Ridgepost Capital (RPC) Investor Day 2024 summary

Strategic Vision and Business Model

• Focuses on being a category leader in specialty, niche, and fragmented alternatives, targeting the middle and lower middle markets with a disciplined approach and strong culture for both organic and inorganic growth.

• Fee-paying AUM has grown at a 14–19% CAGR since IPO, reaching $23.8B as of June 2024, with total revenue and adjusted EBITDA nearly doubling.

• 98% of revenues and EBITDA are fee-related, with carried interest primarily retained by investment teams, ensuring alignment and stable, predictable earnings.

• Insiders own over 45% of the company, reinforcing alignment with shareholders.

• Shared services model provides scalable support in finance, operations, legal, compliance, and technology, enabling efficient integration and growth of acquired firms.

Growth Strategy and M&A

• Organic growth is driven by deepening and broadening LP relationships, expanding product offerings, and leveraging data and analytics for client engagement.

• Less than 5% of LPs currently invest across multiple strategies, presenting a significant cross-sell opportunity.

• Inorganic growth is pursued through proactive, process-driven M&A, focusing on acquiring fee-related earnings and aligning incentives via stock and earn-outs.

• Recent acquisition of Qualitas Funds marks entry into Europe, adding $1B in AUM, 1,300+ LPs, and a robust data platform, and is expected to be accretive to earnings in 2025.

• M&A targets include private credit, real assets, and new distribution channels, with a focus on strategic fit, culture, and financial accretion.

Investment Solutions and Performance

• Private equity: RCP Advisors and Bonaccord are leaders in small buyout and GP stakes, leveraging proprietary data and a complementary ecosystem for alpha generation.

• Private credit: Four affiliates manage $5.1B AUM across project finance, NAV lending, venture debt, and mezzanine, all focused on less competitive lower middle market segments.

• Venture capital: TrueBridge invests in top-tier funds and direct deals, leveraging unique data from Forbes and strong relationships for best-in-class returns.

• All strategies leverage proprietary data and analytics platforms (GP Scout/GPScout) for sourcing, diligence, and performance benchmarking.

• Historical net IRRs: Private Equity 26.0%, Private Credit 15.4%-16.1%, Venture Capital flagship funds 20.4%, with 18 of 23 commingled funds meeting or exceeding return targets and high LP re-up rates around 80-85%.