P10 (PX) 15 May 232023 Q1 Earnings call transcript

Company Profile

Participants

Mark Hood	Executive Vice President, Operations and IR
Robert Alpert	Chairman and Co-CEO
Clark Webb	Co-Chief Executive Officer
Fritz Souder	Chief Operating Officer
Amanda Coussens	Chief Financial Officer
Kenneth Worthington	JPMorgan
Michael Cyprys	Morgan Stanley
Chris Kotowski	Oppenheimer
Ben Budish	Barclays
John Campbell	Stephens Inc
Adam Beatty	UBS

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello. And welcome to the P10 First Quarter 2023 Conference Call. My name is Matt, and I will be coordinating your call today. one. [Operator Instructions]

you and your Investor hand EVP Mark now Operations of Relations. will over host, to Hood, I Mark, please go ahead.

Mark Hood

and Hood, Good Coussens, afternoon. conference of will Mark XXXX Webb, by Co-CEO; Amanda Robert Fritz first PXX Today, Alpert, Operations be EVP Chairman joined And welcome and call. Souder, Officer. to This Chief Chief the Officer; Investor Financial we Relations. Clark and quarter Co-CEO; is Operating

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

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

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

over I will turn to Robert. call the now

Robert Alpert

metrics. financial all delivered thank that call. another quarter afternoon performance, I’m of you key and pleased PXX the exceeding joining or our meeting report Good excellent for to

of over in able that deploy and fee-paying first are were quarter. we $XXX proud to We AUM raise the particularly million

XXXX, business by we revenue, macroeconomic EBITDA achieve diverse of and adjusted have multiple backdrop durability, a public differentiated predictability. of to Because by and income. adjusted of in plans. delivered growth a challenging. growth characterized PXX organic in continues tools Since October strategies, proven our we model we’ve the demonstrating has going The net Nonetheless, our double-digit value be to resiliency set

we XXXX performance, IPO, Shortly in of billion With gave after to this and course fee-paying guidance remaining raise have billion XXXX. over with AUM expected raised over the to quarter’s our our $X quarters we three achieve $X.X target. we that

quarter, included double-digit adjusted on EBITDA Last market for delivering growth. that adjusted to remain difficult while navigate our and ability net out we laid in confident conditions, XXXX objectives We our income skillfully objectives. our revenue,

to steps will our Clark executive in strengthen we to team continue taking are call, Later the as we discuss grow.

Although, we existing opportunities instead feel any domestically, new we want right ensure our highlight to and M&A pressure a continue strategies organic we deal, evaluate internationally. as We in well the to partner. like find do as but don’t growth, to to

As Clark these say, are likes to marriages.

the In of our million under buyback retained program quarter, December we first repurchased in $XX.X XXX,XXX XXXX. and announced shares

we advantage We believe with undervalued dislocations. continue is take opportunistic our to repurchases and will of to be stock market

dividend annual per of a $X.XX increase share. our a share or Directors our Board $X.XX $X.XX from X% Finally, in approved a share to

model our continue to and stable in to business without comfort reinvest limiting our gives Our growing business the capital concern and our us achieve of flexibility increasing in dividend great goals.

deployment With the and thoughts environment. some call work I results of the team. Fritz? appreciate proud to the on that, now share our will Fritz to hard of over hand our I’m and fundraising

Fritz Souder

Robert. you, Thank

lower XXXX, seven their our deployment I think we’ve middle middle demonstrates model. the this quarter’s focus on all in Since strategies fundraising business respective performance verticals, premier attractiveness assembled of the and and market. of which

of we headwinds, the fee-paying gross despite $XXX added during AUM vertical, equity million quarter. private our In

we’ve been reason wins While slow and continues investor’s with we every confidence for for clients. two that decisions this have to to the this at allocations, as and retains over performance present denominator effect proven retain is decades still investment our

ways investment identifying in verticals, around to package our our innovation manufacturing believe for also We new clients.

