AlTi Global’s Earnings Calls: CEO Transition Rationale, ZBB Savings Timelines, and Kontora Impact Signals Don’t Match

Date of Call: Mar 31, 2026

Financials Results

• Revenue: $255M for full year 2025, up 29% YOY
• Operating Margin: Adjusted EBITDA margin was 14% for the year and 13% for the quarter

Guidance:

• Expect 2026 to mark a turning point for the business.
• Benefits from zero-based budgeting and platform efficiencies to become increasingly visible.
• Financial profile expected to reflect underlying strength as initiatives take hold.

Business Commentary:

CEO Transition and Strategic Focus:

• AlTi Global, Inc. announced that Michael Tiedemann will be stepping down as CEO after more than 25 years, and Nancy Curtin will become Interim CEO.
• The leadership change was part of the company's ongoing focus and next phase of growth, with the strategy of serving the ultra-high net worth segment remaining unchanged.

Revenue and AUM Growth:

• AlTi generated $255 million in total revenues for 2025, representing 29% growth compared to 2024, with total assets under management reaching $50 billion, up 10% year-over-year.
• Growth was driven by strong investment performance, the acquisition of Kontora, and contributions from incentive fees.

Cost Management and Efficiency Initiatives:

• The company identified $20 million of recurring annual gross savings through the adoption of zero-based budgeting, with the majority expected to be realized by year-end 2026.
• Initiatives included exiting the noncore international real estate business and optimizing office occupancy and technology expenses.

Special Committee and Strategic Review:

• A special committee was formed to review strategic options to maximize long-term value for shareholders, with no proposals received that encapsulate the long-term value of the business.
• The committee continues to evaluate alternatives with a focus on enhancing shareholder value, informed by the company's strategy and strong management team.

Sentiment Analysis:

Overall Tone: Positive

• Management expressed pride in accomplishments, confidence in the team, and optimism for the future. Stated: 'We expect our results to increasingly reflect the strong fundamentals of the company' and 'we believe AlTi is well positioned to deliver sustained growth and increased profitability over time.'

Q&A:

• Question from Wilma Jackson Burdis (Raymond James & Associates, Inc.): Could you provide a little bit more color on the decision to transition CEOs and just talk about what the search process looks like from here?
  Response: The leadership transition was a thoughtful board decision to appoint a new leader for the next phase of growth, with continued execution of the existing strategy. The management team is long-tenured and focused on organic growth and cost optimization.

• Question from Wilma Jackson Burdis (Raymond James & Associates, Inc.): Can you just give us an update? I mean it sounds like is this more of a pivot towards focusing on operating. Can you just talk a little bit more about how that all fits together?
  Response: The strategy remains unchanged, focused on being a global ultra-high net worth leader. The emphasis is on organic growth, optimizing the cost structure via zero-based budgeting, and exploring inorganic opportunities while scaling the business.

• Question from Wilma Jackson Burdis (Raymond James & Associates, Inc.): Maybe give us a little bit more color on that [merger arbitrage performance].
  Response: The merger arbitrage strategy had an 11.3% return in 2025, driving strong management fees and incentive fees. M&A activity is picking up, presenting a ripe opportunity for the strategy in 2026.

• Question from Wilma Jackson Burdis (Raymond James & Associates, Inc.): Can you just touch on that a little bit [AUA additions]?
  Response: AUA growth in 2025 was primarily driven by the Kontora acquisition. Quarterly AUA movements reflect typical client asset flows across their entire portfolio, including non-financial assets like real estate.

• Question from Wilma Jackson Burdis (Raymond James & Associates, Inc.): Could you give us a little more color on the 13D that was filed by Allianz?
  Response: Allianz is a strategic partner; the 13D filing is regulatory and does not indicate specific intentions. Any strategic proposal would be evaluated by the independent special committee.

• Question from Wilma Jackson Burdis (Raymond James & Associates, Inc.): Could you just give us a little bit more detail on ZBB, where you stand with that? What's to come? What else you're doing there?
  Response: Zero-based budgeting identified $20M in annual savings to be realized over about 9 quarters through 2027 as contracts expire. 2026 will see continued cost reductions in technology and occupancy expenses.

• Question from Wilma Jackson Burdis (Raymond James & Associates, Inc.): Can you just remind us where that stands [Allianz standstill]?
  Response: Allianz has a standstill agreement in place that would require Board approval to waive. They would discuss any move with the special committee.

