Earnings call transcript Q4 2022

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Operator

Hello, and welcome to the P10 Fourth Quarter and Year-end 2022 Conference Call. My name is Daniel, and I will be coordinating your call today. [Operator Instructions].

I will now hand the conference over to our host, Mark Hood, Executive Vice President of Operations and Investor Relations. Mark, please go ahead.

Mark Hood

to Fourth welcome XXXX and and Call. Conference afternoon, the Quarter PXX Year-End Good Hood, Operations EVP Mark is This of and Relations. Investor Webb, will Officer. Financial we and Operating be by and Co-CEO; Clark Officer; Robert Chief Fritz Coussens, Today, Amanda Souder, Alpert, joined Co-CEO; Chief Chairman

as I'd within well Securities the Securities Section of presentation Before meaning call, we that Act conference constitute XXXX and Litigation of Securities of the Section Act the to of Exchange like begin, slides, XXE of everyone may remind this Private as the statements of Act XXXX, forward-looking XXA the Reform XXXX.

in reflect due for on and expectations under future to from subsequent XX, risks or SEC a statements by time. report that in those and results XXXX, differ in Form ended time current our and may and implied XX-K on Actual from filed greater annual number December described Risk materially of the SEC year the uncertain. filed with Forward-looking with XX, XXXX, plans, factors periods expressed the other management's statements detail are to are forward-looking Factors March estimates or reports inherently for these our

only law. no the result revise by as are hereof. We information date or undertake new of Forward-looking included forward-looking statements statements as except obligation required otherwise made or update a to of any as future events,

the turn now call over to will I Robert.

Robert Alpert

In of private strengthened position records provider lower and by expanding XXXX the markets long a Good middle year market. fourth as of afternoon, and the diverse dominated by market and set a strong track call. with double-digit challenging specialized variety you Driven an our year PXX strategies solution quarter the thank profitability. delivered macroeconomic and middle growth and and joining in for premier more investing we shifting backdrop, cycles, of full through

WTI, increased performance, increased leader a For completed the XX%. XXXX, EBITDA debt growing of financial venture noteworthy Revenues acquisition PXX XX%. in space. Besides the XX% delivering adjusted AUM clear and fee-paying increased market

we reflect have We much to achievements. year's the thankful on as for be

to guidance, call. previous share profit fundraising consider we this results the in growth. XXXX, expected we want revenue As in reaffirm and later Amanda will more double-digit our about which

to December we One additional In that the I of X,XXX,XXX shares XX, average million is quarter, our and price mention XXXX, stock $X.XX. on $XX announced stock purchased want more fourth an we an found at thing undervalued buyback.

flow We will continue deploy to seek to our cash shareholder opportunities returns. to free augment

hand to the will I over Fritz. call now

William Souder

may macro closings in and fund may that Robert. us you, take it. decisions out ways of markets, GPs, LPs Thank Despite Experience value. front with longer market some uncertainty, allocation and times them during staying headwinds to deepening volatile in our and to taught of our relationships make has of for we're public add to continue investors listening stretch

is few it remember that a outlook. important However, driving to factors confident support our

investment think especially excellent equity on disciplined I process. of vintage track our the venture relates LPs and understand many returns, capital With of records First, a time-tested private our as long strategies. and rely it we to value and diversity,

about we new allocations. the more generally as Secondly, we're have positive their entered LPs seeing year, XXXX

of Some mirror. simple to the in fact rearview is that XXXX this is related the

as optimism a denominator few reduction be the to the months. over public of may past markets of due the some And of the effect lifting result the

funds investors catch-up in commit that periods. period Finally, the launched remember the from originally of during prior fees fundraising are earned

lost revenue rather period. is a late in is So realized fund a allocation later revenue, not it

selective this and opportunistic are the in side, current deployment environment. we On

thrive in the lending, disciplined GP debt and stakes, Our benefit NAV market. and credit investment approach products, a venture all from current can

organic ability to confidence gives growth. this us in of our deliver All continued

objectives. GPs available for to We a means with built value creating cyclical their It to For clients lineup we investment surround with and from solution multiple over the in market to funds have we products add while dozen to XXXX, expect have market-leading NAV countercyclical ranging ways stakes. market meet to LPs ones. to existing GP credit and space lending products, with new

think launches, closes growth fee-paying more half timing fund and second the to of AUM of we deployments, As expected year's XXXX. about the skewed likely this is

filings, the we Over which growth. us This which well have past we to positioned terrific are returns coupled our our for observed believe that established you competitors. appear see LPs more in we benefit, gives over with year, managers, demonstrates public that favor continued will advantage

turn now will over call the Clark. to I

Clark Webb

Thank you, Fritz.

