Q4 2019 Earnings Call

Welcome to an operator will be with you shortly.

Yep, it's called what Comforts would you like?

May I have your name?

And what company are you with?

Okay, I'll join you in you'll be on hold and and it's been recorded strike continued into the fourth quarter during which the business doubled to $300 a month and drove half of silver crest's new client account growth during that quarter. We're proud of silver crest's internally built capability and have growing that business from scratch our team and performance track record our strong a new business pipeline is growing and we expect continued success in the business during 2020 silvercrest has a proven ability to continue attracting net positive assets clothes into its high quality Equity capabilities, despite the industry-wide trend or passive investment vehicles and the struggles of pure firms. So progressed now has six billion and total institutional management AUM, each of Silver Crest Equity strategies show strong three and five year track records, which are vital for attracting new institutional business. We now have fully integrated wage.

additional marketing teams and are excited to

Bring our small-cap growth capabilities to Market silvercrest has also recently invested in New Hyde Network portfolio management professionals over the past year and half to support organic growth of the business and to diversify our firm's Talent. We have a track record of growing new Talent internally and will continue to do so the current m&a environment for wealth management firms remains active and expensive. We believe our brand culture capabilities and technological innovation make silver Chrysler Premier partner for select businesses and professionals regardless of the environment. So we'll cancel opportunistically seek to effectively wage or Capital the compliment or organic growth Scott. I'll turn over the financials to you and then we'll take questions after that extra. So is this closer towards the lease for the fourth quarter discretionary z u n as of December 31st, 2019 was 18.8 billion and totally, um, as of the same date was 25.1 billion revenue for a quarter was $27 a month.

million and reported Consolidated net income

For the quarter was 4.2 million looking further into the fourth quarter of nineteen Revenue was 27.8 million and that represented approximately a 12% increase in revenue of approximately 24.8 billion for the same period last year this increase was driven primarily by the acquisition of Cortina, which took place in July of 2019, revenue for the quarter ended December 31st, 2019 attributable to Cortina was approximately 3.1 million expenses for the fourth quarter were 23.78 representing approximately a 21% increase from expenses of 19.6 million for the same period last year this increase was primarily attributable to increases in compensation and benefits expensive 3.4 million and general and administrative expenses of seven billion compensation and benefits expense increased primarily as a reserve.

the merit-based increases and

Really hire staff including the addition of Cortina staff and an increase in the accrual for bonuses partially offset by decreased in equity-based compensation expense due to a decrease in the number of unvested restricted stock units the increase in general and administrative expenses during the fourth quarter compared to the same period last year was primarily due to increases in professional fees due to an increase in acquisition-related legal fees resulting from the Cortina acquisition increased depreciation amortization expense related. Mainly Tamarind ization of intangible assets that were acquired as part of the deal and increase of expenses in depreciation related to the renovation of our office space in New York City. We also experienced increases in occupancy and related expenses portfolio systems expenses increased due to a decrease in accrued soft dollar related research.

cost and increased travel and entertainment costs as well also related to

A few of our our nav Arrangements we had increases in the fair value of the arrangements for both Jameson and Cortana deals. These were partially offset by increasing the fair value of our town accruals related to the New York show on campus silly Acquisitions reported Consolidated net income was 4.2 million for the quarter compared to five point two million in the same period last year reported net income attributable to silvercrest or two classes shareholders for the fourth quarter 2019 was approximately 2.46 or 26 cents per basic and diluted glass a chair adjusted ebitda. Which we Define is Eva. Without giving effect equity-based compensation expense and non-core Thousand Islands, which approximately 7.3 million or 26.3% of revenue for the quarter compared to eight point six million or 34.6% of revenue for the same.

In the prior-year adjusted net income which we Define as net income without giving effect to non-core non-recurring items and income tax expense, assuming a corporate rate of 26% off which approximately 4.5 million for the quarter or $0.31 for just the basic and diluted earnings per share adjusted earnings-per-share is equal to adjusted net income divides the actual Class A and Class B shares outstanding as of the end of the recording. For basic adjusted EPs and to the extent diluted we add unvested restricted stock units and non-qualified stock options to the total shares outstanding to compute diluted adjusted earnings-per-share looking at full year revenue for 2019 was approximately 102.2 million representing approximately a 4% increase over revenue of 98.7 billion for the same period last year this incorrect.

we've driven by Nick Klein and

Close and discretionary assets under management including one point seven billion of assets under management in connection with the acquisition of certain assets of Cortina and an increase in family law officer of revenue revenue related to Cortana for the full-year keeping in mind that Revenue started on July 1st of 2019 was approximately 6.2 million month expenses for the year ended December 31st, 2019 were approximately 83.3 million representing a 7% increase over expenses of 77.5 month for the same period last year compensation expense increased approximately 2.1 billion during 2019. And this compared to the prior-year general and administrative expenses increased approximately 3.6 million during 2019 is compared to the prior-year again compensation increased as a result of birth.

