Financial Data and Key Metrics Changes - In 2025, the company achieved a revenue increase of 8% compared to 2024, with operating income and adjusted operating income rising by 9% and 12% respectively [4] - Assets under management (AUM) reached an all-time high of $180 billion, up nearly 12% from year-end 2024 [12] - The December 2025 quarter saw revenues of $336 million, marking an 11% increase from the previous quarter and a 13% increase year-over-year [12][16] - Adjusted operating income increased by 23% compared to both the prior quarter and the same quarter last year, with an adjusted operating margin of 40.2% [15] Business Line Data and Key Metrics Changes - The credit platform's AUM grew by 29% year-over-year to $17.9 billion, with net inflows totaling $2.8 billion [8] - The alternatives platform's AUM increased by 20% to $4 billion, driven by strong organic growth [8] - The equity platform experienced outflows of $15.6 billion, primarily from global opportunities and U.S. mid-cap growth strategies, attributed to short-term performance challenges [8] Market Data and Key Metrics Changes - 79% of AUM outperformed benchmarks over a 3-year period, 74% over 5 years, and 92% over 10 years, gross of fees [5] - The Emerging Markets Local Opportunity Strategy in credit generated a return of over 24%, outperforming its benchmark by 527 basis points [6] Company Strategy and Development Direction - The company is focused on expanding its multi-asset class platform while maintaining a high value-added investing philosophy [4] - The acquisition of Grandview Property Partners marks a strategic expansion into alternative investments and private real estate [9][10] - The company aims to leverage its institutional relationships to enhance Grandview's business and expand its investment capabilities [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining and growing equity businesses despite recent outflows, emphasizing the need for compelling investment performance [8][9] - The company anticipates continued growth in credit and alternatives, with a focus on private credit and secondaries in private equity [28][46] - Management noted that the acquisition of Grandview is expected to be mildly accretive to earnings per share after the closing of its next flagship fund [19] Other Important Information - The board declared a quarterly dividend of $1.01 per share and a special year-end dividend of 57 cents, resulting in a total dividend of $3.87 per share for 2025, an 11% increase from 2024 [18] - The company ended the year with approximately $214 million in cash and a conservative leverage ratio of 0.4 times [17] Q&A Session Summary Question: Regarding Grandview's AUM and accretion guidance - Management explained that AUM was lower due to realizations on properties in Grandview Fund I, which is in the harvesting phase [24] - Fund III had about $150 million in committed assets, and the company is actively pursuing Fund IV, expecting a first close in mid-summer [25][26] Question: On M&A opportunities and market conditions - Management highlighted a focus on private credit and secondaries in private equity, with interest in idiosyncratic opportunities within equity [28] - The company is not exclusively focused on M&A but is open to opportunities that align with its investment philosophy [28] Question: On the international value strategy and recent outflows - Management noted that outflows were primarily due to institutional reductions and not indicative of underlying issues, as the team continues to deliver strong absolute returns [37][38] Question: Interest in non-US strategies and emerging markets - Management indicated a reemergence of emerging markets allocations and success in global franchises, with significant net flows from recent campaigns [41][42][43]

Core Insights - The founder of 26North has shifted his investment focus from private equity to alternative investments, including sports franchise ownership [1] - The founder provides a critical perspective on the current economic outlook and the recent appointment of the Fed chair [1] - An assessment of the private credit market is included, highlighting its current state and potential opportunities [1] Investment Mindset Evolution - The transition from private equity to alternative investments signifies a broader trend in investment strategies [1] - Sports franchise ownership is identified as a growing area of interest within alternative investments [1] Economic Outlook - The founder expresses concerns regarding the economic environment and critiques the policies of the newly appointed Fed chair [1] - Insights into how these economic factors may influence investment decisions are provided [1] Private Credit Market Assessment - The current state of the private credit market is analyzed, with emphasis on its growth and potential risks [1] - Opportunities within the private credit space are discussed, indicating a favorable outlook for certain investments [1]

