Financial Data and Key Metrics Changes - AlTi generated revenues of $49 million in Q2 2024, reflecting a 4% decrease compared to Q2 2023, but on a like-for-like basis, revenues would have increased by 4% year-on-year [20][21] - The company reported a net loss of $9 million in Q2 2024, compared to a net income of $28 million in the same period last year, largely due to a decline in other income [23] - Adjusted EBITDA for Q2 was $5.5 million, with an adjusted EBITDA margin of 11%, down from 13% in the previous quarter [25] Business Line Data and Key Metrics Changes - Wealth management revenues increased by 20% to $41 million in Q2 2024, with assets under management (AUM) growing by 15% to $56 billion [21][9] - The strategic alternative segment generated $9 million in revenue, down from $17 million in Q2 2023, primarily due to lower management fees and reduced transactional fees [22] Market Data and Key Metrics Changes - Assets under management and advisement grew 4% to $72 billion over the trailing 12 months, with a notable 15% growth in the wealth management business [8] - The domestic business saw an 11% increase on an organic basis over the past year, while the international platform secured significant wins across multiple jurisdictions [12] Company Strategy and Development Direction - The company aims to become a leading global independent ultra-high net worth wealth management firm, focusing on strategic acquisitions and optimizing its cost structure [5][7] - Recent investments from Allianz X and Constellation Wealth are expected to enhance AlTi's global footprint and facilitate accretive acquisitions [6][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the ultra-high net worth market, particularly in light of the estimated $80 trillion generational wealth transfer over the next 20 years [28] - The company is positioned to capitalize on trends among European and Middle Eastern families seeking holistic wealth management solutions [13][14] Other Important Information - The company completed the sale of its European-based trust and private office services businesses for approximately $20 million, allowing it to focus on core recurring revenue businesses [12] - AlTi's normalized operating expenses decreased by 15% compared to the same period in 2023, reflecting ongoing cost-saving initiatives [16] Q&A Session Summary Question: Can you discuss the EBITDA margin improvement in wealth management? - Management expects margin improvement driven by the integration of East End and Envoi, along with future M&A activity [30][31] Question: Is the decline in alternative AUM due to repositioning in the real estate business? - Yes, the decline is primarily due to repositioning efforts, including the sale of LXi and the impact of deconsolidating certain funds [32][33] Question: How much capital is left to deploy from the Allianz investment? - The company has not yet deployed any of the Allianz capital and has a pipeline for inorganic growth opportunities [36][38] Question: What is the outlook for operating expenses? - Operating expenses have seen significant reductions, but additional costs may arise from M&A activities [40][42] Question: Can you clarify the revenue guidance for wealth management? - Most of the revenue increase was driven by acquisitions, with seasonal outflows expected in Q2 due to tax payments [44][46]

AlTi Global, Inc. (ALTI) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this company would post earnings of $0.03 per share when it actually produced earnings of $0.01, delivering a surprise of -66.67%.Over the last four quarters, the company has ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission file number 001-40103 AlTi Global, Inc. (Exact name of registrant as specified in its charter) Delaware 92- ...

