Alti Global, Inc. · NASDAQ:ALTI
Alti Global — Q3 2024 Earnings Presentation
38 slides from Alti Global's earnings presentation, Nov 8, 2024
Slide 1: Third Quarter 2024 Earnings
Third Quarter 2024 Earnings | November 8, 2024 AlTi Global 1
Slide 2: Notes and Important Disclosures
Notes and Important 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")
Slide 3: At-a-glance
at-a-glance 20+ 96% $77B ~97% 62% vs. 38% U.S. vs. Non-U.S. Years operating history Recurring revenues Client retention rate since 2020 Consolidated AUM/AUA AUM/AUA for top 25 wealth focused on UHNW management clients 21 5 $5B 9 Acquisitions and integrations Years of average tenure for Global strate
Slide 4: Becoming the preeminent, global UHNW wealth firm
Becoming the preeminent, global UHNW wealth firm Large and expanding addressable market Comprehensive platform for UHNW families and wealth managers Uniquely global footprint Recurring and diversified revenue Identified pipeline of inorganic growth Strong capital position underpinned opportunities b
Slide 5: How we got here
How we got here Over the past 40+ years, we have grown into an independent, global Ultra-High-Net-Worth wealth management platform with differentiated Alts and Impact Investing capabilities 1980 1999 2009 2023 2024 Now Establishment of Founded Tiedemann Trust Global multi-family office Merger of ent
Slide 6: Our addressable market – Wealth management
Our addressable market –Wealth management Independent channels continue to gain market share Market Share by Advisor Channel (6) HNW / UHNW RIA B/D Wirehouse $264T (2) (4) market is Global Financial Wealth 28% estimated at 39% 32% $102T and is $102T (1) (2) (3) 41% expected to grow HNW and UHNW Inve
Slide 7: Our addressable market – Alternatives and Impact for UHNW
Our addressable market – Alternatives and Impact for UHNW Global Demand for Alternatives(1) With Impact Priority(2) Alternative AUM/AUA Growth and Forecast (2017-2030P) Relevance of ESG Factors $Trillions Request ESG scores Do not request ESG scores $29 $30 32% 68% of HNWIs request $17 ESG scores fo
Slide 8: Business Overview
Business Overview AlTi Global 8
Slide 9: How we serve our clients
How we serve our clients Investment Advisory Services Estate & Wealth Planning - Customized portfolios - Estate and succession planning - Differentiated expertise in alternatives and impact - Event and asset planning - Newly established private debt partnership with Allianz - Tax management and miti
Slide 10: How we generate revenue
How we generate revenue AlTi’s topline performance is driven by recurring fee streams ~ 80% Recurring revenue (1) ~ 20% Non-recurring revenue (1) Highly recurring Management / advisory fees revenue nature Other revenue • Investment management, advisory, trustee, and • Incentive fees in Distributions
Slide 11: Differentiated, comprehensive, and independent platform
Differentiated, comprehensive, and independent platform Well-positioned to meet and exceed the diverse needs of an expanding client base Independent Wealth Boutique Managers Multi-Family Offices End-market focus HNW / UHNW expertise Independent, Integrated and International Platform approach Tailore
Slide 12: Unique global footprint
Unique global footprint Global Footprint AlTi Presence Global Headquarters 9 Countries 21 Cities London Hong Kong Zurich Paris Minneapolis Geneva Toronto Seattle Lugano Portland New York Aspen Milan San Francisco Wilmington Washington, D.C. Lisbon Dallas Palm Beach Singapore Miami Market Opportunity
Slide 13: AlTi is at an inflection point
AlTi is at an inflection point World-class team AlTi has the management, governance, and employee talent to win Complementary businesses Interplay between Wealth and Alts is synergistic and underscores our unique story Strategic investment from Allianz X and CWC Partnerships and growth capital to tu
Slide 14: Strategic investments provide capital, access and relationships
Strategic investments provide capital, access and relationships AlTi announced strategic investment of up to $450M from our partners, Allianz X and CWC benefits from the strategic investment Global financial services provider across the insurance and asset Fund M&A pipeline for compelling inorganic
Slide 15: Allianz and CWC's investment is already bearing fruit
Allianz and CWC’s investment is already bearing fruit AlTi expects to use the and capital principally to fund accretive M&A Notable acquisitions completed in 2024 Pipeline and criteria for future acquisitions (1) U.S. & $2B to $20B $1B to $10B • Minneapolis-based UHNW wealth manager with ~$3B AUM In
Slide 16: Allianz partnership extends beyond growth capital
Allianz partnership extends beyond growth capital A majority-owned joint venture to pioneer AlTi and Allianz Global UHNW wealth access to private credit Investors announced a private markets investment Key Attributes program for UHNW wealth Focus on $1.5 trillion global Market private credit market,
Slide 17: Leadership
Office US Europe Leadership Executive Team Business Leads Michael Tiedemann Kevin Moran Stephen Yarad Colleen Graham Nancy Curtin Craig Smith Robert Weeber Brooke Connell Chief Executive Officer President / Chief Financial Officer Global General Counsel CIO – Global WM Chair- Global WM President – P
Slide 18: Governance
Governance Independent Board Directors Dependent Board Directors Board Committees Audit, Finance and Risk Timothy Keaney Norma Corio Mark Furlong Michael Tiedemann Ali Bouzarif Bank of New York American Express BMO Harris Bank Chief Executive Officer IlWaddi representative Board Chair Global Busines
Slide 19: Public shares
