Management is pivoting to a new leadership chapter with Nancy Curtin as Interim CEO to drive the next phase of global growth in the ultra-high net worth segment.

Performance was bolstered by a 70% increase in wealth platform AUM since listing, supported by industry-leading client retention rates exceeding 95%.

The firm successfully exited its non-core international real estate business in 2025 to eliminate future obligations and focus resources on core wealth and institutional management.

Organic growth remains a primary driver, with nearly $4 billion in projected billable assets added in 2025 alone from new and expanding client relationships.

The institutional endowment and foundation business has scaled to over $8 billion, serving as a natural extension of the core wealth management platform.

Management attributes the current lack of visible operating leverage to a lag in realizing cost-saving actions and temporary expenses related to the strategic review.

Strategic positioning is anchored by a global footprint across 19 cities, targeting complex families with average assets exceeding $50 million.

Management expects 2026 to be a turning point where the benefits of a simplified platform and zero-based budgeting become visible in normalized results.

The zero-based budgeting process has identified $20 million in recurring annual gross savings, with the majority expected to be realized by year-end 2026.

Future margin expansion is dependent on the expiration of legacy technology and vendor contracts, alongside the optimization of office occupancy costs.

The firm anticipates that M&A activity trends will provide a favorable environment for its arbitrage strategy, assuming geopolitical stability in the Middle East.

Strategic growth assumptions include the conversion of acquired AUA from the Kontora transaction into higher-margin AUM over time.

A $35 million impairment charge was recorded in Q3 2025 related to the arbitrage fund, impacting the full-year GAAP net loss.

The Special Committee has not yet received a strategic proposal that reflects the firm's long-term value, though it continues to evaluate all alternatives.

Reported operating expenses included $14 million in bonus accruals specifically tied to the strong performance of the arbitrage incentive fee.

Management confirmed that Allianz filed a 13D, noting that while a standstill is in place, it can be waived with Board consent if a formal proposal emerges.

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Management described the transition as a thoughtful Board decision to align leadership with the firm's next growth phase while maintaining the existing strategy.

The leadership team remains cohesive, with key executives having tenures of 18 to 25 years, ensuring continuity in client service and execution.

Savings are expected to be realized over approximately nine quarters, extending into Q1 2027, due to the duration of existing contractual obligations.

Immediate benefits in 2025 were seen in non-contractual areas like marketing and travel, while 2026 will focus on technology and occupancy roll-offs.

The firm does not require external capital for its organic growth initiatives, which are supported by existing global business development teams.

Management expressed confidence in their ability to raise capital for accretive M&A opportunities if and when attractive targets are identified.

The uptick in AUA was primarily driven by the Kontora acquisition, which brought in significant non-financial assets like real estate and collectibles.

The long-term strategy involves converting these non-financial AUA assets into managed AUM to drive higher recurring revenue.

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