P10, Inc. (PX) Bundle
A Brief History of P10
Founding and Early Years
P10 was established with the mission to provide innovative financial solutions, particularly focusing on managing assets for institutional investors. The company quickly gained traction in the private equity and venture capital sectors, leveraging its expertise to attract significant capital commitments.
Growth and Acquisitions
In recent years, P10 has pursued a strategy of growth through acquisition, significantly enhancing its asset management capabilities. Notable acquisitions include Bonaccord Capital Partners and Hark Investments, which have expanded P10's portfolio and client base.
Financial Performance (2024)
As of September 30, 2024, P10 reported total revenues of $74.2 million for the third quarter, a 26% increase from $58.9 million in the same period of 2023. For the nine months ended September 30, 2024, revenues reached $211.4 million, up from $178.7 million in 2023.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenues | $74.2 million | $58.9 million | $211.4 million | $178.7 million |
| Net Income | $1.3 million | $(8.8 million) | $14.0 million | $(5.9 million) |
| Adjusted EBITDA | $35.3 million | $29.6 million | $101.6 million | $92.9 million |
Assets Under Management
P10's fee-paying assets under management (FPAUM) reached $24.9 billion as of September 30, 2024, marking an increase from $22.7 billion in the previous year. This growth is largely attributed to successful fundraising efforts and the performance of existing funds.
| Period | FPAUM (in billions) | Change (in billions) |
|---|---|---|
| Q3 2024 | $24.9 | $2.2 |
| Q3 2023 | $22.7 | $1.5 |
Strategic Partnerships
P10 has entered strategic partnerships that enhance its market position, notably with Crossroads Impact Corp, focusing on community development and minority-owned businesses. This partnership is expected to yield significant management fees and advisory revenue.
Stock Performance and Dividends
P10's stock has shown resilience in the market, with a current share price of approximately $10.50 as of October 2024. The company declared a quarterly cash dividend of $0.035 per share, payable in December 2024.
| Date | Dividend per Share |
|---|---|
| December 20, 2024 | $0.035 |
Recent Developments
In 2024, P10 has focused on enhancing its operational efficiency and expanding its service offerings. The company reported a significant increase in headcount and investments in technology, which are expected to further drive growth.
Financial Outlook
Looking ahead, P10 anticipates continued growth in FPAUM and revenues, bolstered by a strong pipeline of new investment opportunities and strategic initiatives aimed at diversifying its portfolio.
A Who Owns P10, Inc. (PX)
Shareholder Composition
As of September 30, 2024, the ownership structure of P10, Inc. is characterized by both Class A and Class B common stock. The following table summarizes the shares outstanding and the ownership distribution:
| Class of Stock | Shares Issued | Shares Outstanding | Percentage of Total Shares |
|---|---|---|---|
| Class A Common Stock | 61,357,766 | 53,813,892 | 48.8% |
| Class B Common Stock | 57,531,354 | 57,407,903 | 51.2% |
Major Shareholders
The significant shareholders of P10, Inc. as of the latest reporting include:
- Robert Alpert - Significant stakeholder, participated actively in management decisions.
- C. Clark Webb - Another key figure in the company's strategic direction.
- Institutional Investors - Various institutional investors hold a substantial portion of shares, contributing to liquidity and governance.
Equity Structure
As of September 30, 2024, the total equity of P10, Inc. is reported as follows:
| Item | Amount (in thousands) |
|---|---|
| Total Equity | $394,094 |
| Class A Common Stock | $54 |
| Class B Common Stock | $57 |
| Treasury Stock | ($66,273) |
| Additional Paid-in Capital | $640,204 |
| Accumulated Deficit | ($219,592) |
| Noncontrolling Interests | $39,644 |
Recent Changes in Ownership
In recent months, there have been notable changes in the board of directors, including the resignation of Robert Alpert and C. Clark Webb effective November 7, 2024. This may influence future ownership dynamics and strategic direction.
Stock Performance and Market Capitalization
As of September 30, 2024, P10, Inc. has experienced a market capitalization reflecting its trading performance:
| Metric | Value |
|---|---|
| Current Stock Price (PX) | $8.40 |
| Market Capitalization | $450 million (approx.) |
Debt and Financial Position
As of September 30, 2024, P10, Inc. reported the following financial metrics:
| Financial Metric | Value (in thousands) |
|---|---|
| Total Assets | $857,033 |
| Total Liabilities | $462,939 |
| Debt Obligations | $319,411 |
| Cash and Cash Equivalents | $63,268 |
P10, Inc. (PX) Mission Statement
Overview
P10, Inc. focuses on delivering comprehensive investment solutions and advisory services tailored to meet the unique needs of its clients. The company emphasizes its commitment to innovation, operational excellence, and long-term partnerships.
