Ridgepost Capital, Inc. · NYSE:RPC
Ridgepost Capital — P10 — Investor Day (September 2024)
135 slides from Ridgepost Capital's investor day presentation, Sep 19, 2024
Slide 1: 2024 Investor Day
2024 Investor Day September 19, 2024
Slide 2: Important Notices
IMPORTANT NOTICES The inclusion of references to P10, Inc. (“P10” or the “Company”) in this presentation is for information purposes only as the holding company of various subsidiaries. P10 does not offer investment advisory services and this presentation is neither an offer of any investment produc
Slide 3: Opening Comments and Strategic Update
Opening Comments and Strategic Update Luke A. Sarsfield III – Chairman and CEO
Slide 4: Agenda
Agenda 8:30 AM Opening Comments & Strategic Update Luke A. Sarsfield III – Chairman and CEO 8:45 AM Network of Strategies Private Equity Solutions Tom Danis, Jr. – Managing Partner, RCP Advisors Private Credit Solutions Michael Korengold – President and CEO, Enhanced Capital Venture Capital Solution
Slide 5: Key Messages
Key Messages We have a robust foundation, based on world-class private markets strategies and unique focus and specialized expertise, particularly in the attractive middle and lower-middle market (“MM/LMM”) We have come a long way since our 2021 IPO three years ago, doubling Revenue and nearly doubl
Slide 6: Level Set – Progress Since IPO
Level Set – Progress Since IPO 6/30/20211 6/30/20242 CAGR Fee-Paying AUM $14.2B $23.8B 19% Total Revenue $134M $274M 27% Adjusted EBITDA3 $68M $132M 25% Limited Partners 2,400+ 3,700+ 16% Active Commingled Funds 51 64 8%
Slide 7: Optimize Leadership Team / Corporate Organization
Optimize Leadership Team / Corporate Organization Head of Strategy and M&A – Arjay Jensen Global Head of Client Solutions – Sarita Narson Jairath Improved Board governance, e.g., first Lead Independent Director, Tracey Benford Drive Increased Organic Growth by Deepening and Expanding Our Client Fran
Slide 8: Optimizing Our Leadership Team
Optimizing Our Leadership Team Luke A. Sarsfield III Chairman and CEO Amanda Coussens EVP, CFO and CCO Mark Hood EVP, CAO Arjay Jensen EVP, Head of Strategy and M&A Sarita Narson Jairath EVP, Global Head of Client Solutions In February, we articulated a senior organizational structure with four EVP-
Slide 9: Level Set – Where We Come From
Level Set – Where We Come From World-class private markets strategies, with long track records of alpha generation Leader in attractive MM/LMM, underpinned by data and insights Large and diverse global client base Compelling business model built on durable FRE
Slide 10: World-Class Strategies with Long Track Records of Alpha Generation
Private Credit Specialized credit strategies focused on the lower-middle market Impact Credit Climate Finance Real Estate Small Business NAV Lending Venture Debt Mezzanine Lending SBIC Lending $5.1B FPAUM 47 Vehicles 54 Inv. Professionals 1980 Inception World-Class Strategies with Long Track Records
Slide 11: Average Net IRRs by Strategy
Our equity strategies have all averaged net IRRs in the mid- to high-teens, with secondary and co-invest strategies at RCP in the mid-20%’s Similarly, the weighted average net IRRs of our credit strategies has been ~12% World-Class Strategies with Long Track Records of Alpha Generation Average Net I
Slide 12: Focused Investment Strategies with Leadership in Attractive MM/LMM
Capital availability / opportunity imbalance creates attractive competitive dynamic Importance of proprietary data continuously guiding disciplined investment processes Valuations structurally lower Meaningfully less utilization of financial leverage Sourcing more proprietary Opportunities to create
Slide 13: Large and Diverse Global Client Base
Our global reach, with over 3,700 investors, across 60 countries, has provided critical client insights, leading to innovation in product and strategy development Large and Diverse Global Client Base FPAUM: $23.8B 3,700+ Investors FPAUM: $14.2B 2,400+ Investors Investor Base by Channel As of 6/30/24
Slide 14: Compelling Business Model Built on Durable Fee-Related Earnings
Compelling Business Model Built on Durable Fee-Related Earnings FRE-Centric Business Model Highly-recurring, diversified revenues composed almost entirely of management and advisory fees FRR represents 98% of revenue1 FRE represents 98% of Adjusted EBITDA1 Aligned Incentives Carried interest structu
Slide 15: Where We Are Going – Value Proposition
World class leadership team, focused on execution against our growth plan Where We Are Going – Value Proposition Favorable Secular Trends in Private Markets Leveraging Our Focus and Longevity in Attractive MM/LMM Drives Asymmetric Investment Opportunities Focus on Deepening and Expanding our Large a
Slide 16: Network of Strategies
Network of Strategies WE
Slide 17: Private Equity Solutions
Private Equity Solutions Tom Danis, Jr. – Managing Partner, RCP Network of Strategies
Slide 18: Introduction to Private Equity Solutions
Introduction to Private Equity Solutions Private Equity Solutions Private Equity Solutions Proprietary data and proven ability to leverage into competitive advantage in sourcing and investment decisions RCP and Bonaccord GP ecosystems are complementary with each other and other strategies Dedicated
Slide 19: North American Small Buyout Private Equity (RCP)
Invest in top-tier North American small buyout PE managers and their portfolio companies Target primary and secondary investments in funds sized from $250M-$1B Target direct exposure to companies with enterprise values of $25M-$500M through co-investments Headquartered in Chicago, IL North American
Slide 20: RCP Strategy
