Contradictions Unveiled: Analyzing M&A Strategy, Fund Performance, and Margin Expectations in 2025's Q2 Earnings Call

Record Fundraising and Asset Growth:
- P10, Inc. reported raising and deploying $1.9 billion in organic gross new fee-paying AUM in Q2, marking their second consecutive quarter of record organic growth.
- This resulted in an overall gross fee-paying AUM increase of $3 billion for the quarter, with total fee-paying assets under management reaching $28.9 billion, a 21% increase year-over-year.
- The growth was driven by strong fundraising momentum and positive LP demand, particularly in co-investments and secondaries.

Inorganic Growth and Strategic Acquisitions:
- The Qualitas Funds acquisition closed on April 4, adding $1 billion to P10's fee-paying AUM during the quarter.
- Integration is proceeding well, with new product offerings and collaboration between RCP and Qualitas teams, including the launch of Qualitas Funds US1, which allows Qualitas LPs to invest through Spanish investment vehicles in U.S. lower middle market private equity opportunities.
- The integration is expected to expand P10's global private markets ecosystem and facilitate more integrated solutions.

Private Credit and NAV Lending Performance:
- The private credit strategies added $568 million to fee-paying assets under management, with significant deployment from Hark, the NAV lending business, which doubled its deployment in the first half of 2025 compared to the previous year.
- This growth is attributed to increased demand for NAV lending capabilities in the middle and lower middle market segments and the launch of Hark IV, the largest fund to date.

Share Repurchase and Financial Strategy:
- P10 repurchased over 3.7 million shares at an average price of $11.09, with $2.5 million of shares repurchased in Q2 alone.
- The company authorized an additional $25 million on its repurchase plan, intending to return capital to shareholders while maintaining ample financial capacity for M&A opportunities.