have As that we of business we supporting shareholders positions we secular remind reflect on the to why believe it's to demand. PXX tailwinds advantage model private time uniquely superior excellent a market an XXXX, take

built long-term and difficult upon that is returns our are foremost, business classes asset in to investment access. model First

to middle With impact the flagship having equity PXX engine alone, a the stakes middle second fund and Across our none. now engine record private classes, lower believe venture in funds measured over across venture many we is middle series with and market track equity strategies covering and traditional market have credit credit, asset credit, franchise, GP lower investment investment equity market X and and a we dozen by all our private decades. leading multiple supported impact

is sometime our there In access not offering there for do in investment RCP, kind example, expect believe investment to we of out launch At the short, we XXXX. with to another exhibit. manager long-term scale performance XVIII verticals institutional Fund we

the a Fund a win win Next, LPs, believe in we employees. for truly win-win-win: PXX and shareholders PXX for We for PXX believe unique. PXX is a win a alignment

the of commit the carried vast it As of interest. virtually the our investment LPs, to relates all put our GP and received personally professionals required up majority

more multiples and insiders are we other platform evidenced of and are success own shares acquisitions managers significant to to we employees, lower than for long-term the X unbanked believe transactions. what unique as it GP investment leading As meaningfully PXX last XX% investment over the outstanding, our at of off-market committed by is public stockholders, the strategy, our years than believe expected of And PXX given interest. relates each carried the co-investment

fee-related all investment tax of Finally, our of combination alignment believe model leakage results the none. reinvestment and second in and earnings business peer-leading a meaningful requirements. no with our little earnings Virtually to that are we is manufacturing

In in of double-digit decline peers expect a year adjusted XXXX to EBITDA and from revenues, growth expect distributable levels, ANI. earnings we some and our where many meaningfully adjusted

what As over to value. a a deployed excellent result time. sell-off have and our business at levels believe of model material PXX free prove we recent in our generation, the discount stock an will advantage the to of been confidence is shares We cash we taking capital market robust believe purchased at on intrinsic we purchase return have

the over Amanda. to me call let that, With hand

Amanda Coussens

capital assets year-over-year Thank was $XX billion, Fee-paying basis. management $XX.X the $XXX of increase stepdowns under fourth XX% you, were in million a and fundraising by Clark. and on million In expirations. offset deployment a quarter,

down expirations. For stepdowns Fund steps the XXXX, first includes VII billion $X.X half which and This QX. of WTI's in we in expect

For of part has the XXXX, of at business period we additional a an Stepdowns our a the expect million. reduced take of fees. end are when and $XXX of place a fees second half typically fund's full normal a fund after or and expirations life

rates the the from XX% our during additional AUM fee $XX Revenue in higher fourth closings higher quarter a XXX the was revenue for Average $XXX $XXX on quarter. fourth million, coincided to the fee-paying increased quarter of the and XX% quarter Year-over-year was in over increase. increase a basis as XXXX. fee strategies million points fourth combination rate with fee of WTI's million

our all normalize We have of XXXX to as consistent expect points rate across we to off and Fund closings basis WTI's strategies. fee XXX VII rolls

Operating ago. of expenses in the driven million, fourth $XX a expense a Hark. by increase year The was primarily acquisitions stock-based quarter compensation over Bonaccord and additional and and increase compensation XX% WTI, the period to were benefits same related the noncash

expenses million, fourth a operating in our XXXX. over our were consolidated first operating financial XXXX, with $XXX For increase expenses XX% was WTI quarter The reporting.

when was Adjusted increase million, $XX was quarter reported what year-ago the fourth net million to fourth income $XX On interest year-over-year to $XX million, the the increased increase. is XX% a GAAP $X a difference compared a and increase basis, in in expense. growth income XXX% in a XXXX. in net double-digit over of from fourth EBITDA to attributable a The quarter quarter the primarily million, revenue period. reduction XXX% GAAP we

adjusted grew XX% $XX increase. from to million million, EBITDA a $XXX the year, For

