And so what we’re doing is we’re bundling that data into our base products, whether it’s trading, rebalancing, reporting, et cetera. And the value add for us is incremental higher substrate. But the real kind of objective there is to drive more and more usage of the data platform, which will drive more and more kind of adoption of these higher value fiduciary solutions that we provide. So it is embedded in the strategy. It’s embedded in the platform. It’s embedded in our go-to-market. It’s going to be embedded in our pricing.
Devin Ryan: Okay. Thanks. Appreciate the color.
Bill Crager: All right. Thank you, Devin.
Operator: Thank you. And our next question is from Pete Heckmann with DA Davidson. Please proceed with your question.
Bill Crager: Hi, Pete. How are you?
Pete Heckmann: Good. Good. Thanks for taking my question. Listen, I just wanted to follow up a little bit on the custody opportunity. We’re getting closer to that. I just wanted to see the feedback you’re getting from clients, where you’re getting the most interest. And if possible, if you can help us start to handicap or size the opportunity and how that might roll on and kind of what it looks like in terms of maybe the amount of revenue and kind of the incremental margins involved.
Bill Crager: Great. Thank you, Peter. Yes, no, it’s been, so we’re continuing to be leaned in and, I talked about focused on priorities. One of those focuses is clearly the integration work and work that we have going on with FNZ, which I’ve spoken about in the past. Just for those of you who are not completely up to speed, FNZ is a new U.S. entrant. A global firm have done a really great work at creating a more digital environment for the custody business and we’re partnering with them. Today we trade, Peter, as to the industry, right? So every sort of custodian or trust system that’s out there we’re connected to and our clients are able to utilize those. FNZ is another option, but it’s an interesting option because in that option it is fully digital, real-time account opening, real-time exchange of data versus a batch process, which is how much of the industry works today.
In the relationship with FNZ we’ll be able to garner economics that we have not been able to participate in the past. Those are from a custody standpoint, but they’re also from, cash management and other feature sets that come along with a custody offering. If you look at, I’ve said this in the past, kind of, in the past is, hey, look, I feel very, very good about the invest net position. I feel very good about the invest net business model, but our Achilles’ heel has been that we have not been able to serve cash and that this is going to resolve that for us and that’ll become a revenue generator versus assets or, dollars that are moved away to be served outside of our ecosystem. So this is a good opportunity for us. I would also say, and I think I’ve said it maybe on prior earnings calls, is I believe that the digital nature of what FNZ is doing in the marketplace will bring other firms along and that has been the case.
So as we lean in with FNZ, we have very strong and very deep partnerships with the other custodians and working with the other custodians to figure out how to digitally connect to the invest net world to streamline account opening, administration, et cetera. I think it’s all, very interesting and work that we’re excited to engage with those partners. We, I think the way to think about the economics really is that, if you look at a gross sale number of gross assets, the flow between the TAMRAC platform and the invest net platform during the course of a year, it’s been running at about a trillion dollars between the TAMRAC platform and the invest net core platform. 200 billion of that would be on the kind of the invest net platform. If we’re able to convert 10% of that, those dollars on the 200 billion, then you’re talking about a $10 million to $20 million run rate of revenue that would be able to generate, there.
So it’s meaningful. It’s also very high margin, as we’re successful there. In the market, I would say there’s been a lot of interest. And it’s one of the service challenges our industry has in a multi-custody world is, hey, I’ve got to operate these different ways of opening accounts and servicing, administrating. This is more turnkey. It’s purely digital. It’s real time. And that’s a promise or a perspective that has not been presented really to the advice industry before. And so there’s a lot of interest. We’ll have early successes in 2024. So there’s definitely a ’24 story, not a ’23 story. And we’ll get going, beginning to build business there in 2024.
Pete Heckmann: Great, great. That’s helpful. And then, I assume custody is one of these buckets, but can you just remind us of some of the larger buckets of how you’re thinking about returning to 25% EBITDA margins by 2025? I think that’s something like 400, 500 basis points. And, I guess, how do you think about, expense controls, expense reductions versus high incremental revenue in terms of hitting that goal?
Bill Crager: Yes. So we’re gaining share. We’re driving more into these high value solutions. Those carry a higher gross net for us. And as we get a normalization or restoration of some degree of flows into the wealth markets, it’ll be there. There’s a lot of cash on the sideline. There’s a lot of money that is waiting to be put to work. That will be, from a percentage and market share standpoint, more likely to be in the invest net environment than kind of competing platforms. So we feel very good about the position that we’ve put ourselves in here, because the work that we’ve done has advantaged the platform, made it easier to open accounts and to drive towards these higher value solutions. And we’re using the data insights to really kind of motivate them.
There’ll be more and more adoption of those over the next couple of years. So our growth will be ahead of market. And we believe long term, with a restoration, we’re not going to back away from this idea that we’ll be a strong teens’ grower, in a normalized market. In the meantime, we’ll grow ahead of the market and that growth will drop more meaningfully over time to the bottom line. Why? Because we’re created in the investment cycle and in the modernization cycle. We’ve created a tremendous amount of efficiency in our operations I’ll give you an example. Last quarter, we had, one of our largest trading quarters in our history, top five or so. And we did that with exactly a flat head count. Didn’t add any head count as the volumes are very significant.
