AlTi Global, Inc. (ALTI) is a leading independent global wealth and alternatives manager that has been rapidly transforming the wealth management industry through its innovative approach and strategic partnerships. With a strong focus on serving ultra-high-net-worth (UHNW) individuals, families, and institutions, the company has established itself as a formidable player in the wealth management space.
Business Overview and History
AlTi Global, Inc. was initially incorporated in the Cayman Islands as Cartesian Growth Capital, a special purpose acquisition company. In January 2023, Cartesian completed a business combination transaction that included certain legacy Alvarium companies. As part of this transaction, Cartesian was redomiciled as a Delaware corporation and changed its name to Alvarium Tiedemann Holdings, Inc. Effective April 2023, Alvarium Tiedemann Holdings, Inc. changed its name to AlTi Global, Inc.
The primary purpose of the business combination was to combine established high-growth companies that could benefit from access to capital and public markets, and continue value-creation under the management team. AlTi Global acquired 51% of the equity interests of Umbrella, which held 100% of the equity interests of Alvarium, Tiedemann Wealth Management Holdings (TWMH), and Trinity Investment Group (TIG). The remaining 49% economic interest in Umbrella is held by the historical equity holders of TWMH and TIG.
In the years leading up to the business combination, AlTi Global's predecessor entities faced some challenges. For example, in 2022, AlTi Global's predecessor was the subject of allegations regarding the operations of Home REIT, a real estate investment trust which it had previously advised. This led to a significant decline in Home REIT's stock price and the suspension of trading in its shares. AlTi Global was required to consolidate the results of the advisor to Home REIT, Alvarium Home REIT Advisors Ltd (AHRA), in its financial statements until June 2023, when AHRA was deconsolidated. The historic management of Home REIT and a similar fund, HLIF, by certain legacy Alvarium companies is now the subject of investigations by the UK's Financial Conduct Authority.
Despite these challenges, AlTi Global has made significant strides since the business combination in 2023. The company has established groundbreaking strategic partnerships, advanced its growth strategy through targeted acquisitions, and streamlined non-core assets to focus on its stable recurring revenue businesses in wealth management and capital solutions.
Today, AlTi Global, Inc. operates in 21 cities across 9 countries, serving a diverse client base that includes entrepreneurs, multi-generational families, institutions, and emerging next-generation leaders. The company's comprehensive platform offers a range of services, including discretionary investment management, non-discretionary investment advisory, trust and administrative services, family office solutions, and alternative investment strategies.
Business Segments
AlTi Global operates in two main business segments: Wealth Capital Solutions and International Real Estate.
The Wealth Capital Solutions segment is the primary revenue driver, accounting for $146.8 million or 95.5% of total revenue for the nine months ended September 30, 2024. This segment offers a wide range of wealth management services, including discretionary investment management, non-discretionary investment advisory, trust administration, and family office services. Management and advisory fees are the primary source of revenue, totaling $136.4 million for the nine-month period. These fees are generally calculated based on a percentage of the value of billable assets under management (AUM) or assets under advisement (AUA), and are charged either quarterly in arrears or monthly.
As of September 30, 2024, the Wealth Capital Solutions segment had $46.7 billion in AUM and $68.3 billion in AUA, representing growth of 34% since the Business Combination. This strong growth was driven by new client additions, net positive cash flows, and market performance. The segment also earns incentive fees from its TIG Arbitrage strategy and generates distributions from investments in external alternative asset managers.
The International Real Estate segment focuses on private real estate co-investments and fund management services. This segment generated $6.7 million in revenue for the nine months ended September 30, 2024, representing 4.5% of AlTi's total revenue. The segment earns fees from managing a private real estate investment fund and from real estate co-investment activities. As of September 30, 2024, the International Real Estate segment had $0.4 billion in AUM from the private real estate fund and $8.6 billion in AUA from its co-investment activities.
AlTi is currently conducting a strategic review of its Real Estate Businesses, which includes the International Real Estate segment. Management is evaluating future options for these businesses, which may impact the company's financial reporting and segment disclosures going forward.
