Q3 Shareholder Letter Posted

http://ir.p10holdings.com/static-files/750d8a58-accb-48c8-a0d8-8e9abd210c97

I think you are right about the ownership of 2 & 3. I went back an read the YE F/S’s which provide a pretty good description. I do not think that 2 & 3 will buy another fund manager. The investments in the funds are outside monies. They are not PIOE’s. When investments in PE are sold, money is liquidated to investors.

What I found interesting was below from F/S:

RCP 2 serves as investment manager and owns 100% of the voting interests of the general partners of each of the following Funds: Fund VIII, LP (Fund VIII), RCP Fund IX, LP (Fund IX), RCP Fund X, LP (Fund X), RCP Fund XI LP (Fund XI), RCP Secondary Opportunity Fund II, LP (SOF II), RCP FF Small Buyout Co-Investment Fund, LP, RCP FF Small Buyout Co-Investment Fund II, LP, and RCP Direct II, LP. Certain nonvoting interests of the general partners of these Funds, including the carried interest are owned by non-owner partners and employees, and board of managers of RCP 3.

Is the general partner interest just a voting interest or an ownership interest?

How is it valued in the FS’s? What is the fair value and liquidation value?

There are a lot of unanswered questions to this investment. Cash flows being only one.

if RCP Advisors (2 & 3) acquires another private equity investment mgmt firm, it surely acquires the rights to whatever MANAGEMENT FEES that firm has incoming each quarter/year, right?

My understanding of the structure of the entities is: RCP Advisor is a wholly owned subsidiary of P10 Holdings. 2 & 3 are investment funds managed by RCP. RCP does not own the funds(if so a very small percentage). 2 & 3 are owned by the investors in those funds. Accredited investors. If 2 & 3 buy an outside management company or additional funds, 2 & 3 would own them, those the accredited outside investors would own the management fees.

When investments inside the RCP funds (2 & 3) are sold or liquidated, they are returned to the outside investors. That is not P10 Holdings money. Otherwise it would be consolidated in the financial statements.

Cash flow still not clear. Have to wait on Q3 financials or maybe YE 2018. Need terms of over $150M of debt. Looks like all income is going to debt service and compensation. Hard to make acquisitions with debt and PK traded stock.

Three options to acquire a new business.

1. Issue new stock.
2. Issue debt.
3. Pay with cash. Not investor cash from RCP, PIOE cash.

No, it makes absolutely no sense.

What kind of chemicals are you taking?

That is an oversimplification. It is much more complicated then that. I’m sure the Company has a tax attorney advising them on it.

To those who are looking to get out, dribble out 1,000 shares at a time. If you sell 5,000 shares you will tank the price, not helping anyone.

PIOE can become a voluntary reporting company again at any point in time, usually efforts to uplist.

PIOE is considered a non reporting company since they are traded on the pink sheets. If they uplist, they will file Q’s and K’s. Q’s are never audited. Technically they are reviewed by the auditing firm before issued.

If you got in at .22 then congratulations. I doubt many on this mb did.

Good luck with that kiddo. You aren’t out yet.

Who predicted this would be $2 by noon? Who has dreams of PIOE? You need a teacher to spank you when you get into bad investments you know nothing about. Why do you think RCP sold you a revenue generating asset that grows every year? Do you could get rich? Not how it works.

Ok you buddy

You have a revenue wasting asset!!!

The new debt is not interest free. That’s my point. They refinanced debt due to RCP former owners that WAS ZERO percent with new interest bearing debt after the year end. Read the K.

So the new debt is nonsense?

The big kahuna has arrived.

My opinion is that having someone selling 80k shares of a low float stock can’t be good.

Welcome to the Friday night dumpster.

Why would a company refinance zero interest rate debt due in five years?p

I have no problem with you selling.

Yes, LOL is right.

All of the RCP registered investment advisors are having a laugh at your expense.

Yes, it’s a beautiful day in the neighborhood.

To those who can’t read a 10k, I salute you.

To those who dream about PIOE, Steven Tyler sings “Dream On”.

You have to remember that debt service will suck a lot of cash flow out of PIOE.

It’s commonly known as a Wasting Trust. You have a revenue stream, but it is constantly a lower amount every year. Rcp2 formed 2011 to 2016. Fund lasts 10 years from date original investment made. RCP3 is 10 years also. Easy to project out EPS on a constant or growth stock basis, but that is not what this stock is. That is why pe’s are so low for comparable company’s. If and when RCP4 is formed, PIOE will only participate in mgmt fees if they buy it like they did for RCP2 and 3. More notes and stock issued to Advisors.

I hope you are right about this stock, but I have a feeling you are not.

1. Why would PIOE do a Friday Night Dump on a holiday?

2. Why would PIOE refinance debt to sellers that has zero interest rate and is due 2025?

3. When debt due to sellers is refinanced, what rate and terms will it be refinanced at?

4. What effect does the new debt have on EPS and CF? If (big if) they refinance at 5%, and make debt service pmts over 5 years, that will suck a lot of cash out of PIOE.

5. Uplifting — This has been mentioned several times. What are the requirements for uplifting? Has PIOE met those requirements?

Just looks like someone wanted to get out at any price they could.

The earnings over at HOGS is great. $1.67 eps for 2010 and selling at $18. ENHD could sport a pe of 10 in the us, if they handled their pr better. Revenues increased 30% from 2009.

Glenn,

When do you think a listing on HK exchange would be done? 3 months, 6 months, a year? I know you probably don't know, but input would be greatly appreciated. Seems like they would need to get YE audit done and figure out legally how to unwind the situation with US investors.

Thanks

Alanthill,

What is your specific complaint to the SEC? I don't think that the SEC is going to be interested in putting pressure on Shi just because he doesn't want to give us an offer to buy our shares right now. That doesn't violate securities law. If you think there has been share dumping prior to the Form 15 notice, we do not know that.

Let's wait and see what Northern's contacts come back from China with. That should be this week or next week. My understanding is that they can't list in China if they have an overhang on the title to the assets. If they have moved the assets to another company and relist, without a buyback from the stockholders, I don't think they can list in China. Even if they bought US investors out for $2 a share, they would have a huge gain.

I've got about 50k shares too. If we initiate legal action, I'm interested.