Financial Data and Key Metrics Changes - In Q1 2024, AlTi generated revenues of $51 million, a 12% decrease compared to Q1 2023, with recurring management fee revenues essentially flat during this period [17][20] - Net income for Q1 was $22 million, a significant improvement from a net loss of $90 million in the same period last year [20] - Adjusted EBITDA was $7 million, down $4 million year-over-year, but the adjusted EBITDA margin improved to 13% from 10% in the previous quarter [22][23] Business Line Data and Key Metrics Changes - Wealth Management segment revenues increased 17% to $37 million, driven by strong AUM growth and acquisitions [18] - Strategic Alternatives segment revenue totaled $14 million, a decrease of $13 million compared to Q1 2023, largely due to reduced distributions from investments [19] Market Data and Key Metrics Changes - The AUM of the U.S. business increased 15% on an organic basis over the past 12 months, reflecting strong portfolio performance and new client inflows [10] - The company reported a 96% revenue contribution from recurring fees in Q1 2024 [6] Company Strategy and Development Direction - AlTi is focusing on establishing strategic partnerships and streamlining operations away from non-core assets to enhance stable recurring revenue businesses [5][10] - The company aims to become a leading global independent multi-family office for the ultra-high-net-worth segment, with a targeted expertise in alternatives [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth prospects for both domestic and international businesses, highlighting the successful execution of organic and inorganic growth strategies [10][14] - The company anticipates that the acquisitions of East End and Envoi will significantly contribute to future revenues and EBITDA [26] Other Important Information - AlTi announced the acquisition of East End Advisors, adding nearly $6 billion of AUM, and Envoi, a $3 billion AUM wealth manager [6][8] - The company completed the sale of its European-based trust and private office service businesses for approximately $19 million [10] Q&A Session Summary Question: Update on the investment by Allianz and CWC - Management confirmed that CWC's $115 million investment has been drawn, with an additional $35 million expected this quarter, while Allianz's regulatory approvals are in progress [30] Question: Trajectory of expenses and professional fees - Management indicated a focus on reducing professional fees, with an expected decline in normalized expenses despite potential increases due to M&A activities [34][35] Question: Rationale for exiting the LXi REIT advisory business - The decision was driven by the Board of LXi, aiming for a stronger, more scalable business through the combination with LondonMetric [39] Question: Discussion on the pipeline and M&A activity - Management emphasized the importance of organic growth and talent acquisition, while also looking for strategic fits in the inorganic pipeline [42][43]

AlTi Global, Inc. (ALTI) came out with quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.03 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -66.67%. A quarter ago, it was expected that this company would post earnings of $0.04 per share when it actually produced a loss of $0.06, delivering a surprise of -250%.Over the last four quarters, the company ...

First Quarter 2024 Earnings | May 10, 2024 AlTiGlobal 1 Notes and Important Disclosures This Presentation (together with oral statements made in connection herewith, the “Presentation”) is for informational purposes only to assist interested parties in evaluating AlTi Global, Inc. (along with its consolidated subsidiaries, “AlTi Global” or the "Company"). About AlTi Global Additional Information and Where to Find It AlTi Global is a leading independent global wealth and alternatives manager providing entrep ...

Part I [Item 1. Business](index=11&type=section&id=Item%201.%20Business) AlTi Global is a global wealth and alternatives manager with $71.4 billion in assets, operating through Wealth Management and Strategic Alternatives segments - **Assets Under Management/Advisement (AUM/AUA) as of Dec 31, 2023** | Metric | Amount (USD) | | :--- | :--- | | **Total Combined Assets** | **$71.4 billion** | | Wealth Management AUM/AUA | $51.0 billion | | Strategic Alternatives AUM/AUA | $20.4 billion | - The company operates globally with approximately **480 professionals** across 21 cities in 10 countries, though this includes about 80 individuals expected to depart due to pending sales of the Family Office Services (FOS) business and LXi REIT Advisors Limited[36](index=36&type=chunk)[92](index=92&type=chunk) - AlTi is a leader in impact investing, with approximately **$4.4 billion** of its AUM/AUA dedicated to impact strategies as of December 31, 2023[37](index=37&type=chunk)[84](index=84&type=chunk)[100](index=100&type=chunk) - The company's revenue is diversified, with **77%** generated from stable management or advisory fees for the year ended December 31, 2023. The wealth management business boasts a high client retention rate of **97%** since 2019[96](index=96&type=chunk) [Wealth Management](index=11&type=section&id=Wealth%20Management) The Wealth Management segment, with $51.0 billion in AUM/AUA, offers holistic solutions and an endowment-style approach to UHNW clients - **Wealth Management Client Profile (as of Dec 31, 2023)** | Metric | Value | | :--- | :--- | | Segment AUM/AUA | $51.0 billion | | Average Account Size | $40.0 million | | Average Relationship Span | > 10 years | | Client Retention Rate (since 2019) | 97% | | Top 25 Clients' Share of Segment Assets | 22% | - The segment provides clients access to alternative asset classes such as private equity, private credit, and real estate through third-party managers. As of December 31, 2023, **20%** of client portfolios were invested in alternative assets[47](index=47&type=chunk) - The firm operates feeder vehicles to provide wealth management clients with access to strategies like vintage private equity, credit, and real estate, which they might not otherwise be able to access due to high minimum investment thresholds[48](index=48&type=chunk) [Strategic Alternatives](index=14&type=section&id=Strategic%20Alternatives) The Strategic Alternatives segment, with $20.4 billion in AUM/AUA, manages an alternatives platform and is exiting certain real estate fund management activities - **Strategic Alternatives AUM/AUA Breakdown (as of Dec 31, 2023)** | Strategy/Platform | AUM/AUA (USD) | | :--- | :--- | | **Total Segment AUM/AUA** | **$20.4 billion** | | Alternatives Platform | $7.7 billion | | - TIG Arbitrage (Internal) | $2.4 billion | | - External Strategic Managers | $5.3 billion | | Real Estate (Public & Private) | $12.7 billion | - The company is undergoing strategic changes in its real estate fund management. The management contract for LXi REIT plc was terminated upon its merger with LondonMetric in March 2024, and the company has served notice to terminate its management contracts with HLIF[61](index=61&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - The alternatives platform provides a full suite of services to its internal and external managers, including sales, marketing, legal, compliance, and back-office infrastructure, allowing portfolio managers to focus on investment strategy[58](index=58&type=chunk)[60](index=60&type=chunk) [Our Revenue Streams](index=17&type=section&id=Our%20Revenue%20Streams) AlTi's revenue streams include recurring management/advisory fees, variable performance fees, distributions from investments, and other income - Revenues are broadly classified into four streams: recurring management/advisory fees, incentive/performance fees, distributions from investments, and other income/fees[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) - **Economic Interests in External Strategic Managers** | Strategy | Economic Interest | | :--- | :--- | | Real Estate Bridge Lending | 21% profit share | | European Equities | 25% revenue share | | Asian Credit and Special Situations | 12% revenue share | - Co-investment fees include arrangement fees (**50-100 bps** of equity value), acquisition fees, and carried interest entitlements, which are typically **10-20%** of investor returns above an **8-15%** hurdle[75](index=75&type=chunk)[76](index=76&type=chunk) [Regulatory and Compliance Matters](index=26&type=section&id=Regulatory%20and%20Compliance%20Matters) The company is subject to extensive U.S. and international financial regulations, maintaining dedicated compliance groups to mitigate non-compliance risks - The company is subject to extensive regulation in the U.S. by the SEC under the Advisers Act and the Investment Company Act, which impose fiduciary duties and restrictive standards on its advisory activities[119](index=119&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) - Internationally, the company must comply with data privacy laws like the EU and UK GDPR, as well as financial regulations such as MiFID II and the Alternative Investment Fund Managers Directive (AIFMD) in Europe[117](index=117&type=chunk)[276](index=276&type=chunk)[277](index=277&type=chunk) - The company has a Chief Compliance Officer and dedicated compliance groups to manage regulatory risk, with policies addressing material non-public information, personal trading, and conflicts of interest[116](index=116&type=chunk) [Item 1a. Risk Factors](index=28&type=page&id=Item%201a.