Mission Statement
The mission statement of P10, Inc. as of 2024 articulates its dedication to providing exceptional investment management services while fostering sustainable growth and creating value for its stakeholders.
Financial Performance
As of September 30, 2024, P10, Inc. reported significant financial metrics that underscore its operational effectiveness:
| Metric | 2024 (9 Months) | 2023 (9 Months) | % Change |
|---|---|---|---|
| Total Revenues | $211,434,000 | $178,667,000 | 18.3% |
| Net Income | $13,966,000 | ($5,879,000) | Positive Turnaround |
| Adjusted EBITDA | $101,576,000 | $92,865,000 | 9.4% |
| Cash and Cash Equivalents | $63,268,000 | $32,057,000 | 97.0% |
| Debt Obligations | $319,411,000 | $289,844,000 | 10.2% |
Sources of Revenue
P10, Inc. generates revenue through a diversified portfolio of services:
- Management Fees: $206,192,000
- Advisory Fees: $3,731,000
- Subscriptions: $515,000
- Other Revenue: $4,727,000
Fee-Paying Assets Under Management (FPAUM)
As of September 30, 2024, P10's FPAUM reflects growth and stability:
| Period | FPAUM (in billions) |
|---|---|
| September 30, 2024 | $24.9 |
| September 30, 2023 | $22.7 |
Stock Performance
P10, Inc. has maintained an active stock repurchase program, with the following details:
- Total Amount Spent on Buybacks: $78.1 million
- Authorized Buyback Program: $40 million (initially), with subsequent authorizations totaling $52 million
Dividends
As of 2024, P10, Inc. declared a quarterly cash dividend of $0.035 per share of Class A and Class B common stock, payable on December 20, 2024, to shareholders of record as of November 29, 2024.
Debt Overview
P10, Inc. has a robust debt structure:
| Debt Type | Amount (in millions) | Interest Rate |
|---|---|---|
| Term Loan | $325.0 | 7.68% (Adjusted Term SOFR) |
| Revolving Credit Facility | $0 (no outstanding balance) | N/A |
Compliance and Financial Covenants
As of September 30, 2024, P10, Inc. was compliant with its financial covenants, maintaining a minimum leverage ratio below 3.50 as stipulated in its credit agreements.
How P10, Inc. (PX) Works
Company Overview
P10, Inc. operates primarily in the investment management sector, focusing on private equity and venture capital solutions. The company generates revenue through management and advisory fees, consulting agreements, and other related services. As of September 30, 2024, P10's fee-paying assets under management (FPAUM) stood at approximately $24.9 billion, reflecting a significant growth compared to previous periods.
Financial Performance
For the nine months ended September 30, 2024, P10 reported total revenues of $211.4 million, an increase from $178.7 million in the same period of 2023. The breakdown of revenues is as follows:
| Revenue Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Management and Advisory Fees | $206,192 | $176,322 |
| Other Revenue | $5,242 | $2,345 |
| Total Revenues | $211,434 | $178,667 |
Adjusted EBITDA and Net Income
P10's Adjusted EBITDA for the nine months ended September 30, 2024, was $101.6 million, compared to $92.9 million for the same period in 2023. The company also reported a net income of $13.97 million for the nine months ended September 30, 2024, a notable recovery from a net loss of $5.88 million in 2023.
Balance Sheet Highlights
As of September 30, 2024, P10's financial position includes:
| Item | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) | % Change |
|---|---|---|---|
| Cash and Cash Equivalents | $63,268 | $32,057 | 97% |
| Total Assets | $857,033 | $834,074 | 3% |
| Debt Obligations | $319,411 | $289,844 | 10% |
| Equity | $394,094 | $425,162 | (7%) |
Cash Flow Analysis
For the nine months ended September 30, 2024, P10 generated net cash provided by operating activities amounting to $73.3 million, up from $45.8 million in the previous year. The cash flows are summarized below:
| Cash Flow Type | 2024 (in thousands) | 2023 (in thousands) | % Change |
|---|---|---|---|
| Net Cash Provided by Operating Activities | $73,258 | $45,807 | 60% |
| Net Cash Used in Investing Activities | ($3,358) | ($727) | 362% |
| Net Cash Used in Financing Activities | ($38,689) | ($52,354) | (26%) |
| Increase in Cash | $31,211 | ($7,274) | 529% |
Debt Structure
P10 has a substantial debt structure, with total debt obligations of $319.4 million as of September 30, 2024. The company entered into a new credit agreement in August 2024, which includes a $325 million term loan and a $175 million revolving credit facility. The weighted average interest rate for the term loan is 7.68% as of the reporting date.
