Westwood Holdings Group reported fourth-quarter 2025 revenues of $27.1 million, representing a 11.5% increase from the prior quarter's $24.3 million. The asset management firm achieved several operational milestones during the period, including its exchange-traded fund platform surpassing $200 million in assets under management, the final closing of its Energy Secondaries Fund II at $300 million in total commitments, and a notable 36% year-over-year increase in institutional sales activity.
The company experienced $1 billion in net outflows during the quarter, substantially driven by a single large institutional client relationship representing over 80% of the total decline. The outflows stemmed from a low-fee Large Cap Value sub-advisory mandate and were partially offset by $1 billion in positive market appreciation during the period. Despite the client-specific headwinds, Westwood's total assets under management remained supported by broader market gains.
Looking ahead, management cited a strengthened pipeline momentum, highlighting a newly secured $200 million client engagement and an anticipated $450 million defined contribution plan expected to transition to the firm during the first quarter of 2026. These developments underscore the company's ability to generate new business even as it navigates recent client attrition from its existing portfolio.