In this post, which is a rehash of post 6205 for the purpose of "stickying" this post (now that Doncamel persuaded me to become an assistant moderator), for the purpose of indicating the hefty amount of cash equivalents for PIOE/RCP's balance sheet, I tally all the RCP Funds managed and partially owned by RCP Advisors 2 and RCP Advisors 3, given that we now have an updated Form ADV from RCP 2 & 3 at the IAPD website (dated 2/1/18).
We know that RCP Advisors as part of its compensation (revenues) gets management fees on the AUM or assets under management that they manage/advise.
But recall that Doncamel first listed for us a number of RCP Funds with a percentage amount actually owned by RCP 2 as declared in their early Dec. '17 Form ADV. In Feb. I reproduced that list here at our PIOE board, with mention in brackets of how the AUM had changed -- almost all RCP Funds increased their AUM) as indicated by the more recent Form ADV from Feb. 1.
Here below is the complete list of Funds as owned by both RCP 2 and RCP 3 according to the most recent Form ADV.
NOTE: compared to Doncamel's original list based on the Dec. '17 Form ADV, one RCP Fund has gone "missing." RCP Advisors 2 had owned 1% of $327 million of RCP SOF (Secondary Opportunity Fund). It is not listed in the newer Form ADV of 2/1/18, and the Fund may have closed, i.e., cashed out for investors. Which would mean that RCP 2 got $3.27 million in cash from its 1% ownership percentage (not to mention their fee compensation for having managed and advised the Fund).
Percentage of RCP Funds owned by RCP Advisors 2 & 3 (according to the Form ADV filed on 2/1/18):
RCP Advisors 2:
6% of $347.04 million of RCP SOF II [as of 9/30/17]
2% of $282.77 million of Fund VIII [as of 9/30/17]
7% of $361.1 million of Fund IX [as of 9/30/17]
5% of $325.37 million of Fund X [as of 9/30/17]
4% of $307.93 million of Fund XI [as of 9/30/17]
14% of $291.27 million of RCPDIRECT 2 [as of 9/30/17]
RCP Advisors 3:
0% of $0 million RCP FF Small Buyout Co-Investment Fund III [as of 9/30/17; started in late Sept ’17, it’s up to $328M as of Dec.]
1% of $326.6 million RCP FF Small Buyout Co-Investment Fund II [as of 9/30/17]
0% of $532.43 million RCP FF Small Buyout Co-Investment Fund [as of 9/30/17]
2% of $194.93 million RCP Fund XII [as of 9/30/17] [it’s up to $284.4M as of 12/1/17]
0% of $47.02 million RCP Multi-Fund Feeder IX/DII Offshore [as of 9/30/17]
0% of $25.5 million RCP Multi-Fund Feeder IX/DII [as of 9/30/17]
9% of $46.47 million RCP SBIC Opportunity Fund [as of 9/30/17] [it’s up to $54M as of 12/20/17]
0% of $199.41 million RCP SBO Fund [as of 9/30/17]
5% of $26.79 million RCP SOF III [as of 9/30/17] [it’s up to $56.9M as of 12/4/17]
4% of $103.89 million RCP Small & Emerging Fund (SEF) [as of 9/30/17]
0% of $74.59 million RCP Small & Emerging Parallel Fund [as of 9/30/17]
NOTE: these RCP 3 owned and managed Funds are up at least an extra $465 million when including the updated info we have on just four of the Funds.
When calculating the amount of each Fund owned by RCP Advisors 2 & 3, the tally that i got for the total amount as of 9/30/17 was ~$137,950,000. That will count as a "cash equivalent" on PIOE's balance sheet, since PIOE fully owns 100% all of RCP 2 & 3's assets.
That $137.95 million amount is higher if:
--RCP has taken an ownership percentage of the new RCP FF Small Buyout Co-Investment Fund III (and any subsequent RCP Fund that gets launched), and/or
--if RCP has initiated ownership of any of the other Funds where it did not previously have ownership, and/or
--if RCP further increased its ownership for any of the Funds in which it already had a percentage amount of ownership.
--Recall, too, that RCP 2 likely has an extra $3.27 million in cash from what appears to be the closing out of the RCP SOF (Secondary Opportunity Fund).
The bottom line is that we know RCP 2 and 3 have a substantial amount of cash equivalents in just their ownership of these RCP Funds, somewhere over $140 million.
They also have an asset in fully owning the GPScout PE analytics program, which they bought in 2015 from Atlas Diligence group (the CEO of that co. is part of the RCP Advisors team).
Finally, RCP 2 & 3 most likely also have some amount of cash sitting in a money market account in the bank.
We will begin to have more clarity on the balance sheet for RCP Advisors 2 with the earnings report and 10-K that PIOE files with the SEC in mid- or late-March 2018, and then have full clarity about the balance sheet for both RCP 2 and 3 when the First Qtr 10-Q earnings report comes out no later than mid-May.
In any case, already at this point we know that, regardless of whatever other assets and liabilities are on RCP's (and therefore PIOE's) balance sheet, there is likely well over $140 million in cash-equivalent assets, not to mention straight cash holdings. Divide by PIOE's 89.234 million shares (as of Oct. 2017), and PIOE has at least $1.57 in cash per share, not to mention whatever earnings per share (EPS) that PIOE is also receiving from their full ownership of RCP 2 & 3.