%20Risk%20Factors) The company faces significant macroeconomic, business, regulatory, operational, and personnel risks that could adversely impact its financial condition and operations - **Macroeconomic Risks:** Difficult market conditions, inflation, and rising interest rates may reduce the value of investments, hamper performance, and lower the value of assets on which the company earns revenue[128](index=128&type=chunk)[156](index=156&type=chunk)[159](index=159&type=chunk)[161](index=161&type=chunk) - **Business & Industry Risks:** Revenue is highly correlated to AUM and investment performance. The business depends on identifying suitable investment opportunities, and historical returns are not indicative of future results. There are also risks related to valuation subjectivity, due diligence failures, and conflicts of interest[130](index=130&type=chunk)[131](index=131&type=chunk)[135](index=135&type=chunk) - **Regulatory & Legal Risks:** The company is subject to extensive and evolving government regulation globally. Failure to comply could result in fines and reputational harm. It is also exposed to litigation risk, particularly related to the historic management of Home REIT and HLIF, which are under investigation by the UK FCA[140](index=140&type=chunk)[266](index=266&type=chunk)[348](index=348&type=chunk) - **Operational & Public Company Risks:** The company has identified material weaknesses in its internal control over financial reporting. It also faces data and cybersecurity risks, dependence on senior management, and the general challenges and costs associated with being a public company[142](index=142&type=chunk)[148](index=148&type=chunk)[373](index=373&type=chunk) [Item 1b. Unresolved Staff Comments](index=74&type=page&id=Item%201b.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[415](index=415&type=chunk) [Item 1c. Cybersecurity](index=74&type=page&id=Item%201c.%20Cybersecurity) AlTi maintains a cybersecurity risk management program overseen by its CISO and Board committee, with no material incidents identified to date - The company has a cybersecurity risk management program designed to identify, protect against, and manage threats, which includes annual risk assessments using third-party consultants[415](index=415&type=chunk)[416](index=416&type=chunk) - Governance oversight is provided by the Board's Audit, Finance and Risk Committee (AFRC) and, at the management level, by an Executive Risk and Compliance Committee (ERCC)[420](index=420&type=chunk) - The Chief Information Security Officer (CISO), a Certified Information Systems Security Professional with over two decades of experience, is responsible for the cyber risk management program[421](index=421&type=chunk) - The company has not identified any cybersecurity incidents or threats that have materially affected its business, operations, or financial condition[417](index=417&type=chunk) [Item 2. Properties](index=75&type=page&id=Item%202.%20Properties) The company leases all its global office spaces, including its New York headquarters, and owns no real estate - The company's corporate headquarters is leased and located at 520 Madison Avenue, 26th Floor, New York, NY[422](index=422&type=chunk) - AlTi does not own any real estate and leases all its office space across its global locations[422](index=422&type=chunk) [Item 3. Legal Proceedings](index=75&type=page&id=Item%203.%20Legal%20Proceedings) The company is involved in legal proceedings, including UK FCA investigations and claims related to Home REIT and HLIF, with no loss contingency reserved - The company may be involved in various legal proceedings from time to time. For additional details, refer to Note 20 of the financial statements[423](index=423&type=chunk) - In February 2024, the UK FCA commenced investigations into the historic performance of certain group entities in their services to Home REIT and/or HLIF, focusing on potential false or misleading statements or other rule breaches[527](index=527&type=chunk)[884](index=884&type=chunk) - On October 6, 2023, a pre-action letter of claim was received by subsidiaries AFM UK and ARE from a law firm representing shareholders of Home REIT, asserting potential claims. The quantum of such claims cannot be reliably assessed at this time[523](index=523&type=chunk)[882](index=882&type=chunk) Part II [Item 5. Market For Registrant's Common Equity, Related Stockholder Matters And Issuer Purchases Of Equity Securities](index=76&type=section&id=Item%205.%20Market%20For%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20And%20Issuer%20Purchases%20Of%20Equity%20Securities) AlTi's Class A Common Stock trades on Nasdaq under 'ALTI', with 367 holders of record and no cash dividends paid to date - The company's Class A Common Stock trades on the Nasdaq Capital Market under the ticker symbol "ALTI"[425](index=425&type=chunk) - As of March 21, 2024, there were **367 holders of record** of the Class A Common Stock[425](index=425&type=chunk) - The company has not paid any cash dividends to date and future dividend payments are at the discretion of the Board of Directors[426](index=426&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=77&type=section&id=Item%207.