- WisdomTree announced the acquisition of Ceres Partners, a leading U.S. farmland investment manager, for $275 million upfront plus up to $225 million earnout based on revenue growth targets.
- The acquisition aims to leverage WisdomTree's distribution capabilities to scale farmland investments, targeting $10 billion in assets under management (AUM) within 10 years.
- Farmland is positioned as a stable, inflation-hedging asset with a 20-year risk/return profile of approximately 10% annual returns with less volatility, and positive performance during major equity drawdowns (2000, 2008, 2022).
- Ceres' strategy includes high-quality row crops, specialty farmland, and innovative overlays such as solar leases, AI data centers, and water rights, which could significantly enhance returns.
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- Adjusted net income for the quarter was $25.9 million or $0.18 per share, excluding $2 million of acquisition-related costs and miscellaneous items.
- Assets under management (AUM) reached a record $126 billion at June 30, with U.S.-listed AUM at $85.2 billion and European AUM at $40.5 billion, both all-time highs.
- Digital assets AUM more than doubled since last quarter, reaching $350 million at quarter-end and approximately $500 million currently.
- WisdomTree reported revenues of $112.6 million for Q2 2025, up 4.2% sequentially and 5.2% year-over-year, driven by higher average AUM.
- Year-to-date inflows totaled $6.6 billion, with broad and diverse contributions across U.S., Europe, and digital assets.
- Year-to-date revenues grew 8.3%, supported by higher average AUM and increased other revenues from European listed products, partially offset by a lower average fee capture.
- Redwood accelerated its shift towards a more scalable and simplified operating model, first announced at 2024 Investor Day.
- The company is reducing exposure to legacy assets, including multifamily bridge loans and third-party securities, due to their full valuation or underperformance amid rising interest rates.
- Approximately $0.79 per share of fair value and repositioning charges were recognized in Q2 from legacy portfolio wind-downs.
- Target to generate $200-$250 million from legacy asset sales by year-end 2025, with a long-term goal to reduce legacy investments to 0-5% by 2026.
- The move aims to redeploy capital into core platforms for higher quality, predictable earnings, and to support share repurchases.
- Management emphasized their focus on organic growth, particularly in Rhode Island, with plans to build out locations and strengthen their brand before considering de novo branches in Massachusetts.
- They are open to M&A opportunities but remain cautious, prioritizing organic growth and independence.
- Potential for future acquisitions or mergers was acknowledged but not actively pursued at this time.
- Webster continues to prioritize organic loan growth, small strategic acquisitions, and share buybacks based on capital and market conditions.
- The company’s CET1 ratio remains above its target, with plans to redeploy capital into growth initiatives if opportunities arise.
- Management expects to adjust the pace of share repurchases depending on loan growth prospects and market environment.
- Investments are planned in digital channels, treasury management, and geographic expansion to support future growth.
- The company remains cautious about large bank M&A, focusing instead on organic growth and small healthcare-related acquisitions.
- Sold $175 million of self-storage properties at sub-6% cap rate, with remaining sales of 17 properties under contract for August closings.
- Achieved a spread of over 100 basis points between asset sales and new investments, with potential to reach 150 basis points by year-end.
- Reinvested proceeds into new investments with initial cap rates averaging mid-7s, primarily in industrial and warehouse sectors, supporting high-yield, long-term leases.
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