call One a of our that the our new to combination products equity. returns. we a is result and Multi-Strat what funds is J that performance primary shortens fund secondaries deliver the is product It co-invest. private within see will you blends with in fund curve table to strong The opportunity the and has

IV launched In is demand seeing we’ve good million the start and capital RCP’s almost $XX a Secondary first II over million. quarter, $XXX with and raised good Multi-Strat now Fund off to is raised. we in also

enthusiasm institutional In our grow be quality. venture benefit as There raise with for and business, managers equity we appears equity to to capital. high-quality believe investors from to flight venture a we continue

intend according to fact, investors to roughly XX% in institutional venture exposure XXXX. increase or to of survey, their a In Venture the asset maintain Journal class Capital

performance we spread Although, cycles, plays happening market of current our In uncertainty, the AUM more million of market fundraising several and because we fee-paying to quarter, $XXX is happening in with of variety products. is investment are a nonetheless we slowly gross think across the market added a long record it track optimistic. excellent in strength,

credit our fleet. to Turning

to has never our at busier lending financing viable more continue the NAV feel the been a by strategy as as We becoming wind alternative. our Hark, GPs acceptable product backs. is

is class in capital are established firms rapidly time. success as and challenging. lending extraordinary is right an more We at flow PE right and place believe to NAV market in need the a asset becoming exits achieve Deal we’re where time the

deal Clark Silicon excellent market. seeing Valley result exiting about a a Bank as we’re this of the flow speak the more in moment. will WTI, For

for and banks gross as risk Overall, we of position off part and go the are more about credit excited $XX of regulations. prepare our AUM added business million market our fee-paying

as see conditions. of improved favorable also potential a the We market result returns for

strategies continues team In investment business. the wide gross our of and strategies. impact AUM. of business Turning fee-paying small it efforts products from proud range I to tailwinds estate. see finance driving across of is in and climate It quarter, and grow $XX exciting with our to to a impact million success the added the first all am real secular lending,

will I call to over Clark. turn now the

Clark Webb

Thank of the confidence macroeconomic banking set SVB maneuver become to broadly you, including a recent particular. in have the challenging too Fritz. upheaval our sector in forces, and in through I has ability what

For smaller much seeing venture was we’re past, of has with solution. in created exceptionally venture combined banks from our largest the market competitor for pullback Their debt. SVB debt the recent our failure, favorable conditions

has over WTI and years a model has market been cycles. is time-tested operating for across XX that business

high are in quality pipeline and portfolio of is Our companies opportunities new condition robust. good our

narrative on We record yield that Fund as strategy high like to XX-year XI see hope we ability In early the alongside year. our combines a demand mirrors yield loss next the words, WTI as and We We the private returns. are equity-like produce strong telling with liquid to private to launch returns. quarters. bonds coming high plan over the WTI to equity-like other forward working clients WTI’s credit it to look risk

to global PXX is positioned that with performed we picture, decades. a strategies Despite believe have challenging over prosper well investment

Looking back when out gross target we ago, went fee in intermediate raise laid months paying billion public $X new we an to assets XX XX-month under management.

on a XXXX committing would XX% ambition. no a time, rates, a small of with bring, multiple the have Russell a record XX billion what in would drop $X global with target months to that At war, Few a the $XX.X in and ensuing envisioned rise bank billion, interest base failures.

for Robert $X.X them months platform. commend conditions we earlier, as to billion are This raised team expect go, and is like at left standing accomplishment Despite today across our our publicly $X these an thank our And nine exceed we already mentioned and their we billion performance. with and would target. quite to outstanding to

in is investing But quarters. continue across even we mere in to to and in with success, our that PXX intend its marketing the we coming cross-sell infancy PXX believe continue

lay an for our role next target As Head retire in his XXXX fundraising beyond, XX-year part after Jeff to notified of intermediate of of his the that and as from process and career. formal Gehl, Fundraising, at incredible PXX PXX decision our us groundwork we

