Financial Data and Key Metrics Changes - Revenue for the year increased by 5.3% to $123.7 million from $117.4 million, with Q4 revenue up 12% over Q4 2023 to $32 million from $28.5 million [10][20] - Total AUM as of year-end 2024 reached $36.5 billion, up 9.6% from $33.3 billion at year-end 2023 [9][16] - Discretionary AUM rose 6.4% to $23.3 billion from $21.9 billion [9][16] - Reported net income for the fourth quarter was approximately $2.7 million, with adjusted net income of approximately $2.9 million [17][19] Business Line Data and Key Metrics Changes - The firm garnered $1.5 billion in new client assets under management inflows during 2024, marking the best year for new organic client inflows since at least 2015 [8] - The fourth quarter was bolstered by a successful seed investment in the global value equity strategy of $1.3 billion [8] Market Data and Key Metrics Changes - The firm has seen a robust pipeline, increasing from $1.2 billion at the end of last year to $1.6 billion [27] - OCIO assets now stand at $1.6 billion, with expectations for growth in 2025 [29] Company Strategy and Development Direction - The company is focused on building its global value equity strategy and expanding its presence in international markets, including Singapore and Australia [10][11] - Investments in talent and infrastructure are being made to drive growth and transition the business toward the next generation [11][14] - The firm aims to capitalize on opportunities in underserved markets outside the U.S. [87][90] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about securing significant new organic flows and highlighted a strong performance in the global value equity strategy [12][40] - The geopolitical environment has increased inquiries and business opportunities, particularly in Eastern Europe [66][69] - The firm is cautious about expenses but expects productivity gains from technology innovations in the medium term [45][49] Other Important Information - The firm has no debt and a significant amount of cash, allowing for potential buybacks and dividends [104][108] - The company is considering pursuing a license in the European Union to enhance its international capabilities [70][81] Q&A Session Summary Question: Can you comment on the pipeline amount and OCIO assets? - The pipeline has increased to $1.6 billion, including significant OCIO mandates, with expectations for growth in 2025 [27][29] Question: What are the expected levels for compensation and G&A expenses? - Management expects expenses to remain at current levels for the foreseeable future, with potential for productivity gains in the medium term [43][45] Question: What is the outlook for operating leverage? - Management believes that with steady state operations, EBITDA margins could return to the high twenties, but investments in personnel are necessary for growth [55][56] Question: What are the hurdles in international expansion? - The firm is not aggressively expanding but is focused on regulatory hurdles and the need for appropriate licenses to solicit business in certain countries [78][81] Question: How does geopolitical risk affect business opportunities? - Increased global volatility has driven interest and inquiries, benefiting the firm as clients seek to secure their assets [66][69] Question: What are the thoughts on dividend and buyback policy? - The firm aims to return capital to investors through dividends and buybacks, maintaining a high payout ratio while considering future growth opportunities [104][108]