AlTi Global (ALTI) 9 Aug 24 2024 Q2 Earnings call transcript

AlTi Tiedemann Global, a leading independent ultra-high-net-worth wealth management firm, delivered a robust performance in the second quarter of 2021, showcasing strategic acquisitions, operational efficiency, and a solid outlook for future growth.

Momentous Quarter with Strategic Acquisitions

AlTi Tiedemann Global's strategic plan is gaining momentum, with four significant transactions closed in the last four months, two in the U.S. and two internationally. These acquisitions, including East End Advisors and Envoi, are integral to the company's mission to expand its best-in-class platform and optimize its cost structure. The recent investment of $250 million from Allianz underscores the confidence of global blue-chip financial services leaders in AlTi's strategic vision and financial health.

Financial Highlights

The company reported a consolidated net loss of $9 million, primarily due to a decline in other income as the prior year period included a significant unrealized gain on earn-out liabilities. However, adjusted EBITDA for the quarter stood at $5.5 million, reflecting a solid 11% margin. Revenues for the quarter were $49 million, with 99% of them derived from recurring fees, indicating a strong focus on stable, long-term revenue sources.

Growth Initiatives and Strategic Shifts

AlTi Tiedemann Global's assets under management and advisement have grown to $72 billion, with a significant increase in its Wealth Management segment, which now accounts for $56 billion. The company's strategic repositioning towards recurring revenues and a leaner cost structure is evident, with 99% of revenues in Q2 being from recurring fees. AlTi is also focusing on expanding its presence in key markets and deepening its client relationships, leveraging the expertise and resources of its strategic partners.

Looking Ahead

The outlook for AlTi Tiedemann Global remains positive, with a clear focus on strategic acquisitions, organic growth, and operational efficiency. The company's ability to attract high-quality institutional investment, coupled with its strategic partnerships and focus on core recurring revenue businesses, positions it well for long-term success in the attractive global wealth market. As AlTi Tiedemann Global continues to execute on its strategic plan, investors and stakeholders can look forward to a robust pipeline of opportunities and a solid foundation for sustainable growth.