Investing in top-tier North American small buyout PE managers and their portfolio companies RCP Strategy Private Equity Solutions Top North American small buyout managers Invest in 10-12 managers Diversified portfolios by manager, industry, strategy, and geography Primary Strategy $20M–$100M1 Commit
Slide 21: RCP's Exceptional Performance Track Record
Since 2006, RCP funds with >5-year-old vintages have on average achieved or exceeded their targeted return ranges RCP’s Exceptional Performance Track Record Average Net IRR for Funds >5 Years Old (Since 2006)1 Private Equity Solutions Net IRR Target: 20-25% 335 bps average premium to S&P 500 returns
Slide 22: Growth Capital for Middle Market Alternative Asset Managers
Mission to be the partner of choice for the world’s leading middle market private markets sponsors and support their institutionalization Non-controlling investments in leading middle market sponsors Private markets strategies with $1B-$10B AUM across private equity, private credit, real estate, and
Slide 23: Value Proposition for Investors and Sponsors
Investors Private equity investment providing income and growth with defensive downside characteristics Sponsors Proceeds to support further platform development Balance sheet capital for increased GP commitment and new product launch Succession capital to support expansion of partnership base Tax a
Slide 24: Compelling Market Dynamics in Lower-Middle Market Private Equity
Compelling Market Dynamics in Lower-Middle Market Private Equity Capital Available by Fund Size1 Universe of Companies by Revenue Size2 8,740 companies w/ revenues >$250M 111,371 companies w/ revenues between $10M and $250M $774B of capital available to PE Funds over $1B $141B of capital available t
Slide 25: Attractive Competitive Dynamics in a Large Addressable Universe
Attractive competitive dynamics in a large addressable universe Competitive Dynamics in Middle Market Alternative Managers Indicative BCP Addressable Sponsor Universe2 Sponsor-Backed Minority Stakes Segmentation1 Average AUM of Acquired Sponsors ($B) BCP is focused on a differentiated segment vs. ot
Slide 26: RCP and Bonaccord GP Ecosystems Are Complementary
RCP and Bonaccord GP ecosystems are complementary with each other and with other strategies Extremely Complementary General Partner Ecosystems Private Equity Solutions Over half of Bonaccord’s Private Equity strategy investments are in managers in which RCP serves as an LP or advisor AUM of RCP and
Slide 27: Unique Proprietary Data Set Driving Sourcing and Evaluation
Distinct market access, deal flow, and data analytics to navigate private markets Unique Proprietary Data Set Driving Sourcing and Evaluation Differentiation and Provides Asymmetric Information Advantage Private Equity Solutions Overview Unique and extensive proprietary analytics database A competit
Slide 28: Key Takeaways: Private Equity Solutions
Key Takeaways Private Equity Solutions RCP and Bonaccord are strong and attractive businesses in the middle and lower-middle market with world-class track records that together are highly complementary 20+ years of proprietary data and analytics tools provides a competitive edge for sourcing, due di
Slide 29: Private Credit Solutions
Private Credit Solutions Michael Korengold – President and CEO, Enhanced Capital Network of Strategies
Slide 30: Key Messages: Private Credit Solutions
Each of the Private Credit Solutions strategies is a differentiated private credit firm, with specialization and expertise in market segments with fewer players and less competition than in more conventional credit strategies Each team within Private Credit Solutions brings years of subject matter e
Slide 31: Introduction to Private Credit Solutions
Private Credit Solutions provides diversified exposure to differentiated private credit strategies Introduction to Private Credit Solutions Specialized strategies focused on the middle and lower-middle market Impact Credit Climate Finance Real Estate Venture Debt NAV Lending Small Business Lending M
Slide 32: Private Credit Compelling Market Dynamics
Private Credit is projected to grow double digits from 2022 through 2028 Private Credit Solutions Compelling Market Dynamics Expected CAGR by Asset Class 10% 7% 14% 11% ($T) Private Credit Solutions Private Credit Venture Real Assets Private Equity
Slide 33: Project Lending / Small Business Lending (Enhanced)
Provides Project Finance loans to developers of Climate and Impact Real Estate projects, and corporate loans to Small Business Owners Focus: Project Lending - Loans to developers of renewable energy projects and historic building renovations, secured by incentives Small Business Lending – Cash flow
Slide 34: Enhanced Project Lending
Eligible Projects Project Financing Timing Enhanced Capital makes loans to developers of projects that generate tax credits or other incentives, which are sold upon project completion to repay Enhanced Capital’s loan Enhanced Project Lending Enhanced Capital makes a loan to the project developer to
Slide 35: Enhanced Small Business Lending
Enhanced supports community development and growth opportunities for small businesses throughout the U.S. by providing senior and subordinated debt financing solutions Enhanced Small Business Lending 69% Invested in underserved communities2 400+ Total businesses 30,000+ Jobs supported1 40% Invested
Slide 36: NAV Lending (Hark)
Provides NAV loans to portfolio companies of financial sponsors (PE and VC funds) supported by a sponsor fund guaranty Focus: Lower-middle market funds ranging from $200 million to $1.5 billion Funds based in North America & Europe Headquarters: New York, NY NAV Lending 2013 Founded 11 Employees $0.
