Money Does Grow On Trees
By Journal of Indexes Staff

WisdomTree Investments raised $56.4 million in new financing by issuing 18.8 million shares of stock to a consortium of investors led by AIGInvestment Group and Atlantic-Pacific Capital (A-P). A-P was so enamored with the deal that its CEO, James Manley, personally contributed to the deal, and called it one of the most innovative ideas he'd seen in the past decade.

Of course, the instant profits made it an easy investment for A-P. Curiously, the new WisdomTree shares were priced at $3/share, while the stock was trading hands on the public markets at $8/share. It doesn't take a genius to make that trade.

Still, while the pricing was questionable, the deal was a good one for WisdomTree. The new money gives WisdomTree operating room to finance its growth, and also should assuage investor concerns about the company's long-term staying power.