Ridgepost Capital, Inc.

Hello and welcome to the P10 third quarter 2024 conference call. My name is Lateef and I will be coordinating your call today. Currently, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. As a reminder, today's conference call is being recorded. I will now hand the call over to your host, Mark Hood, EVP and Chief Administrative Officer. Mark, please go ahead.

Thank you, operator, and thank you all for joining us today. On today's call, we will be joined by Luke Sarsfield, Chairman and Chief Executive Officer, and Amanda Cousins, EVP, Chief Financial Officer and Chief Compliance Officer. Additionally in the room with us today is RJ Jensen, EVP, Head of Strategy and AMA. Before we begin, I'd like to remind everyone that this conference call, as well as the presentation slides, They constitute forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect management's current plans, estimates, and expectations and are inherently uncertain. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of risks and uncertainties. that are described in greater detail in our earnings release and in our periodic reports filed from time to time with the SEC. The forward-looking statements included are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statements as a result of new information or future events, except as required by law. During the call, we will also discuss certain non-GAAP measures, which we believe can be useful in evaluating the company's performance. A reconciliation of these measures to the most directly comparable gap measure is available in our earnings release and our filings with the SEC. I will now turn the call over to Luke.

Thank you, Mark. Good afternoon, everyone, and thank you for joining us today. I am exceptionally pleased with our record third quarter and the year-to-date financial results, as well as the progress we've made on our five-point strategic growth plan. Before we discuss the quarter, I think it is important to recognize that we recently marked our three-year anniversary as an NYSE listed firm. Since our public debut in October of 2021, we have demonstrated that this business is durable, resilient, and extremely well positioned for continued growth. As we celebrated our three-year anniversary of being a public company, I also completed my first year as CEO. The past 12 months have been foundational in so many ways, and represent an inflection point for the business as we developed our strategic growth plan, delivered and executed across each imperative, including announcing a value-creating strategic transaction, proved our team's ability to raise and deploy capital across our attractive and compelling franchises, and enhanced our shareholder engagement and communication, culminating in our first investor day this past September. And all the while, we've generated durable alpha while expanding our product offerings and the ways we engage with our clients. Upon joining the company in October of 2023, I sought the perspectives of our stakeholders who I knew would be instrumental in propelling our business into the future, namely our employees, our strategies, our clients, and our shareholders. To do this, I embarked on a listening tour where I visited each of our strategies, met many P10 colleagues, and engaged with LPs and public shareholders, both existing and prospective. This deep dive provided a more complete understanding of the organization, along with valuable insights that confirm my core thesis that PTEN had the potential for significant profitable growth. Through listening and engaging with the team, we developed and launched our strategic growth plan last February, thus unveiling our North Star to direct our actions. In less than one year, we've made substantial progress against all the key objectives that I will cover in detail momentarily. First, I want to highlight a few key takeaways from our financial results. In the third quarter, we raised and deployed $1.4 billion in gross new fee-paying AUM with about $300 million of that amount coming from commitments that closed a quarter earlier than we expected. We delivered revenue of $74 million representing 26% year-over-year growth. Fee-related revenue, or FRR, was $73 million, a 26% increase compared to the prior year period, and we generated approximately $35 million of fee-related earnings, or FRE, a 19% increase from Q3 of 2023. This represents an FRE margin of 48%. In short, This performance represents record quarterly results across all our major KPIs, fundraising, revenue, and fee-related earnings. Throughout 2024, we have driven significant demand from our funds that are currently in the market, and I want to take a moment to highlight some of our momentum on the fundraising front during the quarter. Our private equity solutions raised $1.1 billion. We have three large funds currently in the market, RCP Direct 5, RCP Secondary 5, and Bonacourt 2. Additionally, our private credit solutions added $220 million to fee-paying assets under management, while our venture capital solutions sleeve raised $105 million in the third quarter. And while we saw brisk activity across our commingled funds, we also raised over $200 million in SMAs. As you will recall from our Investor Day, finding new ways to leverage our expertise on behalf of clients is critical to our future growth, and this highlights the early progress we're making on this front. As we think about 2025 and beyond, we will be focusing on additional ways for investors to interact with us outside of traditional commingled vehicles. Through the first three quarters of 2024, we've raised and deployed $2.9 billion, which handily beats our full year $2.5 billion guidance that we provided in February. Our momentum is a direct result of our team's