Westwood Holdings Group, Inc. (WHG): Business Model Canvas [Dec-2025 Updated]

You're trying to get a clear picture of how Westwood Holdings Group, Inc. is actually structuring its business right now, so I've broken down their entire operation into the nine essential blocks of the Business Model Canvas, using their late-2025 figures. Honestly, what jumps out immediately is the firm's clean foundation: they are running the shop with $17.3 billion in Assets Under Management (AUM) as of Q3 2025, backed by a strong $39.2 million in cash and, crucially, no debt. They aren't just collecting advisory fees on that AUM, which totaled $96.24 million in trailing twelve-month revenue by Q3 2025; they are actively pushing boutique, outcome-oriented strategies through both institutional channels and a growing ETF platform. Keep reading to see the precise mechanics of how Westwood Holdings Group, Inc. captures value across every segment.

Westwood Holdings Group, Inc. (WHG) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that drive Westwood Holdings Group, Inc.'s growth engine right now. The partnerships are where the scale is happening, especially on the ETF side.

The collaboration with WEBs Investments Inc. is a major piece, expanding the Defined Volatility ETF suite. This partnership brought 11 new Defined Volatility Sector ETFs to the Nasdaq, announced on July 23, 2025. Westwood is providing the operational and distribution support for this suite.

On the institutional side, the sub-advisory relationships are delivering real assets. Westwood secured a significant win in the first quarter of 2025: a mandate valued at nearly $1 billion in the Small Cap Value strategy. This success helped drive firmwide assets under management and advisement to $18.3 billion as of September 30, 2025.

Distribution is another key area. Your MDST exchange-traded fund hit $150 million in assets and captured 30% of the monthly midstream ETF flows in September 2025. For the broader Westwood Funds family, Ultimus Fund Distributors, LLC handles distribution. For the WEBs ETFs, Northern Lights Distributors, LLC is listed as the distributor.

Here are the key partnership numbers as of late 2025:

• WEBs Defined Volatility Sector ETFs launched: 11
• Largest single sub-advisory mandate win (Q1 2025): Nearly $1 billion
• Firmwide AUM/AUA (Q3 2025): $18.3 billion
• MDST ETF Assets Under Management (Q3 2025): $150 million
• MDST ETF September Flow Capture (Q3 2025): 30%
• Q3 2025 Total Revenues: $24.3 million

Finance: draft 13-week cash view by Friday.

Westwood Holdings Group, Inc. (WHG) - Canvas Business Model: Key Activities

You're looking at the core engine of Westwood Holdings Group, Inc. as of late 2025. The key activities revolve around managing assets across different client types and expanding their product shelf, especially in the ETF space. Here's the quick math on what they were actively doing in the third quarter.

Active and passive investment management across diverse strategies is the bedrock. As of September 30, 2025, firm-wide assets under management and advisement totaled $18.3 billion. This breaks down into $17.3 billion in Assets Under Management (AUM) and $1.0 billion in Assets Under Advisement (AUA).

The management activity is segmented:

• Institutional assets accounted for $9 billion, which is 52% of the total AUM.
• Wealth management assets stood at $4.3 billion, representing 25% of the total AUM.
• Mutual fund and ETF assets made up $4 billion, or 23% of the total AUM.

For context on organic growth, during Q3 2025, AUM saw net outflows of $0.7 billion, which was exactly offset by market appreciation of $0.7 billion.

Developing and launching new ETF products (e.g., LBRTY Global Equity ETF) is a clear focus area. You see traction in specific products, which is what matters for distribution:

Also, the partnership with WEBs expanded, adding eleven new Defined Volatility sector ETFs.

Providing white-glove trust and wealth management services supports the wealth management AUM segment. While specific revenue from this segment isn't broken out, the overall firm reported total revenues of $24.3 million in Q3 2025, up from $23.1 million in Q2 2025. The firm operates through two subsidiaries, Westwood Management Corp. and Westwood Trust.

Institutional and private fund fundraising (private funds surpassed 2025 goal) shows success in capturing institutional capital. The CEO confirmed that private fund strategies have already surpassed the annual fundraising goal for 2025. The firm maintains a debt-free balance sheet and held $39.2 million in cash and liquid investments as of September 30, 2025. Stockholders' equity was $123.9 million.

