AlTi (US:ALTI)2025-11-12 21:01Company Overview - AlTi Global manages approximately $89 billion in combined assets, with a client retention rate of 96% since 2021[4][13]. - The firm has completed over 10 acquisitions in the last decade, enhancing its capabilities and geographic reach[26]. - The average assets under management per client is over $50 million, with a minimum requirement of approximately $25 million of investable assets[40][41]. - AlTi Global's wealth management services are focused on the ultra-high-net-worth (UHNW) segment, which is projected to grow at a CAGR of ~7% to 2028, with a global client base of over 426,000 UHNW individuals[31][38]. Business Strategy - The firm emphasizes a holistic approach to wealth management, integrating investment advisory, estate planning, and impact investing services[26][41]. - The company has a strong pipeline of M&A opportunities, reflecting its commitment to strategic growth and integration[28]. - AlTi Global's investment platform is driven by experienced managers, focusing on alternatives and impact investing, which are key areas of interest for UHNW clients[34][37]. - The firm has established a centralized operational infrastructure to support rapid scaling and compliance across multiple jurisdictions[26]. Financial Performance - Consolidated revenues reached $57 million, marking a 10% year-over-year increase and a 9% sequential increase, driven by the core wealth management business[82]. - Management fees totaled $52 million, up 7% year-over-year and 15% compared to Q1 2025, with 96% of total revenues being recurring[82]. - Assets under management (AUM) grew to $49 billion, a 6% increase year-over-year and a 4% increase sequentially, supported by strong portfolio performance and net new assets[83]. - Revenue for Q3 2024 was $57.2 million, a 10% increase from $51.8 million in Q3 2023, driven by strong AUM growth and acquisitions[91]. Operational Changes - AlTi Global's international real estate business was placed under administration in July 2025, qualifying it for presentation as discontinued operations[8]. - Commenced the orderly wind-down of the international real estate business, transitioning to a single reporting segment to enhance focus on global wealth management[83]. - Implemented Zero-Based Budgeting initiatives, resulting in tangible savings across key expense categories, reinforcing cost discipline[86]. Expenses and Losses - Total Operating Expenses rose to $85.7 million, a 40% increase compared to $61.3 million in Q3 2023, largely due to non-recurring charges and the consolidation of Kontora[92]. - Adjusted EBITDA was $6.2 million, down 47% from $11.8 million in Q3 2023, with most adjustments being non-cash[91]. - GAAP Net Income loss was $107 million, primarily due to the wind down of the international real estate business and impairments[92]. - Net loss attributable to AITi Global, Inc. was $(84,135,000) compared to $(72,542,000) in Q3'24, reflecting a worsening of 15.9%[100]. Strategic Investments - Strategic investment of up to $450 million received from Allianz X and CWC to support growth and partnerships[54]. - The majority-owned joint venture with Allianz focuses on the $1.5 trillion global private credit market, expanding investment opportunities for UHNW clients[58]. - The company is exploring strategic partnerships, including a potential investment of up to $300 million with Allianz, indicating plans for future growth and expansion[115].