P10 Announces Agreement to Acquire Qualitas Funds, a Leading European Lower-Middle Market Alternative Investment Solutions Provider
P10, Inc. (NYSE: PX) has announced an agreement to acquire Qualitas Equity Funds SGEIC, S.A. for an initial purchase price of $63 million, with potential additional earnout consideration. Qualitas Funds, a Madrid-based private equity investing platform, manages approximately $1 billion in fee-paying assets and serves over 1,300 partners. The acquisition will establish P10's European presence and expand its global client base.
The transaction includes $42.25 million in cash and $20.75 million in P10 stock, with up to $35 million in additional earnout consideration. The deal is expected to close in Q1 2025 and be modestly accretive to fully-taxed ANI per share in 2025. Qualitas Funds' current managing partners will retain control of day-to-day operations, ensuring continuity in investment processes.
P10, Inc. (NYSE: PX) ha annunciato un accordo per acquisire Qualitas Equity Funds SGEIC, S.A. per un prezzo di acquisto iniziale di 63 milioni di dollari, con potenziale considerazione aggiuntiva. Qualitas Funds, una piattaforma di investimenti in private equity con sede a Madrid, gestisce circa 1 miliardo di dollari in asset con commissioni e serve oltre 1.300 partner. L'acquisizione stabilirà la presenza europea di P10 e espanderà la sua clientela globale.
La transazione include 42,25 milioni di dollari in contante e 20,75 milioni di dollari in azioni P10, con un potenziale ulteriore guadagno fino a 35 milioni di dollari. Si prevede che l'accordo venga concluso nel primo trimestre del 2025 e che sia moderatamente incrementale all'ANI totalmente tassato per azione nel 2025. I partner attuali di gestione di Qualitas Funds manterranno il controllo delle operazioni quotidiane, garantendo continuità nei processi di investimento.
P10, Inc. (NYSE: PX) ha anunciado un acuerdo para adquirir Qualitas Equity Funds SGEIC, S.A. por un precio de compra inicial de 63 millones de dólares, con una posible consideración adicional. Qualitas Funds, una plataforma de inversión en capital privado con sede en Madrid, gestiona aproximadamente 1.000 millones de dólares en activos que generan comisiones y atiende a más de 1.300 socios. La adquisición establecerá la presencia europea de P10 y ampliará su base de clientes global.
La transacción incluye 42,25 millones de dólares en efectivo y 20,75 millones de dólares en acciones de P10, con hasta 35 millones de dólares en consideración de ganancias adicionales. Se espera que el acuerdo se cierre en el primer trimestre de 2025 y que sea modestamente positivo para el ANI totalmente gravado por acción en 2025. Los socios actuales de gestión de Qualitas Funds mantendrán el control de las operaciones diarias, asegurando la continuidad en los procesos de inversión.
P10, Inc. (NYSE: PX)는 Qualitas Equity Funds SGEIC, S.A.를 6,300만 달러의 초기 구매 가격으로 인수하기 위한 계약을 발표했습니다. 마드리드에 본사를 둔 프라이빗 에쿼티 투자 플랫폼인 Qualitas Funds는 약 10억 달러의 수수료 자산을 관리하며 1,300명 이상의 파트너에게 서비스를 제공합니다. 이번 인수로 P10의 유럽 진출이 확립되고 전 세계 고객 기반이 확장될 것입니다.
이번 거래에는 4,225만 달러의 현금과 P10 주식으로 2,075만 달러가 포함되며, 최대 3,500만 달러의 추가 보상 조건이 있습니다. 거래는 2025년 1분기에 마무리될 것으로 예상되며 2025년 주당 완전 세금 적용 ANI에 대해 다소 긍정적인 영향을 미칠 것으로 보입니다. Qualitas Funds의 현재 관리 파트너들은 일상 운영의 통제를 유지하여 투자 프로세스의 연속성을 보장할 것입니다.
P10, Inc. (NYSE: PX) a annoncé un accord pour acquérir Qualitas Equity Funds SGEIC, S.A. pour un prix d'achat initial de 63 millions de dollars, avec une éventuelle considération supplémentaire. Qualitas Funds, une plateforme d'investissement en capital-investissement basée à Madrid, gère environ 1 milliard de dollars d'actifs générant des frais et sert plus de 1.300 partenaires. L'acquisition établira la présence européenne de P10 et élargira sa base de clients mondiale.