Slide 37: NAV Lending Demand Drivers
NAV Lending provides capital to Funds when liquidity is low: when funds hit middle-age NAV Lending Demand Drivers Available Fund Capital Fund Age NAV Dry Powder Opportunity Value-creation period for portfolio companies when fund’s liquidity is low Capital Call Lines NAV-Based Loans End of Life / Sec
Slide 38: NAV Lending is a Growing Asset Class
Growth trends support the continued adoption of NAV loans as funds near or past their investment periods must still support portfolio companies requiring capital Hark focuses on the lower-middle market which has significant barriers to entry and limited competition Large market opportunity with over
Slide 39: Venture Debt (WTI)
Provides loans to venture-backed companies in a senior secured position, receiving warrants to maximize upside Focus: Young, growing companies (seed to IPO stage) in the U.S. Partners with exceptional management teams and trusted VCs Headquarters: Silicon Valley with team members in New York, NY, Lo
Slide 40: Venture Debt Overview
Venture debt provides Private Equity-like performance with Private Credit-like risk Venture Debt Overview Private Credit Credit losses that mirror liquid and private credit Senior secured position Interest and amortization provide regular cash flow Diversified through hundreds of portfolio companies
Slide 41: Flexible Debt Solutions (Five Points)
Provides a range of debt and equity capital solutions for buyouts, recapitalizations and acquisitions Focus: Target sponsor-backed companies with $3M-$20M in EBITDA Flexible debt and equity co-investment capital to growth-oriented, sector-diverse businesses Utilize SBIC debenture program (low-cost f
Slide 42: Key Takeaways: Private Credit Solutions
Private Credit Solutions provide diversified exposure to attractive, specialized, and differentiated private credit strategies Key Takeaways Each of the Private Credit Solutions strategies is a differentiated private credit firm, with specialization and expertise in market segments with fewer player
Slide 43: Venture Capital Solutions
Venture Capital Solutions Kate Simpson – Partner, TrueBridge Network of Strategies
Slide 44: Venture Capital Solutions
Venture Capital Solutions Focus on premier, hard-to-access VC investments Data advantage gained through our unique partnerships Diversified portfolio with access to each stage of the venture life cycle Proven performance across vehicles Innovation investing requires more than capital. We have decade
Slide 45: Access Across the Venture Class
TrueBridge is solely focused on venture capital. We provide opportunities for limited partners to gain venture exposure through fund and direct investments via our deep platform. Access Across the Venture Class $6.3B FPAUM Premier VC Funds Secondary LP Stakes Blockchain Funds Seed & Micro-VC Funds C
Slide 46: TrueBridge Investment History
TrueBridge Investment History Accel Battery Ventures Founders Fund KPCB Bain Ventures CRV Andreessen Horowitz Redpoint Ventures Emergence Capital First Round Capital Lowercase Capital Undisclosed Premier Benchmark Capital Pear Ventures ZhenFund Y Combinator Thrive Capital Craft Ventures QED BoxGroup
Slide 47: Differentiation: Network
Our innovative partnerships create competitive advantages that result in access to elite managers and tech companies and provide us with deep industry insights. Differentiation: Network Expansive Network Corporate Partners 150+ VCs and industry professionals personally invested with TrueBridge 100+
Slide 48: Differentiation: Forbes Partnership
We’ve partnered with Forbes since 2011 to provide data-driven analysis to its most prestigious industry lists. We have been Forbes’ data partner for more than a decade, working with them to publish the Midas List of the world’s top venture capitalists and authoring a venture-focused column on Forbes
Slide 49: Venture is a Historically Attractive Asset Class
Venture capital has generated compelling returns relative to public markets, both in recent years and over long periods of time. Venture is a Historically Attractive Asset Class… Upper quartile venture capital performance by IRR Venture Capital Solutions
Slide 50: But Manager Selection is Key
While venture funds as a whole have historically outperformed other asset classes, top venture funds significantly outperform average manager returns. …But Manager Selection is Key Return Dispersion Average annual manager return as of December 31, 2020 60% 45% 30% 15% 0% -15% Global RE Global PE Glo
Slide 51: Flagship Fund Investments
Track record of performance and/or personal success High-quality deal flow Ability to add value to portfolio companies Deep and broad networks Strong domain expertise Structural competitive advantages Successful generational transition We target high-performing, access-constrained VC firms with stro
Slide 52: Exceptional Performance and Long-Term Track Record
Target access to best-in-class opportunities Consistent performance Over a long period of time / across multiple market cycles Complementary cash flow and return profile across strategies Exceptional Performance and Long-Term Track Record Average Net ROIC Average Net IRR Venture Capital Solutions
Slide 53: Where is the Venture Market?