• Question from Wilma Jackson Burdis (Raymond James & Associates, Inc.): Could you just give us a quick reminder of where you stand with capital and potential to grow, acquire new advisers or new platforms?
  Response: Organic growth does not require additional capital. For inorganic opportunities, capital is readily available from providers due to the firm's strong accretive potential.

Contradiction Point 1

CEO Transition Rationale and Strategy Clarity

Contradiction on whether the CEO transition is a strategic pivot or a continuity decision.

Wilma Jackson Burdis (Raymond James & Associates, Inc., Research Division) - Wilma Jackson Burdis (Raymond James & Associates, Inc., Research Division)

2025Q4: The CEO transition was a thoughtful decision... to appoint a new leader for the next chapter of growth. The overall strategy... remains unchanged. - Nancy Curtin and Kevin Moran(CEO)

Can you elaborate on the decision to transition CEOs and the current status of the CEO search process? - Wilma Jackson Burdis (Raymond James)

20251113-2025 Q3: Internally, the firm is always having strategic conversations about growth, acquisitions, and the stock price, but has no specific announcements. - Michael Harrington(CFO) and Michael Tiedemann(CEO)

Contradiction Point 2

Zero-Based Budgeting (ZBB) Savings Timeline

Contradiction on the expected timeline to realize significant ZBB cost savings.

Wilma Jackson Burdis (Raymond James & Associates, Inc., Research Division) - Wilma Jackson Burdis (Raymond James & Associates, Inc., Research Division)

2025Q4: The identified $20 million in annual gross savings will be realized over about 9 quarters through the end of Q1 2027. - Kevin Moran(CFO)

Can you provide more details on ZBB, including your current progress, upcoming plans, and other initiatives? - Wilma Jackson Burdis (Raymond James)

20251113-2025 Q3: Future EBITDA is expected to expand due to: 1) benefits from the Zero-Based Budgeting (ZBB) program... - Michael Harrington(CFO) and Michael Tiedemann(CEO)

Contradiction Point 3

Financial Impact and Timeline of Kontora Acquisition

Contradiction on whether the acquisition drives immediate AUA growth or is a strategic, margin-improving integration.

Wilma Jackson Burdis (Raymond James & Associates, Inc., Research Division) - Wilma Jackson Burdis (Raymond James & Associates, Inc., Research Division)

2025Q4: AUA growth was primarily driven by the acquisition of Kontora... The strategy is to convert Kontora's AUA (non-financial assets like real estate) to AUM (managed investment assets) over time... - Kevin Moran(CFO)

Can you provide details on the recent additions to AUA? - Wilma Carter Jackson Burdis (Raymond James)

2025Q2: The Kontora acquisition is strategically sound... The integration is focused on... 2) converting the existing client base to more discretionary mandates. The deal structure is incentive-aligned, with future consideration tied to driving margins over time. - Michael Glenn Tiedemann(CEO)

Contradiction Point 4

EBITDA Improvement Timeline

Contradiction on when the wind-down of a loss-making business will significantly boost EBITDA.

Wilma Jackson Burdis (Raymond James & Associates, Inc., Research Division) - Wilma Jackson Burdis (Raymond James & Associates, Inc., Research Division)

2025Q4: The overall strategy... remains unchanged. The focus is on organic growth, optimizing the cost structure, and scaling the business. - Nancy Curtin and Kevin Moran(CFO)

Can you provide an update on the strategic pivot toward operating focus and explain how these changes integrate? - Wilma Carter Jackson Burdis (Raymond James)

2025Q2: Once the wind-down is complete, expenses related to this business will go away, leading to significantly higher EBITDA. The benefit will be realized starting in the second half of 2025. - Michael William Harrington(CFO)

Contradiction Point 5

Status and Impact of Zero-Based Budgeting (ZBB)

Contradiction on the timeline and financial impact of the ZBB process.

Wilma Jackson Burdis (Raymond James & Associates, Inc., Research Division) - Wilma Jackson Burdis (Raymond James & Associates, Inc., Research Division)

2025Q4: The identified $20 million in annual gross savings will be realized over about 9 quarters through the end of Q1 2027 as contracts expire. - Kevin Moran(CFO)

Can you provide more details on ZBB, including your current progress, upcoming plans, and other initiatives in this area? - Wilma Burdis (Raymond James)

2025Q1: The company plans to provide a more detailed and quantitative update on the financial impact in August. - Michael Tiedemann(CEO) and Mike Harrington(CFO)