The financial output from these activities in Q3 2025 was:

• Net Income: $3.7 million.
• Diluted EPS: $0.41.
• Non-GAAP Economic Earnings: $5.7 million, or $0.64 per share.

Finance: draft 13-week cash view by Friday.

Westwood Holdings Group, Inc. (WHG) - Canvas Business Model: Key Resources

You're looking at what really powers Westwood Holdings Group, Inc. (WHG) right now, the stuff they own or control that lets them deliver value. It's not just about the office space; it's about the capital they manage and the brains running the show.

The most visible resource is the sheer scale of capital entrusted to them. As of the third quarter of 2025, Westwood Holdings Group, Inc. was reporting Assets Under Management (AUM) totaling $17.3 billion. That's a serious anchor in the asset management space. This AUM figure is the engine for fee generation, plain and simple.

Next up is the intellectual capital, which is really their secret sauce. They rely heavily on proprietary investment strategies that they've refined over years. These aren't off-the-shelf models; they're what sets their performance apart. Here are a couple of the core strategies they lean on:

• Income Opportunity strategy focusing on yield.
• Small Cap Value approach targeting undervalued smaller firms.
• Specialized ESG-integrated mandates for certain client mandates.

This intellectual property is definitely a key differentiator. If you're assessing their moat, this is where you look first.

Financially, their balance sheet strength is a core resource, offering stability when markets get choppy. As of Q3 2025, Westwood Holdings Group, Inc. maintained a very clean position: $39.2 million in cash and, importantly, no reported debt. That's a rock-solid foundation to weather any near-term economic surprises. Here's a quick look at how those key financial resources stack up:

Finally, you can't manage billions without the right people. The human capital-the experienced portfolio management and wealth advisory teams-is indispensable. Their tenure and track record directly support client retention and AUM growth. You need to know who is making the calls. Their ability to attract and retain top-tier talent in portfolio management is a resource that compounds over time. Their compensation structure, which often ties directly to firm performance, helps keep the team aligned, which is a smart move.

The teams are structured to support the strategies. For instance, the Small Cap Value team needs deep research capabilities, while the wealth advisors need strong client relationship skills. It's a defintely symbiotic relationship between the intellectual capital and the human teams executing it.

Westwood Holdings Group, Inc. (WHG) - Canvas Business Model: Value Propositions

You're looking at the core reasons clients choose Westwood Holdings Group, Inc. (WHG) over the competition. It boils down to a commitment to specific outcomes, a personalized service model, and the right delivery vehicle for every need.

Outcome-oriented investment strategies with a focus on downside risk

Westwood Holdings Group, Inc. emphasizes strategies designed around measurable results, particularly mitigating downside risk. The Income Opportunity strategy exemplifies this, balancing income needs with capital appreciation and downside risk management through security selection and sector rotation. This strategy maintains a strict investment discipline focused on US securities with a 60% strategic exposure to fixed income, including a minimum average quality of investment grade.

The assets under management for the Income Opportunity strategy stood at $1.3 billion as of September 30, 2025. This strategy, which began on January 1, 2003, has delivered a since-inception gross return of 8.35% as of September 30, 2025. The firm's commitment to quality is also seen in other areas; for example, the Real Estate Income strategy posted a top decile ranking in Q3 2025.

Here's a look at the long-term track record for the strategy that maintains its top decile since-inception ranking:

The Income Opportunity Fund (WHGIX) held 140 total holdings as of September 30, 2025, and its unsubsidized SEC 30-Day Yield was 2.89% on that date. Its Net/Gross Expense Ratio is 0.84%.

Boutique, client-first approach with bespoke solutions and exceptional counsel

Westwood Holdings Group, Inc. has operated with a client-first approach since its founding in 1983. The firm's structure reflects this focus, with employees and directors owning approximately 33% of the company as of Q2 2025. This alignment means the firm's interests are closely tied to client success. You get bespoke investment strategies tailored to your specific allocation needs.

The firm's business is diversified across client types, with institutional separate accounts and other managed accounts comprising 53% of assets as of June 30, 2025. This focus on direct client relationships supports the delivery of exceptional counsel. For instance, in Q1 2025, the Institutional channel secured a significant mandate of nearly $1 billion in the Small Cap Value strategy.