Core Insights - The private equity industry is experiencing a shift, with an increase in exits but at lower valuations, indicating a recalibration of expectations in response to market pressures [2][4]. Group 1: Private Equity Exits - The number of global private equity exits rose by 5.4% last year, totaling 3,149 exits [2]. - However, the total value of these exits declined by 21.2% year over year, amounting to $412.1 billion [2]. Group 2: Market Dynamics - The private equity sector is under pressure to monetize aging assets, with many firms previously reluctant to mark down portfolio values, leading to a gap in buyer expectations [4]. - A backlog of tens of thousands of companies remains, resulting in lower cash returns for limited partners (LPs) and a subsequent hesitance to reinvest in private equity [5]. Group 3: Fundraising and Deal Activity - Fundraising for private equity declined by 11% in 2025, reaching $490.81 billion, marking the second consecutive annual slowdown [5]. - Although there was growth in U.S. private equity deal value in the first half of last year, the number of new deployments remained flat, indicating stagnation in overall deal activity [6]. Group 4: Performance of Larger Funds - Larger private equity funds, such as Blackstone, are seeing benefits in monetization, with Blackstone reporting $10.8 billion in realizations from exits in the fourth quarter, the highest quarterly total of the year [7][8]. - Blackstone's successful IPO of Medline, which raised over $7 billion, is noted as the largest private equity-backed IPO in the U.S., with the stock surging nearly 30% since its debut [9].

Core Viewpoint - BlackRock, Morgan Stanley, and Partners Group have collaborated to launch a new offering of separately managed accounts focused on alternative investments, providing advisors with a diversified option for their clients [1] Group 1: New Offering Details - The new separately managed accounts are designed around specific investment goals and include exposure to seven underlying private funds [1] - The offering encompasses various asset classes, including private equity, private credit, and real assets, catering to the growing demand for alternative investments [1]

Core Insights - P10, Inc. and Bonaccord Capital Partners announced a collaboration with CAIS to enhance access to GP stakes solutions for financial advisors [1][2] - The partnership aims to broaden the reach of P10's middle-market expertise and support financial advisors in incorporating GP stakes into client portfolios [2][3] Company Overview - P10, Inc. is a leading private markets solutions provider with over $40 billion in assets under management as of September 30, 2025, focusing on Private Equity, Private Credit, and Venture Capital in access-constrained strategies [4][5] - Bonaccord Capital Partners specializes in providing growth capital and strategic support to mid-market private markets sponsors across various sectors, including private equity and real estate [5] Industry Trends - There is a significant increase in demand for alternative investments among financial advisors, with a recent survey indicating that 90% of advisors are currently allocating to alternatives and 88% plan to increase their allocations in the next two years [2][3] - Financial advisors are increasingly interested in GP stakes as a means to enhance diversification and gain exposure to established managers, which were historically dominated by institutional investors [3] CAIS Platform - CAIS serves over 2,000 wealth management firms and 62,000 financial advisors, overseeing approximately $7.5 trillion in end-client assets [7] - The platform is recognized for its innovation and leadership in the alternative investment space, providing a comprehensive operating system for financial advisors and alternative asset managers [8]

Company Overview - Elevation Point, a minority investor in independent and breakaway advisors, has taken a minority stake in Forta Wealth Partners, an Indianapolis-based firm managing over $900 million in assets [1] - Forta Wealth Partners was previously known as The Turner Group within Merrill Lynch Wealth Management [1] Leadership and Team - The Forta team is led by principals and wealth advisors Will Turner, Jon Shurtz, and Harrison "Taylor" McDougal, with Turner having a 20-year tenure at Merrill Lynch [2] - The team also includes Brandon Marvel (associate, client services), Holly Hynes (manager of team and client services), and Madeline Armstrong (financial advisor) [2] Historical Context - Jim Dickson, former CEO of Sanctuary Wealth and a key figure in the establishment of Forta, provided Turner with his initial job offer at Merrill Lynch two decades ago [3] - The firm serves clients across 26 U.S. states, focusing on C-suite executives, business owners, wealthy multi-generational families, physicians, endowments, non-profit organizations, and professional athletes [3] Services and Offerings - Forta Wealth Partners provides retirement plan advisory services to 401(k) plans and aims to offer unique private investments to clients [6] - The firm has selected Goldman Sachs Custody Solutions for custodial services, enhancing its partnership with Goldman Sachs to provide advisors with access to banking, lending, trading, asset management, and capital markets capabilities [4] Strategic Differentiation - The ability to offer unique private investments is highlighted as a key differentiator for Forta, catering to clients who seek such opportunities [6]