unified efforts. Each of our strategies has been collaborative and constructive as we execute on the strategic growth plan that I shared at the beginning of the year. We have all bought in and we know that we are better together. And now I want to offer a little more color on the progress we've made year to date. First, we have now built a corporate level organizational structure that is positioned to accelerate growth with four experienced and talented leaders guiding key parts of the organization and reporting directly to me. I am proud to work alongside this exceptional team, and they are already delivering results. Second, we're focused on enhancing organic growth through deepening and expanding our relationships with clients. As you heard me say earlier, we have real fundraising momentum. As we continue to deepen and amplify our leading position in the middle and lower middle markets, We will create momentum for our strategies as they raise capital. Further, in September, Sarita Narsan-Jarath began her role as global head of client solutions. Sarita's appointment is a milestone for us as we now have a senior leader who is singularly focused on organic growth, and we are implementing operational protocols and processes to better serve our clients. P10 has real momentum. We're a category killer in the lower middle market. and Sarita is helping us accelerate that vision as we enter 2025. Third, we are laying the appropriate foundation for generating inorganic growth. In September, we announced our acquisition of Qualitas Funds, the first addition to our platform since 2022. Qualitas Funds is a leading European private equity fund-to-funds manager based in Madrid, managing approximately $1 billion in fee-paying assets under management. It provides fund-to-funds, direct co-investing, and NAS financing products in the European lower middle market to more than 1,300 limited partners across the ultra-high net worth, family office, and institutional channels. The founders and their talented team have built an incredible firm with strong performance and a deep and loyal investor base. Furthermore, the firm has a strong expected growth trajectory, and we are so excited to add them to our platform. This acquisition will establish a European presence and meaningfully grow PTEN's investor base, positioning us as a leading global multi-strategy private markets firm focused on the middle and lower middle markets. As we talked about at Investor Day, Qualitas Funds is extremely complimentary with RCP advisors. They share an existing relationship through a joint venture dating back to 2017. More recently, The Qualitas team has also been working with Hark on NAV lending opportunities in Europe. They share our client-centric culture and dedication to serving clients with elite, access-constrained investment opportunities in the middle and lower middle markets. We continue to expect to close the deal in the first quarter of 2025, and thereafter will provide more color on what we see as a terrific opportunity for us in Europe. Fourth, We are generating operational efficiencies through incentivizing collaboration and leveraging data insights. We're creating value through doubling down on focus areas that are performing, eliminating ancillary processes, and implementing world-class systems that are set to yield tangible results. To support our strategies, we curate top-tier technologies and manage vendor relationships so our strategies can focus on generating alpha for our LPs. We're also collaborating by rolling out shared software tools and by using our buying power to generate savings in areas like employee benefits. And finally, we're enhancing our transparency and shareholder dialogue. During the third quarter, we hosted our inaugural Investor Day, which provided a fantastic opportunity to showcase the attractive and compelling attributes of our business. You will also recall that earlier this year, in our commitment to enhance transparency, we began providing new KPIs that make it easier for our public investors to compare us to peers. Last month at investor day, we reported client re-up rates for the first time, and we also introduced long-term guidance in several key areas. First, we intend to more than double fee paying assets under management by 2029 with the vast majority coming from organic growth. Secondly, We're focused on value-creating M&A and believe we can become the acquirer of choice in our market space. Finally, we expect core organic FRE margins, excluding M&A, to expand from the mid-40% range in the near-to-intermediate term to near 50% in the out years. All Investor Day materials are available on our Investor Relations website, including a full replay of the event. We believe in telling the investment community our plans and then reporting back on our progress. We delivered that in my first year and will continue to abide by that principle moving forward. Our progress to date is only an indicator of what's to come. There are so many compelling and positively differentiated attributes of our business model, and we have multiple avenues for growth, both organically and inorganically. We are relentlessly focused on supporting our strategies, through our 1P10 culture that we have carefully cultivated and fostered. As we head toward the end of 2024, our outlook is positive, our future very bright, and we continue to believe our stock purchases are a reflection of our view that the current price represents an attractive entry point for investors. When we speak again on our fourth quarter earnings call in February, we plan to share our updated strategic initiatives for 2025 along with more granular 2025 financial guidance, including the impact of the Qualitas Fund's acquisition. With that, I'll hand the call over to Amanda.