Vehicle-optimized access: Mutual Funds, ETFs, SMAs, and private funds

Westwood Holdings Group, Inc. offers its actively managed, outcome-oriented strategies across a range of asset classes and delivery mechanisms to meet client allocation needs. This vehicle-optimized approach ensures flexibility. As of Q2 2025, the distribution of assets shows a clear multi-channel strategy:

• Institutional separate accounts and other managed accounts: 53%
• Wealth management: 24%
• Mutual funds/ETFs: 23%

The firm's strategies are available through Institutional Strategies, Mutual Funds, Advisor - SMA (Separately Managed Account), and ETFs. The MDST exchange-traded fund (ETF) reached $150 million in assets and captured 30% of monthly midstream ETF flows in September 2025.

Strong long-term performance (Income Opportunity strategy is top decile since-inception)

The firm's investment performance is a key value driver. Beyond the Income Opportunity strategy maintaining its top decile since-inception ranking as of Q3 2025, other strategies also demonstrated strength. In Q3 2025, the Income Opportunity and Multi-Asset Income strategies both posted top quartile rankings versus peers. The firmwide assets under management and advisement totaled $18.3 billion as of September 30, 2025, consisting of $17.3 billion in AUM and $1.0 billion in AUA. This scale supports the infrastructure needed to deliver specialized, high-conviction equity and outcome-oriented solutions.

Finance: draft 13-week cash view by Friday.

Westwood Holdings Group, Inc. (WHG) - Canvas Business Model: Customer Relationships

Westwood Holdings Group, Inc. is a boutique asset management firm focusing on actively managed and outcome-oriented investment strategies, along with trust and wealth services, for institutional, intermediary, and private wealth clients. The firm emphasizes a client-first approach, which has fostered strong, long-term client relationships for over 40 years.

Dedicated, high-touch, white-glove service for private wealth clients

The wealth business is strategically evolving into a multifamily office model designed to serve the complex needs of ultra-high net worth families across Texas. Westwood Holdings Group, Inc. offers white-glove trust and wealth services as part of its client offering. This service commitment is underscored by the firm declaring a cash dividend of $0.15 per share in Q3 2025.

Long-term, consultative relationships with institutional clients

Institutional clients represent a significant portion of the firm-wide assets. As of September 30, 2025, Westwood Holdings Group, Inc. reported approximately $18.3 billion in Assets Under Management (AUM) and $1.0 billion in Assets Under Advisement (AUA). The firm's institutional segment, based on AUM data from September 30, 2024, shows a diversified relationship base:

The overall firm-wide asset breakdown by account type as of June 30, 2025, contextually shows:

The firm's U.S. Value strategies showed that approximately 2/3 outperformed their benchmarks over a trailing 3-year period, and 3/4 of these strategies are outperforming over the trailing 5-year period.

Sales and support teams for the intermediary channel

Westwood Holdings Group, Inc. offers investment solutions to financial intermediaries. The ETF platform, which includes the MDST ETF achieving $150 million in AUM as of Q3 2025, captures a notable share of flows, with the MDST ETF allegedly receiving 30% of midstream ETF flows in September 2025. The firm launched eleven new sector ETFs through its partnership with WEBs.

Digital access and reporting for all client segments

Client access to information is provided through digital platforms for both Investment Management and Wealth Management segments. Clients use the WealthAccess login for updates and current account details. The firm provides digital access points for:

• Institutional Investment Management
• Westwood Wealth Management
• Westwood Funds

The company maintains a debt-free balance sheet as of Q3 2025, with $39.2 million in cash and liquid investments.

Westwood Holdings Group, Inc. (WHG) - Canvas Business Model: Channels

You're looking at how Westwood Holdings Group, Inc. (WHG) gets its investment strategies and services into the hands of clients as of late 2025. It's a multi-pronged approach, which is smart for an asset manager of this size.

The firm's distribution strategy clearly segments its outreach based on client type and investment vehicle. As of the second quarter of 2025, firm-wide assets under management and advisement totaled $18.3 billion, with $17.3 billion in AUM (Assets Under Management). This scale supports a diverse set of channels.

