Westwood Energy Secondaries Fund II Closes with Over $300M Raised
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
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Should l Buy WHG?
Westwood Holdings Group announced the final close of Westwood Energy Secondaries Fund II, LLC and two related co-investment funds, with over $300M in capital commitments raised. The capital raise far exceeded Westwood's target of $150M and reflects continued investor interest in Westwood's energy secondaries business. Since Westwood's launch of its initial flagship energy secondaries fund in 2023, the firm has raised nearly $350M and has invested over $250M across two energy secondaries flagship funds and three co-investment funds. WES II aims to achieve attractive, risk-adjusted returns through investments in a diversified portfolio of energy-focused secondary and continuation fund opportunities. WES II's primary focus is on investing in 7-12 year-old limited partnership interests at a significant discount in the secondary market, in addition to general partner led continuation fund portfolio company investments in upstream, midstream and oil-services companies. The Funds are designed to provide liquidity to institutional investors while partnering with best-in-class energy private equity sponsors in mature LP portfolios and continuation funds. The Funds deployed $200M in energy investments in 2025 and have approximately $100M remaining to deploy in 2026.
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Analyst Views on WHG
About WHG
Westwood Holdings Group, Inc. manages investment assets and provides services for its clients through its subsidiaries, Westwood Management Corp., Westwood Advisors, L.L.C., Broadmark Asset Management LLC, and Salient Capital L.P. The Company's segments include Advisory and Trust. The Advisory segment provides investment advisory services to corporate pension and profit-sharing plans, public employee retirement funds, Taft-Hartley plans, endowments, foundations and individuals; sub-advisory; pooled investment vehicles, including collective investment trusts. The Trust segment provides trust and custodial services and participation in common trust funds that it sponsors for institutions and high-net-worth individuals. Its advisory business encompasses six distinct investment capabilities, including United States (U.S.) Value Equity, Multi-Asset, Energy and Real Assets, Tactical Absolute Return, Income Alternatives and Managed Investment Solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Westwood Holdings Group Reports Q1 2026 Earnings Insights
- AUM Growth: Westwood Holdings reported an increase in assets under management (AUM) to $18.3 billion in Q1 2026, up from $17.4 billion at the end of 2025, indicating strong performance in energy and real asset strategies despite slight declines in U.S. value equity.
- Revenue and Earnings: The company generated total revenues of $25 million in the first quarter, down from $27.1 million in the previous quarter, with a net income of $0.8 million or $0.09 per share, reflecting the impact of market volatility, while non-GAAP earnings stood at $2.8 million or $0.31 per share, showcasing resilience in profitability.
- Dividend Policy: The Board approved a regular cash dividend of $0.15 per common share, payable on July 1, 2026, to stockholders of record on June 1, 2026, indicating the company's commitment to returning value to shareholders while maintaining cash flow.
- Future Outlook: Management expects to commence fundraising for Westwood Energy Secondaries Fund III by early 2027 and remains optimistic about the SMidCap strategy, anticipating the acquisition of new institutional clients in the coming months, which could further drive company growth.
See More
Westwood (WHG) Q1 2026 Earnings Transcript
See More
Westwood Holdings Reports Q1 Earnings Highlights
- Earnings Report: Westwood Holdings reported a Q1 GAAP EPS of $0.09, indicating resilience in the face of market volatility, although year-over-year growth remains limited.
- Revenue Growth: The company achieved revenue of $24.96 million in Q1, reflecting a 7.1% year-over-year increase, showcasing ongoing improvements in asset management and client demand despite facing $1 billion in AUM outflows.
- Client Mandate: Westwood announced a new client mandate worth $450 million, which not only enhances its asset management capabilities but also lays a foundation for future growth, particularly in the ETF sector.
- ETF Development: Despite facing outflows, Westwood is actively promoting ETF growth, demonstrating its strategic commitment to diversifying investment products aimed at attracting more investors.
See More
Westwood Enhanced Income ETFs Surpass $250 Million in AUM
- AUM Milestone: Westwood's Enhanced Income Series ETFs have surpassed $250 million in assets under management, indicating strong investor demand and confidence in income-generating investments as a core portfolio component.
- Strong Midstream ETF Performance: The Westwood Salient Enhanced Midstream Income ETF has also reached $200 million in assets, providing access to an actively managed portfolio of midstream and MLP energy infrastructure companies, thereby reinforcing the company's market position in the energy sector.
- Diversified Income Opportunities: These ETFs not only deliver cash flow but also offer structural durability to help investors weather market volatility, reflecting the essential role of income-oriented investments in portfolios and meeting investors' needs for resilience and flexibility.
- Innovative Product Suite: Westwood's ETF offerings include YLDW and WEEI, designed to provide robust tools for generating high distributable monthly income through dividend yield and options premiums, further enhancing the company's competitiveness across diverse asset classes.
See More
Westwood to Liquidate LBRTY Global Equity ETF Following Review
- Liquidation Announcement: Westwood Holdings Group has announced plans to cease trading of the LBRTY Global Equity ETF on February 27, 2026, and liquidate its assets by March 6, 2026, indicating a strategic reassessment of its ETF offerings.
- Final Trading Day: The last day for trading the fund will be February 27, 2026, when it will stop accepting creation units from authorized participants, compelling investors to make timely decisions to avoid potential losses.
- Shareholder Cash Distribution: Shareholders remaining in the fund on the liquidation date will receive cash at the net asset value of their shares, including capital gains and dividends, which may have tax implications that require advance planning.
- Market Reaction: Following the liquidation announcement, Westwood Holdings' stock rose by 0.12% in after-hours trading to $16.65, reflecting a positive market response to the company's strategic adjustments.
