Executive Summary / Key Takeaways

• Strategic Transformation Underway: AlTi Global is executing a decisive pivot to become a leading, high-margin global wealth manager focused on the ultra-high-net-worth (UHNW) segment, divesting non-core assets and aggressively optimizing its cost structure.
• Operational Efficiency Driving Future Margins: The implementation of Zero-Based Budgeting (ZBB) is projected to deliver approximately $20 million in recurring annual gross savings from non-compensation expenses starting in the second half of 2025, significantly enhancing profitability.
• Core Business Growth Accelerating: The Wealth Capital Solutions segment demonstrated robust performance in H1 2025, with revenue up 15.21% year-over-year and Adjusted EBITDA growing 29.81%, fueled by strategic acquisitions like Kontora and strong organic client wins.
• Enhanced Global Footprint and Differentiated Offerings: Recent acquisitions, particularly Kontora in Germany, and strategic partnerships with Allianz (ALV) are expanding AlTi's international reach and providing clients with unique access to private markets, strengthening its competitive moat.
• Path to Sustainable Profitability: While recent GAAP results reflect temporary transformation costs and fair value adjustments, management anticipates a leaner, more disciplined cost structure and continued growth in core recurring revenue to drive substantial operating leverage and improved financial performance from H2 2025 onwards.

The AlTi Global Vision: Cultivating Wealth in a Dynamic World

AlTi Global, Inc. (ALTI) is carving out a distinctive niche in the expansive and rapidly growing ultra-high-net-worth (UHNW) wealth management landscape. With approximately $97.20 billion in combined assets under management and advisement (AUM/AUA) as of June 30, 2025, AlTi positions itself as an independent global fiduciary advisor. Its mission is to serve entrepreneurs, multi-generational families, institutions, and emerging leaders with holistic solutions, emphasizing impact and values-aligned investing. This strategic focus targets a $102 trillion addressable market, projected to grow at a 7% CAGR by 2028, making it the fastest-growing segment in wealth management.

The company's journey began with its formal establishment on January 3, 2023, through a significant Business Combination that integrated several entities, including Tiedemann Wealth Capital Solutions Holdings, LLC (TWMH) and Alvarium Investments Limited. This foundational event set the stage for AlTi's strategic evolution, marked by a series of acquisitions and divestitures designed to streamline operations and concentrate on core competencies. Key partnerships, notably with Allianz and Constellation Wealth Capital (CWC) in February 2024, injected substantial capital and strategic collaboration, further fortifying AlTi's wealth management solutions and global reach.

AlTi's overarching strategy is to transform into a focused, high-margin, scalable UHNW wealth manager. This involves a deliberate effort to shed non-core assets, aggressively optimize its cost structure, and strategically acquire and partner for growth. The "so what" for investors is clear: this transformation aims to unlock significant operating leverage and drive sustainable, profitable growth, moving the company beyond a period characterized by integration complexities and restructuring costs.

Technological Edge: Powering Operational Excellence and Client Service

AlTi's technological differentiation is not rooted in a single product, but rather in its strategic investment in operational technology to enhance efficiency, scalability, and client service across its global platform. The company has established operational centers of excellence in Lisbon for international operations and Delaware for U.S. Trust and Fiduciary services, leveraging these hubs for streamlined processes. A significant ongoing initiative involves advancing the automation of key finance functions and making progress towards full Sarbanes-Oxley (SOX) readiness, which is critical for robust financial governance.

Under the leadership of a Chief Technology Officer appointed in October 2024, AlTi is actively transforming its technology platforms. This includes building a core data platform to centralize analytics, incorporating AI initiatives, and overhauling its Customer Relationship Management (CRM) system. The goal is to establish globally consistent workflows that improve advisor productivity and further elevate service quality. These technological investments are designed to reduce costs and accelerate the integration of future acquisitions, directly contributing to AlTi's competitive moat by enabling more efficient service delivery and a superior client experience. For investors, this translates into the potential for improved financial performance through lower operational costs and better margins, reinforcing AlTi's market positioning as a sophisticated, client-centric wealth manager.

Strategic Realignment: Sharpening the Focus

A cornerstone of AlTi's transformation is the decisive realignment of its business, particularly the divestiture of non-core assets. Following a strategic review initiated in September 2024, the International Real Estate Businesses were deemed non-core to AlTi's long-term strategy due to ongoing losses. This segment had been a consistent drag on adjusted EBITDA, running at approximately $2 million negative per quarter.

On July 11, 2025, AlTi's board of directors approved a plan to conduct an orderly wind-down of these businesses, appointing Teneo to manage the process. This strategic exit is a major milestone in simplifying the firm and reallocating resources towards its highest conviction area: businesses anchored in recurring revenue and positioned for scalable growth. Management anticipates that once the wind-down is complete and accounting is finalized, the elimination of these expenses will lead to significantly lower overall costs and higher EBITDA from the second half of 2025.

