Slide 1: Updated Fourth Quarter and Year End 2023 Earnings
1AlTi Global Updated Fourth Quarter and Year End 2023 Earnings | March 22, 2024
Slide 2: Notes and Important Disclosures
2AlTi Global Notes and Important Disclosures About AlTi Global AlTi is a leading independent global wealth and alternatives manager providing entrepreneurs, multi-generational families, institutions, and emerging next-generation leaders with fiduciary capabilities as well as alternative investment s
Slide 3: Forward-Looking Statements
3AlTi Global Forward-Looking Statements Some of the statements in this presentation may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litiga
Slide 4: Overview of AlTi
4AlTi Global Overview of AlTi
Slide 5: AlTi at a Glance
5AlTi Global AlTi at a Glance Delivering transformational ideas that create enduring value Global footprint with presence in 21 major financial centers with a robust financial profile $71B 480 Assets Under Advisement (AUM/AUA) Professionals with diverse experience & expertise (1) Committed to Impact
Slide 6: Unique business model combines a global MFO with targeted expertise in Alternatives
6AlTi Global PRELIMINARY DRAFT – SUBJECT TO REVIEW Unique business model combines a global MFO with targeted expertise in Alternatives $15 $17 $20 $22 $20 2019 2020 2021 2022 2023 Scale $20B(2) AUM/AUA Alignment with clients $1.2B Invested alongside clients Experienced team 40+ Years Years of operat
Slide 7: Wealth transfer and shift to independence and alternatives
7AlTi Global $2.1 $3.5 $5.5 2014 2019 2024P GenX and Millennials Foundations, Charities, and Endowments $84T Baby Boomers & Older Generational Wealth Transfer(1) U.S. Wealth Transfer (2021-2045P) Shifting To Independence(1) U.S. Independent Advisor AUM/AUA (2014-2024P)(3) $84 trillion wealth transfe
Slide 8: Existing scale, reputation and critical mass
8AlTi Global Existing scale, reputation and critical mass Stable fee rates generating robust recurring revenue streams Long-term client retention with underlying secular tailwinds Multiple avenues for co-investment and revenue diversification through adjacent products and services Large universe of
Slide 9: Strategic Investments into AlTi
9AlTi Global Strategic Investments into AlTi
Slide 10: Strategic investment of up to $450M from Allianz X and CWC
10AlTi Global Accelerates AlTi’s strategy to become the leading, global, independent UHNW wealth management firm, with strategic and targeted expertise in alternatives In early 2024, AlTi announced a strategic investment of up to $450M from Allianz X and Constellation Wealth Capital • Will invest $1
Slide 11: Complementary and well-aligned partners
11AlTi Global Complementary and well-aligned partners to accelerate AlTi’s growth strategy Allianz is a global financial services provider across the insurance and asset management sectors, providing financial security and certainty to its customers for 130+ years. Together, partners provide capital
Slide 12: Strategic investment rationale
12AlTi Global Strategic investment rationale Expanded reach and scale • Deepens reach in current markets, including U.S., Europe and Asia • Positions AlTi for expansion into new domestic and international markets Accelerated margin initiatives • Offers opportunity to achieve operational leverage thr
Slide 13: Partnerships' priorities aligned with AlTi's growth pillars
13AlTi Global Partnerships’ strategic priorities clearly aligned with AlTi’s existing growth pillars New Investment Strategies & Global Presence Select Acquisitions & Stakes in Strategic Managers Expand Client Base & Deepen Existing Relationships Growth through Impact Offering A LT I ’ S G R O W T H
Slide 14: Investment thesis
14AlTi Global Investment thesis Attractive business lines across Wealth Management and Strategic Alternatives with complementary growth drivers Comprehensive platform approach Growing global footprint Identified pipeline of inorganic growth opportunities Destination of choice for UHNW wealth manager
Slide 15: Fourth Quarter and Full Year Highlights
15AlTi Global Fourth Quarter and Full Year Highlights
Slide 16: Fourth Quarter and FY 2023 Financial Highlights
16AlTi Global Financial(1) Key Performance Metrics • Revenues $91.7 million • 53% of total revenues are recurring • GAAP Net Loss ($73.9) million, Adjusted Net Loss ($1.7) million • Non-cash Impairment loss $40.2 million • Adjusted EBITDA $9.7 million Fourth Quarter and FY 2023 Highlights Financials
Slide 17: Fourth Quarter and FY 2023 Corporate & Operational Highlights
17AlTi Global Fourth Quarter and FY 2023 Highlights Corporate & Operational M&A • Strengthened wealth management presence in Europe through the acquisition of remaining 70% stake in Lugano-based MFO with ~$1.2B in AUM • Increased GP stake participation in Arkkan and Zebedee, two external strategic f
Slide 18: Fourth Quarter 2023 Select Financial and Operating Metrics
18AlTi Global Fourth Quarter 2023 Select Financial and Operating Metrics • Revenue of $92M increased 86% QoQ due primarily to incentive fees in the Alternatives Platform. 53% of total revenues was from recurring fees. • Total Operating Expenses of $107M increased 47%. Normalized operating expenses,
Slide 19: Segment Highlights
19AlTi Global Segment Highlights
