On August 8, 2024, P10 Inc (PX, Financial) released its 8-K filing for the second quarter of 2024, showcasing a robust financial performance that exceeded analyst expectations. P10 Inc, a prominent player in the alternative asset management sector, reported record quarterly revenue of $71.1 million, marking a 14% increase year-over-year.
Company Overview
P10 Inc is a leading provider of multi-asset class private market solutions, offering a diverse range of investment options including specialized funds, separate accounts, secondary investments, direct investments, and co-investments. The company focuses on middle and lower-middle markets, with a portfolio that spans Private Equity, Venture Capital, Impact Investing, and Private Credit. P10 Inc generates revenue primarily through recurring management and advisory fees on committed capital, typically locked up for ten to fifteen years.
Performance and Challenges
For the second quarter of 2024, P10 Inc reported revenue of $71.1 million, surpassing the analyst estimate of $65.88 million. The company's fee-related revenue also saw a 12% increase year-over-year, reaching $68.3 million. Fee-paying assets under management grew by 8% to $23.8 billion. Despite these achievements, the company faces challenges such as maintaining its fee structure and managing obligations under its debt agreements, which could impact future performance.
Financial Achievements
P10 Inc's financial achievements are noteworthy in the asset management industry. The company reported a GAAP net income of $7.4 million, a significant increase from $2.1 million in the prior year. Adjusted EBITDA stood at $35.4 million, slightly up from $34.8 million in the previous year. Fee-related earnings were $33.6 million, compared to $34.7 million in the prior year, while adjusted net income rose to $28.8 million from $26.7 million. The fully diluted GAAP EPS was $0.06, up from $0.02, and the fully diluted ANI per share was $0.24, compared to $0.22 in the prior year.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $71.1 million | $62.4 million |
| Fee-Related Revenue | $68.3 million | $61.0 million |
| Fee-Paying AUM | $23.8 billion | $22.0 billion |
| GAAP Net Income | $7.4 million | $2.1 million |
| Adjusted EBITDA | $35.4 million | $34.8 million |
| Fee-Related Earnings | $33.6 million | $34.7 million |
| Adjusted Net Income | $28.8 million | $26.7 million |
| Fully Diluted GAAP EPS | $0.06 | $0.02 |
| Fully Diluted ANI per Share | $0.24 | $0.22 |
Commentary and Strategic Initiatives
“P10 delivered robust performance in the second quarter as we continued to advance the strategic initiatives we laid out at the beginning of 2024,” said Luke Sarsfield, P10 Chairman and Chief Executive Officer. “Our investment strategies have strong momentum in the market, with multiple fund closings exceeding initial covers and $844 million in gross new fee-paying AUM in the second quarter. We remain steadfast in our commitment to our growth initiatives as we further integrate our diversified platform, establish best-in-class systems and processes, and stand up a world-class inorganic growth engine. P10 is positioned to drive long-term shareholder returns as we create value across our leading alternatives strategies.”
Additional Developments
In addition to its financial performance, P10 Inc announced several strategic developments. The company appointed Sarita Narson Jairath as its EVP and Global Head of Client Solutions, effective September 16, 2024. Furthermore, P10 Inc repurchased approximately 1.5 million shares at an average price of $8.12 per share, with an additional $12 million authorized for the share repurchase program. The company also expanded its credit agreement, increasing its total borrowing capacity to $500 million, with maturities extended to August 1, 2028.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from P10 Inc for further details.
