WisdomTree has reached a definitive agreement to acquire Ceres Partners, a U.S.-based alternative asset manager specializing in farmland investments. They explain that this transaction marks its entry into private asset markets, starting with the real estate sector and, specifically, farmland. In addition, Ceres benefits from opportunities in adjacent strategic areas with demand for solar energy, artificial intelligence data infrastructure, and water, which are expected to drive faster growth.
According to WisdomTree, this acquisition provides immediate scale and a long-term advantage, bringing approximately 1.85 billion dollars in assets under management across about 545 U.S. farmland properties located in 12 states, mainly in the Midwest. “Ceres has a solid performance track record, with an average annual net total return of 10.3% since its inception in 2007, outperforming farmland benchmarks,” they state.
The manager believes that, as farmland is recognized as one of the largest and most underutilized real asset classes in the United States, there is significant growth potential. In their view, this asset class has historically delivered resilient, inflation-protected returns, and is uncorrelated with traditional equity and fixed income markets. As demand accelerates for private investments that generate income and offer inflation protection, they believe this transaction positions them well to provide differentiated access at an institutional scale. Farmland prices and asset values have increased in the United States in all but nine years since World War II, and Ceres represents a value-added platform in a category with the fundamentals for greater adoption by advisors and institutions.
“Farmland is one of the largest and most underutilized real asset classes in the United States, offering both scale and scarcity. This acquisition expands our leadership in innovative, income-generating investment solutions while strategically accelerating our entry into private asset markets with a scalable, high-quality platform. This reflects our commitment to offering differentiated exposures that deliver long-term value for both clients and shareholders. This strategic acquisition now positions WisdomTree to capitalize on the most significant structural growth opportunities in wealth and asset management today: ETPs, private markets, managed models, and tokenization,” added Jonathan Steinberg, founder and CEO of WisdomTree.
For his part, Perry Vieth, founder and CEO of Ceres Partners, stated: “We are proud of Ceres’ lasting partnerships and legacy with farmers. Joining forces with WisdomTree marks an exciting new chapter for Ceres. For nearly two decades, we have built a differentiated farmland investment platform, grounded in performance, operational expertise, and a deep understanding of U.S. agricultural markets. This partnership brings product innovation, scale, and distribution that will allow us to reach more investors seeking resilient, inflation-protected, income-generating real assets. Together, we are uniquely positioned to capitalize on the next wave of growth in farmland, including solar energy, artificial intelligence data infrastructure, and water, with a shared commitment to innovation and long-term value creation.”
Transaction objectives and details
As part of this transaction, WisdomTree’s goals for 2030 include raising over 750 million dollars in farmland assets by the end of 2030 with fee structures of approximately 1% base / 20% performance, doubling base fee revenue by the end of 2030, increasing performance fee revenue by 1.5 to 2 times—assuming historical performance levels are maintained—and accelerating WisdomTree’s global margin expansion trajectory.
According to the manager, the transaction involves an initial cash consideration of 275 million dollars payable at closing, subject to customary adjustments. “Consideration for future earnings of up to 225 million dollars payable in 2030, subject to a compound annual revenue growth rate of 12–22% measured over five years. Subject to customary approvals, financing, and closing conditions, the transaction is expected to close in the fourth quarter of 2025,” they note.
Finally, they add that this transaction establishes Ceres as a cornerstone of WisdomTree’s long-term strategy to build the next-generation asset management platform, combining structural growth sectors, an innovative offering, and a future-ready product range. “Alongside its current strengths in ETPs, managed models, and tokenization, WisdomTree will offer its clients institutional access to a highly differentiated set of exposures in public and private markets,” they conclude.
