Ridgepost Expands Fee Assets as Fundraising Slows
Fee-paying assets under management reached $34.3 billion, up 19% from a year earlier.
Ridgepost Capital (RPC), the alternative-asset manager, expanded its fee-paying asset base in the second quarter, though slower fundraising and deployment tempered the underlying momentum. Fee-paying assets under management rose 19% YoY and about 11% QoQ to $34.3 billion, accelerating slightly from the first quarter’s 18% annual growth.
The completed acquisition of Stellus lifted total AUM above $50 billion at June 30, up from more than $45 billion at the end of March. Stellus added a direct-lending platform with $3.8 billion of AUM and $2.6 billion of fee-paying AUM as of March 31, broadening Ridgepost’s credit business.
Organic activity cooled alongside that expansion. Fundraising and deployment totaled about $1.1 billion, down from nearly $2 billion in the first quarter, while $417 million of fee-base step-downs and expirations partly offset second-quarter inflows.
The larger asset base flowed into management fees. Fee-related revenue increased 11% YoY to $80.9 million, and fee-related earnings rose 10% to $38.8 million, producing a 48% margin.
Adjusted net income increased 6% YoY to $28.5 million. Fully diluted adjusted earnings were $0.24 a share, compared with $0.23 a share a year earlier.
Ridgepost halted share repurchases during the quarter after buying 701,439 shares for about $6 million in the first quarter at an average price of $8.55. Roughly $15 million remained under the authorization at both quarter-ends.
The Stellus financing shifted capital toward the acquisition. Ridgepost drew a net $120 million on its revolver and repaid $4 million of term debt, leaving total debt at $474 million before a subsequent $20 million revolver paydown. The enlarged fee base entered the second half with fundraising activity below the first-quarter pace and fee-base expirations absorbing part of new inflows.