Growth Pillars: Acquisitions and Organic Momentum

AlTi is actively pursuing growth through both strategic acquisitions and robust organic initiatives, expanding its global footprint and enhancing its service offerings. A significant milestone was the acquisition of Kontora Family Office GmbH, completed on April 30, 2025. This acquisition marked AlTi's official entry into Germany, adding approximately $16 billion in billable assets and substantially expanding its European platform into one of the largest UHNW markets globally. Kontora, a Hamburg-based multi-family office, aligns with AlTi's independent, entrepreneurial model and is expected to be accretive to EBITDA in 2025, enhancing platform profitability through increased scale and operational synergies. Since the announcement, Kontora has already secured two major client mandates, demonstrating immediate commercial momentum.

The company's inorganic growth strategy in 2024 included the acquisition of East End Advisors, LLC (EEA) in April, adding nearly $6 billion in AUM and enhancing OCIO capabilities. This was followed by the acquisition of Envoi, LLC in July, a Minneapolis-based wealth manager with $3 billion in AUM, expanding AlTi's U.S. footprint. AlTi also increased its ownership in London-based Pointwise Partners Limited to 100% in May 2024. These acquisitions are complemented by a strong organic growth engine. In the first half of 2025, AlTi signed new international clients with over $500 million in projected billable assets and expanded relationships across nearly 50 existing clients. In the U.S., new and expanded mandates totaled nearly $430 million in projected billable assets through June, with a robust pipeline including several sizable OCIO opportunities.

A key differentiator is AlTi's strategic partnership with Allianz, which launched a private credit program in December 2023. This joint venture provides unprecedented private market access, allowing international clients to invest alongside Allianz's balance sheet, accessing top-tier third-party managers, secondaries, and co-investments. The first fund, focused on the $1.5 trillion global private credit market, secured approximately $240 million in commitments from international wealth clients by Q1 2025, with a U.S. client launch scheduled for the second half of the year. AlTi's client relationships are exceptionally strong, evidenced by a 96% retention rate, underscoring the durability of its business model.

Operational Discipline: Unlocking Margin Expansion

AlTi is aggressively pursuing operational efficiency to unlock greater operating leverage and drive margin expansion. In late 2024, the company launched a comprehensive resource optimization program, including the implementation of Zero-Based Budgeting (ZBB). This rigorous, line-by-line review of expenses across all segments aims to cut unnecessary spending and reallocate resources to strategic priorities. Reviews across most non-compensation costs were largely complete by April 2025, with management expecting approximately $20 million in recurring annual gross savings across non-compensation expense categories. These savings are anticipated to begin materializing in the second half of 2025 and be fully reflected in 2026, creating a leaner operating model.

Further initiatives include bringing certain professional services in-house, consolidating vendors, renegotiating contracts, and optimizing global office occupancy through rent and space reductions. To ensure sustained discipline, AlTi has implemented cost governance tools, including a centralized procurement function and an executive-level cost approval committee. These efforts are designed to expand margins, strengthen profitability, and capture the full operating leverage inherent in AlTi's platform, driving long-term value creation for shareholders.

Financial Performance: A Glimpse of Emerging Strength

AlTi's recent financial performance reflects a business in active transformation, with core segments showing strength despite the "temporary noise" of restructuring. For the three months ended June 30, 2025, consolidated revenue grew 7% year-over-year to $53.127 million. The core Wealth Capital Solutions (WCS) segment was the primary driver, with revenue increasing 8.21% to $52.376 million. This growth was fueled by a 6.46% increase in management and advisory fees and a notable 756.6% surge in incentive fees, primarily from crystallized fees in the TIG Arbitrage strategy. Distributions from investments in WCS also rose 18.93% year-over-year.

For the six months ended June 30, 2025, WCS revenue increased 15.21% year-over-year to $109.462 million, with distributions from investments up 132.04% due to stronger performance in European Equities and Asian Credit and Special Situation strategies. The International Real Estate segment, conversely, saw its revenue decline by 20.70% in Q2 2025 and 68.41% in H1 2025, underscoring the strategic rationale for its wind-down. Consolidated Adjusted EBITDA for Q2 2025 was $4 million, including a $1 million loss from the International Real Estate segment. The core WCS segment delivered $14 million in Adjusted EBITDA for Q2 2025, with its like-for-like EBITDA margin (excluding incentive fees) improving from 20% in Q2 2024 to 26% in Q2 2025, reflecting asset growth and early efficiency gains.

GAAP net loss for Q2 2025 was $30.043 million, and for H1 2025, it was $32.925 million. These losses are largely attributable to one-time professional fees associated with the ZBB program ($7 million in Q2 2025), fair value adjustments on earn-out liabilities ($7.4 million loss in Q2 2025), and significant non-cash impairment charges recorded in Q3 2024 ($116.1 million for goodwill and intangible assets related to the Strategic Alternative and International Real Estate segments). The effective tax rate for H1 2025 was 16.1%, impacted by valuation allowances on deferred tax assets and certain gains on contingent liabilities.

AlTi ended Q2 2025 with $42 million in cash and is effectively debt-free, having repaid its BMO (BMO) Credit Facility in December 2024. This strong liquidity position provides a solid foundation for future strategic initiatives.

