P10 (PX), mcap=$1.2bn, price $10.33 vs $12.32

$PX pitch:
– An alternative asset manager with an income stream based 100% on recurring management fees from the long-term (10-15 years) locked-up vehicles.
– AUM of $18.5bn with 1% annual management fees.
– Performance fees have been left with the investment teams, creating a stable revenue stream for P10.
– P10’s asset managers have excellent reputations and track records.
– Continues to grow organically (21% 4-year CAGR) and through acquisitions.
– Expected to compound in the mid-teens to low twenties over the next 5-10 years.
– Low risk of permanent capital loss.

$PX valuation:
– Trades at 6% FCF yield.
– Slight discount to peers at 17x P/E vs P10 at 15.7, despite faster growth and income stream based 100% on long-term, recurring management fees.

Exp. gain: 15-20% compounder for many years.

Full PX write-up (free guest account required):

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