Jeff private large large owner PXX PXX a Jeff a decades equity two over been of invaluable. PXX funds is carried has contribution shareholder, across co-founded large and investor a interest. ago to our his solution and

leadership is the ways to to and in PXX the his way a the to we’re of in informal firm new be marks to find his concludes he’ll PXX hopeful end PXX, support with role expected in and While allegiance his helpful endure formal tenure his executive retirement and future. of a with

bolster As to asset executive a focus around professional PXX result, we high profile with our are and classes specific a none a the actively across searching firm PXX with globally. believe help second demand. investment the raising to and of the manufacturing is We team fundraising

family In short, we thank at you significant and PXX the support outside family, for all behalf continued we on best. of parties. your wish PXX your interest we to from the want and you Jeff, expect

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

Amanda Coussens

million first million stepdowns Fund was $XX.X were management basis. under related assets AUM. fees capital of of to fundraising increase Fee-paying deployment and which expirations on $XXX a in the fee-paying expirations. a Clark. VII, million the $XXX year-over-year $XXX In by on stopped quarter WTI you, Thank during of the billion, Most XX% charging quarter, in offset

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

by the of first quarter of expansion continued increase million, rate a and our XXX strategies, fee as quarter driven the first XXXX. in was such quarter XX% Revenue WTI, the points, $XX Hark. in basis Bonaccord was direct over Average

over the Operating WTI, related additional acquisitions The Hark. a to increase a $XX year attributable compensation and quarter is increase first stock-based the expense million, primarily non-cash were XX% to ago. period Bonaccord compensation, and benefits expenses in same the of

in reported was first was net over the quarter $XXX,XXX. XXXX. XX% the quarter in GAAP $XX.X what of the first million, increase we a EBITDA quarter Adjusted in income

have higher margin. which this we rate in operating continue revenue should WTI lower growth range As low the our strategies, lead calls, and generate direct EBITDA with Moreover, brought in similar on financial discussed XX% Ultimately, prior and profile. a margins acquisition average basis. on annual more adjusted strong share of a the to dollars to we an fee

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

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

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

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

Since additional the debt. $X.XX we first XXX,XXX of paid quarter, In per price quarter stock average $XX.X at of we shares million of an repurchased down end, an share.

for under We repurchases. program buyback have additional $XX.X available the million

quarterly also pay dividend. to We continue our

to payable share on As per by $X.XX $X.XXXX XX, We X%, per our of dividend the on of of record Robert annual XXXX, mentioned, from we dividend are share the on May dividend close XXXX, as stockholders a and per XXXX. May increasing share XX, taking business June XX, annually. to $X.XX of declared

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

to guidance billion targets. growth fee-paying all growth we adjusted for our net Finally, EBITDA year noted, reaffirm calendar and the as while revenue, AUM Robert achieving fundraising adjusted continue XXXX, and expect income $X double-digit the in our

We a growth market believe class this strong peers, us face puts among of the a in showing distinct difficult our in environment.

alongside our next next intermediate to XXXX for QX early fundraising and expect earnings also call XXXX, lay out targets year. We our

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

Robert Alpert

Thank you, Amanda.

a Operator few let’s Now questions. over it for turn the to

Operator

the from Instructions] with of is [Operator first The JPMorgan. Kenneth question line Worthington

is Your line open. now

Kenneth Worthington

first as Hi. message to Hark playing the for investment both Thanks in getting opportunities Good banking think how and WTI, terms Maybe as about clients. well the out of we the on are the deployment, as questions. taking afternoon. crisis,

to fundraising, the sort the crisis? and here? lead and impact the on maximum opportunities So retirement terms banking message needed the of your in investors benefit from of sort by crisis of Thanks. for what from how reach capitalize of And the in ability the deployment, does the terms received your Gehl from banking being deployment WTI Hark to of then is time is Jeff

Robert Alpert

one it’s and questions which is great impressive. are question, Those Ken. Hey,

each take we’ll So one...

