8-K: P10 Inc. Reports Record Fourth Quarter Revenue, Driven by Strong Growth in Fee-Paying AUM

P10, Inc. announces record fourth-quarter revenue of $85 million, a 35% increase year-over-year, driven by growth in fee-paying assets under management.

Summary

• P10, Inc. reported its financial results for the fourth quarter and full year ended December 31, 2024.
• The company achieved record quarterly revenue of $85 million, representing a 35% increase compared to the previous year.
• Fee-related revenue also reached $85 million, a 37% increase year-over-year.
• Fee-paying assets under management (FPAUM) grew to $25.7 billion, a 10% increase year-over-year.
• GAAP net income was $5.7 million, a significant improvement from the $(1.9) million loss in the prior year.
• Adjusted EBITDA increased by 40% to $42.9 million.
• Fee-related earnings rose by 39% to $42.7 million.
• Adjusted net income increased by 39% to $35.3 million.
• Fully diluted GAAP EPS was $0.05, compared to $(0.01) in the prior year.
• Fully diluted ANI per share was $0.30, a 44% increase year-over-year.
• For the full fiscal year 2024, revenue was $296.4 million, a 23% increase year-over-year.
• GAAP net income for the year was $19.7 million, compared to a loss of $(7.8) million in the prior year.
• Adjusted EBITDA for the year was $144.5 million, a 17% increase year-over-year.
• Fully diluted ANI per share for the year was $1.00, a 22% increase year-over-year.
• The company repurchased approximately 815,327 shares in the fourth quarter at an average price of $12.72 per share.
• In 2024, the company repurchased approximately 6,641,827 shares at an average price of $8.88 per share, for a total of $59.1 million.
• The Board of Directors authorized an additional $40 million for the share repurchase program, bringing the total available to approximately $43.5 million.
• A quarterly cash dividend of $0.035 per share on Class A and Class B common stock was declared, payable on March 20th, 2025.

Sentiment

Score: 9

Explanation: The document presents a highly positive outlook with record financial results, strong growth metrics, and successful execution of strategic priorities. The management's comments are optimistic, and the company is well-positioned for future growth.

Positives

• Significant revenue growth, with a 35% increase in quarterly revenue and a 23% increase in annual revenue.
• Substantial growth in fee-paying assets under management, reaching $25.7 billion.
• Improved profitability, with GAAP net income turning positive for both the quarter and the full year.
• Strong growth in adjusted EBITDA, fee-related earnings, and adjusted net income.
• Increased fully diluted ANI per share, indicating improved earnings per share.
• Successful execution of strategic priorities, including optimizing the leadership team, driving organic growth, reaccelerating M&A, generating operational efficiencies, and enhancing transparency.
• Active capital return program through share repurchases and dividend payments.

Negatives

• Stepdowns and expirations of $152 million offset some of the fundraising and capital deployment in the quarter.
• Anticipated stepdowns and expirations for FY 2025 are estimated to be in the range of 5% to 7% of FPAUM.

Risks

• The company's forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors that may cause actual results to be materially different.
• These risks include global and domestic market and business conditions, successful execution of business and growth strategies, regulatory factors, changes in tax status, ability to maintain fee structure, ability to attract and retain key employees, ability to manage debt obligations, and ability to make and integrate acquisitions.
• Emerging technologies, such as artificial intelligence and machine learning, could also pose risks.
• The company's ability to manage the effects of events outside of its control is also a risk factor.

Future Outlook

The Company is well positioned for an exciting 2025 and to meet or exceed the long-term financial guidance provided at its inaugural Investor Day in September 2024.

Management Comments

• P10 delivered record financial performance in the fourth quarter, capping off a remarkable year.
• Our investment strategies carried momentum in the fourth quarter, achieving $905 million in gross new fee-paying AUM.
• We also exceeded our 2024 fundraising guidance by over a billion dollars and delivered strong growth across our platform.
• Over the course of 2024, we executed on all strategic priorities outlined at the start of the year, which included optimizing our leadership team, driving increased organic growth, reaccelerating our M&A engine, generating operational efficiencies and enhancing our transparency.

Industry Context

P10 operates in the alternative asset management industry, providing private market solutions. The company's focus on specialty, niche, and fragmented areas of alternatives, particularly in the middle and lower-middle markets, positions it to capitalize on the growing demand for private market investments.

Comparison to Industry Standards

• It is difficult to provide a direct comparison to industry standards without more specific information on P10's peer group.
• However, the company's growth rates in revenue, FPAUM, and adjusted EBITDA suggest strong performance relative to its competitors.
• Companies like Blackstone, Apollo, and KKR are major players in the alternative asset management space, but their business models and investment strategies may differ significantly from P10's.
• Specific comparisons would require a deeper dive into the performance metrics of similar-sized firms with comparable investment focuses.

Management Changes

Corporate Governance

Stakeholder Impact

• Shareholders will benefit from the increased profitability, share repurchases, and dividend payments.
• Employees may benefit from the company's growth and success.
• Investors will have access to a broader set of investment solutions within private markets.
• The company's growth and investment activities may have a positive impact on the businesses and communities in which it invests.

Next Steps

• The company will continue to execute its strategic priorities, including driving organic growth, reaccelerating M&A, and generating operational efficiencies.
• P10 will host a conference call to discuss the financial results.
• The company will pay a quarterly cash dividend on March 20th, 2025.

Key Dates

Keywords

fee-paying assets under management, adjusted EBITDA, private markets, financial results, share repurchase, revenue, P10, dividend