2024-05-24 12:20:44 ET
Summary
- P10, Inc. shares have fallen nearly 50% in the past two years due to squeezed margins and lower-than-expected organic fundraising projections for FY24.
- P10 is an alternative asset manager focused on lower-middle and middle private markets, with fee-paying assets under management of $23.8 billion.
- The company generates nearly all of its revenue from management and advisory fees, but its compensation costs have outpaced its assets under management, leading to declining margins.
- An investment analysis around P10, Inc. follows in the paragraphs below.
Shares of alternative asset manager P10, Inc. ( PX ) are down nearly 50% over the past two plus years as its margins continue to get squeezed by compensation that outpaces assets under management. The pure-play fee manager projected FY24 organic fundraising of $2.5 billion, sharply lower than Street estimates of $3.9 billion, as part of its 4Q23 financial report of February 29, 2024. With a new management team, an all-time low touched on April 18, 2024, and little in 2024 to move the needle, the recent insider buying into this busted IPO merited a deeper dive. An analysis follows below....
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P10, Inc.: An Assessment On An Alternative Investment Management Company