Reese's and

We hired staff including Cortina and the increase for bonuses. Also looking for full-year. We all we also had a decrease in equity-based compensation expense due to lack several restricted stock units that fully invested early in the third quarter General and administrative expenses also increased for a year as a result of higher professional fees related wage position activity specifically Cortina depreciation and amortization increased related to intangibles and in New York City office renovation, and we experienced again increases in rent expense portfolio and systems expense and the changes in the fair value of our various earn at Arrangements.

Reported Consolidated net income was approximately 15.4 million for a year and did December 31st 2019 compared to Seventeen point four million in 2018 report that income attributable to the silvercrest court Classics shareholders for 2019 was approximately 8.6 million or 98 cents per basic and diluted class. Hm adjusted ebitda was approximately twenty eight point six million or 20% of revenue for 2019 compared to twenty nine point six million or 30% of Revenue wage 2018 adjusted net income was approximately 16.9 million for 2019 or a dollar 18 and a dollars Seventeen per adjusted basic and diluted earnings per share respectively again, just rolling down a little bit on the Cortina acquisition on July 1st. We closed on the acquisition of certain assets of Cortina and consideration for the purchase wage.

I said same Goodwill.

At closing we made cash payments in the aggregate amount of approximately thirty three point six million. We drew down eighteen million on our Term Loan facility with City National Bank, and we issue of the units with a value equal to approximately 9 million the total deal consideration includes contingent consideration in a form of two potential retention payments and a potential grow and during the five years after the closing of the acquisition based on achieving Revenue Milestones looking briefly at the balance sheet total assets or approximately 215.2 million as of the end of 2019 is compared to 133.4 million as of the end of 2018 cash and cash equivalents were approximately 52.8 billion at the end of 2019 compared to sixty nine point three million at the end of 2018 as a result of the adoption of the new lease accounting standard affect birth.

January 1st of 2019

Certainly these commitments now appear on Steven the financial condition as operating in finance lease assets and liabilities as of December 31st 2019 at our operating a finance lease assets liabilities total 33.7 million and 39.8 million respectively total borrowings as of the end of 2019. We're 16.5 billion and total Class A stockholders Equity was approximately $65 million at the end of 2019. That concludes my remarks on now turn the call over to Rick and will lead into Q&A very much Scott will now take questions and talk about the quartering Year. Yes. Thank you. We will now begin the question-and-answer session to ask a question you press * then 1 on your touchtone phone.

If you're using a speakerphone, please pick up your handset before pressing the keys to enjoy your question, please press * then two at this time. We will pause momentarily do some of the roster.

And the first question comes from to meet Modi with Piper Sandler.

Thanks. Good morning. Rick morning, Scott. Just just wanted to start with with maybe an update on the m&a environment. 2019 was a pretty active gear, you know, the industry You know, despite BRAC purchase multiples continuing to climb from The increased demand. I mean, how are you guys approaching twenty twenty activity levels and and however the conversation going with potential targets. Yeah. So the same way we did twenty five fifteen and the same way we did 2018 Cortina a deal last year is instructive in one way and that that was actually the first deal that was brought to us by a birthday. We've had plenty others that have been brought to us. And for a variety of reasons were not appropriate for us or we're just we felt Out Of Reach or not aligned with our system care of shareholder Capital, but this is a personal services business a culture is extraordinarily important to get right when you consider that you have talent phone number.

and down the elevators and you want to

Have a clear one minded way at working together as a firm to grow the business and it takes a lot of meetings to find a job. Right potential wealth management partner. We are very active in the industry in different industry groups trade associations. This firm is firm that reaches out to and works with peer firms. In fact, we've even been referred business by pure firms or have other shared relationships and potentially so people who are ready for the kind of firm that that silvercrest represents and our way of doing business very often Reach Out directly to us back and we have active conversations right now as we did last year. I usually talk about the fact that we're almost always in a conversation and it's it's off

Just a numbers game, but it's a longboarding game.

