Alti Global, Inc. · NASDAQ:ALTI
Alti Global — Q1 2023 Earnings Presentation
39 slides from Alti Global's earnings presentation, May 22, 2023
Slide 1: First Quarter 2023 Earnings
First Quarter 2023 Earnings | May 2023 AlTi Tiedemann Global 1
Slide 2: Disclosures
Disclosures This Presentation (together with oral statements made in connection herewith, the “Presentation”) is for informational purposes only to assist interested parties in evaluating AlTi Global, Inc. (along with its consolidated subsidiaries, “AlTi Global” or the "Company"). About AlTi Global
Slide 3: Disclosures (Cont.)
Disclosures (Cont.) Financial Information The financial information and data contained in this Presentation is unaudited and does not conform to Regulation S-X promulgated under the Securities Act. Accordingly, such information and data may not be included in, may be adjusted in or may be presented
Slide 4: AlTi at a Glance
AlTi at a Glance Delivering transformational ideas that create enduring value $67 B Assets Under Advisement 460+ Professionals with diverse $4 B Committed to Impact 20+ Year operating history $2 B Invested alongside clients (AUM/AUA) experience & expertise strategies Global footprint with presence i
Slide 5: Strategic Underpinnings of AlTi
Strategic Underpinnings of AlTi One ecosystem delivering innovative, world-class wealth and asset management solutions $46B - Wealth Management $21B - Asset Management Investment Advisory Alternatives Platform Trust, Fiduciary & Administration $67B Real Estate – Public & Private AUM/AUA Family Offic
Slide 6: One Platform Approach
One Platform Approach Serving complementary and attractive industries Wealth Management Asset Management • Stable fee rates generating a robust • Strong investor demand, particularly in recurring revenue stream private and real asset markets, driving strong fundraising growth • Consistent, solid cli
Slide 7: Investment Highlights
Investment Highlights Uniquely positioned between global family office solutions and alternative asset management Strong, performing businesses Large and growing addressable market Established reputation in the market Both in asset and wealth management Global footprint Recurring and diversified rev
Slide 8: Expanding Market Opportunities
Expanding Market Opportunities Powered by multi-decadal trajectories Large, Expanding Market Generational Wealth Transfer Shifting To Independence Growth of Global Wealth (2021-2026P) U.S. Wealth Transfer (2018-2042P) U.S. Independent Advisor AUM/AUA (2014-2024P) (1) ($ in Trillions) ($ in Trillions
Slide 9: Global, Growing Client Base
Global, Growing Client Base Serving evolving client priorities Global Demand for Alternatives Across Generations With Impact Priority Alternative AUM/AUA Growth and Forecast (2011-2026P) Alt. Asset Exposure by Demographic (2021-2024P) Relevance of ESG Factors ($ in Trillions) Private equity Private
Slide 10: 2023 Strategic Priorities
2023 Strategic Priorities Leverage Competitive Achieve Organizational Execute Accretive Streamline Capital Advantages to Accelerate Efficiencies and Right Size Acquisitions to Generate Structure Organic Growth Cost Structure Topline Momentum Achieving $16M+ in annualized net cost savings while creat
Slide 11: AlTi Wealth Management – Highlights
AlTi Wealth Management – Highlights Resilient and expanding global client base Scale $46B AUM/AUA, $ in Billions $46 AUM/AUA $43 $41 $36 Global presence 8 $32 Countries with AlTi WM offices High client retention 98% Client retention since 2019 Long-tenured clients 9+ Years average client tenure 2019
Slide 12: Wealth Management – Holistic Solutions
Wealth Management – Holistic Solutions Combining the services of a family office with the depth of a world-class, global institution Investment Advisory & Impact Estate & Wealth Planning Customized risk-adjusted portfolios Implementation and management Bespoke AlTi Team Expertise curated from Trust
