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Ridgepost Capital (RPC) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Aug 5, 2026

Source: earnings call transcript

Executive summary

Ridgepost Capital Q2 FY26 — Strong Fundraising and Stellis Integration

Ridgepost Capital delivered a strong Q2 FY26, marked by significant growth in AUM and fee-paying AUM, driven by robust fundraising and deployment activity. The successful integration of Stellis and ongoing AI initiatives are expected to enhance operational efficiencies and origination capabilities. The firm remains focused on deleveraging post-acquisition while continuing to prioritize shareholder returns and long-term growth.

Highlights

5

  • AUM surpassed $50 billion at period end, up approximately 25% year-over-year.

  • Fee-paying AUM totaled nearly $35 billion at quarter end, up 19% year-over-year.

  • Raised and deployed $1.1 billion of capital in the quarter, bringing the trailing four-quarter total to nearly $5 billion.

  • Adjusted net income of $0.24 per share, compared to $0.23 per share in Q2 2025.

  • Fee-related earnings totaled $39 million, up 10% year-over-year, with an FRE margin of 48%.

Concerns

2

  • Leverage ratio stood at approximately 2.8 times EBITDA at the end of Q2 pro forma for Stellis, requiring deleveraging to mid-two times by year-end.

  • Stock valuation is viewed as ‘incredibly dislocated’ relative to the firm’s view of fair value.

Guidance & targets

CategoryTargetConfidence
Full-year 2026 core fee rate
103 basis points
medium materiality
High
Full-year 2026 direct and secondary catch-up fees
$6M-$8M
medium materiality
High
Full-year 2026 FRE margin
mid-40s
medium materiality
High
Full-year 2026 cash tax rate
high single-digit to low double-digit range
medium materiality
High
Full-year 2027 cash tax rate
mid-teens
medium materiality
High
Leverage ratio
mid-two times EBITDA
high materiality
High
Fundraising and deployment
$10 billion
high materiality
High
Fee-paying AUM
$50 billion
high materiality
High

Deals & partnerships

Stellis Acquisition of a private credit business to expand offerings and origination capabilities.

Completed on June 22nd. Expected to increase origination funnel by $500M-$1B annually by capturing 10-20% of RCP's GP network equity capital deployment.

Risks & headwinds

Elevated leverage ratio post-Stellis acquisition Near-term

~2.8 times EBITDA at the end of Q2 FY26 pro forma for Stelis

Mitigation:Deleveraging efforts and natural growth in cash earnings to bring ratio to mid-two times EBITDA by year-end.

Stock valuation dislocated relative to underlying fundamentals

Valuation today is incredibly dislocated relative to our view of fair value

Mitigation:Opportunistic share repurchases when valuations are attractive, balancing with other capital uses.

Fluid operating environment

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Mitigation:Balanced and durable business model continues to perform well.

What to watch in Q3 FY26

Leverage ratio

by the end of this year
Current ~2.8x EBITDA (pro forma for Stelis)
Target mid-two times EBITDA

Why it matters

Indicates progress on deleveraging post-acquisition and financial health.

Given the recent acquisition of Stellis, some of the near-term focus will be around deleveraging, which coupled with natural growth and cash earnings in the back half of the year, should bring our leverage ratio back in line with our longer-term target in the mid-two times EBITDA by the end of this year versus approximately 2.8 times at the end of the second quarter pro forma for Stelis.

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Q&A highlights

How will RPC drive the $500M-$1B incremental commitments for Stellis, what's the realistic timeline, and what's the current baseline?

Luke Sarsfield explained that the opportunity comes from capturing 10-20% of the $5B annual deployment by RCP's GP ecosystem. The focus is on expanding the origination funnel for more selective capital deployment. While early days (6 weeks post-close), the teams are collaborating, and full realization will take years, but incremental progress is expected sooner.

“if you take 10% to 20% of that, that's how we're getting to the $500 to $1 billion of incremental origination capacity at Stellar.”

asked by Joe Tamelo · answered by Luke A. Sarsfield

2 min read 4 chapters

Detailed narrative

Stellis Acquisition Integration and Origination Opportunity

Ridgepost Capital completed the Stellis acquisition on June 22nd, and integration efforts are actively underway. The firm is focused on leveraging its GP sponsor ecosystem, particularly through RCP's network, to increase Stellis' origination funnel. Management believes Stellis could capture 10-20% of the equity capital deployed annually within RCP's network, potentially generating an additional $500 million to $1 billion in incremental annual commitments for Stellis. This strategic alignment is expected to broaden origination opportunities and enhance capital deployment selectivity over time, with full realization anticipated over several years.

AI and Technology Initiatives for Efficiency and Decision Making

The company is actively exploring AI and technology to drive operational efficiencies and enhance informed decision-making across the organization. Key opportunities include operations and automation, enhanced investment capabilities, and improved collaboration. Tangible benefits are already being realized, such as reducing NDA review time from 60 minutes to 5-10 minutes, saving thousands of hours annually. Additionally, AI streamlines the production of pair sheets and GP scout profiles at RCP, cutting a 1-2 day process to approximately one hour, allowing human capital redeployment. The firm views itself in the early stages of AI adoption and plans to reinvest near-term savings into further initiatives.

RCP's 25th Anniversary and Increased Distribution Activity

RCP, Ridgepost Capital's private equity fund of funds business, is celebrating its 25th anniversary, highlighting its long-standing track record and deep relationships. The firm noted a meaningful pickup in contributions from RCP funds and exit activity year-to-date. Through July 24th, distributions from RCP funds more than doubled year-over-year and were up over 25% compared to the same period in 2024. This increase in exit activity has positive implications for future fundraising and deployment across RCP and the private credit businesses, including Stellis.

Durable Business Model and Fee-Related Earnings Composition

Ridgepost Capital emphasizes its durable, capital-light, third-party asset management business model, with earnings almost entirely driven by Fee-Related Earnings (FRE) and no direct exposure to realizations. Approximately 98% of fee-related revenue in Q2 was generated from contractual management and advisory fees, which are earned on committed or deployed AUM within long-dated strategies. This structure provides a stable and predictable earnings stream with minimal exposure to NAV movements or quarterly redemptions, underpinning the firm's financial resilience.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.