Kenneth Worthington

[inaudible]? one the didn’t In entire breathe. time I free

Robert Alpert

that. I The love Yeah. express version.

let’s So take it.

of lending the make So add-on investments lower equity to they play ready a is Hark or fund. to those private in capital fund. to like raise equity would middle to market deployed that most and They defense. GPs, investments additional They are to harvest have capital who private have not

do. because that there and that is market, environment way capital focused are the lower for This the a on we perfect kind stack we of we are lot and whole what sourcing not source of middle doing are players

say would was see would arena. competitive that the We bank occasionally a I occasional. in

I of as think And that’s relative really key more as occasional it’s But probably the is as you deployment bringing the is going in right to our full capital. be it than said, been. was. now, dollars even less to LP pipeline

table, you Our over of closed can we’ve deployed. $XXX IV, which Fund $XXX see million just on of I been in million the capital, think, has

powder have dry we do there. So

We a that a fund but with type also risk, very call is to have return is a an double-digit low facility, the investment-grade are yet capital actively and type return. line we it message, risk-adjusted generating because spreading unique mid-teens open

So opportunity that’s the there.

On SVB been we structural and a a the competitor shift that’s that, was the has in WTI market. side, the primary -- that believe

ready downturn Fund we The expanded XI. since We are for actively and has X. still SVB’s deploying pipeline getting Fund so everything are

constantly of portfolio one is a a are few drinking people to that it per a If the of can’t you WTI why does, do positions hose. It’s we and what think something we are reasons we most It with they from populate hundreds well. think fund hundred across fire do. so companies fund capital about do and hard deploying

talked record has that as a quarter’s I loss high call, think credit. about And last literally this that XX-year in mirrors a yield is track rate we

that about on It excited early days very out. getting message we’re is fund. So the

all getting still ready. We’re the documents

front We do we early pace for believe and year is next end that are real there on launch demand. an

owe of it on he’s he career. nothing has -- Jeff first to co-founded all of XXXX. an behalf solution had private thanks that our equity but As in relates I PXX. for fundraising, mean, done extraordinary We He XX-year all, was him

funds large These hedge carry funds. We PXX years. operating of a interest partners. alignment because Jeff we And vehicles. accrued is know, locked-up the terms model are as has shareholder. it funds, paid love you comes a does are owner commit, be PXX that of the These the Jeff of guys is out over not the Jeff the GP in a brings. would lot next the long-term in large that -- LP not seed XX the from

continue I has a call reasons to Jeff was to today. So help ton them with fundraising financial of on a us.

went about environment that’s he $X But we again, are continue a So target, despite quarters billion a be as helpful. the there of we we laid next we public, way fundraising is to $X.X in target, billion quite will intermediate our think and that macro we talk out five difficult.

next XXXX let’s prepping was He for fundraising to for seeds. we’re continue and had and laid look plant Jeff, XXXX, As some the and intermediate we all foundation, and great iteration of that we that, our other folks goals agreed bring in step. it the a to right

So and the he a is net PXX. and also is think best, we friend the a all Jeff firm win this a for him we of wish for win

Kenneth Worthington

I guess, one. Thank Great. And then, a you. quicker

in big to so $X quarters. a a XXXX, would get pretty -- your pace $X slowdown? get and you’ve billion the that target are far. $X.X for we a should of to expect have slowdown conservative suggest $X You three pretty feel $X it to billion, really next target XXXX we billion you that billion can just raising continue big been Should is and the that or To confident

Robert Alpert

Fund had Yeah. anything roughly these market. of market. known funds are script, about that Vs, Fund re-up XVIII in so the to have Fund a to we have are you into VIIIs. and other comment well think We’ve I funds I I we be -- These we Fund the the a Fund are the read XI -- said billion -- in at we do that we lot market We wouldn’t in target. market. a think in of look will talked $X expect the IVs, the got coming and dozen When than lots a exceed