%20Management%27s%20Discussion%20And%20Analysis%20Of%20Financial%20Condition%20And%20Results%20Of%20Operations) AlTi reported $250.9 million in revenue and a $305.8 million net loss in 2023, primarily due to non-cash impairments, with results not comparable to prior periods - **Financial Highlights for the Year Ended Dec 31, 2023 (Successor)** | Metric | Amount (USD in millions) | | :--- | :--- | | Total Revenues | $250.9 | | US GAAP Net Loss | $(305.8) | | Adjusted EBITDA | $28.6 | - The significant net loss was primarily driven by non-cash charges, including a **$153.6 million** goodwill impairment and a **$73.6 million** impairment of other assets, largely related to restructuring unprofitable, transaction-oriented business lines[454](index=454&type=chunk)[463](index=463&type=chunk)[465](index=465&type=chunk) - Financial results for the year ended 2023 (Successor) are not comparable to the year ended 2022 (Predecessor) because the 2022 results reflect only TWMH, prior to the business combination with TIG and Alvarium[456](index=456&type=chunk)[487](index=487&type=chunk) - The company ended the year with **$188.8 million** in outstanding debt under its credit facility and had contractual obligations including a **$17.6 million** Tax Receivable Agreement (TRA) liability and a **$62.4 million** Business Combination Earn-out liability[501](index=501&type=chunk)[510](index=510&type=chunk)[516](index=516&type=chunk) [Results of Operations](index=88&type=section&id=Results%20of%20Operations) Total revenues increased to $250.9 million in 2023 due to business combination, leading to a $305.8 million net loss driven by impairment and combination expenses - **Consolidated Results of Operations (USD in Thousands)** | Metric | 2023 (Successor) | 2022 (Predecessor) | | :--- | :--- | :--- | | **Total Revenues** | **$250,880** | **$76,872** | | Management/Advisory fees | $184,824 | $76,872 | | Incentive fees | $43,377 | $0 | | Distributions from investments | $17,185 | $0 | | **Total Expenses** | **$567,217** | **$82,343** | | Compensation expenses | $204,052 | $51,234 | | Non-compensation expenses | $363,165 | $31,109 | | **Net Loss** | **$(305,803)** | **$(5,998)** | - The increase in revenue was primarily due to the accretive impact of including TIG and Alvarium's operations, which added management, incentive, distribution, and other fee streams not present in the predecessor's 2022 results[489](index=489&type=chunk)[490](index=490&type=chunk) - The significant increase in non-compensation expenses in 2023 was mainly due to a **$206.5 million** impairment loss on goodwill and intangible assets, **$42.8 million** in business combination expenses, and **$14.5 million** in interest expense[492](index=492&type=chunk) [Liquidity and Capital Resources](index=92&type=section&id=Liquidity%20and%20Capital%20Resources) AlTi manages liquidity with $188.8 million outstanding on its credit facility, reporting net cash used in operating and investing activities, and significant future contingent obligations - **Cash Flow Summary for Year Ended Dec 31, 2023 (USD in Thousands)** | Activity | Amount | | :--- | :--- | | Net cash used in operating activities | $(81,706) | | Net cash used in investing activities | $(132,947) | | Net cash provided by financing activities | $36,019 | | **Net decrease in cash** | **$(175,841)** | - The company has a **$250 million** credit facility, comprised of a **$100 million** term loan and a **$150 million** revolving credit facility. As of Dec 31, 2023, **$95.0 million** was outstanding on the term loan and **$93.8 million** on the revolver[501](index=501&type=chunk) - Significant future contingent obligations include the Tax Receivable Agreement (TRA) with a liability of **$17.6 million** and the Business Combination Earn-out with a fair value liability of **$62.4 million** as of year-end 2023[510](index=510&type=chunk)[516](index=516&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=99&type=section&id=Item%208.%20Financial%20Statements%20And%20Supplementary%20Data) This section presents AlTi Global's audited consolidated financial statements for 2023 (Successor) and prior periods (Predecessor), including detailed notes on key accounting areas and subsequent events - The independent auditor's report from KPMG LLP highlights that due to the business combination effective January 3, 2023, the financial information for the period after the transaction is on a different cost basis and is not comparable to prior periods[546](index=546&type=chunk) [Consolidated Statement of Financial Position](index=101&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2023, total assets increased to $1.27 billion, driven by the business combination, with total liabilities at $478.5 million and shareholders' equity at $788.0 million - **Consolidated Balance Sheet Highlights (USD in Thousands)** | Account | Dec 31, 2023 (Successor) | Dec 31, 2022 (Predecessor) | | :--- | :--- | :--- | | **Total Assets** | **$1,266,567** | **$91,989** | | Goodwill | $411,904 | $25,464 | | Intangible assets, net | $435,677 | $20,578 | | **Total Liabilities** | **$478,541** | **$74,136** | | Debt, net | $186,353 | $21,187 | | **Total Shareholders' Equity** | **$788,026** | **$17,853** | [Notes to Consolidated Financial Statements](index=109&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the 2023 business combination, a $153.6 million goodwill impairment, the $250 million credit facility, contingent liabilities, and significant subsequent investment agreements - **Business Combinations (Note 3):** The merger effective January 3, 2023 was accounted for as an acquisition with total purchase consideration of **$1.07 billion**. The company also acquired AL Wealth Partners in April 2023 