Venture market rationalization driving a flight to quality Public valuations are high but concentrated; VC valuations are down The exit market is limited, with potentially increased activity over the next year Historically the best companies are formed during periods of distress Where is the Venture
Slide 54: Key Takeaways: Venture Capital Solutions
Key Takeaways TrueBridge is a leader in fund of fund venture capital investing with a long history of delivering durable alpha With its unique role in the venture ecosystem and proven sourcing and investment processes built on trusted relationships, TrueBridge delivers clients exposure to access-con
Slide 55: LP Panel
LP Panel Hosted by Luke A. Sarsfield III – Chairman and CEO
Slide 56: LP Panel Presenters
Kris Kapoor CIO, Bakala Capital Presenters Josh is a member of the Firm’s Private Markets Research Group, leading the coverage of Private Equity strategies. He is responsible for conducting manager due diligence, providing educational overviews to clients and constructing investment plans for implem
Slide 57: LP Panel Presenters
Kris Kapoor CIO, Bakala Capital Woodson Whitehead Partner, Green Square Wealth Joshua Beers Partner, Head of Private Equity Investments, NEPC, LLC Presenters Glen Gardner is Chief Investment Officer at Equitable. Mr. Gardner is responsible for the overall investment strategy for the company’s Genera
Slide 58: LP Panel Presenters
Presenters Kris Kapoor CIO, Bakala Capital Kris Kapoor is CIO for Bakala Capital, where he works with a strong team of investment professionals to manage a globally diversified, multi-asset class portfolio. Prior to joining the group, he was CIO at Furman University, his alma mater, for 15 years. Pr
Slide 59: LP Panel Presenters
Joshua Beers Partner, Head of Private Equity Investments, NEPC, LLC Kris Kapoor CIO, Bakala Capital Presenters Woodson Whitehead is a partner at Green Square Wealth Management. Woodson works with Green Square families to develop their investment strategies and manages the firm’s asset allocation pro
Slide 60: LP Panel Presenters
Presenters Kris Kapoor CIO, Bakala Capital Joshua Beers Partner, Head of Private Equity Investments, NEPC, LLC Woodson Whitehead Partner, Green Square Wealth Glen Gardner CIO, Equitable
Slide 61: Growth Levers
Growth Levers Luke A. Sarsfield III – Chairman and CEO Arjay Jensen – EVP, Head of Strategy and M&A
Slide 62: Well-Positioned to Utilize Variety of Levers to Drive Growth
Well-Positioned to Utilize Variety of Levers to Drive Growth Attractive Private Markets Ecosystem Robust Foundation for a Range of Levers to Drive Organic and Inorganic Growth Leader in attractive MM/LMM, underpinned by data and insights Large and diverse global client base World-class private marke
Slide 63: Organic Growth Initiatives Build on Global LP Base
Our organic growth initiatives build on a large and diverse global LP base with a focus on deepening the relationships as well as broadening them by pursuing new investment vehicles and distribution channels. Large and Diverse Global LP Base Supports Growth Vectors FPAUM Investor Base by Channel Gro
Slide 64: Deepening LP Relationships
Our strategies have a demonstrated ability to grow their LP bases, and our clients are loyal with high re-up rates. Today we have little investor crossover, which we view as a significant opportunity. Deepening LP Relationships Further, our LPs are loyal with high re-up rates. In funds launched sinc
Slide 65: Broadening through New Vehicles and Channels
Broadening through New Vehicles and Channels Non-Commingled Commingled Funds & Enhanced 2023 AUM and Management Fees by Vehicle Type FPAUM Management Fees 108 bps 58 bps 33 bps 121 bps 40 bps 88 bps 1 1 Avg. Fee Rate Observations Separate accounts represent a much larger part of our peers’ AUM and M
Slide 66: Re-accelerating M&A with a Process-Driven, Proactive Approach
Building a process-driven and proactive M&A effort Improved probabilities of success Programmatic M&A associated with higher shareholder returns Sourcing / pipeline development Existing dialogues / relationships Bottoms-up sourcing channels (our own strategies and third parties) Top-down identificat
Slide 67: Targeted Transaction Structure and Philosophy
Targeted Transaction Structure and Philosophy What we are buying Continued focus on alignment of incentives Generally, 100% of fee-related earnings Small percentage of future carry related to future funds Consideration mix Continued focus on importance of stock ownership with lock-up release over ti
Slide 68: Where We are Spending Time Now and Looking Forward
