Financial Performance - Management/advisory fees increased to $49,633,000 for the three months ended September 30, 2024, compared to $44,004,000 for the same period in 2023, representing an increase of 6.1%[41] - Total income for the three months ended September 30, 2024, was $53,343,000, up from $48,186,000 in the same period of 2023, reflecting a growth of 10.0%[41] - Total operating expenses decreased to $69,356,000 for the three months ended September 30, 2024, down from $73,255,000 in the same period of 2023, a reduction of 5.2%[41] - Net income (loss) attributable to AlTi Global, Inc. was $(68,638,000) for the three months ended September 30, 2024, compared to $(89,671,000) for the same period in 2023, showing an improvement of 23.4%[41] - Total comprehensive income (loss) for the three months ended September 30, 2024, was $(115,690,000), compared to $(182,677,000) for the same period in 2023, indicating a reduction in losses of 36.6%[42] - Basic net income (loss) per share was $(0.88) for the three months ended September 30, 2024, compared to $(1.41) for the same period in 2023, reflecting an improvement of 37.5%[41] - The net loss for the period ending September 30, 2024, was $98,619,000, compared to a net loss of $172,768,000 for the previous period[49] - For the nine months ended September 30, 2024, AlTi Global reported a net loss of $98,619,000, an improvement from a net loss of $234,928,000 for the same period in 2023, representing a 58% reduction in losses[54]. Asset Management - The company managed or advised approximately $77.3 billion in combined assets as of September 30, 2024[58]. - As of September 30, 2024, AlTi Global, Inc. had $68.3 billion in Assets Under Administration (AUA) for the Wealth & Capital Solutions segment, up from $58.7 billion as of December 31, 2023, representing a growth of approximately 27.2%[77] - The International Real Estate segment reported AUA of approximately $8.9 billion as of September 30, 2024, down from $12.7 billion as of December 31, 2023, indicating a decline of about 30%[83]. Shareholder Equity and Capital Structure - The total shareholders' equity as of September 30, 2024, is $1,039,494,000, reflecting an increase from $782,493,000 at the beginning of the year[47] - The weighted average shares of Class A common stock outstanding increased to 86,399,551 for the three months ended September 30, 2024, from 63,568,646 in the same period of 2023, an increase of 35.8%[41] - The balance of Class A Common Stock shares increased to 93,686,980 as of September 30, 2024, from 65,110,875 at the beginning of the year[47] - The company issued 2,100,000 shares to the Alvarium Employee Benefit Trust, resulting in an increase of $21,000,000 in additional paid-in capital[51] - The total amount of preferred shares issued, net of issuance costs, was $280,612,000 as of September 30, 2024[47]. Cash Flow and Liquidity - Cash flows from operating activities resulted in a net cash outflow of $50,596,000 for the nine months ended September 30, 2024, compared to an outflow of $81,001,000 in the same period of 2023, indicating a 37% improvement[54]. - Cash flows from investing activities showed a net cash outflow of $53,467,000 for the nine months ended September 30, 2024, compared to an outflow of $132,383,000 in the same period of 2023, reflecting a 60% decrease in cash used for investments[57]. - The company reported a cash and cash equivalents balance of $222,138,000 at the end of the period, a significant increase from $14,363,000 at the end of September 30, 2023[57]. - As of September 30, 2024, restricted cash and cash equivalents amounted to $7.1 million, up from $5.4 million as of December 31, 2023, indicating increased liquidity requirements for regulatory compliance[121]. Business Combinations and Acquisitions - The Company acquired 51% of the equity interests of Umbrella, which holds 100% of the equity interests of Alvarium, TWMH, and TIG[179] - The total purchase consideration for the Business Combination was $1,071.1 million, including contingent consideration of $85.1 million[185] - The Company incurred $17.8 million in acquisition-related costs and $4.6 million in debt issuance costs during the period ended September 30, 2023[184] - The Company completed the acquisition of EEA for $69,182,000 during the nine months ended September 30, 2024[57]. - The total purchase consideration for the acquisition of AlTi Wealth Management (Singapore) Pte Limited was $15.5 million, paid entirely in cash[196] - The acquisition of AlTi Wealth Management (Switzerland) SA involved a total purchase consideration of $16.8 million, including cash, equity, and deferred payments[206] - The acquisition of East End Advisors, LLC had a total purchase consideration of $93.1 million, which includes estimated contingent consideration of $23.3 million based on future EBITDA performance[218]. Impairment and Losses - The company reported an impairment loss on goodwill and intangible assets of $(116,082,000) for the three months ended September 30, 2024, compared to $(153,859,000) in the same period of 2023, a decrease of 24.6%[41] - The company recognized an intangible asset impairment charge of $23.5 million related to the disposal of LXi REIT Advisors Limited, recorded in the year ended December 31, 2023[87] - The impairment charge for indefinite lived intangible assets was $44.9 million due to reassessment related to changes in reporting segments[193]. Revenue Recognition - The company recognizes revenue from investment management, trustee, and custody fees based on the fair value of assets under administration (AUA), which can fluctuate due to market movements[110] - Incentive fees are recognized when it is no longer probable that a significant reversal of revenue will occur, calculated as a percentage of net profit from customer earnings[114]. Strategic Initiatives - The company is currently evaluating strategic options for its Real Estate Businesses, which are no longer considered core to its forward-looking strategy[76] - The company aims to finalize its strategic review of the Real Estate Businesses by year-end 2024[76].
AlTi (ALTI) - 2024 Q3 - Quarterly Report