Financial Data and Key Metrics Changes - In 2025, the company generated $255 million in total revenues, representing a 29% growth compared to 2024 [11] - Total assets under management (AUM) reached $50 billion at year-end, up 10% year-over-year [13] - Adjusted EBITDA increased 45% to approximately $35 million for the year [17] - The company reported a net loss of $155 million for the year, largely driven by non-cash non-recurring items [18] Business Line Data and Key Metrics Changes - The core revenue base remained anchored in nearly $200 million of predictable recurring management fees, which increased by 9% year-over-year [11][15] - The endowment and foundation business grew to more than $8 billion in AUM at year-end 2025 [8] - Incentive fees contributed significantly to revenue, with a $29 million contribution in the fourth quarter alone [14] Market Data and Key Metrics Changes - The company experienced strong demand from ultra-high net worth and institutional clients across U.S. and international businesses, adding nearly $4 billion in projected billable assets in 2025 [9] - The international business faced foreign exchange headwinds due to U.S. dollar depreciation, impacting growth [13] Company Strategy and Development Direction - The company aims to build a premier global wealth management platform focused on the ultra-high net worth segment [4] - A strategic assessment led to the exit of the non-core International Real Estate business, allowing for a simplified organizational structure [10] - The adoption of zero-based budgeting is expected to yield approximately $20 million in recurring annual gross savings by year-end 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustained growth and increased profitability over time, supported by a focused strategy and durable client relationships [19] - The company anticipates that 2026 will mark a turning point, with improved visibility of operating leverage and expense trends as initiatives take hold [18] Other Important Information - The company has formed a special committee to review strategic options to maximize long-term shareholder value, with no proposals received to date that encapsulate the business's long-term value [12] Q&A Session Summary Question: Could you provide more color on the decision to transition CEOs? - Management indicated that the transition was a thoughtful decision aimed at positioning the company for its next phase of growth while maintaining continuity in strategy [24] Question: Can you provide an update on the zero-based budgeting (ZBB)? - ZBB is expected to yield $20 million in savings over approximately nine quarters, with improvements in non-comp expenses and occupancy costs anticipated as contracts expire [47] Question: What is the status of Allianz's 13D filing? - Allianz has been a strategic partner, and any plans to increase engagement would require a filing, but there is currently no visibility into their intentions [43][44] Question: Can you discuss the merger arbitrage performance? - The merger arbitrage strategy performed well in 2025, generating an 11.3% return, which positively impacted management fees and incentive fees [35][36] Question: What is the outlook for capital and potential acquisitions? - The company does not foresee a need for funding for organic growth initiatives but is confident in its ability to raise capital for attractive inorganic opportunities if identified [51][53]