AlTi Global's Post-Merger Turnaround: A Buy Signal for the Opportunistic Investor

The merger of Cartesian Growth and Alvarium to form AlTi Global in 2023 has long been a story of transformative potential. Now, with Q1 2025 results signaling stabilized post-merger performance and operational integration metrics finally hitting the books, the time to act is now. Let’s dissect why this under-the-radar wealth manager is primed for a valuation reset—and why investors ignoring its data-driven turnaround risk missing out.

The Merger’s Hidden Metrics: SEC Filings Reveal Stabilization

AlTi’s amended SEC filings since 2023, now incorporating legacy Cartesian Growth metrics, paint a picture of operational alignment. Key metrics include:
- $501M in intangible assets (up from $20.6M pre-merger), reflecting consolidated client relationships and brand equity.
- $409M in goodwill, down from earlier overhangs, signaling reduced integration risk.
- $52M in cash with no debt, providing a war chest for accretive M&A.

While the stock has lagged broader markets, the disconnect between fundamentals and valuation is stark. The Q1 2025 results—released May 12—provide the catalyst to close this gap.

Cost Synergies: The ZBB Revolution

AlTi’s Zero-Based Budgeting (ZBB) initiative is the unsung hero of its turnaround. By resetting spending from scratch, the firm has:
- Reduced normalized operating expenses by $13M sequentially, with further cuts expected in 2026.
- Targeted non-compensation costs (professional services, marketing, occupancy) for 2025 savings.

The CFO’s emphasis on “reallocation to strategic priorities” isn’t just jargon: ZBB has already enabled cuts to non-core operations while protecting revenue-generating teams. The exit of its international real estate segment—a drag on margins—frees capital for core wealth management.

Revenue Cross-Leveraging: Kontoora’s German Play

The $14B AUM acquisition of Kontoora, Germany’s premier multifamily office, is AlTi’s Trojan Horse into Europe’s third-largest UHNW market. Key wins:
- Two major client mandates secured post-acquisition, with more in the pipeline.
- Cross-selling opportunities between AlTi’s impact investing platforms and Kontoora’s local client base.

The partnership with AllianzX further amplifies this: a $240M private credit program launched in late 2024 is already attracting global capital. These moves align with AlTi’s 83% recurring revenue base, a figure that should grow as Kontoora’s assets are folded into fee-based strategies.

Financial Resilience: Numbers That Demand Attention

Q1 2025 results are a milestone:
- Revenue up 14% YoY to $58M, driven by the Wealth and Capital Solutions segment (+23%).
- Adjusted EBITDA surged 38% YoY to $9M, with EBITDA margins expanding as synergies materialize.
- Assets under management (AUM) rose 10% YoY, now totaling $82B (including $32B internationally).

Crucially, these metrics are pre-impact of Kontoora’s full integration. Analysts project 22% revenue growth for 2025, with consensus targets at $9—more than double the current price of $3.44.

Why Buy Now? The Market’s Blind Spot

The stock’s lagging performance reflects two factors:
1. Short-term volatility: A Q1 net loss ($3M) due to non-recurring items (e.g., investment fair-value adjustments) has spooked short-term traders.
2. Underappreciation of integration: Investors have yet to fully price in the $500M+ annual synergies ZBB and Kontoora could unlock by 2026.

The upside? A $9 price target implies 160% upside, achievable if 2025 guidance is met. With $52M in cash and a debt-free balance sheet, AlTi can weather near-term noise while executing its strategy.

Risks? Yes—but Manageable

• Execution risk: Kontoora’s integration could face cultural or regulatory hurdles.
• Market volatility: Equity market downturns could pressure AUM.

But AlTi’s diversified portfolio (private credit, real assets) buffers against macro uncertainty. Meanwhile, the ZBB-driven margin expansion plan is a hedge against any slowdown.

Conclusion: A Turnaround at Inflection Point

AlTi Global is no longer the post-merger uncertainty story it was in 2023. The Q1 results, SEC metrics, and strategic moves all point to a company that’s:
- Cost-optimized: ZBB and real estate exit set the stage for margin growth.
- Revenue-ready: Kontoora and AllianzX partnerships are unlocking new markets.
- Valuation undervalued: A 160% upside target isn’t a stretch.

For investors seeking a leveraged play on global wealth management’s resilience, AlTi’s $3.44 stock is a buy now opportunity. The market will recognize this—act before it does.

Final Call to Action: AlTi Global’s post-merger transformation is no longer theoretical. With synergies materializing and a fortress balance sheet, this is a rare chance to buy a wealth management leader at a discount.