Ridgepost Capital Q3 Profit Rises as Fee-Paying AUM Grows 21%

Ridgepost Capital (NYSE: RPC) reported higher third-quarter earnings as growth in fee-paying assets lifted management and advisory fees, while lower operating expenses contributed to a sharp increase in GAAP profit. Fee-paying assets under management, or FPAUM, reached $35.2 billion at September 30, 2026, up 21% from a year earlier.

Revenue rose 17% year over year to $88.9 million, driven primarily by an 18% increase in management and advisory fees to $87.3 million. GAAP net income climbed to $12.9 million from $3.0 million, while diluted GAAP earnings per share increased to $0.09 from $0.02.

Operating income more than doubled to $25.5 million from $10.7 million. Total operating expenses declined 3% to $63.5 million, as a 30% reduction in professional fees and lower contingent-consideration remeasurement expense offset higher general, administrative and other costs and increased amortization of intangible assets. Net interest expense rose 16% to $8.1 million.

Fee-related earnings rise with asset base

Fee-related revenue, a non-GAAP measure, increased 17% to $88.9 million. Non-GAAP fee-related earnings advanced 19% to $43.0 million, and the fee-related earnings margin widened to 48% from 47%.

Adjusted net income rose 13% to $32.3 million. Fully diluted adjusted net income per share increased 3% to $0.25, compared with $0.24 in the prior-year quarter. The smaller per-share increase reflected a 10% rise in fully diluted shares outstanding to an average of 129.2 million.

For the first nine months of 2026, revenue increased 13% to $244.9 million and GAAP net income rose 161% to $31.1 million. Fee-related earnings grew 12% to $114.7 million, while adjusted net income increased 10% to $86.2 million. Fully diluted adjusted net income per share was $0.71, up from $0.66.

Ridgepost recorded approximately $1.3 billion of fundraising and deployment during the third quarter, including $450 million in Private Equity Solutions, $385 million in Private Credit Solutions and $475 million in Venture Capital Solutions.

Quarterly FPAUM increased from $34.3 billion at the end of June. The movement included $700 million of capital raised and $600 million of deployment, partly offset by $500 million of fee-base stepdowns, repayments and expirations. For the first nine months, Ridgepost added $2.9 billion through fundraising, $1.6 billion through deployment and $2.6 billion from an acquisition, while stepdowns, repayments and expirations reduced FPAUM by $1.4 billion.

At quarter-end, Private Equity accounted for $18.4 billion of FPAUM, Private Credit for $8.1 billion and Venture Capital for $8.7 billion. Ridgepost reported more than $50 billion in total assets under management across the three businesses.

Debt reduction and capital returns

Ridgepost made a net $10 million repayment on its revolving credit facility and a net $4 million repayment on its term loan during the quarter. It repaid an additional $10 million on the revolver after quarter-end. As of the presentation date, the company had $470 million of outstanding debt, comprising $309 million under the term loan and $161 million under the revolver, with $34 million available under its credit facilities.

Cash and cash equivalents were approximately $32 million at September 30. Net cash provided by operating activities totaled $75.1 million for the first nine months, while acquisitions used $127.3 million of cash.

The company repurchased about 1.78 million shares during the quarter at a weighted-average price of $8.36. Its board authorized an additional $30 million under the repurchase program and declared a quarterly dividend of $0.04 per Class A and Class B share, payable December 18 to holders of record on November 30.

Growth priorities and risks

The presentation did not provide formal financial guidance. Management said it plans to pursue disciplined growth through acquisitions, alongside organic fundraising and deployment. Ridgepost also said its fee base is predominantly tied to long-term, contractually committed capital, with a weighted-average remaining duration exceeding seven years.

The company identified market and business conditions, fundraising and strategy execution, regulation, employee retention, debt obligations, fee-structure changes and acquisition integration as key uncertainties. Ridgepost specifically noted risks associated with integrating Stellus Capital Management. Its historical fund-performance figures are preliminary and unaudited, and the company cautioned that illiquid investment valuations involve significant judgment and may differ from eventual realized values.