We believe macro an XX% difficult model. business environment our EBITDA of durability in otherwise growth adjusted and reflects of the strength

quarter, operates our adjusted year, full XX%, EBITDA the margin a at the and average For WTI than for the other as was was strategies. margin XX% of our lower it

provided our consideration between to direct our margin pre-existing scale. and combined growth For and adjusted strategies WTI integration XXXX, rolling we XX%. XX% a of August, full VII take implied carry the continued expect can the into off, with that PXX equate EBITDA margins we WTI WTI PXX This the as margin model Fund last strong of reflects guidance and into which they you business guidance lower the when

We margins favorably a EBITDA hitting expect basis. peers revenue, rates and we Again, believe XXXX AUM and growing at still adjusted adjusted a expected to to goal double-digit strong should our ANI on $X difficult maintain year-over-year billion while in double-digit growth compare gross environment. in

the For the XX% reported the increase fourth million of a in $XX quarter, adjusted over was fourth ANI, net income, $XX or quarter million, XXXX.

managers. share, highest $XX of a increase. year, XX% grew echelon which in us to XX% asset $XX year-over-year publicly diluted on million the from ANI basis million the ANI per a EPS $X.XX For increased traded Fully for to puts

efficiently our minimal cash We adjusted and continue income of $X to interest due leakage expenditures, convert of due net tax tax assets. to amounts adjusted to EBITDA capital small to

reminder, and assets: in million our loss of composed net tax a $XXX $XXX tax distinct X As million assets operating are a amortization.

posted paid period. our review financial state you If additional note tax you today, the some statements will in we

$X we state to York, in million obligations. we expanded California have about our New to footprint As expect annually and cash tax have

equivalents credit were the At of an had balance of the the and debt $XX million at $XX year-end, on available $XXX facility. cash outstanding million million. end fourth current quarter we Cash and

quarter. also stock repurchased X,XXX,XXX of shares PXX in fourth the We

believe we an the XXXX, of We price PXX repurchased our at of accretive per shares of capital have For given $X.XX view share. an of the franchise. value use represents X,XXX,XXX this intrinsic average

our continue per also B Class dividend quarterly of Class for pay stock. share $X.XX A and common to We

of have of XX, on of record March XXXX. dividend $X.XX share of March per declared business a We the payable to XXXX, as close on XX, stockholders

XX,XXX,XXX shares. shares XX,XXX,XXX were Finally, XXXX, our outstanding Class at December Class B A XX, were outstanding shares and

closing pass to for will the Robert I call now remarks. back

Robert Alpert

Thank you, Amanda.

Now a let's the it for operator few questions. turn over to

Operator

[Operator Instructions].

of Stanley. question first Michael comes from of the Morgan The line Cyprys

Unidentified Analyst

'XX. you're fundraising reception getting here Mike. just heard what's guess, the -- describe [indiscernible] about you I particular, when just you're what standing the more on? better cautious Which been walk Which for resonating? these generally, music bit are strategies, you strategies meetings? a are in mood I into And quickly. Could could us I for If hearing? the Stuart It's ask in really to

Clark Webb

I Absolutely. so for couple of the Thanks things. question. Yes, say would a

capital, First raised but most an had good was great a as hear from It of it actually spread we we you our a all, evenly amount many strategies. still of QX. and can across not easy peers, our of was of very QX

of see one So nice we in our are interest single strategies. every continuing to

the We would countercyclical. benefit are do in seen credit more our out of strategies as some have call strategies of particular. I some having that

of And benefit able our strategies. the so do we some credit of with lean believe that to in are getting we being

And that we just structural like have are many growth then we in feel mode. a

success the folks everyone lower stakes in sees how that recent is, there. such, And GP think large announcements, is stakes. continues interest how And as from GP premier to market the we continue to given institutionalize. peers think we as continuing Bonaccord in middle have market and of the business our franchise seen that I expect larger

multiple the both across classes. again, to with invest So credit opportunity in asset equity built PXX we and

being interest. particular, the in our stakes, gathering one with those wouldn't And amount benefit We some and GP we of dozen is certainly interest. that significant significantly in of outperforms others. the a a of They're have than nice have say which countercyclical the strategies strategies. some more have market I we all But generating

Unidentified Analyst

a been we Crossroads. up if I just about there. we while know talked can update could follow wondered get I if a with question little And I an about that. since it's Great.

incremental? So can share anything you

Clark Webb

being get want It think Crossroads. generated dollars That we ahead news. to fee-earning out really I and there hundred the out proving has few and is share been said, don't material so origination we a is has assets, now certainly put Yes, is the enhanced listed of what won't company, any machine. that of a this strength million is of it relationship a nonpublic

returns, at direct dollars would impact generates, I are deployed really great we so is having certainly to risk-adjusted ago we what importantly, to but clean months second millions of this Crossroads, questions think, slate, a given none. hundreds started returns of And the think where we great XX now that portfolio with and

going. how are We with that's thrilled

Operator

Beatty of comes The next from question Adam UBS.

