AlTi (US:ALTI)2023-04-16 16:00Assets Under Management - The company manages or advises approximately $65.0 billion in combined assets as of December 31, 2022[13]. - As of December 31, 2022, the company has approximately $19.3 billion in Assets Under Management (AUM) and $29.9 billion in Assets Under Advisement (AUA), including non-discretionary assets[88]. - The company has $26.8 billion in Assets Under Management (AUM) and Assets Under Administration (AUA) as of December 31, 2022, including $13.0 billion in direct investments in real estate and other vehicles[156]. - As of December 31, 2022, the fund management teams internally managed over $7.2 billion in aggregate across all investment strategies[38]. - The company maintains strategic investments with External Strategic Managers, managing approximately $5.3 billion of AUM in aggregate as of December 31, 2022[43]. - The Event-Driven Global Merger Arbitrage strategy has $3.0 billion in assets under management, focusing on 0-to-30-day events within the merger process[40]. - Home Long Income Fund had assets under management of approximately £587 million ($722 million) as of December 31, 2022[42]. - The TIG Arbitrage strategy, focused on event-driven global merger arbitrage, has approximately $3.0 billion in AUM as of December 31, 2022[120]. - The real estate bridge lending strategy managed by Romspen has approximately $2.2 billion in AUM as of December 31, 2022[121]. - The European equities strategy managed by Zebedee has approximately $1.6 billion in AUM as of December 31, 2022[122]. - The Asian credit and special situations strategy managed by Arkkan has approximately $1.5 billion in AUM as of December 31, 2022[123]. Client Relationships and Retention - The company has a high client retention rate of more than 97% since 2019[18]. - The company achieved an annual client retention rate of 97% from 2019 to 2022, indicating strong client loyalty and satisfaction[88]. - The average size of the top ten client relationships is $554.4 million, representing approximately 18.6% of the company's billable assets[101]. - The FOS division managed $2.5 billion in billable assets from over 300 clients as of December 31, 2022, with 11 being IA clients[175]. - As of December 31, 2022, the Co-investment division had over 250 investors, with more than 150 being IA clients[167]. Investment Strategies and Offerings - The company aims to launch further vintages of private equity vehicles to provide clients with ongoing access to private equity funds[23]. - The company offers a complete platform solution to managers, including sales and marketing, financial planning, and back and middle office infrastructure[44]. - The company provides comprehensive investment advisory services, including risk management and portfolio construction, tailored to client needs[89]. - The company has launched 24 separate fund strategies since its inception in 1980, with the TIG Arbitrage strategy growing from $6 million AUM in 1993 to $3.0 billion AUM as of December 31, 2022[129]. - The company expects to expand its Co-investment offering to provide access to proprietary investments in growth equity opportunities in the innovation economy[33]. Financial Performance and Revenue Streams - Management, advisory, and administration fees are recurring and historically more predictable, contributing to stable revenue streams[54]. - Performance and incentive fees have the potential to grow as the value of managed assets increases, providing upside to future revenues[54]. - Transaction fees are generally non-recurring and are based on successful completions, with potential for significant profitability[54]. - Management fees from External Strategic Managers include profit shares of 20.92% from Romspen Investment Corporation and 19.99% from Zebedee Capital Partners[63]. - Success-based fees for M&A mandates typically range from 1% to 2.5% of the financial outcome achieved[64]. - Fundraising mandates for private clients or funds earn success fees typically between 3% to 5% of the funds raised[65]. - M&A advisory fees account for approximately two-thirds of total fees generated by the Merchant Banking division, with success fees typically ranging from 1-2.5%[187]. - Co-investment fees include arrangement fees typically between 50 to 100 basis points of equity value contributed into a transaction[183]. Corporate Culture and Diversity - The company aims for 50% female representation in senior management by the end of its first five years of operations, with 44% of employees being women as of December 31, 2022[67]. - The corporate culture emphasizes collaboration and connection, which is considered a valuable asset for the company[67]. - The company employs 151 individuals, with approximately 45% being women, emphasizing diversity, equity, and inclusion as key to its culture and success[106]. - Approximately 29% of the company's employees were women as of December 31, 2022, highlighting a commitment to diversity[138]. - The company emphasizes diversity and employee engagement as key components of its corporate culture and long-term success[189]. Regulatory Environment and Compliance - The company operates under extensive regulatory oversight, including SEC regulations, which impose fiduciary duties and compliance requirements on investment advisers[147]. - The company emphasizes the importance of compliance and has a dedicated compliance group to monitor regulatory requirements and manage compliance policies[194]. - The company is subject to extensive government regulation, and failure to comply could adversely affect its financial condition and results of operations[207]. - The company emphasizes a culture of compliance, with all employees required to annually certify their understanding of compliance policies and procedures[143]. Market Competition - The wealth management industry is highly fragmented with over 6,600 RIAs in the U.S., leading to intense competition at both regional and local levels[115]. - The investment management industry remains intensely competitive, with competition varying across business lines, geographies, and financial markets[199]. - The company faces competition from larger firms with more financial, technical, and marketing resources, which may create competitive disadvantages[200]. - The trusts and administration industry is highly competitive and fragmented, with 121 licensed companies in the Isle of Man alone[202]. - The family office services market is bespoke and competitive, with challenges in differentiating the company's sophisticated offerings from lower-level services provided by competitors[204]. Growth Strategy - The company has an acquisitive strategy for inorganic growth through acquisitions and joint ventures[14]. - The company aims to grow rapidly through both organic growth and selective accretive acquisitions, enhancing its service capabilities[86]. - The company aims to expand its business by partnering with mid-sized alternative asset managers to provide capital and operational support[130]. Risk Management - The investment process includes extensive due diligence, with a focus on risk management and ESG considerations[134]. - The company is exposed to data and cybersecurity risks that could result in data breaches and significant liability[207].