Ridgepost Capital (RPC) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $71.1 million, up 14% year-over-year, driven by strong fundraising momentum and $844 million in new fee-paying AUM.

• Fee-paying AUM reached $23.8 billion, up 8% year-over-year as of June 30, 2024.

• GAAP net income for Q2 2024 was $7.4 million, up from $2.1 million in Q2 2023, reflecting higher operating income and lower contingent consideration expense.

• Adjusted EBITDA for Q2 2024 was $35.4 million, up 2% year-over-year, with a 50% margin.

• Strategic initiatives advanced, including multiple fund closings above targets, expanded leadership, and a key appointment to drive global client solutions.

Financial highlights

• Q2 2024 revenue was $71.1 million, up 14% year-over-year; fee-related revenue was $68.3 million, up 12%.

• Adjusted net income was $28.8 million, up 8% year-over-year; fully diluted GAAP EPS was $0.06, up from $0.02.

• Operating expenses were $54.2 million, up 4% year-over-year, mainly due to compensation, placement fees, and technology investments.

• Cash and cash equivalents at quarter end were $31–32.2 million; outstanding debt was $300.6–$303 million.

• Quarterly dividend of $0.035 per share declared for both Class A and B shares, payable September 20, 2024.

Outlook and guidance

• Confident in meeting or exceeding the $2.5 billion organic fundraising and deployment target for 2024.

• Expect continued strength in fundraising and deployment in the second half of the year, with more funds coming to market.

• Margins for the year expected in the mid-40s% as investments continue; compliance costs expected to rise due to new SEC regulations.

• Management remains committed to disciplined growth, platform integration, and building a world-class inorganic growth engine.