We headwinds And there. XX years. been feel good think and over very really think iteration an our there business going that’s We the recognize as really fundraising. engine it years about successful so out terms our series about years, is that XX in don’t are that we but a of also we constantly flagship of XX business, of quarterly to next

view not our do abates. in the we offer got great go track our think can When we front what if LP, we’ve there I we lot of a offer are sit slugging XX-year we increase of are records that believe folks number none. percentage is of a to and second that

So we recognize it’s a tough macro environment out there.

put continue to up We results.

the story it We because do comes are QX, a but usual got And in we investing when great going we’ll we’ve at that to think whether see to be is believe PXX. QX, it’s engine, the marketing in, business we money as tell. QX,

Kenneth Worthington

Great. Thank you.

Operator

your the Michael Morgan question. Stanley. for from is of next with you The Thank Cyprys question line

Your now line open. is

Michael Cyprys

question. much Hey. how those that investment second of in you into Good your your business. further back? just strategy? opportunity? And you taking size bank be, could capacity the evening. how I as be the sort into three a then little Maybe would much would Thanks guess, years also have And you or the five to banks would for time pull provide to retrenching, dig How of question say banks the clearly, part bigger parts the lending years’ strategies within

be guys of what and and can your us you you how banks navigate back extent Thank do to from you. the the parts the sponsors? business maybe So what retrenching you borrow where uninsured in from extent from banks remind pulling will to

Clark Webb

others I’ll We to going middle we and believe benefiting talked retrenchment. that, do because impact buckets within finance, are are free the the in. debt talked questions. lending that jump pullback. what’s bank We credit, that a impact Yeah. our to four minority-owned real doing both about businesses. we things win we about we a argue small are franchise, market of in and beneficiaries would the significant is venture climate are and Great start direct beneficiary do XX feel from then lending I estate NAV There believe are in banking lower and those like business of in on

do is And banks. an -- SBIC have actually primary competition Credit then Fund actually are we our where

banking of business So have are beneficiaries four the pullback. we direct lines that

day. The narrative question by project. on to They getting actually think how do we’d a big humming. as be? could there’s we are are great see opposed the it. All bigger four it around I believe rather And

what big message there’s real get the incumbent we around prospects think it message It’s we deliver does to like or because those how on feel determinant how us of do a good runway. can I upon well be the world, out. the the to

we’re about And because that’s our engine, institutional message. unique these it’s talking so GPs why kinds I’m think do these verticals, investing the talking have do about, we in marketing and believe most products of not a we things

actually On it part, benefit highlights the -- market. it’s the our leverage lower middle I in think

portfolio we or larger where downturn can have when leverage equity a That’s in company times ballast X.X average great in a provides about is levered of what far in read rate you a double market, cry be more. when and have actually Our that the think private X We at from times. you to rises the part economy. that the

Asia have The structural be. market within seeds risk. American-focused would things from large it a other in on might we are Europe economy. thing that don’t as of North domestic or I changes whatever growth, middle can lower really is, businesses, we on or going are because much argue macro We in focus

across the you and you cycles, XX-plus So we how it’s can actually we at business, pretty private record see look year do can track through equity that but consistent. think our

if debt And not venture of debt a in really lot platform. our is used venture in equity, debt that’s there’s used there then

like on question the feel exposure your side of pertains equity have kind the don’t venture to. we So we same that

We in I if have GP estate we portfolio. we -- in a Fund we and about are infrastructure. real On diversified we’re and you we’re II, Fund private private equity, in are very think stakes, credit, in

of great and we’ve got like and a as deal this have we group even feel again, pluses might we can folks we have so do think GPs, very a And like as this. many we is rare who a minuses

and times stress, indication I in say would of this think is model of that. the Board, like a QX across I should So an shine

