P10, Inc. has just announced an agreement to acquire Qualitas Equity Funds SGEIC, S.A. for an initial purchase price of $63 million, with the potential for additional earnout consideration. This acquisition is expected to establish a European presence for P10 and add approximately $1 billion in fee-paying assets under management (FPAUM). As a result, P10 is set to expand its global client base by over 1,300 limited partners across the ultra-high-net-worth (UHNW), family office, and institutional channels.
The initial consideration for the acquisition consists of $42.25 million in cash and $20.75 million in P10 stock, with the stock consideration subject to a three-year lock-up period. Additionally, up to $35 million in earnout consideration may be payable based on the revenue associated with new funds Qualitas Funds raises after closing through December 31, 2027.
Upon completion of the transaction, 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. The transaction is expected to be modestly accretive to fully-taxed adjusted net income per share in 2025. The deal is anticipated to close in the first quarter of 2025, subject to customary closing conditions and regulatory approvals, including Spanish regulatory approval.
According to Luke Sarsfield, Chairman and CEO of P10, the acquisition of Qualitas Funds will position P10 as a leading global, multi-strategy private markets firm focused on the middle and lower-middle markets. He also emphasized that this acquisition will grow P10's investor base and establish a client-centric culture dedicated to serving clients with elite, access-constrained investment opportunities in the middle and lower-middle markets.
The acquisition is also expected to strengthen existing relationships with RCP Advisors and Hark Capital, as both firms seek to launch additional strategies and vehicles to meet the demands of global investors looking to access a full range of opportunities in the middle and lower-middle markets. Today the company's shares have moved 1.9% to a price of $10.74. For more information, read the company's full 8-K submission here.
