WisdomTree Acquires Ceres Partners, Expands into Private Asset Markets

By Greg Peters • Thursday, October 02 10:31 • Permanent Link

WisdomTree, Inc. has successfully completed the acquisition of Ceres Partners, LLC, a leading U.S.-based alternative asset manager, in a move that marks the company's entry into private asset markets. The acquisition, valued at $275 million in cash paid at closing, with potential earnout consideration of up to $225 million, positions WisdomTree at the intersection of public and private markets, expanding its reach beyond exchange-traded products, managed models, and tokenization.

This strategic move is underpinned by Ceres' differentiated farmland platform, which represents one of the largest yet underpenetrated real asset classes, historically delivering equity-like returns with low volatility and uncorrelated to traditional markets. Ceres' farmland platform has delivered net annualized returns of over 10% since inception, contributing to the expansion of WisdomTree's product suite and accelerating the company's long-term growth strategy.

Perry Vieth, founder and CEO of Ceres Partners, highlighted the significance of the acquisition, noting that with WisdomTree's scale, distribution, and digital innovation, they can bring farmland and adjacent opportunities in solar leasing, AI data infrastructure, and water rights to a broader base of investors, driving the next chapter of growth.

Jonathan Steinberg, WisdomTree founder and CEO, emphasized the transformative nature of the acquisition, stating that it marks a significant step for the company into private markets. He sees the addition of farmland to their product suite as a means to establish leadership and capture meaningful growth in a space where they can truly differentiate. Additionally, the acquisition strengthens diversification and reinforces the company's commitment to building enduring value for clients and stockholders.

This acquisition underscores WisdomTree's commitment to providing investors with unique access to a resilient, inflation-protected asset class and its dedication to expanding its platform and enhancing diversification. The upfront consideration for the acquisition was funded from WisdomTree's recently completed convertible senior notes offering, showcasing a strategic approach to financing the deal.

Today the company's shares have moved -2.37% to a price of $13.57. For the full picture, make sure to review WisdomTree's 8-K report.

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