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]
This Small Cap Wealth Management Stock Could Provide Big Returns