Tuck-Ins / Smaller Transactions in Directly Adjacent Areas (Near- and Medium-Term) Strategic Transactions to Grow Franchise and Capabilities (Near- and Medium-Term) Transformational Transactions (Longer-Term) Where We are Spending Time Now and Looking Forward Distribution capabilities M&A Archetypes
Slide 69: Strategic, Cultural and Financial Pro Forma Impact
Successful transactions will result from our ability to check the key boxes of (i) strategic objectives, (ii) team / culture / alignment and (iii) financial objectives. Bringing It Together – Strategic, Cultural and Financial Pro Forma Impact / Financial Targets Pro forma growth and operating profil
Slide 70: Key Takeaways: Growth Levers
Key Takeaways We have a robust foundation upon which to further build and accelerate growth including (i) world-class private markets franchises with proven track records of delivering durable alpha and (ii) a large and diverse global client base We see significant organic growth through deepening e
Slide 71: Overview of Qualitas Funds
Overview of Qualitas Funds
Slide 72: Company Overview: Qualitas Funds
Company Overview Qualitas Equity Funds SGEIC, S.A. (“Qualitas Funds”) is a leading European private equity fund-of-funds manager based in Madrid, Spain with ~$1 billion in fee-paying assets under management Qualitas Funds focuses on European private equity funds in the lower mid-market, typically wi
Slide 73: Qualitas Funds Investment Approach
Qualitas Funds Investment Approach Focus on the European lower mid-market Efficient fund size Data-driven investment selection Co-investment and secondaries Transparent results Value Drivers European funds <€500MM Fund fully committed in 12-18 months Unique proprietary data base following >7,000 fun
Slide 74: Focus on European Lower Mid-Market
Focus on European Lower Mid-Market Favorable Capital Supply/Demand Balance in LMM Higher Returns1, Lower Risk2 in EU LMM Qualitas Funds Underlying Company Profile Mega (> €5Bn) Large (€2-5Bn) EU Private Equity Lower-Mid (€50-500MM) Large (> 250 employees) Mid (50-249 employees) Small (10-49 employee
Slide 75: Transaction Summary
Transaction Summary Transaction P10 has agreed to acquire 100% of the issued and outstanding equity interests of Qualitas Equity Funds SGEIC, S.A. (“Qualitas Funds”) P10 is acquiring 100% of the fee-related earnings and the transaction does not include any carried interest for legacy funds 10% of fu
Slide 76: Strategic Rationale
Strategic Rationale Demonstrates strong investor loyalty with re-up rates ~80% 3 Represents financially attractive terms, with fully-taxed ANI EPS accretion in 2025E and FRE growth accretion 5 Builds on existing strong relationship with P10 through RCP Advisors and Hark Capital 4 Establishes Europea
Slide 77: Shared Services
Shared Services Mark Hood – EVP, CAO
Slide 78: Insights to Shared Services
Insights to Shared Services Define core elements of our shared services model Demonstrate the value of our model across the platform Detail how our model fosters organic growth and supports inorganic growth 1 2 3
Slide 79: Rich Capabilities to Support Growth
Rich Capabilities to Support Growth P10 Team Financial Management Legal, Regulatory, and Compliance Operations Data and Technology
Slide 80: Financial Management
Financial Management Guidance & Oversight Decades of private markets financial experience provides guidance and oversight Internal/external audit Financial vehicles or partnerships Maximizing opportunities Banking Relationships Powerful banking relationships fuel growth initiatives Shared banking sy
Slide 81: Corporate Team
Corporate Team The corporate team can support a wide range of operational functions, depending on the need of our current strategies and future acquisitions Broad Set of Operational Capabilities Strategies and acquisitions Human Capital Management Shared Technology Employee Benefits Culture Building
Slide 82: Legal, Regulatory, and Compliance
Legal, Regulatory, and Compliance Regulatory Assisting strategies as they navigate federal, state, and international regulatory landscape Employee regulatory support Legal Legal support and thought leadership by P10’s General Counsel Compliance Chief Compliance Officer network and collaboration SOX
Slide 83: Data & Technology Capabilities
Infrastructure, technology, and application support helps strategies manage mission-critical data and information Tools and support for portfolio monitoring, reporting, pipeline management, and benchmarking Aggregation of data at corporate level for management and communication of KPIs to stakeholde
Slide 84: Shared Services Model Supports our Growth Plan