Michael Cyprys

months. Okay. you the out SBIC Thanks. like surprised capital mentioned lending have retrench three of the buckets, follow And those deployment benefit that, that would could triple a with years’ against over expect look think impact you how you the in, sort XX year and areas sort Any there of on just what color on last it, that of quadruple guys you guys just pace of pipelines could to strategy. deployment Credit successful, from be NAV call up or trend, those credit if do and putting bank the been sort maybe you’re four time? commentary five where How you Can or to venture debt, I today? quantify you

Clark Webb

Yeah. as both The is and pipelines been. robust they’ve cyclical. That are structural as

whether triple in we’re I there, quadruple, is us incumbent every market looking offer. message capital -- and certainly think But our is we of the probably in and would say incremental -- to four unique have think we’re closest that out the something dollars at terms is it all is we opportunity growth, get that upon together, the it. the terms raise to it day or behind of market in financials we get if the published in it’s the of put can you billions you’ll but it

Michael Cyprys

you. Thank Okay.

Operator

question. Thank you your for

the of question line Chris Next is Kotowski with from Oppenheimer.

line is now Your open.

Chris Kotowski

just Amanda, did been of missed any I all afternoon year have and also, wonder was you. Good implications -- it Yeah. guidance. of the amount just fast the thank going the I rate, acquisitions wondering your were was are for in at further for stepdowns on us I remainder you and little the already or coming I little quarter a have I thought. wondering earnouts the or XXXX from to still rate because to fee either XXXX also recognized costs merger be then any a fee be there early higher if this that than was closed? And

Amanda Coussens

the additional year, Okay. were stepdowns $XXX Yeah. stepdowns and million expiration. for The

Chris Kotowski

any… that have does And Okay.

Clark Webb

Amanda?

Amanda Coussens

Chris. Sorry,

Chris Kotowski

was it? fee was then what And the just time, previously, your -- XXs or guidance rates, that that low this different? I or I XX%. on EBITDA does from -- also impact to Is the expect you we new XX% margin, think, on. said should Come it

Amanda Coussens

Right. No change margin. on

So expecting million. That’s correct. million to $XX we’re still $XX

Clark Webb

to we’re you yes, trying -- But think give we’ve And specific think then rate, was the XXX there points on a to basis I fee for as number. Obviously, the year. we points rates noted, year. funds a and we’ve many guided any got Not on dozen well basis market have some but in well the north. to fee the XXX south, have guided we I

a old when large talked of was roll in was guidance XXXX. year the QX. purchased There off we into an in would baked WTI about contribution That Fund their when we be WTI, calendar what

to So XX% the XX%. we’re to sticking

basis an points We XXX rate. are sticking to the average fee of

in terms through we the earnouts, have of WTI this of earnout number. And do flowing future potential

think that I a the we $XX.X what can big is, talked it’s improvement read you million but from very hurdle about. that EBITDA

and hasn’t We think yet, it. we a that’s win and though been even hit but everybody it are if and quarter accruing for ahead future, current it’s that when for going

Chris Kotowski

Perfect. Thank Okay. you.

Amanda Coussens

And Clark’s reconciliation. comments, Chris, is sorry, shown to just on page the earnout on a to adjustments add

be of see related to impact as the So you compensation. should earnout able that

Chris Kotowski

Okay. you. Thank

Amanda Coussens

And [Technical Difficulty]

Operator

for from with Barclays. of line the The you question Budish is question. Thank next your Ben

line is open. Your now

Ben Budish

sort go? you you are how of how we you pay the of in over the sort next to there of infancy sort changes kind much years its taking in Can start much last Thanks that productivity off? of you’re couple step What marketing. Clark, of and see keep about think in lot do is might that investing efforts putting more as and to and over Hey. the of that’s function a talked couple you years question. the to maybe talk evolved for early the being salesforce expect cross-sell

Clark Webb

Yeah. Great question.