And we're just going to continue meeting people cultivating them helping them understand our story and and really getting into their businesses in in a meeting in the minds the Roll-Ups the entry of a lot of private Equity that you want to then do a roll up or otherwise do Financial engineering to pull together a network of riaa's without necessarily integrating them have all driven out prices along with the with the equity markets, but quite honestly very few of those for firms on a cash on cash basis month or once you strip out or if you can strip out owners cop are showing meaningful growth that in any way justifies the kind of multiple choice, they're selling for in many cases if they are not organically growing these are businesses that are declining annuity. There's a leak in the bucket and you have to replace it every year as we've shown in this birth.

And a lot of these firms are good. They do a good job for their clients, but their lifestyle business.

They don't have particularly good business practices. They don't have the succession planning. They haven't successfully transitioned to generation in the business. They're eating all the economics et cetera so I can look at it with great skepticism. I am very careful with our capital. I am not going to engage in pure Financial engineering to grow the company. We have to see that one plus one is going to be equal to and that we can together continually organically grow the business as we've done in our history. So we're going to be selective about all of those things as well as the culture and then move forward with the size of any deal to move the needle here would represent a very large use of of capital and or debt and that's fine. But you've got to get it. It's just right and we're not going to be doing a bunch of Serial Acquisitions, which would be required to get very aggressive where some work some don't and you just kind of stay off.

Step ahead of the sheriff as you're growing the top line. I hope that's a comprehensive.

Answer that stuff you find helpful. Yeah. No, that's that's really great. Thanks for all that. And and then, you know just turning turning to the institutional Channel, you know, can you talk about you know, what you've been seeing so far in the first quarter and in terms of flows, I know in for a new experience some outflows that you know with that market correction some rebalancing as well. Just wondering if you've noticed, you know, the same Trend over the last couple of volatility and Market moves and then you know secondly in and kind of relatedly, you know wanted to get an update on the next six month pipeline for the institutional Channel. I mean have you guys seen any strength large-cap in the large-cap strategy and and it has that offset a little bit of that volatility and then you know, I know it's a recent shift here. But but just you know any color you can give given, you know passes get here right. So if you've asked a few things there, so I'll try to address them in an order and just follow up quickly. If I if I miss any of them first of all going into 2019 is you recall in our birth.

Earnings call for pipeline really dried up significantly with that volatility and the institutional pipeline grew meaningfully during the year a little bumpy, but the deadline now just to get to the to that question.

Looks looks very strong the current kind of six months actual Pipeline and by actionable I'm talking about where we're either the semi-finalists or finalists can they and and the search is going to be completed that looks looks quite good if it stands at something around 3.6 billion Berg, um, obviously we're we're not going to win all of that. So it's but it relatively it's a high number for us and we're going to get our share of wins. There may be the the large cap in equity income capabilities have maintained very good three and five years 7 year track records. In fact, you may be interested to know that the equity income a strategy among all managers has the number one record over 15 years and invite a meeting.

Marjan people don't normally invest on that basis of a 15-year record, but I think it speaks very highly of the quality of the work. And the team that we're doing is certainly going to help us but recent track records are good. The volatility is often helpful to vote us and our growth Equity team in Milwaukee. We're not afraid to head in when everyone gets scared clear out some of them would and find things at reasonable value. So it's an opportunity to reorient the the the portfolio we've got our marketing teams in place now and how their own network. We're building up a pipeline for our Milwaukee Road capability with the after the Cortina acquisition. They're wonderful professionals to work with they understand how we want to grow with them and what it's going to take that pipeline smaller but growing because it's it's it's new for us.

Their performance has been quite strong. So we feel very good.

Going into the equity markets.