Adam Beatty

angle. to little a little Just point. going may talked back effect the this kind circle on of maybe at be a from different wanted bit about Fritz a denominator fundraising, of bit away

here do little some from here? rally you do need we pause know more you So enough this is that the I generalize. and of markets and combined so LPs could, sense a of just or a on, from by just is be you've number effect, really with difficult your wanted got it middle that of a I But if to get public may to offset maybe backdrop, year last potential reallocation, to Or market large terms think, a in that of LPs, flat denominator from LPs, end bit year?

William Souder

then is some movement this pretty said, XXXX. think we've as But jump in you I'll guys, and here Yes, good in. it seen start I early Fritz.

slate most again. of us money 'XX. off definitely And so reinvest of year ran to 'XX, where the our We reinvest had had the LPs towards there's they they to a in clean for 'XX end to to where some institutional push over-allocations into into

uplift can will certainly. be be now us that given and end we clients most talking need public our that slate, guidance. the in there of the fairly engaged right markets and continue, we where seems I about that we we're sectors of with think nice, it guidance do be to 'XX, we that investing confident you Whether will a the We've think hit would to to of and clean all in in by of I see think continue. we're 'XX, the pretty But

Robert Alpert

best think -- to has our we yes, ability easy or able there, I the raise Fritz with But we strategies our No, be out our fundraising and raise to make of over feel capital even ought Yes. in capital has records the to times. a It's I think never it. and dozen Fritz across confident track sets opportunity through different nailed numbers. to

Adam Beatty

That then environment of lending? are I of quick of sounds much thinking LP good. just for a those and your towards tailwind you some seeing how could, follow-up the And strategies sort might NAV geared just of pretty of on strategies? if liquidity, And that a types current be secondaries in maybe

Clark Webb

market last GP-led secondaries, couple very would I obviously, And Yes. those waiting everyone is in was valuations. say, downdraft, the market of years. secondary-focused over for the with the XX/XX

And powder secondary We more dry expect we've to see traditional of LP-led secondaries lot more. got our fourth fund raising XXXX. thankfully, in in and a

half So we the front a more that. year, advantage to to be a does It back but are feel see positioned we like like that of we're starting that's of take going well of than half of feel out. certainly the year trickle to

that be lending slow, GPs have in of paid vehicles acquisitions. have side, On out of have we businesses tool you that time the is Anytime velocity portfolio. healthy to multiple continue their to have continue for you and great add-on transactions to lending just extract NAV NAV NAV the need value allows to think yet to it's a lending. a

So pipeline. like we great got feel we've a

We lending for of like it to fund speak. we our are fundraising NAV strategies in. does fourth were lean those feel as able And both

venture I folks believe lean at some secondaries a we thing secondaries. a secondaries. had one given arrow be do as a third of venture read newer another quiver that our venture venture success we've clearly, I our market. can of launched in dislocation. least the peers of this into have has But think we It everything in actually I have our a we is Fund announced in in is that know lot world,

Operator

question And the Worthington comes JPMorgan. Ken of next from

Kenneth Worthington

wanted I dancing here. around keep to fundraising

the to hoping just year towards you're end loaded contributing delay LPs Given assets, the LPs the what with a we to the your that see further to you where your see we back-end witnessed for product? risks fundraising XXXX, sort have less later sort XXXX? do why that raise to repeat capacity LPs, capacity invest are don't And have in of these the again, more of and of

Clark Webb

Yes, it's ahead, thinking great a I'm -- go Fritz. question.

