Financial Data and Key Metrics Changes - The company reported revenues of $112.6 million for the quarter, an increase of 4.2% from the first quarter and up approximately 5.2% year-over-year driven by higher average AUM [24] - Year-to-date revenues have grown 8.3% due to higher average AUM and increased other revenues from European listed products, partially offset by lower average fee capture [25] - Adjusted net income for the quarter was $25.9 million or $0.18 per share, excluding $2 million of acquisition-related costs [25] Business Line Data and Key Metrics Changes - The company generated $6.6 billion of inflows year-to-date through June, with approximately $3 billion into U.S. listed products, $3.3 billion into European products, and over $300 million in digital assets [21][22] - The European Defense Fund, with AUM of approximately $3.5 billion, attracted nearly $2.1 billion of flows in the quarter and over $2.8 billion year-to-date [23] - AUM in digital assets has more than doubled since last quarter, reaching $350 million at June 30 and approximately $500 million today [24] Market Data and Key Metrics Changes - The company’s AUM reached a record high of $126 billion at June 30, with U.S. listed AUM at $85.2 billion and Europe at $40.5 billion, both all-time highs [23] - The farmland investment market is valued at $3.5 trillion, which is highly fragmented and under-institutionalized, presenting a significant growth opportunity [8] Company Strategy and Development Direction - The acquisition of Cerus Partners is aimed at enhancing the company’s capabilities in farmland investment, which is seen as a stable and underpenetrated asset class [5][7] - The company plans to raise at least $750 million into farmland-focused strategies by 2030, which would more than double current performance fee revenues [6][20] - The company is focused on leveraging its distribution capabilities to scale the farmland investment business and expects to manage $10 billion in farmland assets within ten years [10][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of farmland investments, highlighting its low correlation with traditional asset classes and its role in risk mitigation and inflation protection [11][12] - The company is optimistic about the integration of Cerus and the potential for significant revenue growth driven by the farmland investment strategy [15][70] - Management noted that the stablecoin market is projected to grow significantly, and the company is well-positioned to benefit from this trend [34][80] Other Important Information - The acquisition consideration includes $275 million upfront in cash and an earn-out of up to $225 million contingent on achieving a five-year revenue CAGR of 12% to 22% [17] - The company is monitoring foreign exchange headwinds that could impact expense guidance, but overall impacts are expected to be immaterial [26] Q&A Session Summary Question: Inquiry about Cerus' fund structure and fundraising plans - Management clarified that Cerus operates a combination of evergreen funds and has a strong distribution team to help raise capital [42][44] Question: Durability of performance fees from Cerus - Management explained that performance fees are driven by rental income and market appreciation of farmland, with historical stability in the asset class [45][50] Question: Competitive landscape in farmland investment - Management acknowledged minimal competition from major asset managers and highlighted the opportunity to scale in a fragmented market [56] Question: Digital asset strategy and growth expectations - Management expressed excitement about the growth potential in digital assets, particularly in stablecoins and tokenized funds, and emphasized the importance of regulatory compliance [87][90] Question: Distribution strategy for farmland investments - Management indicated that the RIA channel is expected to be a primary focus for distributing farmland investments, leveraging existing client relationships [84][85] Question: Regulatory changes needed for Cerus' assets - Management confirmed that no regulatory changes are necessary to distribute Cerus' assets [95] Question: Mark-to-market process for farmland assets - Management detailed that Cerus marks their farms annually using a structured appraisal process [96] Question: Inclusion of private equity investments in the acquisition - Management clarified that while some private equity investments will remain with the former sellers, the water strategy will be retained [100]

Stablecoin Development - WisdomTree is rebranding its WUSD stablecoin to USDW [1] - The company plans to launch USDW on other blockchains in the future [1] - Currently, the stablecoin is only live on Stellar [1]