Ridgepost Capital (RPC) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $74.2 million, up 26% year-over-year, with fee-paying AUM reaching $24.9 billion, a 10% increase, and net income of $1.3 million compared to a net loss in Q3 2023.

• Surpassed full-year fundraising guidance with $2.9 billion raised and deployed through Q3 2024.

• Announced agreement to acquire Qualitas Funds, expanding European presence and investor base, with the deal expected to close in Q1 2025.

• Hosted inaugural Investor Day, introduced new KPIs and financial metrics, and provided long-term growth guidance.

• Significant management changes included the appointment of a new CEO and Chairman, and the early termination of executive transition agreements.

Financial highlights

• Q3 2024 revenue was $74.2 million, up 26% year-over-year; fee-related revenue was $72.9 million, also up 26%.

• Adjusted EBITDA was $35.3 million, up 19% year-over-year, with a margin of 48%.

• Adjusted net income was $30.8 million, up 26% year-over-year; fully diluted ANI EPS was $0.26, up 32%.

• GAAP net income for Q3 2024 was $1.3 million, compared to a net loss of $8.8 million in Q3 2023.

• Catch-up fees contributed $6 million in Q3, bringing the year-to-date total to $20 million, exceeding annual guidance.

Outlook and guidance

• Expect to more than double fee-paying AUM by 2029, with most growth from organic sources.

• 2024 full-year step-downs and expirations expected to total $1.5 billion, with $200 million anticipated in Q4.

• Core organic FRE margins, excluding M&A, projected to expand from mid-40% to near 50% over the long term.

• Updated 2025 strategic initiatives and financial guidance, including Qualitas impact, to be shared in February.

• Compliance costs are expected to rise due to new SEC regulations and cybersecurity requirements.