Contradictions Unveiled: Examining Fundraising Strategies, Fee Expectations, and M&A Outlook in 2025 Q1 Call

None



Record Fundraising and Fee-Paying Assets:
- P10 raised and deployed over $1.4 billion in gross new fee-paying AUM, marking a record fundraising quarter for the firm.
- This was driven by strong demand across private equity, private credit, and venture capital strategies, as well as successful closings of commingled funds and SMAs.

Qualitas Funds Acquisition Impact:
- The acquisition of Qualitas Funds added 1300 LPs to P10's platform, expanding P10's global LP base and European presence.
- The acquisition contributed an additional $1 billion to fee-paying assets under management, enhancing P10's scale and international reach.

Financial Performance and Tax Considerations:
- P10's year-over-year growth in fee-related revenue (FRR) was 4%, with FRE margin at 45%.
- The company anticipates its cash tax rate to remain in the low single digits for 2025, influenced by state taxes, and expects a combined federal and state cash tax rate to increase post-2026 when NOL is fully utilized.

Strategic Investments and M&A Activity:
- P10 remains focused on strategic investments to enhance transparency and operational efficiencies, exemplified by board refreshment.
- The company is actively evaluating opportunities for strategic M&A with a focus on European adjacencies, following the successful integration of Qualitas Funds.