So high. records I we is track think, thing none, re-up about rate second XX-year is the the would say beautiful very to that that are,

giving And LPs of also just we’re and comes most we confidence vintage gives to on capital a launch next back that always the at funds, into we a us hold as good which so to lot the money of return. the

high the of is verticals So fundamental got re-up we’ve I core think with basis rates. great PXX

LP base, our then really think, then at two is deepest They’re Those one are barbell. pools. which is look we’ve large skinny family the retail end the we foundation, a small publicly, other. there’s the and barbell, it office, And part is on said the fundraising the of on pensions. the As LPs endowment there I

barbell do on we we on flags the We cases, deeper are our of On parts focused that’s really part actually in well of sales those are and and the cyclical without scanning pool. planning think long the the downturn. a both cycles

we to are as retail them of pools in get our to our large it hard to story tell the out do and so and our will And trying platforms be of capital returns if say we no. products believe that we can front

We PXX have invested in the team.

planted The do XX-month XX Middle a months XX I start East planning XX-month seed the in here looking think we going at and to we made think months months ramp is bearing next you saw we the and are in fruit ago ramp. that’s flags. a a year ago, to that we a six strategic to internationally that’s and hire additional

to going we we presumably a seeds XX the months nothing for move but is we are while, XX the do from ago. benefiting and months today needle So planted

our then there’s as to simple to we they market, trying And and $X just got verticals. and $X love these them the And verticals. have million, lot cross-sell. also LPs verticals introduce LPs are gingerly the to plain firm. come type are A of one million $X we We’ve other additional X,XXX our million, of around

We think internally. script, long we’re We first the way we that track of that number in dollars as of think the is noted the inning. do in millions in hundreds It the of we there’s go. of a bottom cross-sell. to But

very get, we the of why believe the think building It’s and reasons unique will -- the that, out focused more within we PXX. over one we have function it’s benefit the something are advance marketing that we on And we long-term. firm the

Ben Budish

the Great. RCP ask looks recent of most but fund. looks nicely, wanted predecessor scaling lot than the a fund kind pretty of It like are follow-up. families And about Advisors. I a bit the is a to like fund smaller then It

color any to term So we the core like if fund should the I’m can there’s share. longer offering of of you about of kind wondering trajectory How funds kind RCP? think from

Fritz Souder

Yeah. This I handle is Fritz. that. can

about, in lot Most primary, with item Fund other that consolidation give do, wanting the And You’re of that this Fund, was will to we you’re as a and correct, little bit than of a what which, the LP co-investment. Multi-Strat the have fund though, secondary primary them it, has launching of in is XVII call what funds. talked the the of fund. seeing sort smaller is universe line I to one includes

seeing actually out vehicles. down, I and them continue, into the funds as just we’re think the in with a primary seeing primary investors of with go And not we’re in of you’re Fund seeing different investing lot two you’re XVIII. spread that number will interest in we’re So our Multi-Strat marketplace now in

We in a of vehicles. are this now seeing Multi-Strategy interest lot

Ben Budish

Great. Thanks for the clarification.

Operator

Thank question. Stephens your Campbell you is with of for The the John from line question Inc. next

now open. line Your is

John Campbell

quarter. Good on Congrats afternoon. great Amanda on the… guys. Hey,

Robert Alpert

you. Thank John. Hey,

John Campbell

little that over think, Yeah. missed my was a math, I Amanda, No might million. Is have on the right? on $X problem. fees, I I getting catch-up to that. But

Amanda Coussens

Yeah. That’s correct.

John Campbell

excluding to talk rate guys you the when this fees? basically on an adjusted then points fee basis is the year, And Okay. basis, that catch-up XXX

Robert Alpert

That includes the catch-up piece.

