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    RPC
    Earnings call· Jun 2026(Q2 FY26)

    Ridgepost Capital Q2 FY26 earnings call RPC

    Aug 5, 2026 Source

    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

    8
    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

    Operational metrics

    30
    Adjusted net income per share
    $0.24vs $0.23 in Q2 FY25
    Q2 FY26
    Fee-related earnings
    $39Mup 10% YoY
    Q2 FY26
    Fee-related earnings margin
    48%
    Q2 FY26
    Fee-related revenue
    $81Mup 11% YoY
    Q2 FY26
    Management and advisory fees
    98%
    Q2 FY26

    Represents nearly all of fee-related revenue, totaling $80M in Q2 FY26.

    Average core fee rate
    100 bpsup 3 bps from Q1
    Q2 FY26

    Typically seasonally lower in H1, higher in H2 due to tax credit business.

    Revolving credit facility
    $195Mexpanded by $20M
    June 2026

    Enhanced financial flexibility; fully utilized to fund Stellis acquisition at 260 bps + SOFR.

    Fully diluted shares outstanding
    130M
    Q2 FY26 end

    Issued 11.8M shares of partnership units and shares in connection with Stellis acquisition.

    Leverage ratio
    ~2.8x
    Q2 FY26 end

    Targeting mid-two times EBITDA by year-end through deleveraging and cash earnings growth.

    Debt paid down
    $20M
    Q3 FY26 (thus far)

    Paid down in Q3 FY26, contributing to deleveraging efforts.

    Quarterly dividend
    $0.04
    Q2 FY26

    Ongoing dividend, part of capital allocation priorities.

    Assets Under Management (AUM)
    $50Bup ~25% YoY (>$10B)
    Q2 FY26 end

    Reached a new milestone.

    Fee-paying Assets Under Management (FPAUM)
    $35Bup 19% YoY
    Q2 FY26 end

    Reached a new milestone.

    Fee-paying AUM CAGR
    20%vs ~15% implied at Sept 2024 investor day
    through Q2 FY26

    Strong growth towards 2029 year-end target of $50B.

    Capital raised and deployed
    $1.1B
    Q2 FY26

    Healthy trends, across all investment verticals.

    Capital raised and deployed
    $5B
    Trailing four-quarters

    Healthy trends, across all investment verticals.

    Organic capital raised and deployed
    $3B
    H1 2026

    Consistent with expectations, contributing to $10B target for 2026-2027.

    TrueBridge capital raised and deployed
    $1.5B
    H1 2026

    Strong demand for venture capital offerings.

    Direct, co-investment, and secondary funds capital raised and deployed
    $2.7B
    Past four quarters

    Growing contribution from assets not in fund-to-fund vehicles.

    Distributions from RCP funds
    more than doubledup >25% vs comparable period in 2024
    YTD through July 24th

    Meaningful pickup in exit activity, positive implications for future fundraising.

    Net IRR
    14.1%
    Greater than 5 years old

    Strong investment performance.

    Net IRR
    23.1%
    Greater than 5 years old

    Strong investment performance.

    Net IRR
    18.9%
    Greater than 5 years old

    Strong investment performance.

    Net IRR
    18.7%
    Greater than 5 years old

    Strong investment performance.

    Net IRR
    10.9%
    Greater than 5 years old

    Strong investment performance.

    NDA review time
    5-10 minutesreduced from ~60 minutes
    Current

    Achieved through AI and technology adoption; firm reviews thousands of NDAs annually.

    GP scout profile production time
    1 hourreduced from 1-2 days
    Current

    Achieved through AI and technology adoption; human capital redeployed.

    Subcontracted fee-paying AUM
    <2%
    Q2 FY26

    Subject to quarterly redemptions, indicating high durability of overall FPAUM.

    Stellis incremental annual commitments
    $500M-$1B
    Annual

    Opportunity identified through integration with RCP's ecosystem.

    Stellis Capital Fund 4 fundraising
    $1.5B
    Recent cycle

    Recently completed fundraising cycle, now focused on deployment.

    Industry KPIs

    5
    MetricValueDetails
    Fee rate100 bpsbps
    Fundraising inflows$1.1BUSD
    Performance revenuevery little contribution
    Fee related earnings$39MUSD
    Deployment realizations$1.1BUSD

    Deals & partnerships

    1
    StellisAcquisition 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

    3
    Elevated leverage ratio post-Stellis acquisitionNear-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

    null

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

    What to watch in Q3 FY26

    5

    Leverage ratio

    by the end of this year
    Current~2.8x EBITDA (pro forma for Stelis)
    Targetmid-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.

    Q&A highlights

    5

    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 read4 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.