Slide 20: Wealth Management Segment Results
20AlTi Global • Revenue of $38M increased 9% sequentially reflecting 5% growth in assets resulting from robust market performance and net client wins, as well as incentive fees recorded in the quarter. 95% of revenues are from recurring fees. • Total Operating Expenses of $53M increased 17%, sequent
Slide 21: Wealth Management Operating Metrics – AUM/AUA
21AlTi Global ($ in Millions) 4Q’23 3Q'23 FY 2023 Beginning Balance: $48,475 $48,595 $42,541 Change 2,561 (120) 8,495 AUA at Period End $51,036 $48,475 $51,036 Average AUA $49,756 $48,535 $46,789 ($ in Millions) 4Q’23 3Q'23 FY 2023 Beginning Balance: $32,928 $32,776 $27,961 New Clients, net (241) 41
Slide 22: Strategic Alternatives Segment Results
22AlTi Global • Revenue of $54M increased $40M largely driven by crystallized incentive fees associated with the event-driven strategy. Origination fees related to a UK real estate transaction also contributed to the segment results in the quarter. • Total Operating Expenses of $54M increased by $26
Slide 23: Strategic Alternatives Operating Metrics – AUM/AUA
23AlTi Global ($ in Millions) January 3, 2023 Gross Appreciation New Investments Subscriptions Redemptions Distributions December 31, 2023 Average AUM/AUA Event-driven $3,027 $290 — $769 ($1,637) ($67) $2,382 $2,705 External Strategic Managers: Real Estate Bridge Lending 2,153 138 — 28 (88) (37) 2,1
Slide 24: Alternatives Platform – Q4 2023
24AlTi Global ($ in Millions) September 30, 2023 Gross Appreciation New Investments Subscriptions Redemptions Distributions December 31, 2023 Average AUM/AUA Event-driven $2,456 $146 — $148 ($322) ($46) $2,382 $2,419 External Strategic Managers: Real Estate Bridge Lending 2,146 85 — 26 (54) (9) 2,19
Slide 25: Strategic Alternatives Operating Metrics – Fund Performance
25AlTi Global Strategic Alternatives Operating Metrics – Fund Performance ($ in Millions) FY 2023 4Q’23 3Q’23 2Q’23 1Q’23 Event-driven 10.51% 5.40% 4.95% (0.35%) 0.25% External Strategic Managers: Real Estate Bridge Lending 3.04% 0.34% 1.24% 0.75% 0.67% European Long Short Equities 0.64% (0.11%) 0.0
Slide 26: Appendix
- Appendix AITi Global 26
Slide 27: Consolidated Income Statement
27AlTi Global Consolidated Income Statement ($ in Thousands, except share data) FY 2023 Q4 2023 Q3 2023 Revenue Audited Unaudited Unaudited Management/advisory fees $ 184,824 $ 45,852 $ 45,062 Incentive fees 43,377 41,446 885 Distributions from investments 17,185 2,356 2,596 Other income/fees 5,494
Slide 28: Consolidated Balance Sheet
28AlTi Global Consolidated Balance Sheet ($ in Thousands, except share data) As of December 31, 2023 As of September 30, 2023 Assets Audited Unaudited Cash and cash equivalents 15,348 12,196 Fees receivable, net 70,421 32,098 Investments at fair value 165,894 164,660 Equity method investments 14,194
Slide 29: Non-GAAP Reconciliation FY 2023
29AlTi Global FY 2023 ($ in Thousands) Strategic Alternatives Segment Wealth Management Segment Total AlTi Net income (loss) before taxes $ (263,966) $ (52,371) $ (316,337) Stock based compensation (1) 2,886 18,564 21,450 Stock based compensation-legacy (2) 13,148 11,549 24,697 Transaction expenses
Slide 30: Non-GAAP Reconciliation Q4 2023
30AlTi Global 4Q'23 ($ in Thousands) Strategic Alternatives Segment Wealth Management Segment Total AlTi Net income (loss) before taxes $ (44,626) $ (27,215) $ (71,841) Stock based compensation (1) 1,077 5,038 6,115 Transaction expenses (2) 2,755 2,773 5,528 Change in fair value of gains/(losses) on
Slide 31: Non-GAAP Reconciliation Q3 2023
31AlTi Global Non-GAAP Reconciliation Q3 2023 3Q’23 ($ in Thousands) Strategic Alternatives Segment Wealth Management Segment Total AlTi Net income (loss) before taxes $ (167,650) $ (5,206) $ (172,856) Stock based compensation (1) 1,101 5,472 6,573 Transaction expenses (2) 3,876 3,768 7,644 Changes
Slide 32: Strong track record executing and integrating acquisitions
32AlTi Global Strong track record executing and integrating acquisitions M&A Track Record in Wealth Management Acquisition Date Company Core Market Criteria 2023 Singapore/Asia 2021 UK 2019 France 2018 & 2023 2016 & 2017 Seattle/West Coast U.S. 2015 M&A Track Record in Strategic Alternatives Acquisi
Slide 33: Fund performance versus indices
33AlTi Global (1) Past performance does not guarantee or indicate future results. The historical net performance presented above is unaudited. Please refer to the Appendix for additional information. Note: Information as of December 31, 2023, unless otherwise noted. Asia Credit MSCI HFRI Annualized
Slide 34: Glossary
34AlTi Global Glossary Assets Under Management and Assets Under Advisement. For financial presentation purposes, total assets under management and assets under advisement (“AUM/AUA”) of AlTi Global is calculated as set forth below: AUM/AUA includes billable and non-billable assets. Billable assets r
Slide 35: Footnotes
35AlTi Global Footnotes Past performance does not guarantee or indicate future results. The historical net performance presented above are provided from inception of each fund through December 31, 2023 and are unaudited. The returns for the Event driven strategy reflect the deduction of the actual m
Slide 36: Thank You
36AlTi Global Thank You