Investment strategy teams focus on what they do best: serving clients and delivering great returns Shared Services Model Supports our Growth Plan Organic Growth Corporate team takes on the complex back-office functions so strategies can focus on delivering durable alpha We’re building operational ex
Slide 85: Key Takeaways: Shared Services
Key Takeaways 85 Enables our strategies to focus on delivering durable alpha to clients Drives organic and inorganic growth Widens the aperture of prospective partners as we scale our offerings to meet the needs of firms large and small Supports a culture of collaboration that drives value for clien
Slide 86: GPScout Overview
GPScout Overview Alex Abell – Managing Partner, RCP
Slide 87: Data-driven Underwriting and Coordinated Sourcing
Data-driven Underwriting Unique analytical tools support due diligence and evaluation Ongoing monitoring of a variety of private transactional and operating metrics Proprietary benchmarking at the company level Coordinated Sourcing Coordinated sourcing efforts within a process-driven approach to ens
Slide 88: Our Data Comes From the Broader Market
Our Data Comes From the Broader Market, Not Just Our Own Investments Source of 49,637 Transactions
Slide 89: Our Data Collection Has Been Robust for 20+ Years
Last 20 Years: # of Transactions Per Year with Performance Metrics Our Data Collection Has Been Robust for 20+ Years
Slide 90: Focus of Our Data Collection: Operating Metrics
MOIC Revenue CAGR Entry EBITDA Margin EBITDA CAGR Net Debt Levels at Entry Margin Improvement Purchase Price Multiples Other Characteristics… The Focus of Our Data Collection is on Operating Metrics as Well as Other Metrics of Underlying Deals
Slide 91: Key Components of Successful Data Collection
Key Components of Successful Data Collection Scale as an Investor Open Door Policy Dedicated Resources AI
Slide 92: Evaluation of Private Equity Manager Performance is Difficult
The evaluation of performance for private equity managers is difficult Our deal level data fills in the missing pieces of the puzzle to provide a better view of the full picture Why is this data so important to decision making in PE?
Slide 93: Why Evaluation is Difficult?
Why Evaluation is Difficult? Flaws of Vintage Year Benchmarking Matching Timing Poor Samples Sets Matching Sector Matching Market Size Fund Level Leverage Time Until Meaningful Deal level data addresses many of these flaws The vintage year benchmarking dilemma
Slide 94: Examples of How Our Data Helps Make Better Decisions
Examples of How Our Data Helps Make Better Decisions
Slide 95: Example #1: Market Level Analysis
Example #1: Market Level Analysis Average ROIC Over Time ROIC Distribution
Slide 96: Example #2: Deal Level Performance Benchmarking
Example #2: Deal Level Performance Benchmarking
Slide 97: Example #3: Operational Metrics
Example #3: Operational Metrics Help Us Better Determine Who is Creating Alpha
Slide 98: Example #4: Validating a Manager's Story
Example #4: Validating a Manager’s Story
Slide 99: Example #4: Validating a Manager's Story
Example #4: Validating a Manager’s Story
Slide 100: Similar Types of Analysis Can be Run On
Similar Types of Analysis Can be Run On: MOIC Revenue CAGR EBITDA Margin Margin Improvement Purchase Price Multiples Other Characteristics… Entry EBITDA Margin
Slide 101: Our Data is Used in Primary, Secondary, and Co-Investing
Primary Fund Investing Critical to figuring out if a manager is truly outperforming its peers and validating their strategy Co-investing and Secondary Investing Making more informed underwriting assumptions All Investment Decisions Understanding broad market trends as they relate to any individual i
Slide 102: Financial Model
Financial Model Amanda Coussens – EVP, CFO and CCO
Slide 103: Compelling Business Model Built on Durable Fee-Related Earnings
FRE-Centric Business Model Highly-recurring, diversified revenues composed almost entirely of management and advisory fees FRR represents 98% of revenue1 FRE represents 98% of Adjusted EBITDA1 Aligned Incentives Carried interest structured to stay overwhelmingly with investment teams to optimize ali
Slide 104: High Quality Revenue, Strong Profitability and Adjusted Net Income Growth
High Quality Revenue, Strong Profitability and Robust Adjusted Net Income Growth1 Attractive, Fee-Based Financial Profile with Multiple Organic and Inorganic Levers Robust fee-paying AUM growth… …generating Fee-Related Revenue… ...with strong FRE and margins… …driving adj. net income growth Adj. Net
Slide 105: History of Robust FPAUM Growth