Think I trust most of your questions there if I miss something let me know. Yeah. Just wanted to just get your thoughts on what's been happening maybe in the last couple of weeks and any shift that you're seeing from Thursday from from the volatility just the volatility, you know, this company has a luxury of having very long-term wealth management clients who work extremely closely with their portfolio managers were highly experienced in all matters of market and our clients understand their asset allocations with therefore with a purpose of them used for and how to deal with Marcus like this. If you were to come here, it's a very calm environment people are going about their work and we see the opportunity to add value. I'm not seeing chef from those clients in any meaningful way our general Outlook from an economic perspective. Is that obviously this will hurt but it's going to be ultimately dead.

these short-term

I'm not in the economy and we've remained long-term a constructive about it. And we also see potentially the opportunity here for active management to outperform boxes and very often institutions and investors get burned with their own behavior by 9 selling low, whereas investors in our strategies given the nature of our work with clients often have us counseling them to take the opposite approach which provides a real palace under the business but also helps clients actually realize Thursday returned to the long run. So what else about coronavirus it helped us hard in our infrastructure in the sense that we're all prepared for Disaster Recovery. If business continuity super important, it's just an opportunity to examine those procedures make sure will prepare it and continue with the business, but look there's going to be a little slow down but not necessarily in our business office.

if anything

We find that there are opportunities after volatility like this eventually right now people are kind of worried. So they don't make moves while the volatility is going on. But once the dust settles the phone does start to ring. So in terms of our Direct business if anything is that it's a medium-term opportunity.

Got it. Well, thank you. And then you touched on it a little bit there. Just wanted to follow up on on Cortina, but just want to get a sense of any Trends are seeing with client demand between value wage growth across the platformer. Are there any changes or more focused on one of the other and you just give give a little color on what's happening with small cap growth? There's there's nothing no change. Nothing to characterize their own the Cortina group The Milwaukee group that I referred to is has been with the firm basically 2/4 we have to integrate need to get our marketing going. We're just building a pipeline on the well side, you know, there's not a lot of Shifting so there's not going to be a change there in terms of the institutional search side wage growth Equity capabilities of small-cap, as you know, our largest institutional capability and so progressed is small cap value. There's a lot of capacity in our Milwaukee birth.

Capabilities and small-cap. It's a capacity constrained opportunity in the marketplace is going to be demand for it. It's not necessarily dependent on Big Ships you see.

In in larger market tax cap opportunities, so we're not going to see a change there. We're just going to get in to get in the way of business and start winning it.

Okay, great. Yeah, and then another one or just on the international strategy. I know it's still really early days there but just kind of house that marketing progression been coming along and and is there anything else we could expect over the next year or two? I think over the next couple of years as I've said before after we acquire that group. We wanted to incubate a couple products adjust them put up some good numbers introduce you to the marketplace just as when we started marketing our value equity and silvercrest. It takes a couple of years to cultivate the consistent get them familiar with your capability and comfortable and of course, you gotta put up the good number so long term we're very excited to great team. They put up good numbers as well. I'm just so pleased that if you look at the absolute lie, everything were offering we've got great, um 3 and 5 year 7 year numbers. It's going to vote really well for us, but that's that's going to be a much slower pipeline. We have an identical marketing job.

see in place coordinating with

The head of our institutional marketing effort is now on the executive committee of the of the firm as has been announced and we're excited about it, but that's going to be a little slower.

Okay, great. Thanks and just a couple more here on on on modeling. Just just wanted to touch on the fee rate. I you know, I know you can I just want to see if you guys have been experiencing any pressures on the rate. It seems to storage pretty steady around, you know, sixty bucks for the discretionary rate. Is this the level we should get comfortable with going forward at any impact from poor Tino or or maybe you know contribution from the institutional Channel that's been growing. So if you look at our total discretionary assets under management, it's a little lower than that historically it was as around fifty eight $59.60 off around a little bit. Uh, it's come down. It's a high-class problem. It's come down because we're winning larger man days. Uh, and and so there's more pricing pressure their life hasn't come down a lot recently. It's just steadily been doing that less so frumpy pressure and more. So from from winning institutional mandates, which is now sixty percent of the business and if you go back so

Two years was nearly zero. So we we really done well there.

Um, it may creep down just as it has been but we're also growing the the high-net-worth business as is Scott was discussing. We have new Talent at the firm bringing in those clients. That'll that'll be a countervailing pressure and push that up towards that 60 basis-point number again. So it's hanging in there pretty well, it just moves by basis point or two. I wouldn't read too much into it. It also depends what base you're using. So when you're talking about 60 versus what I'm seeing now, you know, we can talk offline but there are different ways to look at our beginning of. N. Average et cetera. Okay, great and shifting over to the excess Capital got a deployment, you know, just wanted to get some for how you're thinking about the the debt situation. I mean, you guys still have a relatively low level of debt, but correct me if I'm wrong. It looks like the debt came down I think about a million and a quarter and kind of going back to age.

