P10 Completes Acquisition of Qualitas Funds, a Leading European Lower-Middle Market Alternative Investment Solutions Provider
Rhea-AI Summary
P10, Inc. (NYSE: PX) has completed its acquisition of Qualitas Equity Funds for an initial purchase price of $63 million, with potential additional earnout consideration. The Madrid-based private equity platform manages approximately $1 billion in fee-paying assets and serves over 1,300 partners across ultra-high-net-worth, family office, and institutional channels.
Founded in 2015 by Eric Halverson and Sergio Garcia, Qualitas Funds specializes in fund-of-funds, direct co-investing, and NAV financing opportunities in the European lower-middle market. This acquisition marks P10's significant expansion into Europe, complementing their existing platform with Qualitas Funds' established performance track record.
Positive
- Strategic expansion into European market
- Adds $1 billion in fee-paying AUM
- Access to 1,300+ partners across UHNW, family office, and institutional channels
- Potential for additional revenue through earnout structure
Negative
- Initial $63 million cash outlay impacts balance sheet
- Future earnout payments could increase acquisition cost
Insights
P10's $63 million acquisition of Qualitas Funds represents a strategic transaction that immediately expands the company's global footprint into Europe while adding $1 billion in fee-paying assets under management. The deal structure includes an initial payment plus potential earnout consideration, which effectively aligns the interests of Qualitas' management team with P10's growth objectives.
For context, this acquisition represents approximately 5.8% of P10's $1.08 billion market capitalization, making it material but not overly dilutive. The upfront price-to-FPAUM ratio of 6.3% falls within reasonable valuation parameters for asset management acquisitions in the private markets sector.
The strategic value extends beyond pure financials. P10 gains access to over 1,300 partners across ultra-high-net-worth individuals, family offices, and institutional investors – all valuable relationships that can potentially be leveraged across P10's broader investment platform. This expanded distribution network provides cross-selling opportunities that could accelerate organic growth beyond just the acquired assets.
From a diversification perspective, this acquisition reduces P10's geographic concentration risk by establishing a significant European presence. The Madrid-based operation provides an important foothold in a distinct market, potentially allowing P10 to capture deal flow and investment opportunities that might not be accessible from their existing platform.
This acquisition positions P10 strategically within the European lower-middle market private equity landscape. Qualitas Funds' specialized focus on fund-of-funds, direct co-investing, and NAV financing represents a complementary capability set to P10's existing offerings and opens new avenues for growth.
The European lower-middle market presents distinctive characteristics compared to the US equivalent, including often less competitive deal dynamics and potentially attractive entry valuations. By acquiring an established player with approximately $1 billion in FPAUM, P10 gains immediate scale and credibility in this market segment without having to build a European presence organically - which would likely take years and involve significant execution risk.
The retention of Qualitas' co-founders Eric Halverson and Sergio Garcia is crucial for maintaining investment continuity and preserving key partner relationships during the ownership transition. Their continued involvement suggests confidence in the combined entity's future prospects.
Looking at the strategic rationale, this transaction follows the broader industry trend of alternative asset managers expanding both geographically and across product lines to diversify revenue streams and capture growing institutional allocations to private markets. For P10 specifically, having established operations in both North America and Europe positions them to offer more comprehensive solutions to global investors seeking diversified private market exposure.
The explicitly mentioned plans to launch additional investment strategies and vehicles indicates potential for organic growth beyond the current business footprint, suggesting this acquisition serves as a platform for further European expansion.
DALLAS, April 07, 2025 (GLOBE NEWSWIRE) -- P10, Inc. (NYSE: PX) (“P10” or the “Company”), a leading private markets solutions provider, today announced it has completed its previously announced acquisition of Qualitas Equity Funds SGEIC, S.A. (“Qualitas Funds”) for an initial purchase price of
Qualitas Funds is a Madrid-based private equity investing platform that provides fund-of-funds, direct co-investing and NAV financing opportunities in the European lower-middle market to more than 1,300 limited partners across the ultra-high-net-worth (UHNW), family office, and institutional channels. The firm has approximately
"Today, P10 significantly expands our global presence through closing the acquisition of Qualitas Funds,” said Luke Sarsfield, P10 Chairman and Chief Executive Officer. “Eric, Sergio, and the entire Qualitas Funds team have established a strong track record of performance that is complementary to P10’s platform, and we are excited to build upon this foundation as we expand into Europe. I look forward to integrating our client-centric cultures, as we work together to unlock access-constrained investment opportunities in the middle and lower-middle markets for our global client base.”
“After working alongside P10’s strategy leaders for over a decade, we are pleased to officially become a part of this best-in-class firm,” said Halverson and García. “We look forward to collaborating with the P10 team and positively contributing to the platform’s international expansion. P10’s deep private markets expertise will accelerate our progress as we seek to launch additional strategies and vehicles that can provide our clients attractive exposure to the global middle and lower-middle markets.”
About P10
P10 is a leading multi-asset class private markets solutions provider in the alternative asset management industry. P10’s mission is to provide its investors differentiated access to a broad set of investment solutions that address their diverse investment needs within private markets. As of December 31, 2024, P10’s products have a global investor base of more than 3,800 investors across 50 states, 60 countries, and six continents, which includes some of the world’s largest pension funds, endowments, foundations, corporate pensions, and financial institutions. Visit www.p10alts.com.
About Qualitas Funds
Qualitas Funds is a Madrid-based private markets investing platform that provides fund-of-funds and direct co-investing opportunities in the lower-middle market to more than 1,300 limited partners across the UHNW, family office, and institutional channels. As of December 31, 2024, the firm has approximately
P10 Investor Contact:
info@p10alts.com
P10 Media Contact:
Josh Clarkson
Taylor Donahue
jclarkson@prosek.com
Forward-Looking Statements
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Key Financial & Operating Metrics
Fee-paying assets under management reflects the assets from which we earn management and advisory fees. Our vehicles typically earn management and advisory fees based on committed capital, and in certain cases, net invested capital, depending on the fee terms. Management and advisory fees based on committed capital are not affected by market appreciation or depreciation.
FAQ
What is the value of P10's acquisition of Qualitas Funds (NYSE: PX)?
How many partners does Qualitas Funds manage investments for?
What is the current fee-paying AUM of Qualitas Funds after P10's acquisition?
What investment services does Qualitas Funds provide in the European market?
