Ridgepost Capital, Inc. Q2 FY2024 earnings call

• Strong momentum in Q2 with $844 million in gross new fee-paying AUM and record revenue of $71 million (14% y/y growth). - Park Capital closed Fund IV at $645 million, exceeding target. WTI closed Q2 with $321 million of fee-paying assets. Bonacord raised $890 million for BCP Fund II. TrueBridge closed Fund VIII at $880 million. RCP launched Direct Fund V and anticipates Secondary Fund V. - Appointed Sarita Narson Jairath as EVP Global Head of Client Solutions. Named Tracy Bedford as Lead Independent Director. Executing on inorganic growth, increased borrowing capacity to $500 million. Repurchased 15,33,800 shares in Q2, with total repurchased since 2024 at $42.5 million.

In the second quarter, fee-paying assets under management were $23.8 billion, an 8% increase year-over-year. Revenue was $71 million, a 14% increase over Q2 2023. Fee-related revenue (FRR) was $68.3 million, a 12% increase compared to the prior year period. Fee-related earnings (FRE) were $33.6 million, a 3% decrease from Q2 2023, with an FRE margin of 49%. Private equity strategies raised and deployed $302 million. Venture solution raised and deployed $159 million. Credit strategies added $368 million to fee-paying assets under management. Impact strategy added $15 million to fee-paying assets under management.

• Achieved 61% of 2024 goal to organically raise and deploy $2.5 billion of gross new assets. Confident in meeting or exceeding the target. - Catch-up fees could exceed annual guidance of $16 million based on projected sunlit in the second half of 2024. - Adjusted EBITDA margin expected to be in the mid-40s for the year as key investments are made for clear ROI.

• Forward-looking statements are inherently uncertain; actual results may differ due to risks described in earnings release and SEC filings. - Credit strategies require prudent risk underwriting to generate great returns for LPs.

Q: Ben Budish asked about fundraising momentum, deployment environment, and other revenue.

A: Luke Sarsfield and Amanda Coussens responded discussing progress towards 2024 goals, deployment in credit strategies, and that other revenue was due to incentive fees from a specific client with FRR and FRE metrics providing better comparison to peers.

Q: Alex Bernstein asked about FRE, M&A areas, uses of capital, and data.

A: Amanda Coussens talked about fee rate guidance, Luke Sarsfield discussed M&A areas including bolt-ons, geographic expansion, capabilities, and real assets; also mentioned capital allocation priorities and data being a key aspect with Investor Day to detail data use.

Q: Stephanie Ma asked about M&A uses of capital, data differentiation.

A: Luke Sarsfield and Amanda Coussens discussed capital allocation priorities (dividend, share repurchase, M&A, debt paydown) and data being crucial in business with Investor Day to demo proprietary data set.

Q: Chris Kotowski asked about RCP fund marketing period and sizing.

A: Luke Sarsfield stated RCP fund marketing periods are typically 3-6 quarters, and momentum in strategies suggests successful outcomes though specific sizing details were cautious