First question on m&a. I mean, how do you do that level pay down going forward? Is that something you're focused on you know, is it if there's no kind of imminent deal to be done. Would you kind of you know put more Capital towards that than you know else? Yeah, how how sorry I was just going to you know, sorry. No. No, I'm just going to add. You know, how does that you know debt level as well kind of affect your view on Long driving if it has an effect at all.

If anything it just means we've got a lot of dry pack.

And not just in cash but in debt ability, we we renegotiated our debt facility in doing the Cortina deal with our office in Milwaukee. That's where that debt was put on our balance sheet was a great opportunity to to make it a little more rational and to give ourselves more room to use debt as a bath. I'm not focused on I'm paying it down aggressively. It's very very low compared to our even. I can substantially lever from here and she's still feel pretty comfortable life. I'd rather not get a new specifically where I'm comfortable but it's we've got a lot of room left if we were to do a meaningful wealth management deal with a firm that was you know, three billion or five million and a you know, we have those types of conversations that's going to take a lot of cash and and potential dead.

So that dry powder is going to be very useful.

At that opportunity if I were to be less conservative with it, you know, we could have a problem doing a deal to move move this company forward and keep in mind a lot of our cash is a gross of the year is actually part of compensation. And as you just saw us paid out or we'll see if paid out in January and February. So I tend to be conservative with how many turns humans off. I would love with the company which is still to say though. I've got a lot of room and off we'll just wait for the right opportunity. The other thing that we've done in you saw this with the comp coming up a bit is we were fully burdened last year with investments in New Jersey Personnel to grow the high Network business and and help us transition business super important for the enduring nature of this firm to maintain that growth and wage.

continue building our networks we have to

That's than that and 2019 was the first year. Where are where our income was fully burdened by those those new people most will be successful. I predict based on what I'm seeing. We have one individual who is is already basically paying for him or herself here and expect further growth that kind of investment. We will be looking at more and more closely as we sit in this expensive m&a environment. I don't be surprised if we do some more things with with our Capital it certainly affects our income stage in a different way, but we've got plenty of room to do it we're running and even though margins that hovers between 28 and 30% that is right in line with what our company is done historically off until March and kind of hit a high towards the end of 2018 as a result of performance fees and the fact that that tiring had not hit our p&l. I think if this business name

As well run you'll see either.

Cycle, you know between the mid to to somewhat High twenties to when we're running flat-out over 30, but we have to make those investments just got a short-term outlook on the business, which is something we really seek to avoid a good case in point Sorry is the Ocio business, you know, we stacked up that hit the income statement brought on people and announced that we were going to execute a new strategy to grow the business organically and we're doing that. It's it's now, you know working anticlea growing very often.

Great. Thank you for all that color. I just want to follow up one last question here. If I could on the compensation comments, you know, I know you you talked a little bit about expanding in wealth management this year, you know your comp ratio for 2019 came in, you know, just above 55% which is kind of within that range you would guided to you know with Cortana maybe contributing some pressure. Overtime Derbyshire. Margin. I mean, how should we think about that 2020 rate is going to be sort of within that that type down to 55% or you know with you know, increased higher rank that kind of like the other it's going to depend on how we grow of course as well because it's a ratio vs revenue and obviously we we have Ambitions for growing our top-line. Yes, we do. He's trying to manage the company toured around a 55% Capri ratio when we come under it as we did in a couple of years like 2018 birth.

253 we're going to we're going to do.

That we're going to put up at our numbers. We're not going to spend the money on ourselves just because we've told investors that we're willing to go up to 55% and pay ourselves more. I think it's a big mistake a lot of other businesses make up in our industry Cortina and the institutional business not just our our colleagues in Milwaukee, but value Equity more International grows do have more leverage to the business office and would drive that down your correct. It's also more volatile because of the nature of performance and the institutional business but in talking about hiring, yes, we met Warren 2020 the real story here is we we've done a bunch of hiring and we've got to have some success there. You saw the full burden of it in 2019. We're going to be careful about it. You might expect more Prestige guiding towards 55% if we do hiring in this year, it's not going to burden the full year. You should keep that in mind. So as we grow that gives us a little room to spend some money a firetruck.

point about,

Was that compensation didn't go down quite as much as we expected as a result of the acquisition with Milwaukee because there, on Revenue was substantially higher than we expected. Nothing wrong with that. It was a super high class problem. This is a super talented team and absolutely great Partners. I had fantastic performance and much of their confidence driven by performance. And so they got paid more. Let me assure you we are thrilled to do that. That is a super great problem to have but I think some margin expansion. We we may have expected going in didn't appear and solely for those reasons quite honestly and I want them to hit the ball out of the park every time they can't because that's just going to be more top-left that will ultimately drive down the the margin in the long run as well.