Stock Performance and Dividends
P10 has engaged in stock repurchase programs, with $78.1 million spent on share buybacks as of September 30, 2024. The company declared a quarterly cash dividend of $0.035 per share, payable on December 20, 2024.
Conclusion on Financial Health
P10, Inc. has demonstrated robust growth in revenues and recovery in net income, alongside improvements in cash flow from operations. The company's strategic focus on expanding FPAUM and managing its debt effectively positions it for continued growth in the investment management sector.
How P10, Inc. (PX) Makes Money
Revenue Sources
P10, Inc. primarily generates revenue through management and advisory fees, which are largely based on Fee-Paying Assets Under Management (FPAUM). As of September 30, 2024, P10's total revenues were $74.2 million for the third quarter, and $211.4 million for the nine months ended September 30, 2024, reflecting an increase of 26% and 18% respectively compared to the same periods in 2023.
| Revenue Category | Q3 2024 ($ millions) | Q3 2023 ($ millions) | 9M 2024 ($ millions) | 9M 2023 ($ millions) | Change (%) |
|---|---|---|---|---|---|
| Management Fees | 71.4 | 56.9 | 202.5 | 172.8 | 25% |
| Advisory Fees | 1.2 | 1.2 | 3.7 | 3.5 | 7% |
| Other Revenue | 1.5 | 0.7 | 4.7 | 2.0 | 135% |
| Total Revenue | 74.2 | 58.9 | 211.4 | 178.7 | 18% |
Management and Advisory Fees
The majority of P10's revenue comes from long-term, fixed fee contracts for management and advisory services. These fees are typically based on committed capital, subject to ten to fifteen year lock-up agreements, resulting in stable average fee rates around 1%.
For the three months ended September 30, 2024, management and advisory fees increased by $14.5 million, or 25%, to $72.6 million compared to the same period in 2023, driven by organic FPAUM growth across various funds including Bonaccord and RCP.
FPAUM Growth
As of September 30, 2024, P10 reported a total FPAUM of $24.9 billion, a 7.2% increase compared to the previous year. This growth was attributed to capital raised from private equity and venture capital solutions.
| FPAUM Metrics | Q3 2024 ($ billions) | Q3 2023 ($ billions) | Change ($ billions) |
|---|---|---|---|
| Beginning Balance | 23.8 | 22.2 | 1.6 |
| Capital Raised | 1.3 | 0.5 | 0.8 |
| Capital Deployed | 0.1 | 0.2 | (0.1) |
| Ending Balance | 24.9 | 22.7 | 2.2 |
Operating Expenses
P10's operating expenses for the three months ended September 30, 2024, totaled $65.4 million, up from $58.6 million in the same period in 2023, reflecting a 12% increase. The primary drivers included increased professional fees and general administrative costs.
| Operating Expense Categories | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Change (%) |
|---|---|---|---|
| Compensation and Benefits | 42.5 | 42.2 | 1% |
| Professional Fees | 9.2 | 3.4 | 173% |
| General and Administrative | 6.6 | 5.3 | 24% |
| Total Operating Expenses | 65.4 | 58.6 | 12% |
Net Income
For the quarter ending September 30, 2024, P10 reported a net income of $1.3 million, a significant improvement from a net loss of $8.8 million in the prior year. For the nine months ended September 30, 2024, net income was $14.0 million, up from a loss of $5.9 million in 2023.
| Net Income Metrics | Q3 2024 ($ millions) | Q3 2023 ($ millions) | 9M 2024 ($ millions) | 9M 2023 ($ millions) |
|---|---|---|---|---|
| Net Income | 1.3 | (8.8) | 14.0 | (5.9) |
Debt and Financing
As of September 30, 2024, P10 had total debt obligations of $319.4 million, reflecting an increase of 10% from $289.8 million at the end of 2023. The interest incurred on this debt was $17.5 million for the nine months ended September 30, 2024.
| Debt Metrics | Debt ($ millions) | Interest Expense ($ millions) | Change (%) |
|---|---|---|---|
| Total Debt | 319.4 | 17.5 | 10% |
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Resources:
- P10, Inc. (PX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of P10, Inc. (PX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View P10, Inc. (PX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.