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NEW YORK - WisdomTree, Inc. (NYSE:WT), a $1.9 billion market cap asset manager with "GREAT" financial health according to InvestingPro analysis, announced Thursday it has entered into a definitive agreement to acquire Ceres Partners, LLC, a U.S.-based asset manager specializing in farmland investments, for $275 million in upfront cash.
The transaction, expected to close in the fourth quarter of 2025, marks WisdomTree’s strategic entry into private asset markets and brings approximately $1.85 billion in assets under management across 545 farmland properties spanning 12 states, primarily in the Midwest. The company’s strong liquidity position, with a current ratio of 3.83, suggests ample capacity to execute this strategic acquisition.
The deal includes an additional earn-out consideration of up to $225 million payable in 2030, contingent on compound annual revenue growth of 12-22% measured over five years.
"Farmland is one of the largest yet most underpenetrated real asset classes in the U.S., offering both scale and scarcity," said Jonathan Steinberg, WisdomTree Founder and CEO, in a press release statement.
Ceres Partners, founded in 2007, has delivered a 10.3% net average annual total return since inception, according to the company. The platform manages approximately 174,000 acres of U.S. farmland.
WisdomTree cited farmland’s historical performance as an inflation-protected asset class with low correlation to traditional equity and bond markets as key factors in the acquisition. The company also highlighted potential growth opportunities in adjacent areas including solar, AI data infrastructure, and water resources.
The acquisition is expected to be accretive from day one and accelerate WisdomTree’s long-term earnings growth potential, the company stated.
As part of its 2030 strategic goals related to the acquisition, WisdomTree aims to raise over $750 million in farmland assets by year-end 2030 and double base fee revenue during the same period.
WisdomTree currently manages approximately $128.5 billion in assets globally across its exchange-traded products and other investment offerings. The company has demonstrated robust growth with a 20.66% revenue increase over the last twelve months, and its stock has surged 36.39% in the past six months. For detailed analysis of WisdomTree’s growth trajectory and 12+ additional exclusive insights, visit InvestingPro, where you’ll find comprehensive research reports and advanced financial metrics.
In other recent news, WisdomTree Investments reported its first-quarter 2025 financial results, achieving an adjusted net income of $0.16 per share, which exceeded the forecast of $0.15. The company reported revenues of $108 million, slightly below the anticipated $108.48 million. WisdomTree also announced a record-breaking month-end Assets Under Management (AUM) exceeding $121.5 billion for May 2025, marking its tenth monthly record in the last twelve months. The firm’s assets under advisement (AUA) reached a milestone of $5 billion, with significant inflows into its model portfolios business. Additionally, Goldman Sachs upgraded WisdomTree’s stock rating from Sell to Neutral, citing diversified fund flows and potential for organic base fee growth. The investment bank set a price target of $11.90, indicating a 9% upside potential. WisdomTree also made a strategic minority investment in Quorus Inc., enhancing its offerings for financial advisors. This investment will allow advisors to access WisdomTree strategies in a tax-efficient separately managed account format via the Quorus platform.
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