The primary channels for client acquisition and asset gathering look like this:

• Institutional channel for large mandates (e.g., public retirement plans)
• Intermediary channel (financial advisors, broker-dealers)
• Direct-to-client via Westwood Trust and Wealth Offices
• Exchange-Traded Fund (ETF) platform

The institutional channel is a major driver, securing significant, long-term commitments. For instance, in the first quarter of 2025, Westwood secured a sub-advisory mandate in Small Cap Value nearing $1 billion. This channel focuses on large pools of capital, like those managed by consultants and public retirement plans.

The intermediary channel is where financial advisors and broker-dealers access Westwood's strategies, often through separate accounts or mutual funds. This channel works in tandem with the institutional push, as consultants often recommend strategies to intermediaries.

For the direct-to-client segment, Westwood Holdings Group, Inc. uses its Westwood Trust and Wealth Offices. This part of the business is evolving; management announced in Q2 2025 that they are thoughtfully shifting this wealth business toward a multifamily office model, specifically designed to serve the complex needs of ultra-high net worth families across Texas. Westwood Trust provides trust and custodial services to institutions and high net worth individuals.

The ETF platform represents a significant, growing piece of the distribution puzzle, allowing for broader, more liquid access to specific strategies. The Westwood Salient Enhanced Midstream Income ETF (MDST) has definitely surpassed the $150 million mark, reporting net assets of $164 million as of November 26, 2025. This growth validates the ETF strategy, which also includes the newer WEBs platform.

Here's a snapshot of the key ETF data points as of late 2025:

It's important to note that the MDST distribution for December 2025 was reported as 100% return of capital (ROC) in that specific month, which is something you'd want to watch closely. Anyway, the firm's overall AUM growth from $18.0 billion at the end of Q1 2025 to $18.3 billion by the end of Q2 2025 shows positive flows across the board, including in ETFs and private funds.

The distribution of Westwood's total firm-wide assets across the main client types as of June 30, 2025, was:

• Assets Under Management (AUM): $17.3 billion
• Assets Under Advisement (AUA): $0.9 billion

Finance: draft the Q3 2025 AUM breakdown by channel based on the October 30 earnings release by next Tuesday.

Westwood Holdings Group, Inc. (WHG) - Canvas Business Model: Customer Segments

You're looking at how Westwood Holdings Group, Inc. (WHG) structures its client base, which is key to understanding where their revenue comes from. Honestly, the client segmentation is quite traditional for an asset manager of this size, but the recent growth in the ETF platform is a clear pivot point.

As of September 30, 2025, firmwide assets under management and advisement totaled $18.3 billion, with assets under management (AUM) at $17.3 billion and assets under advisement (AUA) at $1.0 billion. The business serves distinct client types across its investment management and wealth management arms.

Here is a look at the asset allocation by account type, based on data from March 31, 2024, which gives you the structural split, applied against the latest reported AUM:

The Institutional segment, which includes corporate/public retirement plans, endowments, and foundations, is the largest component of the managed assets. Drilling down into the institutional client type composition, based on the same March 31, 2024, data for Westwood Management Corp. assets only, you see a clear focus:

• Public Funds accounted for 45% of that institutional base.
• Sub-Advisory relationships made up 30%.
• Corporate accounts represented 17%.
• Foundations/Endowments were 7%.

Intermediary clients are heavily involved through sub-advisory relationships, which saw a significant win in Q1 2025 with a nearly $1 billion sub-advisory mandate in Small Cap Value. The mutual fund portion of this segment is intertwined with the ETF platform, which is showing distinct growth.

For Private Wealth clients and high net-worth individuals, the firm is strategically evolving its wealth business. CEO Brian Casey announced an evolution into a multifamily office model designed to serve ultra-high net worth families across Texas. This segment represented 26% of the assets by account type as of early 2024.

Retail investors access products primarily through the ETF platform. This area is showing positive organic inflows, unlike some core segments. Specific ETF performance data points include:

• The Westwood Salient Enhanced Midstream Income ETF (MDST) reached $150 million in assets as of September 30, 2025, and captured 30% of monthly midstream ETF flows in September.
• The Westwood Salient Enhanced Energy Income ETF (WEEI) grew from $18.5 million in July 2025 to $29 million by Q3 2025.

It's important to note the flow dynamics affecting these segments. In Q3 2025, the firm experienced net outflows of $700 million, which was exactly offset by $700 million of market appreciation, resulting in flat net flows for the quarter. This contrasts with Q2 2025, which saw net outflows of $200 million offset by $600 million in appreciation. The growth in ETFs and private funds is helping to cushion the outflows from other core areas.