take it. You

William Souder

it great was a just question. going to Yes. I say, is

you'll ship One about RCP such as a LPs. see, have out, because pointed launch of It's the long is to things with I Fund XVIII. track we Clark think records, slow-moving

pretty the of some have are queue early us concentrating with We in good we vintages. would LPs, the of are I the They're funds slotted say, in we in QX. most where of year maybe of that at a are But see in lot can them. right the for queue. And now the about closing throughout

see that's the in throughout Most right year so the might now a little funds our open later And year. be larger you of the of probably in bit 'XX. why things will calendar

in why first one -- that's than here. have first I of so maybe anticipating a been half, we're couple the little we half the the pretty reasons good months And of second stronger in think the although

So excited. we're

Clark Webb

thinks we I unique. are do like where asset difficult would and feel offering are access they're unique, moat our obviously to just other and historically but pitching And add, PXX, between that Everyone a we there's Yes. are offerings. we great classes

venture really to really but are these in the large of are they're -- credit, list. classes We we deep for capital PXX where live like first more middle protected are although are player institutions less asset are time our up impact as commit things in to smaller, venture more private that a a we week, they lending, equity, entire have lower do the that, extent in those are pop the of so And we extent verticals. are top the peers to those feel able looking to raise many NAV structural, world in and and cyclical, like multiple And market stakes an competitors. not to commit to GP really the wanting top we capital, We maybe equity, there verticals.

we it, if a talked early innings but on a very front can unique about cross-sell. do record We we are many of get in that track invested know I cycles. haven't offering have through we we like And has feel we believe, still, with great allocators, product

hope venture that. in launch be next You a record with to our We lot cycles that's think to credit. XI, a in different of Fund about year a XX-year track position

LP confidence when of cycles. I think we're generated able the types the to see of they returns through gain we've

Kenneth Worthington

longer-term stepdown that is the remarks, Great. of sort prepared thinking, the off you little in as down. fee this XXX And think, a X, steps rate, to rolls but or bit highlighted the I WTI's

but As you VIII that there we with should up will Fund up back start towards popping fully VIII gets think raised? of where XXX think to creep sort about that XXX fee of Or are to there little offsets XXXX XXX bit to Fund rate level kind range? to won't of sort about as get fundraising, a back maybe that it

Clark Webb

-- Yes. far give right. about our not We're you credit. certainly When is want fund, you're guidepost, the guidance think giving too of appreciate XI we in get you meant Fund to venture skis. But something our question. we front And always on I think

presuming turn that does is fee XI, a higher Fund in that product. So XXXX, on

raise being that that average all So things equal, would fee.

the we're said, market being like and that. things in discussing constantly SMAs That

you so land the know whales And we process. some if other never can in

average right, equal, puts you're absolutely that the is And as 'XX, have progresses. raise assuming all in for is fee on a XI much like things the additional So Fund fee would being then turns year guidance and what and year to we takes the rate. higher give do that vehicle. But

we having Again, fact components about and instructive growing is down rate, the on bring our direct given margin did the One our are strategies our our faster thing. we talked did are that WTI given the lower businesses our come it's our that a long-term model. fee bit fact we fee fund profile. about direct think is than time, will a that on EBITDA how, wonderful really talk of upward X and same I of a rate, because our slightly funds, we typically have pressure margins which At

the from I guidance WTI the gave we think you when we can acquisition. did glean that

so it's every And venture balance a little credit, have given lending, margin. than where whole, stakes getting we on credits like of NAV do up growing and also bit faster dollar, fee-paying PXX that things paid more as are a are impact that but we we certainly GP giving are

revenue, on look we we on up talked reiterating fee we with XX% much and margin. good news it we at then and AUM that's in about to XX% well in going like pretty basis to feel is stack feel as The like XXX EBITDA. XXXX, talked our that range growth about adjusted EPS adjusted the produces And growth EBITDA guidance. And that We've double-digit rate point against everyone.

Operator

Brown The next Mike question comes from KBW. of

Michael Brown

you the talked will about buybacks. capital share in preferred avenue stock's So DNA. allocation like really the be the PXX's here, your remarks growth here. is valuation does cheap perhaps share And prepared repurchases to sound M&A it given core a But

how balancing in you that how of the And looking that terms is are two? goes decision? acquisitions, So really currently? What into pipeline then

Robert Alpert

our the buying and Well, to sure us very of made very capital necessarily a on use buyback cheap capital. we is allocation. was return the an and perceived to capital buying incremental not great opportunity make It good what of our a market in is And I we cheap -- want back, investment. preferred us -- ourselves advantage take gave stock

That being with capacity said, and there. appetite partnerships for of have we further plenty anyone out

