Financial Data and Key Metrics Changes - The company's core EPS grew by 2% year-over-year, reflecting strong underlying business growth, although dampened by elevated U.S. mortality and expected credit loss provisions [12][13] - The balance sheet remains strong with a LICAT ratio of 136% and a leverage ratio well below the 25% target, while book value per share increased by 5% from the prior year [13][28] - Net income for the quarter was reported at $1.8 billion, an increase of $747 million compared to the prior year, driven by positive market experience [20] Business Line Data and Key Metrics Changes - The insurance segments generated over 30% growth in new business CSM, with AP sales increasing by 15% year-over-year, particularly strong in Asia and the U.S. [15][16] - Global Wealth and Asset Management (WAM) achieved nearly $1 billion in positive net flows, demonstrating the strength of its diversified platform [16][22] - Core earnings in Asia increased by 13% year-over-year, while the U.S. segment saw a 53% decrease in core earnings due to unfavorable mortality experience [21][26] Market Data and Key Metrics Changes - The Asia segment reported a 31% increase in APE, with significant contributions from Hong Kong, Mainland China, and Singapore [21] - In Canada, APE sales decreased by 34% year-over-year, primarily due to the non-recurrence of a large case sale in the Group Insurance business [24] - The U.S. segment experienced a 40% growth in AP sales, driven by demand for accumulation insurance products from affluent customers [26] Company Strategy and Development Direction - The company is focused on enhancing its digital capabilities and embedding AI across its businesses to drive growth and productivity [8][9] - The acquisition of Comvest Credit Partners is aimed at scaling the private markets business and enhancing existing private credit capabilities, expected to be immediately accretive to core EPS and ROE [10][31] - The leadership team is reviewing the company's strategy to assess potential refreshes to meet long-term ambitions [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth despite short-term headwinds impacting core earnings [29] - The company remains committed to investing in high-quality growth opportunities and maintaining strong capital deployment priorities [9][10] - Management acknowledged the challenges posed by elevated mortality claims in the U.S. but views them as short-term headwinds rather than a trend [26][27] Other Important Information - The company has returned over $6.4 billion in capital to shareholders through dividends and share buybacks over the past year [28] - The transition to the new eMPF platform in Hong Kong is expected to impact core earnings, with a projected quarterly drag of approximately $25 million starting in 2026 [24][84] Q&A Session Summary Question: What other areas may the company want to bulk up in operations? - The company is focused on organic growth opportunities but is also looking for inorganic opportunities that could accelerate growth, particularly in private markets and alternatives [40][41] Question: What is the expected impact of the MPS on margins? - The transition to eMPF is expected to impact margins by approximately 150 basis points, with a recovery anticipated thereafter [46][47] Question: Can you provide details on the amortization of intangibles from the Comvest acquisition? - The acquisition is expected to add approximately $30 million annually in amortization of intangibles, which will be excluded from core earnings [49][50] Question: How does the company justify the valuation paid for Comvest? - The valuation reflects the future value expected from the acquisition, with significant growth opportunities in private credit and alignment of interests between the two firms [70][72] Question: What is the outlook for the Japan market? - The company sees continued growth potential in Japan, despite a decline in sales due to strong prior year performance, and is diversifying its product offerings [80][81]

Financial Data and Key Metrics Changes - Q2 2025 marked the second consecutive record-breaking quarter for revenue, reaching GBP 27.6 million, an increase of 10% from the previous quarter [20] - Adjusted EBITDA loss improved to GBP 5.4 million from GBP 8.9 million in the prior quarter, reflecting a 39% improvement [22] - Total revenues less transaction-based expenses for the first six months of 2025 were GBP 52.7 million, a 28% year-over-year increase [25] Business Line Data and Key Metrics Changes - Market-based revenues in Q2 were GBP 18.6 million, up 16% from Q1 [20] - Trading volume increased by 9% from GBP 692 million to GBP 756 million quarter over quarter, with total trading volume in 2025 already exceeding the full year 2024 volume [21] - Custodial administration fees remained broadly flat at GBP 9.1 million, while custodial client cash balances decreased slightly to GBP 440 million [21] Market Data and Key Metrics Changes - The private market is experiencing renewed strength, with over 174 companies going public in 2025, raising more than $31 billion [29] - The median bid-ask spread compressed to 3%, the lowest level since February 2021, indicating rising price confidence [29] - Median private market valuations have trended up since bottoming out in 2023, with the private AI sector leading performance [30][31] Company Strategy and Development Direction - The company is focused on three priorities: opening the market to new participants, expanding technology-enabled competitive edge, and executing with discipline [16] - Forge aims to become the central nervous system of the private market, delivering a broad order book and setting standards for pricing and transparency [14] - The launch of the next-generation marketplace is designed to reduce friction and enable investors to transact with confidence [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the IPO market and its influence on platform activity, noting ongoing uncertainty [36] - The company is confident in its growth trajectory and path to profitability, expecting to reach adjusted EBITDA breakeven in 2026 [25][28] - Regulatory momentum is seen as favorable, with policymakers exploring broader access to private markets [58][60] Other Important Information - The company has closed the acquisition of Liquidity, expanding its asset management and wealth capabilities [19] - The recent launch of Forge Price is positioned as the industry's most trusted pricing standard, providing daily pricing for nearly 200 private companies [12] Q&A Session Summary Question: How is the U.S. IPO market influencing activity on the platform? - Management noted a correlation between a healthy IPO window and increased volume, expressing cautious optimism about market conditions [36] Question: What is the company's stance on tokenization of private companies? - The company is monitoring the tokenization space and believes that partnerships will be crucial for entering this emerging market [39] Question: Where is the volume strength coming from? - The company observed a shift towards more institutional trading in Q2, with a more even distribution of trade sizes compared to Q1 [47] Question: Can you provide an update on reaching breakeven in 2026? - Management is confident about achieving breakeven in 2026, with cost actions already taken and operational scalability expected to improve [65] Question: What are the regulatory measures needed for broader private market participation? - Management highlighted ongoing bipartisan efforts to improve access to private markets, including changes to accredited investor definitions [58][60]

Core Insights - The executive from General Atlantic LP, Escobari, highlighted that the "selling pressure in private markets is unprecedented" [1] - The current valuation landscape is described as something not seen in the last 15-20 years [1] - Approximately 200 companies are reported to be in the IPO pipeline [1]