La transaction comprend 42,25 millions de dollars en liquide et 20,75 millions de dollars en actions P10, avec jusqu'à 35 millions de dollars de considération de gain supplémentaire. L'accord devrait se clôturer au premier trimestre 2025 et être modérément accretif au ANI totalement imposé par action en 2025. Les partenaires gérants actuels de Qualitas Funds conserveront le contrôle des opérations quotidiennes, assurant ainsi la continuité des processus d'investissement.
P10, Inc. (NYSE: PX) hat eine Vereinbarung bekannt gegeben, um Qualitas Equity Funds SGEIC, S.A. zu einem anfänglichen Kaufpreis von 63 Millionen US-Dollar zu erwerben, mit möglichen zusätzlichen Earnout-Verpflichtungen. Qualitas Funds, eine auf Private Equity spezialisierte Investmentplattform mit Sitz in Madrid, verwaltet etwa 1 Milliarde US-Dollar an gebührenpflichtigen Vermögenswerten und bedient über 1.300 Partner. Die Akquisition wird P10s europäische Präsenz etablieren und seine globale Kundenbasis erweitern.
Die Transaktion umfasst 42,25 Millionen US-Dollar in bar und 20,75 Millionen US-Dollar in P10-Aktien, mit zusätzlichen Earnouts von bis zu 35 Millionen US-Dollar. Der Abschluss der Vereinbarung wird für das erste Quartal 2025 erwartet und soll moderate Auswirkungen auf den voll versteuerten ANI je Aktie im Jahr 2025 haben. Die aktuellen geschäftsführenden Partner von Qualitas Funds werden die Kontrolle über die täglichen Abläufe behalten, um die Kontinuität in den Investitionsprozessen sicherzustellen.
- Acquisition adds approximately $1 billion in fee-paying assets under management
- Expands P10's global client base by over 1,300 LPs
- Establishes European presence for P10
- Expected to be modestly accretive to fully-taxed ANI per share in 2025
- Qualitas Funds' current managing partners will retain control of day-to-day operations
- Initial purchase price of $63 million with potential additional earnout consideration up to $35 million
- Transaction closing subject to regulatory approvals, including Spanish regulatory approval
Insights
The acquisition of Qualitas Funds by P10 is a strategic move that significantly expands P10's global presence and asset base. With an initial purchase price of
This acquisition positions P10 as a more prominent player in the global private markets arena, particularly in the attractive European lower-middle market segment. The deal expands P10's product offerings to include fund-of-funds, direct co-investing and NAV financing opportunities, potentially increasing its appeal to a broader range of investors. The addition of 1,300+ partners, primarily from UHNW, family office and institutional channels, significantly diversifies P10's client base. This move aligns with the industry trend of consolidation and geographic expansion among alternative asset managers. However, the success of this strategy will depend on P10's ability to leverage Qualitas Funds' expertise and client relationships while maintaining the firm's performance and culture post-acquisition.
The acquisition agreement includes several key legal considerations. Firstly, the transaction is subject to Spanish regulatory approval, which introduces a level of uncertainty and potential delays. The structure of the deal, with an initial payment and an earnout component, helps mitigate risks for both parties but also creates ongoing obligations. The three-year lock-up period for the stock consideration (
Establishes European presence and will add approximately $1 billion in fee-paying assets under management
Expands P10’s global client base by over 1,300 LPs
Expected to be modestly accretive to fully-taxed ANI per share in 2025
DALLAS, Sept. 17, 2024 (GLOBE NEWSWIRE) -- P10, Inc. (NYSE: PX) (“P10” or the “Company”), a leading private markets solutions provider, today announced that it has entered into a definitive agreement to acquire Qualitas Equity Funds SGEIC, S.A. (“Qualitas Funds”) for an initial purchase price of
Qualitas Funds is a Madrid-based private equity investing platform that provides fund-of-funds, direct co-investing and NAV financing opportunities in the European lower-middle market to more than 1,300 limited partners across the ultra-high-net-worth (UHNW), family office, and institutional channels. The firm has approximately
“The Qualitas Funds acquisition establishes a European presence and meaningfully grows P10’s investor base, positioning us as a leading global, multi-strategy private markets firm focused on the middle and lower-middle markets,” said Luke Sarsfield, P10 Chairman and Chief Executive Officer. “Eric, Sergio, and their talented team have built an incredible firm with strong performance and a loyal investor base. Our strategy leaders have known and worked alongside the Qualitas Funds team for over a decade. They share our client-centric culture and dedication to serving clients with elite, access constrained investment opportunities in the middle and lower-middle markets.”
