I wanted to clarify and speculate on something important that was in the most recent communication from Alpert & Webb from last week's Q2 shareholder report...
"Our efforts to expand our offerings continue. We are in discussions with other managers to acquire either the whole or part of their management companies. We obviously cannot guarantee consummating transactions; however, we believe our unique structure and operating paradigm makes P10/RCP an ideal partner"
I know Stockvestor wondered how any acquisitions could be made by PIOE since they don't have the cash right now or for a while to make acquisitions.
BUT RCP ADVISORS DOES HAVE THE CASH.
When Alpert & Webb's PIOE shareholders letter uses pronouns "our" and "we" and then uses the phrase P10/RCP to identify themselves, obviously the acquiring power is in RCP's hands, not PIOE's.
What now gets VERY INTERESTING, imo, is that we know from our past research on this board (DC, Chemist, moi) that RCP Advisors has a lot of their own funds invested in the different RCP Funds, and when the older funds terminate (run their course) and principal and profits are converted into CASH.
So i think RCP Advisors is sitting on a ton of cash to do things like make further investments in whatever new RCP Funds they launch.
But they also could use some of their cash holdings to ACQUIRE OTHER ENTITIES, such as they did with that software co. that created the fee-generating private equity analysis program.
So-- and here's where it gets possibly relevant for PIOE shareholders-- 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?
Those mgmt fees, upon any acquisition by RCP of such a firm, would surely be part of PIOE's revenue stream, correct?-- since we've been clearly informed in the 3/31 shareholder letter that PIOE will have the rights to the mgmt fees that RCP Advisors (2&3) gets.
I see this as a possible way that PIOE revenues could have a significant jump even beyond RCP's organically growing AUM through all of its own RCP Funds that it launches.
I'm only conjecturing here, but it's obviously not far-fetched. Again, look at that sentence in the above cited quote from the most recent PIOE letter of 7/31:
We are in discussions with other managers to acquire either the whole or part of their management companies.
Management companies' primary revenue is management FEES. PIOE owns the mgmt fee revenue stream from RCP Advisors.