History of Robust FPAUM Growth 13% 27% 10% ’21 – Q2’24 CAGR Actual FPAUM 14% CAGR ($B) Strong fund performance due to experienced investment teams Middle-and-lower-middle market investment focus Proprietary data platform Broad LP base with long standing relationships and strong re-up rates Diversifi
Slide 106: Straightforward Fee-Paying AUM Roll-Forward
Straightforward Fee-Paying AUM Roll-Forward ($B) 2021 A 2022 A 2023 A 1H 2024 A Starting FPAUM 12.7 17.3 21.2 23.3 Gross Raised 3.4 2.5 2.8 1.2 Gross Deployed 0.7 0.9 0.9 0.3 Stepdowns and Expirations (0.5) (1.2) (1.5) (0.9) NAV Change 0.0 0.0 (0.1) (0.0) Acquisitions 1.0 1.7 0.0 0.0 Ending FPAUM 17
Slide 107: Management and Advisory Fees
Composed almost entirely of management and advisory fees Earned primarily on committed capital from long- term, contractually locked up funds Fees based on committed capital throughout the life of our funds Attractive and growing revenue base with highly recurring and well diversified revenue and st
Slide 108: History of Robust Revenue Growth
Strong revenue growth driven by: High quality, recurring revenue A fee base that is largely comprised of long-term, locked-in committed capital Diversified mix across investment solutions A mix of funds with carefully selected fund sizes that allow for frequent market presence History of Robust Reve
Slide 109: Strong Fee-Related Earnings and Stable Operating Costs
Strong Fee-Related Earnings and Stable Operating Costs As a % of Fee-Related Revenue1 Fee-Related Earnings ($M)1 Fee-Related Compensation Fee-Related G&A and Professional Fees Fee-Related Earnings Margin 18% CAGR
Slide 110: Compensation Structure Aligned with Performance
Compensation Structure Aligned with Performance Salaries and Cash Bonuses Stock-Based Compensation Carried Interest On average, bonuses are 30%-40% of base salary for eligible employees, providing significant incentive to outperform Bonuses are allocated to employees from approved, budgeted bonus po
Slide 111: Adjustments to EBITDA and Fee-Related Earnings
Adjustments to EBITDA and Fee-Related Earnings For the Years Ended December 31, Twelve Months Ended June 301, (in thousands of $) 2021 2022 2023 2024 Net (loss)/income 10,767 29,399 (7,772) 1,990 Adjustments: Depreciation & amortization 30,703 28,028 31,472 30,003 Interest expense, net 37,497 9,505
Slide 112: Balance Sheet and Capital Allocation
Balance Sheet and Capital Allocation Balance sheet light model High free cash flow generation Modest leverage and enhanced financial flexibility with refinanced bank facility 2.3x Net Debt/LTM Adj. EBITDA1 Dividends Grown dividend ~17% since inaugural dividend two years ago Investment in Growth / M&
Slide 113: More Directly Comparable Financial Disclosure
More Directly Comparable Financial Disclosure Pre-2024 2024 2025 Longer-Term AUM ✓ ✓ FPAUM ✓ ✓ ✓ ✓ FRR, FRE and FRE Margin ✓ ✓ ✓ Adjusted EBITDA and Margin ✓ ✓ Adjusted Net Income (and per share) ✓ ✓ ✓ Fully-Taxed Adjusted Net Income (and per share) ✓ ✓
Slide 114: Key Messages: Financial Model
Key Messages Demonstrated strong historical FPAUM growth across our strategies driving attractive revenue and earnings growth FRE-centric business model built on management fees, aligning incentives and driving highly-recurring, diversified revenues Platform is scalable as we execute on our organic
Slide 115: Outlook and Concluding Remarks
Outlook and Concluding Remarks Luke A. Sarsfield III – Chairman and CEO
Slide 116: Optimize Leadership Team / Corporate Organization
Optimize Leadership Team / Corporate Organization Head of Strategy and M&A – Arjay Jensen Global Head of Client Solutions – Sarita Narson Jairath Improved Board governance, e.g., first Lead Independent Director, Tracey Benford Drive Increased Organic Growth by Deepening and Expanding Our Client Fran
Slide 117: Wrap-Up and Outlook
Wrap-Up and Outlook Private Equity Solutions Strong and attractive businesses in the middle and lower-middle market with world-class track records that together are highly complementary Private Credit Solutions Differentiated and specialized strategies with expertise in market segments with attracti
Slide 118: Wrap-Up: Growth Levers and Business Model
Organic growth initiatives are focused on deepening and expanding our large and diverse global client base, including through introducing new vehicles and channels Clear focus on re-accelerating M&A with a process-driven, proactive approach. Our goal is to become a partner of choice for premium glob
Slide 119: Wrap-Up and Outlook
119 We intend to more than double FPAUM over the next five years The vast majority of that will come from organic growth We execute on value-creating M&A that will also grow FPAUM Core organic FRE margins (excluding M&A) will expand from the mid-40s% in the near to intermediate term, to near 50% in