-- they to track beach. and off selling long-term they they the unique conversations we just the do time. manager on, a well We going not in or to as need lower strategy. managers. market have have of middle taking to table records, and be lots They market completely the interested It and out or focused know, the need -- takes you money are that, middle superior all One,

with into So partner and they buy to want to really need us.

by kiss we've folks. marry of takes -- we of can see our been a a stable great And to you frogs. unique that so lot lot a of able strategies, as And

Michael Brown

point. a that guess just I on follow-up

venture suite have private credit, GP middle market market certainly capabilities now really of across middle equity, lower stakes, private full a venture You debt. equity, now

as what So platform for capabilities perhaps we Anything kind here? that your you could next think niche that to? fit you there focus could attractive on that unique inorganic step think the certain kind of PXX should point the about of growth? Are be us

Robert Alpert

given scale ability lots niche we to have ways of credit with deploy unique today. what wouldn't the credit opportunity always and in capital to already that there's Well, compete

we're always opportunities at So looking there.

to strategies -- we real any Clearly, there's America expansion, that estate or the or And real geographic whether able clear Asia or we of have that fit infrastructure. to lots Europe but real existing. we real the have strategy, probably estate Latin credit-related around strategy there's strategy move the of would estate if then estate probably, it of were dialogues with folks. it's easiest would Real sense probably be we lots open are -- then estate, make going if don't well, type or was most have in and a to a into

continue just grow great it records will but with all be long-term and bolt has and can us, on to with us. to them partner to help help great track of like -- they and So a opportunity we to

Operator

The next of Ben Barclays. comes from question Budish

Benjamin Budish

of 'XX XXXX. last us fundraising 'XX, combined kind to wanted some year, look the follow any expected might know early you this but gave I can from question Ken's like? what on of on the in XXXX earlier for half wondering give kind guidance guide. back around those And momentum gave you I I'm a up are given there optimism kind 'XX, areas, of thoughts your about you year of sort of of and

Clark Webb

and think XI cadence. saying WTI Fund in is a guidance. expect I can is than forward other forward, the see love great. that. so This from that This -- we XXXX I Yes, you

you to look launches. at differential always the our in returns you which, of encourage folks kind of the again, can cadence we If page see, go see

can you about. vintage when is specifically But of the only that XI. next think to is you the kind targeted come So estimate one Fund we've going

a now. couple that out let these beyond. quarters, we're Give right hit our about coverage of 'XX sure beyond talks with out And first. think we'll something us I and pretty us then that, kicking I'm targets come probably

Benjamin Budish

one It sort expecting. if to what just we talked you of EBITDA call a in a came there? seems year. and of like little bit And more Anything could kind enough. Fair than bit the the for out on I mix this about maybe were margin guidance I lower structurally our lower parse else at margins mind? of shift mean, keep out be that's is margins kind profile time? anything there increase there of to I going in alongside of any over are to And to sort sort hard WTI. pieces Is enough to guess the Or that, opportunity end? that moving WTI there on

Clark Webb

Yes.

boots so. to look to So that's absolutely margins These But the be it we is high-fee enterprise there's we We And WTI the as are are at significantly We faster term of great way can added increase? fact as think the are business a expect margin they hope we so. our long right paying, are than require on wonderful. But and that think that whole, XX% the XX% related market 'XX. and right lot that strategies, the these businesses structurally businesses. those lower-margin think outgrowing ground. strategies to Do we it. the We a necessarily growing more to a fact WTI certainly the direct is in lower business as And a now think in runway. whole. those in remember, do the we think don't

presumably XXXX. XI about talked potential Fund margins on that haven't a we incremental hit would So the as

Robert Alpert

We margin, care really that's products what have better those on and about. revenue we increase, but lower with fee the to dollars continue

Operator

comes Chris question of next Oppenheimer. from Kotowski The

Christoph Kotowski

little a to is Most XXX. was up of around wanted mine I around the rate. I now prior fee guidance just follow have points, basis been XXX asked. on bit the always guess

kind doesn't bit a you is that all added point, no that a of historically, the -- the that impact this strategies of boosting early other year. be you you've of anymore? So with quarter seasonality it there the it that fourth was had presumably, there? still main in Or so -- by quarters of WTI, pattern had difference indicated given less seasonal should but is and Is there the muted

Amanda Coussens

Yes, quarter It's not strategies for there a seasonal the expect same just that we in the reason. quite added. the still is additional impactful pattern overall fourth due to as