and the remaining **70%** of AWMS in August 2023[671](index=671&type=chunk)[694](index=694&type=chunk)[702](index=702&type=chunk) - **Goodwill Impairment (Note 14):** A goodwill impairment charge of **$153.6 million** was recognized for the Strategic Alternatives segment as of September 30, 2023, after a triggering event analysis indicated its carrying value exceeded its estimated fair value[643](index=643&type=chunk)[813](index=813&type=chunk) - **Debt (Note 15):** The company entered into a **$250 million** credit agreement on January 3, 2023. As of year-end, **$188.8 million** was outstanding. The agreement was amended multiple times, including in February 2024, to adjust covenants and permit new investments[819](index=819&type=chunk)[824](index=824&type=chunk) - **Subsequent Events (Note 22):** In February 2024, the company entered into significant investment agreements with Allianz (**$250 million**) and Constellation (**$115 million** initial). The sale of LRA was completed on March 6, 2024[890](index=890&type=chunk)[892](index=892&type=chunk)[895](index=895&type=chunk) [Item 9a. Controls and Procedures](index=175&type=section&id=Item%209a.%20Controls%20And%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of December 31, 2023, due to material weaknesses in internal control over financial reporting, with a remediation plan underway - Management concluded that as of December 31, 2023, the company's disclosure controls and procedures were **not effective**[901](index=901&type=chunk) - The ineffectiveness is due to material weaknesses in internal control over financial reporting, specifically related to a lack of sufficiently documented risk assessments, process level controls, and information technology controls[902](index=902&type=chunk)[905](index=905&type=chunk) - A remediation plan is in progress, which includes hiring more accounting staff and designing and implementing improved controls and documentation policies[906](index=906&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=177&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20And%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2024 Proxy Statement - Information is incorporated by reference from the registrant's Definitive Proxy Statement to be filed within 120 days of the fiscal year-end[911](index=911&type=chunk) [Item 11. Executive Compensation](index=177&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the 2024 Proxy Statement - Information is incorporated by reference from the registrant's Definitive Proxy Statement to be filed within 120 days of the fiscal year-end[912](index=912&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=177&type=section&id=Item%2012.%20Security%20Ownership%20Of%20Certain%20Beneficial%20Owners%20And%20Management%20And%20Related%20Stockholder%20Matters) Information on security ownership is incorporated by reference from the 2024 Proxy Statement - Information is incorporated by reference from the registrant's Definitive Proxy Statement to be filed within 120 days of the fiscal year-end[913](index=913&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=177&type=section&id=Item%2013.%20Certain%20Relationships%20And%20Related%20Transactions%2C%20And%20Director%20Independence) Information on related transactions and director independence is incorporated by reference from the 2024 Proxy Statement - Information is incorporated by reference from the registrant's Definitive Proxy Statement to be filed within 120 days of the fiscal year-end[914](index=914&type=chunk) [Item 14. Principal Accountant Fees and Services](index=177&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20And%20Services) Information on principal accountant fees and services is incorporated by reference from the 2024 Proxy Statement; KPMG LLP is the independent auditor - Information is incorporated by reference from the registrant's Definitive Proxy Statement to be filed within 120 days of the fiscal year-end[915](index=915&type=chunk) - The company's independent registered public accounting firm is KPMG LLP, Philadelphia, PA, Auditor ID: 185[915](index=915&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=178&type=section&id=Item%2015.%20Exhibits%20And%20Financial%20Statement%20Schedules) This section lists all exhibits and financial statement schedules filed as part of the Annual Report on Form 10-K - This section contains a list of all exhibits filed with the Form 10-K, including the Business Combination Agreement, corporate governance documents, material contracts, and certifications[917](index=917&type=chunk)[919](index=919&type=chunk)

Fourth Quarter and Year End 2023 Earnings | March 2024 AlTiGlobal 1 Notes and Important Disclosures This Presentation (together with oral statements made in connection herewith, the “Presentation”) is for informational purposes only to assist interested parties in evaluating AlTi Global, Inc. (along with its consolidated subsidiaries, “AlTi Global” or the "Company"). About AlTi Global Additional Information and Where to Find It AlTi is a leading independent global wealth and alternatives manager providing e ...