Slide 13: AlTi Asset Management – Highlights
AlTi Asset Management – Highlights Differentiated provider of public and private market solutions serving growing alternatives market AUM/AUA, $ in Billions $22 $20 $21 Scale $21B $17 AUM/AUA $15 Alignment with clients $1.1B Invested alongside clients Experienced team 40+ years of operating history
Slide 14: Asset Management – Platform Breakdown
Asset Management – Platform Breakdown Global network of capabilities built on an end-to-end support platform 1980 2009 2011 2017 Alternatives Platform Real Estate – Private Markets Merchant Banking Real Estate – Public Markets Four fund strategies Direct investments – 27 equity and 21 debt 220+ tran
Slide 15: Asset Management: Alternatives Platform
Asset Management: Alternatives Platform Best-in-class performance and uncorrelated returns1 TIG Arbitrage European Equities TIG Euro MSCI HFRI MSCI HFRI Arbitrage Equities European AlTi AM Annualized Purchase Equities +102% 6.6% 7.2% 3.8% MSCI +115% Annualized Performance Performance 12.4% 4.7% 4.3%
Slide 16: Asset Management: Public Real Estate
Asset Management: Public Real Estate Long-term outperformance through varied market cycles o UK main market listed REIT o Market Cap: £1.7B/U.S.$2.2B o Total Return Since IPO (2/27/17): +31% Performance of LXi REIT LXI +31% FTSE 250 +18% 2/27/2017 8/27/2017 2/27/2018 8/27/2018 2/27/2019 8/27/2019 2/
Slide 17: M&A Will Continue to be a Key Driver of Growth
M&A Will Continue to be a Key Driver of Growth Compelling universe of opportunities Transacted AUM/AUA by Asset Class and Share Alternative Asset Management Industry ($ in Billions) Traditional Alternative Wealth management Combined alternative and wealth management share of total transactions $4,00
Slide 18: Demonstrated Track Record
Demonstrated Track Record Strategic acquisition and integration of asset managers & wealth managers Select AlTi M&A Examples Wealth Management Asset Management Illustrative Acquisition Criteria Illustrative Acquisition Criteria • Expand global footprint • Diversify management fee • Uncorrelated to e
Slide 19: M&A in 2023
M&A in 2023 Closed accretive acquisitions with selected global specialists Wealth Management Completed the acquisition of a Singapore multi-family office in April 2023 AL Wealth Partners • Singapore-based UHNW manager with ~$1B AUM • Acquired 100% of the company London • Expanded Asian presence and
Slide 20: Financial Highlights
Financial Highlights AlTi Tiedemann Global 20
Slide 21: First Quarter 2023 GAAP Results (Unaudited)
First Quarter 2023 GAAP Results (Unaudited) ($ in Thousands) 1Q’23 1Q’22 Revenue Management/advisory fees $ 46,470 $ 19,970 Incentive fees 577 — Distributions from investments 10,030 — Other income/fees 970 — Total income 58,047 19,970 Operating Expenses Compensation and employee benefits 63,172 13,
Slide 22: First Quarter 2023
First Quarter 2023 Overview • Revenues $58 million • 84% of total revenues are recurring Financial1 • Net Income ($90 million), Adjusted Net Income attributable to ALTi is $1.3 million2 • Adjusted EBITDA $11 million • Adjusted EPS $0.02 per share, basic and diluted • $67 billion of AUM/AUA, 3% quart
Slide 23: First Quarter 2023 Select Financial and Operating Metrics
First Quarter 2023 Select Financial and Operating Metrics ($ in Millions) 1Q’23 1Q’22 • Revenue of $58M primarily driven by Management/Advisory fee of $46.5M Revenue $58.0 $20.0 and $10M in distributions from the external strategic managers in our alternatives platform. 84% of total revenues was fro
Slide 24: Segment Highlights
Segment Highlights AlTi Tiedemann Global 24
Slide 25: Wealth Management
Wealth Management Select Financial and Operating Metrics ($ in Millions) 1Q’23 • Revenue of $32M which benefited from new business wins, strong net client inflows and market performance in the quarter. 100% of revenues are recurring Revenue $31.5 management/advisory fees. Mgmt./Advisory Fees 31.5 •
