Financial Data and Key Metrics Changes - Assets under management and advisement grew 13% year-over-year to $77 billion, with a 9% increase on a like-for-like basis [12] - Revenues for Q3 2024 were $53.3 million, up 8% from the previous quarter and 11% compared to Q3 2023, with 97% of revenues coming from recurring fees [12][34] - Adjusted EBITDA was $9.6 million, an increase of $12.6 million compared to Q3 2023, with a 62% increase in the core Wealth & Capital Solutions segment [13][40] Business Line Data and Key Metrics Changes - Wealth & Capital Solutions segment revenues increased 17% to $51.7 million in Q3 2024 compared to $44 million in Q3 2023, with assets in this segment growing 22% year-over-year [36][20] - International Real Estate segment revenues were $1.5 million in Q3 2024, down from $4.1 million in Q3 2023 due to exiting and restructuring certain businesses [37] Market Data and Key Metrics Changes - The target market represents a $102 trillion addressable market expected to grow at a 7% CAGR by 2028, with increasing demand for integrated capabilities from trusted advisors [7][19] - The global private debt market, initially focusing on approximately $1.5 trillion, is expected to see significant interest from ultra-high-net-worth clients [11] Company Strategy and Development Direction - The company aims to expand its global platform and establish itself as a leading wealth management firm for ultra-high-net-worth clients, focusing on alternatives and impact investing [6] - Strategic partnerships with Allianz X and Constellation Wealth Capital have been established to enhance wealth management solutions and expand market presence [8][10] - A strategic review of the real estate businesses has led to a restructuring of segment reporting, focusing on core business strengths [14][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the private debt market and its importance in wealth management portfolios [49] - The company is focused on maintaining tight cost discipline while investing in infrastructure and talent to support growth [52] - Management anticipates that falling interest rates will benefit the company's ability to borrow and enhance portfolio performance [58] Other Important Information - The company recorded a GAAP net loss of $111.4 million, primarily due to $116.1 million in goodwill and intangible asset impairment charges [39] - The company had $222 million in cash and $128 million in debt at the end of the quarter, positioning it well for growth [43] Q&A Session Summary Question: Demand for private debt in ultra-high-net-worth portfolios - Management indicated that private debt is already a significant allocation in many portfolios, generating competitive returns and helping to diversify against inflation [49][50] Question: Run rate for expenses - Management noted improvements in normalized expenses year-over-year, with ongoing efforts to reduce costs while making necessary investments [51][52] Question: Technology focuses with the new CTO - The focus includes improving service delivery, data control, and operational efficiency through technology investments [54][55] Question: Impact of interest rates and potential U.S. election effects - Management highlighted that higher interest rates create a more attractive fixed income environment for portfolios, while avoiding political discussions [58][59]
AlTi (ALTI) - 2024 Q3 - Earnings Call Transcript