Slide 120: Thank You
Thank You info@p10alts.com
Slide 121: Appendix
Appendix WE
Slide 122: Performance Summary
Preeminent investment teams with a superior track record across portfolio solutions1 Performance Summary See performance disclosure notes at the back of this presentation. Fund Vintage Fund Size ($M) Called Capital Net IRR Net ROIC Fund-of-Funds (Fund size as of 6/30/24, performance as of 3/31/24) F
Slide 123: Performance Summary (continued)
Performance Summary (continued) Preeminent investment teams with a superior track record across portfolio solutions1 See performance disclosure notes at the back of this presentation. Fund Vintage Fund Size ($M) Called Capital Net IRR Net ROIC NAV Lending Funds (Fund size as of 6/30/24, performance
Slide 124: Non-GAAP Financial Measures Descriptions
Below is a description of our unaudited non-GAAP financial measures. These are not measures of financial performance under GAAP and should not be construed as a substitute for the most directly comparable GAAP measures. These measures have limitations as analytical tools, and when assessing our oper
Slide 125: Performance Disclaimer
Performance Disclaimer The historical performance of our investments should not be considered as indicative of the future results of our investments or our operations or any returns expected on an investment in our Class A common stock. In considering the performance information contained in this pr
Slide 126: Enhanced Capital Performance Disclosures (continued)
Enhanced Capital Performance Disclosures (continued): Project Finance, Small Net is hypothetical and includes .16x leverage ($65M) as of December 2023, leverage cost of BSBY + 3% (8.44% as of 12/31/23) calculated based on the average debt balance outstanding for the quarter, 1.5% management fee paid
Slide 127: RCP Advisors Performance Disclosures
RCP Advisors Performance Disclosures: Past performance does not predict, and is not a guarantee of, future results. The historical returns of RCP Advisors are not necessarily indicative of the future performance of a Fund and there can be no assurance that the returns described herein or comparable
Slide 128: RCP Advisors Performance Disclosures (Continued)
RCP Advisors Performance Disclosures (Continued): RCP SEF Performance. Because RCP’s inaugural “small and emerging manager” fund (which was structured using two distinct parallel investment vehicles – RCP Small and Emerging Fund, LP (“SEF (Main)”) and RCP Small and Emerging Parallel Fund, LP (“RCP S
Slide 129: Hark Performance Disclosures
Hark Performance Disclosures: ROIC: Represents the return on invested capital. ROIC is calculated by dividing the sum of distributions plus total partners’ capital by capital contributed. Total partners’ capital balance is the book assets (fair value of unrealized investments plus cash on hand and m
Slide 130: WTI Performance Disclosures
WTI Performance Disclosures: The performance data in this presentation represents past performance only and is not a guarantee of future results. All investments involve risks, including loss of principal. Fund values and investment returns will fluctuate, so that an investor’s value per membership
Slide 131: WTI Performance Disclosures (continued)
WTI Performance Disclosures (continued): References to Specific Securities. To the extent specific securities are referenced herein, they have been selected by WTI on an objective basis to illustrate the views expressed in the presentation. Such references do not include all material information abo
Slide 132: Endnotes
Endnotes WE
Slide 133: Endnotes
Slide 5: Key Messages Our non-GAAP reconciliation of Adjusted EBITDA can be found on slide 105 Slide 6: Level Set – Progress Since IPO Total Revenue and Adjusted EBITDA represent 1H 2021 annualized Total Revenue and Adjusted EBITDA represent 1H 2024 annualized Our non-GAAP reconciliation of Adjusted
Slide 134: Endnotes
Slide 38: NAV Lending is a Growing Asset Class Source: Rede Partners, NAVigating NAV Financing, June 2024. There is no guarantee that recent market trends will continue Slide 39: Venture debt For a complete list of all portfolio companies WTI has funded see https://www.westerntech.com/ Slide 41: Fle
Slide 135: Endnotes
Slide 96: Example #2: Deal Level Performance benchmarking Source: GPScout. For illustrative purposes only. All information contained herein is being provided solely for educational and informational purposes and may not be relied on in any manner as, legal, tax or investment advice or as an offer to