AlTi Global (ALTI) 8 Nov 24 2024 Q3 Earnings call transcript

In AlTi's third quarter 2024 earnings call, executives discussed significant strides in expanding their global platform and capitalizing on the $102 trillion addressable market for wealth management services, with a focus on ultra-high net worth clients. The call provided insights into the company's strategic partnerships, financial performance, and future growth prospects.

Strategic Partnerships and Market Opportunities

AlTi's partnership with Allianz X and Constellation Wealth Capital (CWC) was highlighted as a transformative move, expanding and strengthening the company's footprint while fortifying its wealth management solutions. This partnership, along with the acquisitions of Envoi and East End Advisors, has deepened AlTi's presence in key regions and added OCIO capabilities. The collaboration with Allianz also brings unprecedented private market access to ultra-high net worth clients, enabling them to invest alongside Allianz's balance sheet.

Financial Performance and Growth

The company reported a 13% increase in assets under management and advisement over the trailing 12-month period, with $77 billion in assets. Revenues for the third quarter reached $53.3 million, up 8% from the previous quarter and 11% compared to the third quarter of 2023. Notably, 97% of the revenues in the quarter were from recurring fees, underscoring AlTi's steady revenue stream. The company's adjusted EBITDA increased by $12.6 million compared to the third quarter of 2023, and $13.4 million in the Wealth and Capital Solutions segment, up 62%.

Operational Updates and Future Plans

AlTi's strategic review of its real estate businesses led to a decision to change the composition of its reporting segments, focusing on Wealth and Capital Solutions and International Real Estate. The company also welcomed Phil Dundas as CTO to further incorporate technology throughout its business and ensure best-in-class services to its global client base. AlTi is positioning itself to execute select strategic deals in complementary geographies based on its disciplined approach and acquisition criteria.

Challenges and Outlook

The earnings call also touched on the impact of interest rates on AlTi's business, noting that the company is well positioned for the outcome. However, geopolitical dynamics and currency effects are expected to have varying impacts. The company remains cautious about discussing politics and its potential impact on the business.

Overall, AlTi's earnings call painted a picture of a company with a strong financial performance, strategic partnerships, and a clear focus on growth. The company's ability to adapt and expand its offerings to meet the evolving needs of ultra-high net worth clients, along with its strategic investments in technology and partnerships, positions AlTi well for future success.