Slide 26: Wealth Management Operating Metrics – AUM/AUA
Wealth Management Operating Metrics – AUM/AUA Wealth Management Assets Under Management (AUM) AUM: $30.4 billion ($ in Millions) 1Q’23 1Q’22 AUA: $45.6 billion Beginning Balance: $ 27,961 $ 21,390 New Clients, net 1,121 441 Assets Under Advisement (AUA) Cash Flow, net 624 (66) ($ in Millions) 1Q’23
Slide 27: Asset Management
Asset Management Select Financial and Operating Metrics ($ in Millions) 1Q’23 • Revenue of $27M reflects primarily $15M in management and advisory fees and $10M of distributions from investment, which benefitted from Zebedee’s strong performance in Q4 Revenue $26.5 2022. Mgmt./Advisory Fees 15.0 • T
Slide 28: Asset Management Operating Metrics – AUM/AUA
Asset Management Operating Metrics – AUM/AUA Real Estate - Public & Private Funds Asset Management ($ in Millions) 1Q’23 (Successor) AUM: $5.7 billion Beginning Balance: $ 14,130 AUA: $21.1 billion Change (1,308) AUM/AUA at March 31, 2023(1) $ 12,822 Average AUM/AUA $ 13,476 Alternatives Platform Gr
Slide 29: Liquidity Metrics
Liquidity Metrics Existing Capital Structure – Leverage of 2.4x based on 1Q 2023 LTM Adjusted EBITDA. Leverage metrics New Credit Facility – Closed January 3, 2023, in conjunction with business combination. ($ in Millions unless otherwise stated) 1Q’23 x EBITDA – $250 million five-year credit facili
Slide 30: Our Long-Range Goals
Our Long-Range Goals Reflect continued execution of proven business model • Annual AUM/AUA growth rate High single-digit percentage • Annual Revenue growth rate Low-teens percentage • Adjusted EBITDA margin Expansion to mid 30s (2) (1) Growth rate represents long-term annual growth, on average and o
Slide 31: Appendix
Appendix AlTi Tiedemann Global 31
Slide 32: First Quarter 2023 Balance Sheet (Unaudited)
First Quarter 2023 Balance Sheet (Unaudited) ($ in Thousands, except share data) As of March 31, 2023 As of December 31, 2022 Assets Cash and cash equivalents $ 17,790 $ 7,131 Fees receivable, net 32,269 19,540 Other receivable, net — 5,167 Investments at fair value 166,669 145 Equity method investm
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1Q’23 Asset Management Wealth Management Total AlTi ($ in Thousands) Segment Segment (Successor) Adjusted Net Income and Adjusted EBITDA Net income before taxes $ (38,540) $ (47,100) $ (85,640) Stock based compensation (1) 198 5,640 5,838 Stock based compensation - LTIP (2) 1
Slide 34: Expected Financial Drivers
Expected Financial Drivers Well-defined path with a clear trajectory for long term growth 01. Topline Growth Stable recurring revenue foundation across both asset and wealth management Topline growth fueled by new partnerships Revenue diversification through emerging strategies and solutions 02. Mar
Slide 35: Clear Value Creation Roadmap
Clear Value Creation Roadmap AlTi ecosystem presents significant growth opportunities • Expand into complementary domestic and international markets • Provide clients in four continents with a localized offering while addressing their New investment strategies & global presence multi-jurisdictional
Slide 36: Our Commitment to Impact
Our Commitment to Impact Sustainable practices across corporate activities Our goal is generating sustainable financial returns with net positive impact. Our strategy and efforts are led by Chief Impact Officer, Jed Emerson. Culture at Core – Diversity, Equity & Inclusion is a matter of principle fo
Slide 37: Glossary
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 represent the p
Slide 38: Footnotes
Footnotes Slide 15 and 19 Past performance does not guarantee or indicate future results. The historical net performance presented above are provided from inception of each fund through June 2022 and are unaudited. The TIG Arbitrage returns reflect the deduction of the actual management fees (repres
Slide 39: Thank You
Thank You AlTi Tiedemann Global 39