Christoph Kotowski

I'm just Okay. And never actually mind, set. -- all then

Operator

The Campbell of John next from question Stephens. comes

John Campbell

forma wanted strong rate. a year. guys of million, just highlighted to the I XXX XXX $X.X think the pro on $X.X so, dead metric. a at I one presentation, The beating as fees? -- you catch-up the close on bps touch horse in is the reported, risk that fee that more Congrats million maybe the And is there, the you here, the or Is difference to

Clark Webb

Yes.

we So had added QX year. in We can which fee those that the different this the come you certainly to VII rolls the which bank that on script, We off had we well. broke components and out as we in that I back three had rate. WTI Fund still was fee fees, at think our and of beginning catch-up acquisition,

us see that certainly that and And QX. helped But that, Again, that so steps expirations. in in that's you'll stepdowns down.

are growing is And think do faster. our our Thankfully, we of products fee growing we then higher have to be last nicely. going the products all are

want that -- stepdown? Amanda, GP upward our stakes, look to credit, we will to strategies direct at be, NAV impact the did you from impact lending want do growth, some QX and fee-paying a And what take had so they the and don't a you we lot just our when have very certainly of overestimate -- pressure. but our reiterate AUM our the saw stepdown

Amanda Coussens

to. we Sorry, was -- million the quarter, was catch-up add I the don't for fees, think year. for and $X.X going step had for I million John, to actually $X.X to I

John Campbell

And helpful. talked rates past That's there you across then pretty highly in loss degree and having cycles. then around on a Okay. -- the you guys their back WTI, of basically somewhat various consistency

more maybe bit -- guys what could a deviation if if be So to may guys little what expecting, today, you you a dicey. any get you're for things talk expectation seeing there's

Clark Webb

from XXXX, cycles, It's marketing including which loss I'm extraordinary it. in when over it Yes, about to the talk at different fund, than certainly stable we deep high that's rate targeted cycle to the low a very the around high-yield has multiple be are pretty incredibly it, returns sound may high Xs. index. here and U.S. loss kind not was like although yield. of XXXX, Meanwhile, comparable that X%. decades again, at the targeted through And going really to Xs I the world, returns that Xs goes venture like It multiple been think

really So play credit. interesting role an institutional this can we product think in

the in return Historically, venture-focused, because of cycle LP more fund. this look an thus an allocators cycle institutional again, far base much and XXXX than but And the XXXX. that different really loss has have includes think profile at awful is no the And does possibilities credit of it low the extraordinarily we given should been this others. any

So excited we're fund. very about this

Operator

Michael Stanley. next from from the Morgan question comes Cyprys And

Michael Cyprys

If venture could piggyback question I the just on again.

raise You equity right go talked countercyclical may firms of at time may want the some about and to you WTI where being product now. back acquisition the this have a potentially that not

moment. this And past people are valuation right the at the still what's also, space Is venture sort especially what so? the in you side or this? to seeing the what of demand seeing you're Is XX to that over allocate what happened months happy out? thesis you given to playing are on curious of that now -- Just

Clark Webb

Yes. Great question.

different to couple it So will -- I'm in answer going a of parts.

have of to round equity down that terms venture-backed a and rather come great than the us. companies In are from market, raise borrow you wanting absolutely

is that tailwind. So a

it's you in think shifting environment the You also favor. down -- when can go it's competitive We our through interesting cycles, shift.

a and XX-year and highlighted. that's choice, They're that's this reputation WTI like has partner where good bad. it's earned really of times in a times been

see. I so that on others we goal shots don't think And have most do

tell. it of to the early too demand, LP In is terms

half get deploying X. XI We really We'll are Fund going back the terms the in preparing Fund in to of launch that fund. still year of

folks So about I history said, wait That it. tell. to given what risk-adjusted can't given the too think to unique opportunity and certainly early and to set given we would we very XX-year talk are say the being returns,

Operator

team we conclude today's that, over like the for I the conference closing to remarks. question-and-answer will to pass with session. would And now management back

Robert Alpert

quarter. everyone, reach joining questions we'll you -- follow-up next to out, you, any us. And for talk other Thank and or please

Operator

you participating. And today's conference we with call. conclude that, for will Thank

now disconnect may your You line.

P10 (PX) 6 Mar 232022 Q4 Earnings call transcript