Q2 2024 P10 Inc Earnings Call Transcript
Key Points
- P10 Inc (PX) raised and deployed $844 million in gross new fee-paying AUM, contributing to a record revenue of $71 million, a 14% year-over-year growth.
- The company successfully closed several funds above their targets, such as Hark Capital's Fund IV at $645 million and TrueBridge's flagship fund at $880 million.
- P10 Inc (PX) achieved 61% of its 2024 goal to organically raise and deploy $2.5 billion of gross new assets, indicating strong momentum.
- The company appointed Sarita Narson Jairath as EVP and Global Head of Client Solutions, enhancing its leadership team.
- P10 Inc (PX) increased its total borrowing capacity from $359 million to $500 million, providing greater financial and strategic flexibility.
- Fee-related earnings (FRE) decreased by 3% compared to Q2 2023, despite an increase in fee-related revenue.
- Operating expenses increased by 4% year-over-year, driven by compensation expense and placement fees.
- The company experienced $855 million in step-downs and expirations, slightly offsetting fundraising and capital deployment.
- Despite strong fundraising, P10 Inc (PX) did not raise its full-year target, maintaining a cautious outlook.
- The company's adjusted EBITDA margin is expected to decrease to the mid-40s% for the year, indicating potential pressure on profitability.
Hello, and welcome to the P10 second-quarter 2024 conference call. My name is Lateef, and I will be coordinating your call today. (Operator Instructions) As a reminder, today's conference call is being recorded. I will now hand the call over to your host, Mark Hood, EVP, Chief Administrative Officer. Mark, please go ahead.
Thank you, Operator. On today's call, we will be joined by Luke Sarsfield, Chairman and Chief Executive Officer; Amanda Coussens, EVP, Chief Financial Officer, and Chief Compliance Officer. Additionally, in the room with us today is Arjay Jensen, our EVP and Head of Strategy at M&A.
Before we begin, I'd like to remind everyone that this conference call, as well as the presentation slides, may constitute forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current plans, estimates, and expectations and are inherently uncertain. Actual
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