Ridgepost Capital, Inc. Q1 FY2024 earnings call

• Organic growth: In Q1, raised nearly $670 million in gross new fee-paying AUM. TrueBridge Fund VIII achieved its $750 million target and is on track for over $850 million at final close. Park IV in private credit surpassed its $500 million target. Bonaccord, RCP, etc., have upcoming fund launches.
• Inorganic growth: Arjay Jensen leads M&A efforts, with a balanced pipeline of private equity, credit, and distribution-oriented opportunities. Anticipate announcing a deal in 2024.
• Organizational structure: Appointed Tracey Benford to Board, Robert Alpert stepped down as Executive Chairman, Luke became Chairman. Hired Melodie Craft as General Counsel. Terminated stockholder rights plan.
• Capital allocation: Bought back ~$3.7 million shares in Q1, ~$21 million remaining on authorization. Increased quarterly dividend by 8% to $0.14 per share annually.

P10 delivered record revenues of $66 million in the first quarter, a 15% year-over-year growth. Fee-Related Revenue (FRR) was $65 million, a 16% increase year-over-year. Fee-Related Earnings (FRE) were $31 million, a 9% increase from Q1 2023, with an FRE margin of 47%. Private equity strategies raised and deployed $213 million, venture solution raised and deployed $339 million, and credit strategies added $99 million to fee-paying assets under management. TrueBridge raised $233 million in the quarter.

• Expect to organically raise and deploy more than $2.5 billion of gross new assets.
• Anticipate double-digit revenue growth driven by fundraising and positive fee rate dynamics.
• Aim to announce a strategic transaction in 2024.

Forward-looking statements are inherently uncertain due to risks and uncertainties detailed in earnings release and SEC filings, including macroeconomic factors affecting market environments.

Q: Alex Bernstein asked about fee rate excluding catch-up fees and future outlook.

A: Amanda Coussens said the step-down in expirations in Q2 impacts revenue but annual guidance of 105 basis points remains.

Q: Benjamin Budish asked about capital allocation, share buybacks, and dividend philosophy.

A: Amanda Coussens said $2.5 million remains for buybacks, dividend increased at the same pace as last year; Luke Sarsfield emphasized conviction in the business and focus on execution.

Q: Stephanie Ma asked about strategy progress and BC business.

A: Luke Sarsfield discussed progress against strategic pillars, and highlighted TrueBridge's momentum in venture capital, emphasizing data and AI's role in enhancing capabilities.