisition opportunities while maintaining a disciplined approach to partnerships [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial model, which is designed to perform well in volatile markets [22] - The company aims to raise approximately $5 billion over 2022 and 2023, supported by strong fundraising momentum [11] Other Important Information - The Board of Directors declared a $0.03 per share dividend payable on September 20, 2022 [12] - Cash and cash equivalents at the end of the quarter were $23.6 million, with plans to use available cash for debt repayment, dividends, and potential acquisitions [38] Q&A Session Summary Question: Thoughts on stock buyback program - Management indicated they were in a quiet period and had orders that were not filled, emphasizing the importance of returning capital to shareholders when appropriate [42][45] Question: Momentum in separate account side of the business - Management highlighted a diverse ecosystem with multiple strategies raising capital, indicating strong momentum across various funds [48][50] Question: Details on Crossroads partnership - The partnership with Crossroads provides a publicly-traded permanent capital vehicle, allowing for impact investments and fee generation [56][58] Question: Retail product initiatives - Management discussed early-stage efforts in retail channels, including partnerships and product placements, indicating a long-term growth strategy [60][64] Question: Fundraising and cross-selling statistics - Management noted initial successes in cross-selling across different platforms, particularly in Europe, and emphasized the importance of building relationships over time [70][73] Question: Impact of VC market pressures on fundraising - Management reported no near-term slowdown in venture capital fundraising, despite market volatility, and expressed confidence in their ability to access premier venture capitalists [74] Question: Update on dry powder and deployment - Management indicated that the Crossroads relationship represents a significant dry powder opportunity, with capital deployment expected to be gradual [77] Question: Dynamics of Bonaccord Fund II - Management confirmed that Bonaccord Fund I is fully committed but only partially drawn down, and fees for Fund II have already turned on [81][82]