Dallas-based private markets solutions provider P10 Inc. has agreed to acquire Madrid, Spain-based Qualitas Equity Funds SGEIC S.A. for an initial purchase price of $63 million—with the potential for additional earnout consideration.

Qualitas Funds is a private equity investing platform that provides fund-of-funds, direct co-investing, and NAV financing opportunities in the European lower-middle market to more than 1,300 limited partners across the ultra-high-net-worth, family office, and institutional channels. It has roughly $1 billion in fee-paying assets under management and a strong expected growth trajectory, P10 said.

The firm was founded in 2014 and is wholly owned by co-founders and co-managing partners, Eric Halverson and Sergio Garcia.

“The Qualitas Funds acquisition establishes a European presence and meaningfully grows P10’s investor base, positioning us as a leading global, multi-strategy private markets firm focused on the middle and lower-middle markets,” P10 Chairman and CEO Luke Sarsfield said in a statement.

Sarsfield praised co-founders Halverson and Garcia and their “talented team” for building “an incredible firm with strong performance and a loyal investor base.”

Working closely for more than a decade

He added that P10 strategy leaders have worked closely with the Qualitas Funds team for more than a decade.

“They share our client-centric culture and dedication to serving clients with elite, access constrained investment opportunities in the middle and lower-middle markets,” Sarsfield said.

P10 said it has agreed to acquire 100% of the issued and outstanding equity interests of Qualitas Funds and 100% of its fee-related earnings. The transaction doesn’t include any carried interest for legacy funds.

Halverson and Garcia said that they’re thrilled to join P10’s diversified private markets ecosystem.

“Luke and his team are building the preeminent global middle and lower-middle market private markets firm, and we look forward to working closely with them to generate accelerated growth and deliver continued value for our clients,” Halverson and Garcia said in a joint statement. “Specifically, this transaction strengthens our existing relationships with RCP Advisors and Hark Capital as we seek to launch additional strategies and vehicles that meet the demands of global investors seeking to access a full range of opportunities in the middle and lower-middle markets.”

More details on the deal

P10 said the initial consideration of $63 million is composed of $42.25 million in cash and $20.75 million in P10 stock. The stock consideration is subject to a three-year lock-up period, the company said. Also, up to $35 million in earnout consideration may be payable based on the revenue associated with new funds Qualitas Funds raises after closing through Dec. 31, 2027.

The earnout consideration will be a mix of cash and P10 stock at the seller’s election, with no more than 65% payable in cash, P10 said.

According to P10, Qualitas Funds will continue to be managed by its current managing partners, who will retain control of its day-to-day operations, including investment and investment committee processes, and there are employment agreements with each managing partner being put in place.

The deal is expected to close in Q1 2025.

P10 is a multi-asset class private markets solutions provider in the alternative asset management industry. It said its mission is to provide its investors differentiated access to a broad set of investment solutions that address their diverse investment needs within private markets. As of June 30, P10 said it has a global investor base of more than 3,700 investors across 50 states, 60 countries, and six continents, which includes some of the world’s largest pension funds, endowments, foundations, corporate pensions, and financial institutions.

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