See More
Westwood to Liquidate LBRTY Global Equity ETF Amid Review
- Liquidation Announcement: Westwood Holdings Group has announced plans to close and liquidate the LBRTY Global Equity ETF on February 27, 2026, indicating ongoing reviews of its ETF offerings, which may impact investor confidence and market performance.
- Trading Deadline: The last day for trading the Fund's shares will be February 27, 2026, when it will cease accepting creation units from authorized participants, requiring investors to sell their holdings beforehand, potentially incurring customary brokerage fees that could affect liquidity.
- Asset Liquidation Plan: The Fund is expected to cease operations and distribute liquidation proceeds on March 6, 2026, with shareholders receiving cash at the net asset value, which may be treated as a taxable event, prompting investors to consult tax advisors regarding implications.
- Investor Risk Advisory: During the liquidation period, the Fund's portfolio will shift to cash or other liquid assets, which may result in a failure to track its investment objectives, necessitating careful risk assessment by investors.
See More
Westwood Holdings Group Reports Q1 2026 Earnings Insights
- AUM Growth: Westwood Holdings reported an increase in assets under management (AUM) to $18.3 billion in Q1 2026, up from $17.4 billion at the end of 2025, indicating strong performance in energy and real asset strategies despite slight declines in U.S. value equity.
- Revenue and Earnings: The company generated total revenues of $25 million in the first quarter, down from $27.1 million in the previous quarter, with a net income of $0.8 million or $0.09 per share, reflecting the impact of market volatility, while non-GAAP earnings stood at $2.8 million or $0.31 per share, showcasing resilience in profitability.
- Dividend Policy: The Board approved a regular cash dividend of $0.15 per common share, payable on July 1, 2026, to stockholders of record on June 1, 2026, indicating the company's commitment to returning value to shareholders while maintaining cash flow.
- Future Outlook: Management expects to commence fundraising for Westwood Energy Secondaries Fund III by early 2027 and remains optimistic about the SMidCap strategy, anticipating the acquisition of new institutional clients in the coming months, which could further drive company growth.
See More
Westwood (WHG) Q1 2026 Earnings Transcript
See More
Westwood Holdings Reports Q1 Earnings Highlights
- Earnings Report: Westwood Holdings reported a Q1 GAAP EPS of $0.09, indicating resilience in the face of market volatility, although year-over-year growth remains limited.
- Revenue Growth: The company achieved revenue of $24.96 million in Q1, reflecting a 7.1% year-over-year increase, showcasing ongoing improvements in asset management and client demand despite facing $1 billion in AUM outflows.
- Client Mandate: Westwood announced a new client mandate worth $450 million, which not only enhances its asset management capabilities but also lays a foundation for future growth, particularly in the ETF sector.
- ETF Development: Despite facing outflows, Westwood is actively promoting ETF growth, demonstrating its strategic commitment to diversifying investment products aimed at attracting more investors.
See More
Westwood Enhanced Income ETFs Surpass $250 Million in AUM
- AUM Milestone: Westwood's Enhanced Income Series ETFs have surpassed $250 million in assets under management, indicating strong investor demand and confidence in income-generating investments as a core portfolio component.
- Strong Midstream ETF Performance: The Westwood Salient Enhanced Midstream Income ETF has also reached $200 million in assets, providing access to an actively managed portfolio of midstream and MLP energy infrastructure companies, thereby reinforcing the company's market position in the energy sector.
- Diversified Income Opportunities: These ETFs not only deliver cash flow but also offer structural durability to help investors weather market volatility, reflecting the essential role of income-oriented investments in portfolios and meeting investors' needs for resilience and flexibility.
- Innovative Product Suite: Westwood's ETF offerings include YLDW and WEEI, designed to provide robust tools for generating high distributable monthly income through dividend yield and options premiums, further enhancing the company's competitiveness across diverse asset classes.
See More
Westwood to Liquidate LBRTY Global Equity ETF Following Review
- Liquidation Announcement: Westwood Holdings Group has announced plans to cease trading of the LBRTY Global Equity ETF on February 27, 2026, and liquidate its assets by March 6, 2026, indicating a strategic reassessment of its ETF offerings.
- Final Trading Day: The last day for trading the fund will be February 27, 2026, when it will stop accepting creation units from authorized participants, compelling investors to make timely decisions to avoid potential losses.
- Shareholder Cash Distribution: Shareholders remaining in the fund on the liquidation date will receive cash at the net asset value of their shares, including capital gains and dividends, which may have tax implications that require advance planning.
- Market Reaction: Following the liquidation announcement, Westwood Holdings' stock rose by 0.12% in after-hours trading to $16.65, reflecting a positive market response to the company's strategic adjustments.
See More
Westwood to Liquidate LBRTY Global Equity ETF Amid Review
- Liquidation Announcement: Westwood Holdings Group has announced plans to close and liquidate the LBRTY Global Equity ETF on February 27, 2026, indicating ongoing reviews of its ETF offerings, which may impact investor confidence and market performance.
- Trading Deadline: The last day for trading the Fund's shares will be February 27, 2026, when it will cease accepting creation units from authorized participants, requiring investors to sell their holdings beforehand, potentially incurring customary brokerage fees that could affect liquidity.
- Asset Liquidation Plan: The Fund is expected to cease operations and distribute liquidation proceeds on March 6, 2026, with shareholders receiving cash at the net asset value, which may be treated as a taxable event, prompting investors to consult tax advisors regarding implications.
- Investor Risk Advisory: During the liquidation period, the Fund's portfolio will shift to cash or other liquid assets, which may result in a failure to track its investment objectives, necessitating careful risk assessment by investors.
See More
