Core Viewpoint - AlTi Global, an independent registered investment advisor, manages $72 billion in assets but has seen a 58% decline in share price since going public, despite an analyst projecting a potential upside of over 100% [1][8] Company Overview - AlTi Global operates in two segments: Wealth Management and Strategic Alternatives, with the wealth management segment catering to ultra-high-net-worth clients, averaging $40 million per account [2] - The Strategic Alternatives segment manages $16 billion in assets, focusing on private investments such as hedge fund strategies, private debt, and real estate [2] Financial Performance - In Q2, AlTi reported an adjusted EPS loss of $0.04, beating expectations of a $0.10 loss, but missed revenue expectations by $3 million, totaling $49 million, a 4% decrease year-over-year [3][4] - Wealth management revenues grew by 20%, attributed to strong market performance and acquisitions, while Strategic Alternatives revenue declined by 51% due to a 21% decrease in assets under management [4] Market Trends and Growth Potential - The wealth management industry is expected to grow assets under management at a rate of 7.9% annually through 2028, with RIAs increasing their client base of high-net-worth individuals faster than traditional wirehouses [5][6] - The shift towards independent wealth advisors is gaining traction, providing AlTi with an advantage in attracting top talent [6] Investment Outlook - AlTi's revenue from private alternative investments is expected to benefit from a growing appetite for such assets, which typically outperform public investments [6] - Analyst price targets suggest a potential upside of 121% from current levels, with a focus on continued growth through acquisitions [8][9]

Financial Performance - The company reported a total revenue of $150 million for the quarter, representing a 20% increase year-over-year[10]. - The company reported a net income of $30 million, which is a 25% increase compared to the same quarter last year[10]. - Revenue for the three months ended June 30, 2024, was $49,453,000, compared to $51,285,000 for the same period in 2023, reflecting a decline of approximately 3.2%[38]. - Net loss attributable to AlTi Global, Inc. for the three months ended June 30, 2024, was $(5,994,000), compared to a net income of $42,740,000 for the same period in 2023[38]. - The company reported a net income (loss) per share of $(0.18) for the three months ended June 30, 2024, compared to $0.72 for the same period in 2023[38]. - The company reported a total shareholders' equity of $898,343,000 as of June 30, 2024, reflecting an increase from $782,493,000 at the beginning of the year[44]. - The company reported a total accumulated deficit in retained earnings reached $170,172,000, indicating ongoing challenges in profitability[48]. - For the six months ended June 30, 2024, the net income was $12,786, compared to a net loss of $62,160 for the same period in 2023[54]. Assets and Liabilities - Assets under management (AUM) reached $5 billion, up from $4.2 billion in the previous quarter, indicating a 19% growth[10]. - Total assets increased to $1,322,730,000 as of June 30, 2024, from $1,266,297,000 as of December 31, 2023, representing a growth of approximately 4.5%[36]. - Total liabilities decreased to $399,209,000 as of June 30, 2024, down from $483,804,000 as of December 31, 2023, a reduction of about 17.5%[36]. - Cash and cash equivalents increased significantly to $59,984,000 as of June 30, 2024, from $15,348,000 as of December 31, 2023[36]. - Cash and cash equivalents at the end of the period were $59.984 million, significantly up from $27.105 million as of June 30, 2023[doc id='56']. Strategic Initiatives - The company expects to achieve a revenue target of $200 million for the next quarter, reflecting a projected growth of 33%[10]. - A strategic acquisition of a competitor is anticipated to enhance the company's service offerings and is expected to close by Q3 2024[10]. - The company is expanding its market presence in Europe, aiming to increase its market share by 10% over the next year[10]. - The company has invested $10 million in research and development for new technologies aimed at improving operational efficiency[10]. - The company has commenced a strategic review of certain businesses within the Strategic Alternatives segment, expected to be completed by the end of Q3 2024[71]. Employee and Compensation - Share-based compensation expenses totaled $9,074,000, reflecting the company's commitment to employee incentives[48]. - The company issued 1,815,560 shares to employees on vesting of equity awards, reflecting ongoing employee engagement strategies[48]. - Compensation and benefits include salaries, bonuses, commissions, and payroll taxes, accrued over the related service period[116]. Investment and Acquisitions - The company incurred cash payments of $69.014 million for the acquisition of East End Advisors, LLC, net of cash acquired[doc id='56']. - The total purchase consideration for the AWMS Acquisition was $16.8 million, with an earn-out liability of $1.1 million reported as of June 30, 2024[150]. - The EEA Acquisition had a total purchase consideration of $93.1 million, including an estimated contingent consideration of $23.3 million, with the earn-out liability's fair value reported at $24.0 million as of June 30, 2024[151]. - The company completed the sale of LXi REIT Advisors Limited for approximately $33.1 million, with an additional contingent consideration of up to $5.1 million based on exchange rates[79]. - The company recognized an intangible asset impairment charge of $23.5 million related to the disposal of LRA, recorded in the Consolidated Statement of Operations for the year ended December 31, 2023[80]. Market and User Engagement - New product launches contributed to a 15% increase in user engagement metrics, with active users rising to 1.2 million[10]. - The Wealth Management segment reported $55.9 billion in Assets Under Administration (AUA) as of June 30, 2024, up from $51.0 billion as of December 31, 2023, representing a growth of approximately 17.1%[72]. - The Strategic Alternatives segment had $7.3 billion in AUA as of June 30, 2024, a slight decrease from $7.6 billion as of December 31, 2023[75]. Financial Adjustments and Impairments - The Company recognized goodwill impairment charges of $153.9 million for the Strategic Alternatives segment as of December 31, 2023, with no impairment charges for the Wealth Management segment[139]. - The Company recognized intangible asset impairment charges of $0.7 million for the three months ended June 30, 2024, compared to $52.9 million for the year ended December 31, 2023, reflecting a significant reduction in impairment[136]. - The company experienced an impairment loss on goodwill and intangible assets of $695 for the six months ended June 30, 2024, compared to $29,393 in 2023[54].

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 ...