Financial Data and Key Metrics Changes - In 2023, AlTi generated revenues of $251 million, with Q4 revenues reaching $92 million, reflecting an 86% increase from Q3 [17][18] - The company reported a full-year net loss of $319 million, with an adjusted net loss of $8 million when normalized for one-off items [8][9] - Adjusted EBITDA for Q4 was $10 million, improving by $13 million from Q3, while full-year adjusted EBITDA was $29 million [22] Business Line Data and Key Metrics Changes - Wealth Management segment revenues increased by 9% sequentially to $38 million in Q4, with full-year revenues of $138 million [19][20] - Strategic Alternatives segment revenues totaled $54 million in Q4, a significant increase of $40 million compared to the prior quarter, with full-year revenues of $113 million [20] - Recurring revenues accounted for 77% of total revenues for the year, with Wealth Management segment recurring revenues at 95% for Q4 and 99% for the full year [18][19] Market Data and Key Metrics Changes - Total assets under management and advisement grew by 10% in 2023, primarily driven by portfolio performance and organic client growth in Wealth Management [8] - The event-driven strategy in the Strategic Alternatives segment achieved a performance increase of 5.4% in Q4 and 10.5% for the year, marking 30 consecutive years of positive performance [10] Company Strategy and Development Direction - The company aims to enhance its global footprint and execute strategic acquisitions through a robust M&A pipeline, supported by a recent strategic investment of up to $450 million from Allianz X and Constellation Wealth Capital [7][13] - Focus areas for 2024 include raising AlTi's profile in capital markets, increasing client base, and enhancing service offerings across multiple jurisdictions [12][14] - The company is committed to streamlining operations and improving core operations while establishing best practices throughout the organization [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve long-term profitable growth, emphasizing the importance of strategic partnerships and operational milestones achieved in 2023 [24][25] - The company does not anticipate further significant impairments in 2024, as much of the restructuring work is complete [9][23] - Management highlighted a positive outlook for the event-driven strategy, despite some regulatory and political challenges affecting deal flow [41] Other Important Information - The company identified $16 million in annualized cost savings initiatives, expected to be fully realized in Q3 2024 [5][33] - Impairment charges in Q4 included $51 million related to the Strategic Alternatives segment, with expectations that such impairments will not recur in future quarters [20][38] Q&A Session Summary Question: Discuss the relative attractiveness of Wealth Management deals versus Asset Management deals - Management indicated that both business lines offer strategic and accretive deals, with varying relevance based on geographic expansion and product offerings [27][28] Question: Why change the name of the asset management segment? - The name "Strategic Alternatives" better reflects the underlying businesses and aligns with long-term investment trends [30][31] Question: Outlook for operating expenses in 2024? - Management noted ongoing progress in reducing operating expenses, with $16 million in cost savings expected to be realized by Q3 2024 [32][33] Question: Net client flows in the Wealth Management segment? - The U.S. business experienced pleasing flows driven by market performance, while international flows were relatively flat [34][35] Question: Details on impairments in real estate? - Impairments were driven by restructuring efforts and adjustments to carried interest receivables, with expectations that such impairments will not continue [37][38] Question: Outlook for the merger arbitrage fund and event-driven strategy? - The event-driven strategy has a strong historical performance, and while the environment is currently stable, there are some regulatory challenges [39][41]

Core Viewpoint - AlTi Global, Inc. has announced a strategic investment of up to $450 million from Allianz X and Constellation Wealth Capital to enhance its wealth management and alternatives business, aiming to expand its global presence and capabilities [1][2][3]. Investment Details - Allianz X will invest up to $300 million, comprising $110 million in newly issued Class A Common Stock and $140 million in Series A Convertible Preferred Stock, with an option for an additional $50 million [6][7]. - Constellation Wealth Capital will invest $150 million in newly created Series C Convertible Preferred Stock [6][7]. - The initial investment of $115 million is expected to close by March 31, 2024, with an additional $35 million closing by June 30, 2024 [7]. Strategic Goals - The capital will primarily fund AlTi's mergers and acquisitions pipeline and organic growth activities, enhancing its ultra-high-net-worth wealth management services [2][3]. - The partnership with Allianz and CWC is expected to provide additional solutions for clients, leveraging their industry expertise and relationships [2][4]. Leadership Changes - Following the investment, Allianz X will appoint two directors to AlTi's Board, while CWC will have an observer seat [2][6]. Company Background - AlTi Global manages approximately $68 billion in combined assets and focuses on providing fiduciary capabilities and alternative investment strategies [10]. - Allianz X is an investment arm of Allianz SE, focusing on digital frontrunners in insurance and asset management, with a portfolio of over 25 companies [11][12].