Hilbert Group AB (publ) (HILB_B) Q4 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

Okay, let's begin. Good morning and thank you for joining me for Hilbert Group's Q4 update and 2025 outlook. To begin, I wanted to go over some significant events from past quarter. We made some interesting and strategic strides in Q4. 2024, which was otherwise a rather difficult year, to be honest, largely driven by lack of institutional and organic inflow into the asset class. However, in Q4, some of the milestones that we were able to achieve, and that's up on the screen now, were significant. In Q4, we saw major growth in our asset under management, where we more than 10x our asset base. This means that we now have surpassed the previous AUM target of $300 million, which was set back in 2022. This growth was driven by two major factors. The first one being the strategic partnership with Zappo Bank, where we won the mandate to manage the Byzantine Structured Credit Fund. This fund has now grown to roughly 3,300 Bitcoin in size and has a current yield of 4.02%. And we anticipate a strong growth trajectory for this specific fund and I will comment more on that later in this presentation. The second point on the screen as well as the second factor for our AUM growth is the acquisition of Liberty Road Capital, which was announced last quarter. Liberty Road currently manages roughly 110 million in assets. This acquisition is strongly value accretive for Hilbert, not just from asset under management perspective, but with this transaction, we have acquired many strongly performing trading strategies or routines that enable us to upgrade our product menu. Additionally, Liberty's client base is divergent to Hilbert's in the sense that while Hilbert has largely institutional LPs, Liberty's client base is much more in the high net worth and family office space, which then al...