Okay, great. Thanks for the call her and and that's it for me. I'll leave it there. Thank you. Thanks. Thank you. And again, if you have a question, please press star and then one.

Okay, the next question comes from fed folks with Boston University Iraq, it's Fred folks. Just a quick question. What is thought of the the correlation terms of your business model what sort of the carbs in between the state of the market and your Revenue if the next six months the dial declines 10% is your Revenue going to go down 5%

A good question Fred we do model that I want to make a preliminary comment and then I'll let Scott answer that more more more accurately since he tracks those numbers one thing to keep in mind about our business is that four days of the year matter to this business the last day of each quarter month and that day determines effectively the revenue for the next quarter. So while the current disruption will affect us going forward.

Really kind of depends what happens March 31st What's Happening Now doesn't matter whatsoever, which is to say look, we finish the the year nicely December 31st. So, this is even though this event is occurring first quarter. Our first quarter is effectively, you know, pretty well-known because because of how we're filling in advance with regards to how much to expect it to move around one thing. We have yet experienced with this taking into account, you know, the nearly 13% or 10 to 13% of Revenue that with the growth Equity capabilities now represent. We haven't remodeled things and with the growth of these two tional business, you would be correct to assume that it it levers this business more to the market than a bathroom is purely welcome management, but I think Scott can give a little guidance on on the exact number. Yeah, so it wouldn't necessarily be a one percentage-point to 1% Point Club.

priest, you know with the market yet the

Keep in mind as rich said we've had a different mix of strategies, which is some of those strategies May lack the market and again because the overwhelming majority of our revenue is billed quarterly in advance. If you can sexually have a significant marker, you know recovery at this point and you know back to life, you know that you back to the levels of the market before this volatility over the last few weeks. Well, then your second quarter revenue is not going to be as low as wage with anticipate. So there's you know, mixed factors in the lines of business our billing convention that would lead to you know, if it was at 5% decrease in the market. It's going to be something less than that in a hit to our revenue for the years.

Okay, thank you. And the second question is given the coronavirus and the nature of your work what state what are the things that you doing in terms of telling employees to work from home? Don't travel, etc. Etc. So, I think we've done what any good company that cares about its partners and colleagues does we provided guidance on how to attempt to avoid contract the virus in the first place? I won't go through those protocols. You won't read the news, but we got out in front as soon as this news broke and look like it was coming here to educate our employees. That's step number one number two.

all of our interests

Not sure in access to systems are in the cloud. We have a disaster plan and a business continuity plan to execute any of our employees can work off solutely anywhere with a with a data connection including just a Cellular Connection. And so if anyone feels the same way this way that you know a fever or whatever it may be they are to work from home and we're completely good with that. We have many remote employees as well and off our teams have backups. So we just remind you folks of our capabilities and how to take care of themselves. We did uh limit travel to certain countries as you would expect as well. I don't have it a lot of international travel with business. But but number one is caring for the people who are doing the work here that's with this company is all about so that they can log

take care of our clients which of course the reason we

our business

Okay. Thank you.

You're welcome. Brett. Nice to hear from you.

Thank you, and this concludes our question-and-answer session. I would like to turn the conference back to Rick for any closing remarks.

Great. Thank you very much for joining us for the review of the fourth quarter of 2019. It was a decent year of organic growth. It was really nice to see that are outsourced Chief investment officer capability, which we have great hopes for the future is now got some some wind behind it and we expect to have some more organic growth from that capability in the new year and fight with a completely integrated marketing initiative on behalf of multiple institutional-quality Equity strategies. We're excited about the potential growth in the future 20 20 and Beyond wage with those capabilities as well as Now growth in the high net-worth business with some new Talent at the firm. We appreciate all of our shareholders their long-term Vision package, which is shared by us and their support. Thank you very much.

Thank you.

Princess now concluded thank you for attending today's presentation. I mean I disconnect your lines.