Finance: draft Q4 2025 AUM segmentation forecast by Friday.

Westwood Holdings Group, Inc. (WHG) - Canvas Business Model: Cost Structure

You're looking at the core costs Westwood Holdings Group, Inc. (WHG) incurs to run its asset management and trust businesses. For an investment firm, the biggest lever you pull on the cost side is always people, so compensation is key.

Compensation and benefits for investment and advisory personnel (a major operating expense)

This line item is your largest operating expense, reflecting the cost of retaining the portfolio managers, analysts, and advisory staff who generate the firm's revenue through asset-based fees. For the third quarter of 2024, this expense was $13,572 thousand. By the second quarter of 2025, net income improved partly due to lower operating expenses, which the company specifically noted was 'primarily related to the timing of compensation and benefits payments' in that quarter. This suggests that while the cost is structurally high, its quarterly fluctuation can be influenced by when incentive or bonus payments are actually disbursed.

Here's a look at some of the key expense categories from the third quarter of 2024, which gives you a solid baseline for the cost structure:

General operating expenses and technology infrastructure costs

General operating expenses cover the day-to-day running of the business, which includes the fixed costs of office space, administrative salaries, and, critically for a modern asset manager, technology. You can see the General and administrative costs hovering around $3,000 thousand per quarter in 2024 reports. Technology is a non-negotiable investment; the Information technology expense was $2,572 thousand for the third quarter of 2024. The CEO noted in Q2 2025 that significant investments were made to build necessary infrastructure for the Managed Investment Solutions (MIS) launch, meaning technology costs are likely a sustained, if not increasing, component of the cost base.

Distribution and marketing costs for new product launches (e.g., new ETFs)

Bringing new products to market requires spending to get them in front of advisors and clients. This falls under Sales and marketing. For the third quarter of 2024, this was $644 thousand. This cost directly supports revenue stream expansion. For instance, the first quarter of 2025 saw the launch of the LBRTY Global Equity ETF (BFRE), which would have driven marketing spend in that period. Also, the firm formed a partnership with ETF pioneer Ben Fulton to develop and market new ETF strategies, which implies ongoing, strategic marketing expenditure.

The marketing spend supports specific product growth, for example:

• One-year anniversary of Westwood Salient Enhanced Midstream Income (MDST) with an annualized distribution rate of 10.5% as of Q1 2025.
• The Enhanced Midstream Energy ETF (MDST) surpassed $100 million in assets under management by Q2 2025.
• Institutional sales grossed over $1.0 billion year to date as of Q3 2025.

Regulatory compliance and professional fees

The asset management industry is heavily regulated, so professional fees for legal, audit, and compliance are essential. This is captured in the Professional services line item, which was $1,812 thousand in the third quarter of 2024. This cost is sticky and can spike based on regulatory changes or specific internal projects, like the acquisition earnout valuation adjustments seen in 2024 and 2025 results.

Finance: draft Q3 2025 expense forecast by Friday.

Westwood Holdings Group, Inc. (WHG) - Canvas Business Model: Revenue Streams

Westwood Holdings Group, Inc. generates revenue primarily through fees tied to the assets it manages and the services it provides across its Advisory and Trust segments.

The core revenue drivers are structured as follows:

• Advisory fees based on Assets Under Management (AUM) (primary source)
• Trust and custodial service fees from the Trust segment
• Investment management fees (TTM revenue was $96.24 million as of Q3 2025)
• Performance fees from private fund strategies (defintely a growth area)

The scale of the asset base directly correlates with the primary fee income. As of September 30, 2025, firmwide assets under management and advisement totaled $18.3 billion, which includes $17.3 billion in Assets Under Management (AUM) and $1.0 billion in Assets Under Advisement (AUA).

Here's a look at the revenue scale as of the third quarter of 2025:

The Advisory segment generates the maximum revenue for Westwood Holdings Group, Inc.. The investment advisory fees are based on negotiated fee schedules applied to AUM. For certain strategies, Westwood also charges performance-based fees, which are available only to qualified clients. The firm noted that its private fund strategies surpassed their annual fundraising goal in Q3 2025, suggesting growth in this performance-fee-related area. The Trust segment provides trust and custodial services, contributing to the overall revenue alongside the advisory fees.