Net operating cash outflow for H1 2025 was $50.1 million, influenced by decreases in accrued compensation and accounts payable, while net cash provided by investing activities was $13.3 million, boosted by the sale of an equity method investment.

Competitive Arena: AlTi's Differentiated Stance

AlTi operates in a highly competitive wealth and asset management industry, facing off against diversified financial giants and specialized alternative asset managers. Its primary competitive advantage lies in its specialized focus on the UHNW segment, offering a truly global, open-architecture platform with comprehensive, conflict-free advice. This contrasts with larger, more diversified players like BlackRock (BLK), Blackstone (BX), and Morgan Stanley (MS).

BlackRock, a global asset management powerhouse, excels in broad, technology-driven institutional asset management, leveraging its Aladdin platform for scale and efficiency. While BlackRock demonstrates consistent revenue growth and strong profitability (Gross Profit Margin 49%, Net Profit Margin 31% in 2024), AlTi differentiates through personalized, multi-generational wealth planning and fiduciary services. AlTi's operational technology investments aim to improve productivity and client service, but it currently lags BlackRock in innovation speed and sheer market reach.

Blackstone, a leader in alternative asset management, focuses on large-scale private equity, real estate, and credit deals for institutional clients, exhibiting robust revenue growth and strong margins (Gross Profit Margin 96%, Net Profit Margin 24% in 2024). AlTi's merchant banking and advisory services overlap, but AlTi is more client-centric for family offices, integrating personal financial strategy with business advisory. AlTi's strength in holistic wealth management exploits Blackstone's relative weakness in individualized planning, though AlTi may trail in capital markets growth and overall financial performance due to its more specialized approach.

Morgan Stanley, a global investment bank with a strong wealth management division, offers a full suite of investment banking services alongside wealth management. Morgan Stanley shows solid revenue growth and consistent profitability (Gross Profit Margin 56%, Net Profit Margin 13% in 2024). AlTi's emphasis on integrated trust and fiduciary services provides greater depth in wealth transfer planning compared to Morgan Stanley's broader, transaction-oriented approach. While AlTi may lead in operational execution for personalized services, Morgan Stanley's scale provides wider access to capital markets and faster deal execution.

AlTi's competitive moats include its strong brand in family office services, proprietary expertise in wealth transfer planning, and established global networks. These advantages foster high client loyalty (96% retention rate) and recurring revenue streams, potentially leading to superior margins in its niche. However, AlTi's relatively smaller scale and historical operational cost base (though being aggressively addressed by ZBB) represent vulnerabilities compared to its larger rivals. The company strategically positions itself by focusing on underserved markets and leveraging its partnerships, such as the Allianz private credit program, to offer unique investment opportunities typically reserved for the largest institutions.

Risks and Challenges: A Clear-Eyed View

Despite its strategic progress, AlTi faces several pertinent risks and challenges. The ongoing legal proceedings and UK Financial Conduct Authority (FCA) investigations related to the legacy International Real Estate Businesses (Home REIT and HLIF) represent a significant concern. While AlTi intends to vigorously defend against potential claims, the exposure could be material, involving complex legal questions and substantial expenses. The orderly wind-down of these businesses, while strategic, may incur unforeseen costs not yet reflected in current financials.

Internally, AlTi has identified material weaknesses in its internal control over financial reporting, particularly concerning process-level and information technology controls. While remediation efforts are underway and management expects completion by December 31, 2025, failure to fully address these could impact financial reporting accuracy and investor confidence. Furthermore, AlTi's business performance remains susceptible to broader macroeconomic conditions, including market volatility, interest rate fluctuations, and geopolitical events. A slowdown in inflows or sustained market declines could negatively affect management fees, despite the company's focus on high-quality, diversified assets. The successful execution of the ZBB initiatives and the seamless integration of new acquisitions are critical to realizing the projected cost savings and margin expansion.

Conclusion

AlTi Global is undergoing a profound strategic transformation, shedding non-core assets and aggressively optimizing its operations to emerge as a highly focused and efficient UHNW wealth manager. The decisive wind-down of its International Real Estate segment, coupled with the rigorous implementation of Zero-Based Budgeting, signals a clear commitment to unlocking operating leverage and driving sustainable profitability. These initiatives, projected to deliver $20 million in annual gross savings, are poised to significantly enhance the company's financial profile from the second half of 2025.

The core investment thesis for AlTi rests on its ability to capitalize on the expanding UHNW market through a differentiated global platform, strategic acquisitions like Kontora, and unique partnerships with industry giants such as Allianz. While recent GAAP results reflect the temporary costs of this transformation, the underlying growth in its Wealth Capital Solutions segment and improving EBITDA margins point to an emerging strength. As AlTi continues to execute its technological roadmap and solidify its competitive position through personalized service and expanded offerings, investors should monitor the realization of cost savings, the successful integration of new businesses, and the effective navigation of ongoing legal and regulatory challenges. The path ahead for AlTi is one of deliberate execution, aiming to translate strategic clarity into enhanced shareholder value.