Alti Global, Inc. · NASDAQ:ALTI
Alti Global — Q2 2024 Earnings Presentation
26 slides from Alti Global's earnings presentation, Aug 9, 2024
Slide 1: Second Quarter 2024 Earnings
Second Quarter 2024 Earnings | August 9, 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: Overview of AlTi
Overview of AlTi AlTi Global 3
Slide 4: AlTi at a Glance
AlTi at a Glance Delivering transformational ideas that create enduring value $72 B Assets Under Advisement ~430 Professionals with Diverse 20+ Year Operating History $5 B Committed to Impact $2 B Invested Alongside Clients (AUM/AUA) Experience & Expertise Strategies Global footprint with presence i
Slide 5: Unique business model combines UHNW wealth management with targeted expertise in alternatives
PRELIMINARY DRAFT – SUBJECT TO REVIEW Unique business model combines UHNW wealth management with targeted expertise in alternatives Wealth Management Strategic Alternatives $56B $16B(1) Scale Scale AUM/AUA AUM/AUA 99% 93% Recurring revenues Recurring revenues In 2Q’24 In 2Q’24 97% $1.1B High client
Slide 6: AlTi's growth is powered by three strong secular tailwinds
AlTi’s growth is powered by three strong secular tailwinds Generational Wealth Transfer(1) Global Demand for Alternatives(2) Shifting to Independence(1) U.S. Wealth Transfer Alternative AUM/AUA Growth and Forecast U.S. Independent Advisor AUM/AUA (2021-2045P) (2011-2026P) (2014-2024P)(3) ($ in Trill
Slide 7: Investment thesis
Investment thesis Identified pipeline Destination of Substantial, Comprehensive Growing global Recurring and World-class Strong capital of inorganic growth choice for UHNW expanding platform approach footprint diversified revenue leadership structure opportunities wealth managers addressable market
Slide 8: Second Quarter Highlights
Second Quarter Highlights AlTi Global 8
Slide 9: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights • Revenues of $49.5 million • 99% of Total Revenues are recurring Financial (1) • GAAP Net Loss of $9.0 million, Adjusted Net Loss of $2.6 million • Adjusted EBITDA of $5.5 million Wealth Management Strategic Alternatives Key Performance • $55.9 billion of AUM/AUA, inc
Slide 10: Second Quarter 2024 Select Financial and Operating Metrics
Second Quarter 2024 Select Financial and Operating Metrics • Revenue of $49.5M decreased 4% YoY primarily due to a decrease in other income related to ($ in Millions) 2Q’24 1Q’24 2Q’23(2) transactional fees. Management fees were essentially flat as fee reductions from businesses Revenue $49.5 $50.8
Slide 11: Segment Highlights
Segment Highlights AlTi Global 11
Slide 12: Wealth Management
Wealth Management Select Financial and Operating Metrics ($ in Millions) 2Q’24 1Q’24 2Q’23 • Revenue of $40.9M increased 20% YoY, and AUM/AUA increased 15% in the period to the consolidation of East End and market performance. 100% of revenues in Q2 2024 were from Revenue $40.9 $36.8 $34.0 recurring
Slide 13: Wealth Management Operating Metrics – AUM/AUA
Wealth Management Operating Metrics – AUM/AUA Wealth Management AUM: $40.4 billion AUA: $55.9 billion Assets Under Advisement (AUA) Assets Under Management (AUM) ($ in Billions) 2Q’24 1Q’24 2Q'23 ($ in Billions) 2Q’24 1Q’24 2Q'23 Beginning Balance: $53.5 $51.0 $45.6 Beginning Balance: $35.5 $34.5 $3
Slide 14: Strategic Alternatives
Strategic Alternatives Select Financial and Operating Metrics ($ in Millions) 2Q’24 1Q’24 2Q’23 • Revenue of $8.6M decreased $8.8M YoY largely driven by lower management fees and reduced transactional fees in the real estate division reflecting our repositioning of the private Revenue $8.6 $14.0 $17
Slide 15: Strategic Alternatives Operating Metrics – AUM/AUA
Strategic Alternatives Operating Metrics – AUM/AUA Real Estate - Public & Private Funds ($ in Billions) 2Q’24 1Q’24 2Q’23 Strategic Alternatives Beginning Balance: $10.0 $12.7 $12.8 AUM: $2.5 billion Change (1.4) (2.7) (0.5) AUA: $16.0 billion AUM/AUA at quarter end (1) $8.6 $10.0 $12.4 Average AUM/
Slide 16: Strategic Alternatives Operating Metrics – Fund Performance
Strategic Alternatives Operating Metrics – Fund Performance Alternatives Platform Fund Performance(1) ($ in Millions) 2Q’24 1Q’24 4Q’23 3Q’23 2Q’23 Event-driven 0.02% (0.26%) 5.40% 4.95% (0.35%) External Strategic Managers: Real Estate Bridge Lending 0.81% 0.40% 0.34% 1.24% 0.75% European Long Short
Slide 17: Appendix
Appendix AlTi Global 17
Slide 18: Consolidated Income Statement
Consolidated Income Statement ($ in Thousands, except share data) 2Q’24 1Q’24 2Q’23 Revenue Unaudited Unaudited Unaudited Management/advisory fees $ 47,029 $ 46,224 $ 46,844 Incentive fees 53 163 469 Distributions from investments 2,240 4,170 2,203 Other income/fees 131 255 1,769 Total income 49,453
Slide 19: Consolidated Balance Sheet
Consolidated Balance Sheet ($ in Thousands, except share data) As of June 30, 2024 As of March 31, 2024 As of December 31, 2023 Assets Unaudited Unaudited Audited Cash and cash equivalents 59,984 134,237 15,348 Fees receivable, net 32,381 35,087 70,421 Investments at fair value 162,234 160,469 165,8
Slide 20: Non-GAAP Reconciliation Q2 2024
Non-GAAP Reconciliation Q2 2024 2Q’24 ($ in Thousands) Strategic Alternatives Segment Wealth Management Segment Total AlTi Net income (loss) before taxes $ (13,611) $ 3,896 $ (9,715) Stock based compensation (1) 865 2,734 3,599 Transaction expenses (2) 2,008 6,345 8,353 Changes in fair value of warr
Slide 21: Non-GAAP Reconciliation Q1 2024
Non-GAAP Reconciliation Q1 2024 1Q’24 ($ in Thousands) Strategic Alternatives Segment Wealth Management Segment Total AlTi Net income (loss) before taxes $ 7,721 $ 14,388 $ 22,108 Stock based compensation (1) 1,222 5,268 6,490 Stock compensation- Legacy (2) (39) (38) (77) Transaction expenses (3) 4,
Slide 22: Non-GAAP Reconciliation Q2 2023
Non-GAAP Reconciliation Q2 2023 2Q’23 ($ in Thousands) Strategic Alternatives Segment Wealth Management Segment Total AlTi Net income (loss) before taxes $ (13,150) $ 25,834 $ 12,684 Stock based compensation (1) 510 3,589 4,099 Transaction expenses (2) 4,918 7,103 12,021 Changes in fair value of war
Slide 23: Capital raises structured to align with strategic and financial goals
Capital raises structured to align with strategic and financial goals 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 mi
Slide 24: 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 25: 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 June 3
Slide 26: Thank You
Thank You AlTi Global 26