Public shares Increase in publicly traded shares(1) Shareholder composition (2) • AlTi has two classes of common shares – Class A and Class B • Shares of Class B Common Stock are not publicly traded; however, Class B shareholders have the right to convert their Class B stock to Class A on a one-for-
Slide 20: Expected financial drivers
Expected financial drivers Well-defined path with a clear trajectory for long term growth Stable recurring revenue foundation 01. Topline Growth Topline growth fueled by new partnerships Revenue diversification through emerging strategies and solutions Economies of scale that leverage global distrib
Slide 21: Financial Highlights
Financial Highlights AlTi Global 21
Slide 22: Third Quarter 2024 Highlights
Third Quarter 2024 Highlights • Consolidated revenues of $53.3 million, increased 11% YoY • Wealth & Capital Solutions revenues of $51.7 million, up 18% YoY • 97% of Total Revenues are recurring Financial (1) • GAAP Net Loss of $111.4 million, Adjusted Net Loss of $2.3 million • Non-cash Impairment
Slide 23: Third Quarter 2024 Select Financial and Operating Metrics
Third Quarter 2024 Select Financial and Operating Metrics • Revenue of $53.3M increased 11% YoY primarily due to an increase in management fees from ($ in Millions) 3Q’24 2Q’24 3Q’23(2) the 13% increase in AUM/AUA associated with the acquisitions of East End Advisors and Envoi, Revenue $53.3 $49.5 $
Slide 24: Wealth & Capital Solutions
Wealth & Capital Solutions Select Financial and Operating Metrics • Revenue of $51.7M increased 17% YoY, primarily due to an increase in management fees from ($ in Millions) 3Q’24 2Q’24 3Q’23 the 22% increase in AUM/AUA associated with the acquisitions of East End Advisors and Envoi, Revenue $51.7 $
Slide 25: Wealth & Capital Solutions – Wealth Management
Wealth & Capital Solutions – Wealth Management Operating Metrics – AUM/AUA Wealth Management AUM: $44.7 billion AUA: $61.0 billion Assets Under Advisement (AUA) Assets Under Management (AUM) ($ in Billions) 3Q’24 3Q'23 ($ in Billions) 3Q’24 3Q'23 Beginning Balance: $55.9 $48.6 Beginning Balance: $40
Slide 26: Wealth & Capital Solutions – Alternatives
Wealth & Capital Solutions – Alternatives Operating Metrics – AUM/AUA Alternatives Platform Gross September 30, Average ($ in Millions) July 1, 2024 Appreciation Subscriptions Redemptions Distributions 2024 AUM/AUA Event-Driven $2,108 $31 $53 $(160) $(5) $2,027 $2,068 External Strategic Managers: Re
Slide 27: International Real Estate
International Real Estate Select Financial and Operating Metrics ($ in Millions) 3Q’24 2Q’24 3Q’23 Real Estate - Public & Private Funds Revenue $1.5 $1.0 $4.2 ($ in Billions) 3Q’24 3Q’23 Mgmt./Advisory Fees 1.5 0.8 3.5 Beginning Balance: $8.6 $12.4 Other Income/Fees 0.0 0.2 0.6 Change 0.4 (0.4) Tota
Slide 28: Consolidated Income Statement
Consolidated Income Statement ($ in Thousands, except share data) 3Q'24 3Q'23 Revenue Unaudited Unaudited Management/advisory fees $49,633 $44,004 Incentive fees 88 885 Distributions from investments 3,562 2,596 Other income/fees 60 701 Total income 53,343 48,186 Operating Expenses Compensation and
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet ($ in Thousands, except share data) As of September 30, 2024 As of December 31, 2023 Assets Unaudited Unaudited Cash and cash equivalents $222,138 $ 15,348 Fees receivable, net 33,763 70,421 Investments at fair value 168,127 165,894 Equity method investments 7,411 14,194 I
Slide 30: Segment Income Statement
Segment Income Statement For the Three Months Ended 9/30/2024 For the Three Months Ended 9/30/2023 Wealth & Capital Wealth & Capital International Real Estate Corporate Total International Real Estate Corporate Total (Dollars in Thousands) Solutions Solutions Revenue Management/advisory fees $48,101
Slide 31: Segment Income Statement (cont.)
Segment Income Statement (cont.) For the Three Months Ended 6/30/2024 Wealth & Capital International Real Estate Corporate Total (Dollars in Thousands) Solutions Revenue Management/advisory fees $46,248 $780 $- $47,029 Incentive fees 52 - - 52 Distributions from investments 2,240 - - 2,240 Other inc
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation For the Three Months Ended 9/30/2024 For the Three Months Ended 9/30/2023 Wealth & Capital International Real Wealth & Capital International Real Corporate Total Corporate Total ($ in Thousands) Solutions Estate Solutions Estate Net income before taxes $(75,075) $(47,902) $2,
Slide 33: Non-GAAP Reconciliation (cont.)
Non-GAAP Reconciliation (cont.) For the Three Months Ended 6/30/2024 Wealth & Capital International Real Corporate Total ($ in Thousands) Solutions Estate Net income before taxes $13,581 $(11,787) $(11,509) $(9,715) Stock based compensation (1) 3,076 40 483 3,599 Transaction expenses (2) 4,973 1,900
Slide 34: Appendix
Appendix AlTi Global 34
Slide 35: 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 36: Footnotes
Footnotes Past performance does not guarantee or indicate future results. The historical net performance presented are unaudited. A description of the strategies is provided below: Event-driven: The Event-driven strategy is based in New York. This strategy, which has $2.1 billion of AUM as of Septem
Slide 37: Strategic Partnerships
Strategic Partnerships Investment • Up to $300M ($250M funded July 31, 2024. Option to invest an • $150M ($115M funded in April 2024 and $35M funded in May additional $50M in the future) 2024) Common stock • $110M at close through a new issue of 19.3 million shares of common • N/A stock (Class A) at
Slide 38: Thank You
Thank You AlTi Global 38