John Campbell

fees. the does include catch-up That

or for year? roughly the Okay. how And going you the then rough that’s the phase of Amanda, throughout balance year. $XXX to million expirations, I Any on think said, timing the the stepdowns and for sense

Amanda Coussens

will that of be next actually quarter. Most

John Campbell

next of quarter. Majority it Okay.

one Okay. me, then last for another And housekeeping. just

earnouts. the On

I particularly paid, are WTI, tax those to that your assets. that’s guess, right? Is support adding for As

Clark Webb

right. That’s Yeah.

that again, the paid we is tax add that win refer deal And will actually paid, threshold when to -- earnout tax EBITDA is it. that a that’s the we’re X-K the but It yes, will in where we EBITDA being So and PXX get, out. signed also the only as accruing And so in on not the earnout paid. the shield. the for not to I’d be asset long-term, for

John Campbell

I all Okay. Very guys. Thanks, helpful. That’s got.

Operator

with your question Beatty Adam from for the you of is Thank The next line UBS. question.

now is line Your open.

Adam Beatty

Thank good you and afternoon.

quick a fee on the just First, follow-up stepdowns.

little a bit. may year that full have the I on think up gone guide

curious faster round there. what might be next vintages. stepdown cadence toward moving whether just potentially also And So of suggests additional a the around wondering

happened So fund to process? the overall has anything rollout done accelerate

Clark Webb

no stepdown guidance. is change There Yeah. in the

to couple fine-tune funds. of trying obviously dozen a We’re

very may original or it dozen but And million, with it’s forecast. much minus line so the plus a of by be in couple

the exception to launched. of That of when few annually about, the biannually. cadence ones we’ve or is with are almost the As -- talked funds new cadence the a of the

more, much obviously, So credit, specific will very other opportunities incumbent us I it But to the to forecast. that that apart accelerated we line in from of upon be with are it. been or see either opportunistic, has to within is go do than strategies opportunity that wouldn’t of the an sooner those raise anything raise where some original say credit some

Adam Beatty

clarifying. I it. Okay. for Thanks appreciate Great.

Amanda Coussens

part… large The

Adam Beatty

Amanda? Sorry,

Amanda Coussens

Yeah. to was that going a of a Sure. say to so fund related was specifically that expirations I just and to quarter large the be… -- in may stepdowns part this and WTI

Adam Beatty

Right.

Amanda Coussens

Yeah. this. of …part

Adam Beatty

Okay.

to how lot. turn kind of in through just I get some newer time then and legislation just latest and feeding Thanks -- And and the making opportunities? there potential we and on impact enhanced law seeing it. to franchise, think should what to of deployment a line you’re appreciate about the of the wanted regulatory around tailwinds terms what I Okay.

Clark Webb

really Yeah. tailwind. a business. the verticals No. Act a The and a it’s the one in it’s structural was Reduction Inflation great is improvement Adam, underlying shift of few -- where regulation

components like. around equity are some going We’re that, still just clarify some to of exactly waiting to for tax look additional what rule-making the

we like and see. are that seeing we of respect skids it the and finance and have solar estate a things we backlog But pipeline definitely in opportunities our impact certainly with in our the greasing seen real to

crisis. are before banking our was about the think counter When you we banks what small provide. vertical, business the that Again, to normally

So the cyclical of we we’ve three had feel of credit the our verticals. the across about banking to impact deploy additional all but retrenchment, opportunity benefit great

we’re key generating to doing. no say, also The done. for us should additional white is to returns, to of I be but real that washing And very what generating good continuing get in capital and raise There go impact. is terms going

Adam Beatty

Excellent.

Thanks good. much. very Sounds

Operator

your at for are no questions time. this you There Thank additional question. waiting

closing pass Robert I’ll any So back conference for remarks. to the

Robert Alpert

with look if to everyone quarter Well, joining thank call forward us Thanks. any and you we and you. questions. have speaking next Thank you for you

Operator

for Thank participation. call. the your concludes you conference That

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.