Q2 2026 Ridgepost Capital Inc Earnings Call Transcript
Key Points
- AUM surpassed $50 billion, up 25% year-over-year, with fee-paying AUM up 19% to nearly $35 billion.
- Strong investment performance across strategies, with net IRRs ranging from 10.9% (private credit) to 23.1% (secondary and co-invest funds).
- Raised and deployed $1.1 billion in Q2, bringing trailing four-quarter total to nearly $5 billion, with $3 billion in H1 2026.
- Completed Stellas acquisition, with integration underway and potential for $500 million to $1 billion in incremental annual commitments.
- Fee-related earnings grew 10% year-over-year to $39 million, with a stable FRE margin of 48% and a core fee rate of 100 basis points.
- AI and technology initiatives are driving operational efficiencies, such as reducing NDA review time from 60 minutes to 5-10 minutes.
- Distributions from RCP funds more than doubled year-over-year, indicating increased exit activity and positive implications for future fundraising.
- Leverage ratio increased to approximately 2.8 times EBITDA pro forma for Stellas, above the long-term target of mid-2 times.
- Cash tax rate expected to rise to mid-teens in 2027 as NOLs are fully utilized by end of 2026.
- FRE margin guidance for full year 2026 remains in the mid-40s, with anticipated placement agent costs and fundraising-related hires in H2.
- Stellas' fee-paying AUM is based on deployed capital, which may grow slowly as the fund focuses on deployment rather than new fundraising.
- The stock is trading at what management views as dislocated valuations, limiting share repurchase activity in the near term.
- Integration of Stellas is still in early stages, with the full benefit of origination opportunities expected to take years to materialize.
- The company faces potential dilution from annual employee stock issuance, which requires offsetting through capital management.
Good morning and welcome to Ridge Post Capital's second quarter 2026 earnings conference call.
My name is Latif and I will be coordinating your call today.
Currently, all participants are in a listen-only mode.
After the speaker's presentation, there will be a question-and-answer session.
As a reminder, today's conference call is being recorded.
I will now pass the call to your host, Brian McKenna, Vice President, Investor Relations. Brian, please go ahead.
Thank you, operator, and thank you all for joining our call this morning. With us today, we have Luke Sarsfield, Chairman and Chief Executive Officer and Amanda Cousins, EVP, Chief Financial Officer. After our prepared remarks, RJ Jensen, EVP, Head of M&A and Strategy and Sarita Jareth, EVP, Global Head of Client Solutions will also be available for the Q&A session.
Before we begin, I'd like to remind everyone that this conference call as well as the presentation slides
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