RCP Advisors Fund XVIII Closes on ~$285 Million in Aggregate Capital Commitments
P10, a private markets solutions provider, announced the closing of RCP Fund XVIII with $285 million in capital commitments. The fund, managed by RCP Advisors, targets North American small buyout fund managers. It includes a diverse investor base: family offices, high-net-worth individuals, foundations, public pension plans, and endowments. P10's CEO, Luke Sarsfield, highlighted the milestone, emphasizing RCP Advisors' strong private equity relationships and investment team. The fund will invest in managers focusing on companies with $3 million to $25 million EBITDA, aiming for top-quartile performance.
- RCP Fund XVIII closed with $285 million in capital commitments.
- Broad investor base including family offices, high-net-worth individuals, foundations, public pension plans, and endowments.
- Fund targets investments in small to mid-sized companies with $3 million to $25 million EBITDA.
- P10's platform and RCP Advisors' experienced team are well-positioned for market opportunities.
- Focus on control-oriented investments in established companies.
- Economic conditions may affect the performance of targeted small to mid-sized companies.
- Investments in small buyout funds might carry higher risks compared to larger funds.
- Potential difficulty in achieving top-quartile performance amid market volatility.
Insights
The closing of RCP Fund XVIII with
From a financial perspective, this capitalization can provide liquidity and growth opportunities for P10, potentially enhancing their balance sheet and enabling further investments in lucrative small and mid-sized companies. However, investors should be aware that focusing on smaller companies can involve higher risks due to their potential volatility and sensitivity to economic cycles.
Considering the broad LP base, including high-net-worth individuals, foundations, public pension plans and endowments, this fund’s closing also reflects a broad endorsement from a diverse range of sophisticated investors. This could bode well for P10's reputation and future fundraising efforts.
RCP Advisors’ strategy of targeting small company buyouts is particularly interesting due to the niche market focus. Small and mid-sized companies often provide more significant growth opportunities compared to larger companies because they might be under the radar of bigger private equity firms. These companies can offer attractive valuations, making them a compelling choice for buyout strategies. However, the downside is that these firms can be less stable and more vulnerable to market fluctuations.
This focus aligns with current market trends where investors look for diversification and higher returns by entering less crowded spaces. By leveraging industry-leading research, data and analytics, RCP Advisors aims to mitigate some of the inherent risks and seek top-quartile performance. For retail investors, this means there could be potential for higher returns, but it’s important to weigh these against the elevated risks associated with smaller company investments.
The successful closing of RCP Fund XVIII underscores RCP Advisors’ strong network and expertise in the private equity domain. Their longstanding relationships within the private equity community and experienced investment team are pivotal in creating value for investors. This fund targets control-oriented investments, which means RCP Advisors will have significant influence over the companies they invest in, potentially steering them towards profitable paths.
For a retail investor, it is essential to understand that the control-oriented investment approach implies a more hands-on strategy, potentially leading to better-managed companies and improved operational efficiencies. Additionally, this focus on smaller companies with EBITDA between
DALLAS, May 20, 2024 (GLOBE NEWSWIRE) -- P10, Inc. (NYSE: PX), a leading private markets solutions provider, today announced that its affiliated manager, RCP Advisors, a private equity investment firm that provides access to North American small buyout fund managers through primary funds, secondary funds, and co-investment funds, announced the final closing of RCP Fund XVIII (“Fund XVIII” or the “Fund”).
“We are thrilled to announce this milestone for RCP Advisors and the P10 platform on the closing of Fund XVIII, which has expanded and deepened our firm’s client franchise,” said Luke Sarsfield, P10’s Chief Executive Officer. “RCP Advisors’ longstanding relationships within the private equity community and experienced investment team position the firm to capitalize on market opportunities and deliver attractive returns to LPs.”
The Fund has a broad LP base of new and existing investors, including family offices, high-net-worth individuals, foundations, public pension plans, and endowments.
“We want to express our sincere gratitude to our limited partners for their continued faith and confidence in our team and strategy. Small company buyouts continue to provide compelling investment opportunities that we believe are differentiated from and superior to other sectors within the private equity market. We will continue to leverage our industry-leading research, data, and analytics in seeking to realize our goal of generating top-quartile performance for our investors,” said Tom Danis, Managing Partner at RCP Advisors.
The Fund will generally target investments with buyout fund managers focused on less than
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 March 31, 2024, P10 has a global investor base of more than 3,600 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 RCP Advisors
Founded in 2001, RCP Advisors, a subsidiary of P10, Inc. (NYSE: PX), is a private equity investment firm that provides access to North American small buyout fund managers through primary funds, secondary funds, and co-investment funds, as well as customized solutions and research services. RCP believes it is one of the largest fund sponsors focused on this niche, with ~
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
The information contained in this press release does not constitute investment advice or an offer or sale of any security or investment product. Offerings are made only pursuant to a private offering memorandum containing important information. Statements are made as of the date of this release, and there is no implication that the information contained herein is correct as of any time subsequent to such date. Some of the statements in this release may constitute "forward-looking statements" within the meaning of the federal securities laws. Any forward-looking statements inherently are subject to a variety of risks and uncertainties that could cause actual results or events to differ materially from those results or events predicted or anticipated by these statements. RCP’s investment strategy is subject to significant risks and there is no guarantee that any fund will achieve comparable results as any prior investments or prior investment funds of RCP. Past performance does not predict, and is not a guarantee of, future results.
*“Committed capital” primarily reflects the capital commitments associated with our SMAs, focused commingled funds, and advisory accounts advised by RCP since the firm’s inception in 2001 (including funds that have since been sold, dissolved, or wound down). We include capital commitments in our calculation of committed capital if (a) we have full discretion over the investment decisions in an account or have responsibility or custody of assets or (b) we do not have full discretion to make investment decisions but play a role in advising the client on asset allocation, performing investment manager due diligence and recommending investments for the client’s portfolio and/or monitoring and reporting on their investments. For our discretionary SMAs and commingled funds, as well as for our non-discretionary advisory accounts for which RCP is responsible for advising on all investments within the client’s portfolio, committed capital is calculated based on aggregate capital commitments to such accounts. For non-discretionary accounts where RCP is responsible for advising only a portion of the client portfolio investments, committed capital is calculated as capital commitments by the client to those underlying investments which were made based on RCP’s recommendation or with respect to which RCP advises the client. Committed capital does not include (i) non-discretionary advisory accounts no longer under advisement by RCP, (ii) assets managed or advised by the Private Capital Unit or HB Units of RCP 2, (iii) capital commitments to funds managed or sponsored by RCP’s affiliated (but independently operated) management companies, and (iv) RCP’s ancillary products or services.
P10 Investor Contact:
info@p10alts.com
P10 Media Contact:
Josh Clarkson
jclarkson@prosek.com
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