“We are thrilled to join P10’s diversified private markets ecosystem,” said Halverson and Garcia. “Luke and his team are building the preeminent global middle and lower-middle market private markets firm, and we look forward to working closely with them to generate accelerated growth and deliver continued value for our clients. Specifically, this transaction strengthens our existing relationships with RCP Advisors and Hark Capital as we seek to launch additional strategies and vehicles that meet the demands of global investors seeking to access a full range of opportunities in the middle and lower-middle markets.”
Transaction Overview
P10 has agreed to acquire
The initial consideration of
Qualitas Funds will continue to be managed by its current managing partners who will retain control of its day-to-day operations, including investment and investment committee processes, and there are employment agreements with each managing partner being put in place.
The transaction is expected to close in the first quarter of 2025, subject to customary closing conditions and regulatory approvals, including Spanish regulatory approval. For more information on the transaction, please visit the investor relations section of P10’s website, where an investor presentation is available, or access the Company’s filings on the SEC website.
Kirkland & Ellis LLP and Pérez-Llorca Abogados, S.L.P. are serving as legal advisors to P10. Cuatrecasas, Gonçalves Pereira, S.L.P. is serving as legal advisor to Qualitas Funds.
About P10
P10 is a leading multi-asset class private markets solutions provider in the alternative asset management industry. P10’s mission is to provide its investors differentiated access to a broad set of investment solutions that address their diverse investment needs within private markets. As of June 30, 2024, P10 has a global investor base of more than 3,700 investors across 50 states, 60 countries, and six continents, which includes some of the world’s largest pension funds, endowments, foundations, corporate pensions, and financial institutions. Visit www.p10alts.com.
About Qualitas Funds
Qualitas Funds is a Madrid-based private markets investing platform that provides fund-of-funds and direct co-investing opportunities in the lower-middle market to more than 1,300 limited partners across the UHNW, family office, and institutional channels. As of June 30, 2024, the firm has approximately
P10 Investor Contact:
info@p10alts.com
P10 Media Contact:
Taylor Donahue
pro-p10@prosek.com
Forward-Looking Statements
Some of the statements in this release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Words such as “will,” “expect,” “believe,” “estimate,” “continue,” “anticipate,” “intend,” “plan” and similar expressions are intended to identify these forward-looking statements. Forward-looking statements discuss management’s current expectations and projections relating to our financial position, results of operations, plans, objectives, future performance, and business. The inclusion of any forward-looking information in this release should not be regarded as a representation that the future plans, estimates, or expectations contemplated will be achieved. Forward-looking statements reflect management’s current plans, estimates, and expectations, and are inherently uncertain. All forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors that may cause actual results to be materially different; global and domestic market and business conditions; successful execution of business and growth strategies and regulatory factors relevant to our business; changes in our tax status; our ability to maintain our fee structure; our ability to attract and retain key employees; our ability to manage our obligations under our debt agreements; our ability to make acquisitions and successfully integrate the businesses we acquire; assumptions relating to our operations, financial results, financial condition, business prospects and growth strategy; and our ability to manage the effects of events outside of our control. The foregoing list of factors is not exhaustive. For more information regarding these risks and uncertainties as well as additional risks that we face, you should refer to the “Risk Factors” included in our annual report on Form 10-K for the year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 13, 2024, and in our subsequent reports filed from time to time with the SEC. The forward-looking statements included in this release are made only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information or future events, except as otherwise required by law.
Key Financial & Operating Metrics
Fee-paying assets under management reflects the assets from which we earn management and advisory fees. Our vehicles typically earn management and advisory fees based on committed capital, and in certain cases, net invested capital, depending on the fee terms. Management and advisory fees based on committed capital are not affected by market appreciation or depreciation.
Ownership Limitations
P10’s Certificate of Incorporation contains certain provisions for the protection of tax benefits relating to P10’s net operating losses. Such provisions generally void transfers of shares that would result in the creation of a new
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1 Based on EUR/USD exchange rate of 1.10278 as of 9/11/24
FAQ
What is the value of P10's acquisition of Qualitas Funds?
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When is the P10 (PX) acquisition of Qualitas Funds expected to close?
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What is the structure of the payment for P10's acquisition of Qualitas Funds?
