Stephanie Ma's questions to P10 Inc (PX) leadership • Q3 2024
Question
Stephanie Ma asked for details on the $200 million raised in Separately Managed Accounts (SMAs), including the growth trajectory and strategy, and inquired about the potential impact on fee rates and margins.
Answer
Chairman & CEO Luke A. Sarsfield described SMAs as an 'early innings opportunity' with non-linear growth, focused on customized solutions for larger clients that leverage P10's unique access to the lower middle market. He explained that while SMAs typically have lower fee rates than commingled funds, they are very high-margin as they leverage existing expertise with low incremental cost, potentially making them a positive contributor to overall margins.