Core Insights - The private equity market is facing significant challenges, including overvaluation of companies and a decline in fundraising, which has dropped sharply in 2023 compared to previous years [1][2][3][10] - Institutional investors are becoming more cautious, pulling back on investments due to the lack of cash returns from private equity funds [4][10][19] - The high interest rate environment, which has seen rates rise by over 5% from March 2022 to July 2023, is exacerbating the difficulties in selling overvalued companies [6][12] Fundraising and Investment Trends - Fundraising for private equity has been declining annually, with 2023 showing a particularly steep drop, leading to a concentration of capital among the largest firms [2][7][10] - The inability to sell portfolio companies is resulting in limited cash returns to investors, which in turn affects their willingness to reinvest in new funds [4][7][19] - The trend of "zombie funds," where companies remain unsold for over a decade, is prevalent, indicating a long-term issue within the industry [4][5] Economic Environment and Future Outlook - While interest rates have decreased from their peak, they remain high compared to the zero-interest rate environment that private equity typically thrives in [11][12] - There is cautious optimism for 2026, with expectations of a relatively strong economy, but the backlog of unsold companies is likely to persist for several years [12][19] - The potential inflow of cash from alternative investments may help the industry, but concerns remain about the quality of funds available to workers [14][15][18] Risks and Financial Engineering - Private equity firms are engaging in financial engineering to return cash to investors, which may increase risks for those investors while benefiting the general partners [19][20] - The reliance on continuation vehicles, which prioritize returns for general partners, raises concerns about the long-term sustainability of these strategies for limited partners [20]

Core Insights - BlackRock reported its Q4 and full-year 2025 earnings, highlighting strategic job cuts and record Asset Under Management (AUM) [1] - The firm laid off over 250 employees, representing 1% of its global workforce, as part of its strategy to focus on alternative investments [2] - BlackRock's stock price increased by 8% year-to-date, despite a downgrade from TD Cowen, which lowered the price target from $1,407 to $1,209 [2][3] Financial Performance - BlackRock increased its quarterly dividend by 10% to $5.73 per share, while the full-year diluted EPS decreased by 16% to $35.31 due to acquisition-related expenses and noncash charitable contributions [6] Strategic Moves - The firm completed the acquisition of HPS Investment Partners for $12 billion, fully paid in BlackRock equity, and is creating Private Financing Solutions (PFS) to integrate its private credit and CLO businesses [3][4] - CEO Laurence D. Fink anticipates a more rewarding and diversified 2026, emphasizing the firm's diverse offerings including private markets and digital assets [5]

Core Insights - The discussion focuses on considerations for fiduciaries when incorporating alternative investments into retirement plans [1] Group 1 - Fiduciaries should evaluate the risk-return profile of alternative investments to ensure they align with the overall investment strategy of the retirement plan [1] - It is important for fiduciaries to understand the liquidity constraints associated with alternative investments, as they may not be as easily tradable as traditional assets [1] - The regulatory environment surrounding alternative investments is complex, and fiduciaries must stay informed about compliance requirements [1]

Group 1 - Matt Fries has joined Inland Real Estate Investment Corp. as CEO and president, replacing Ella Neyland, who served as interim CEO for two months [1][2] - Neyland will remain as a strategic advisor and continue as chair of IPC Alternative Real Estate Income Trust [2] - Fries will report to Tony Chereso, CEO of The Inland Real Estate Companies, and will lead the company's long-term business strategy and oversee public and private investment platforms [3] Group 2 - Fries brings nearly 30 years of experience in wealth management and expertise in alternative investments, which aligns with Inland's institutional commercial real estate experience [4] - The company manages $16 billion in commercial real estate assets across 844 sponsored programs, including REITs, 1031 exchanges, and qualified opportunity zone investments [5] - Fries aims to expand investment offerings and embrace innovation to deliver outstanding results for investors [5]