P10's Dividend Resilience: A Strategic Play for Long-Term Income Investors

In an era of economic uncertainty and shifting market dynamics, income-focused investors are increasingly drawn to companies that combine consistent dividend growth with strategic resilience. P10, Inc. (NYSE: PX), a leader in private markets solutions, has emerged as a compelling candidate for such portfolios. With a track record of dividend increases, robust asset growth, and a clear-eyed approach to capital allocation, P10's financial and operational performance suggests its dividend sustainability is not just a short-term promise but a long-term commitment.

Financial Resilience: A Foundation for Sustainable Dividends

P10's ability to sustain and grow its dividend is underpinned by its strong financial metrics. Over the past year, the company has delivered a 14.29% dividend growth rate, with a recent 7% increase in May 2025 raising the quarterly payout to $0.0375 per share. This growth is not merely a function of favorable conditions but a reflection of disciplined capital management.

Key to P10's resilience is its fee-paying assets under management (AUM), which surged to $28.9 billion as of June 30, 2025, a 21% year-over-year increase. This growth, driven by record fundraising and strategic acquisitions like the Qualitas Funds deal, has bolstered the company's revenue streams. In Q2 2025, total revenue reached $72.7 million, up 2% from the prior year, while fee-related revenue hit $67.6 million in Q1 2025, a 4% year-over-year rise.

The company's dividend payout ratio is another critical indicator. Based on Adjusted Net Income (ANI) per share of $0.23 in Q2 2025, the payout ratio stands at approximately 16.3%, leaving ample room for future increases. This conservative approach ensures P10 can maintain its dividend even in a downturn, a trait that becomes increasingly valuable in volatile markets.

Strategic Positioning: Expanding the Value Proposition

P10's strategic acquisitions and global expansion have positioned it to capitalize on long-term trends in private markets. The acquisition of Qualitas Funds, for instance, not only expanded its asset base but also enhanced its offerings in the European lower-middle market, a segment with growing demand. This diversification reduces geographic and sector-specific risks, ensuring steady fee income.

The company's focus on private equity and alternative investments aligns with a broader shift in institutional and retail investor preferences. As traditional markets face volatility, private markets—characterized by long-term horizons and illiquid assets—offer a counterbalance. P10's ability to deploy over $1.9 billion in gross new fee-paying AUM in Q2 2025 underscores its relevance in this evolving landscape.

Moreover, P10's recent board appointments—Jennifer Glassman and Stephen Blewitt—add expertise in audit and strategic oversight, reinforcing governance standards. Strong leadership is critical for maintaining investor confidence, particularly as the company navigates regulatory and economic headwinds.

Risks and Mitigants: A Balanced Perspective

While P10's financials are robust, investors must consider its debt-to-equity ratio of 103.72%, a metric that reflects a leverage-heavy capital structure. However, this risk is mitigated by the company's strong cash flow generation. In Q1 2025, P10 repurchased $28.5 million worth of shares, demonstrating its commitment to returning capital to shareholders while maintaining liquidity.

The recent decline in GAAP Net Income (down 10% year-over-year) also warrants attention. However, this dip is partly attributable to non-recurring expenses and tax adjustments, not a fundamental weakness in the business model. P10's Adjusted Net Income, which excludes such items, remains resilient, highlighting the company's operational efficiency.

Investment Case: A Dividend Powerhouse for the Long Haul

For dividend-focused investors, P10 presents a rare combination of growth potential and financial stability. Its low payout ratio, consistent AUM growth, and strategic acquisitions create a durable foundation for future dividend increases. The company's ability to raise and deploy capital in a competitive market further cements its position as a leader in private markets solutions.

However, success hinges on P10's ability to maintain its fundraising momentum and manage debt levels prudently. Investors should monitor quarterly reports for updates on AUM growth, fee-related revenue, and capital return initiatives.

Conclusion: A Strategic Buy for Income-Oriented Portfolios

P10, Inc. is more than a dividend payer—it is a dividend grower with a clear vision for long-term value creation. Its strategic positioning in private markets, coupled with disciplined financial management, makes it a compelling choice for investors seeking sustainable income in an uncertain world. While risks exist, the company's track record and proactive approach to capital allocation suggest its dividend story is far from over.

For those willing to hold for the long term, P10 offers a rare blend of growth, resilience, and shareholder-friendly policies—a trifecta that is hard to ignore in today's market.