Financial Performance and Ratios
As of the latest reported period, AlTi Global, Inc. had $77 billion in combined assets under management and advisement (AUM/AUA), representing a 15% year-over-year increase. This growth can be attributed to both organic expansion and strategic acquisitions, such as the additions of East End Advisors and Envoy in 2024.
For the fiscal year 2023, AlTi Global reported revenues of $250.9 million and a net loss of $162.6 million. The company's operating cash flow was negative $81.7 million, with free cash flow at negative $82.3 million. In the most recent quarter (Q3 2024), the company reported revenue of $53.3 million, representing a 10.7% increase compared to Q3 2023. However, net income for the quarter was negative $111.4 million, primarily driven by higher impairment charges related to the strategic review and realignment of the company's operating segments.
The company's financial performance has shown improvement, with revenues reaching $207 million in 2024. Notably, 96% of these revenues were derived from recurring management fees, up from 77% in 2023, showcasing the stability and sustainability of AlTi Global's revenue model. The company's adjusted EBITDA for 2024 stood at $37 million, with a 19% margin in its core Wealth and Capital Solutions segment.
Liquidity
AlTi Global's liquidity position remains strong, with a current ratio of 4.11 and a quick ratio of 4.11 as of the latest reporting period. The company's debt-to-equity ratio is 0.27, indicating a relatively low level of leverage. As of Q3 2024, AlTi Global had $15.4 million in cash and cash equivalents, and access to a $150 million revolving credit facility, of which $91 million was outstanding.
Transformative Partnerships and Strategic Initiatives
One of the key drivers of AlTi Global's success has been its ability to forge strategic partnerships that have significantly enhanced its capabilities and market reach. In 2024, the company announced a groundbreaking partnership with Allianz X and Constellation Wealth Capital, which included a combined investment of up to $450 million.
This partnership has been a game-changer for AlTi Global, as it has provided the company with unprecedented access to Allianz's extensive network and scale in the private markets. Through a joint venture with Allianz X, AlTi Global's clients now have the opportunity to invest alongside Allianz's balance sheet, tapping into the firm's expertise and resources in the $1.5 trillion global private credit market.
In addition to the Allianz and Constellation partnerships, AlTi Global has been actively pursuing strategic acquisitions to bolster its presence and capabilities. In 2024, the company completed the acquisitions of East End Advisors, Envoy, and Pointwise Partners, further expanding its footprint in the U.S. and Europe and strengthening its position in the outsourced chief investment officer (OCIO) and multi-family office services.
Most recently, in early 2025, AlTi Global announced the acquisition of Kontora, a leading multi-family office and asset management firm based in Hamburg, Germany. This transaction marked the company's entry into the German market, which is the third-largest UHNW market in the world, and further solidified its position as a global leader in wealth management.
Operational Efficiency and Cost-Cutting Initiatives
Recognizing the need to optimize its cost structure and drive operational efficiency, AlTi Global has implemented a comprehensive cost-cutting strategy, including the adoption of zero-based budgeting (ZBB). This initiative has enabled the company to streamline its expenses, maximize resource utilization, and redirect savings into key growth areas.
As part of this effort, AlTi Global has divested non-core businesses, such as its back and middle office solutions for the alternatives platform, reducing its fixed cost structure by over $2 million annually. The company has also been proactive in transforming its technology platforms, building a centralized data platform, incorporating AI initiatives, and enhancing its CRM capabilities to drive productivity and scalability.
These strategic initiatives have been instrumental in positioning AlTi Global for sustainable long-term growth and profitability. The company's focus on cost optimization, coupled with its revenue diversification and strategic partnerships, has strengthened its competitive advantage and prepared it to capitalize on the growing UHNW market.
Risks and Challenges
While AlTi Global has demonstrated impressive growth and transformation, the company is not without its risks and challenges. The wealth management industry is highly competitive, and the company faces ongoing competition from larger, established players as well as nimble fintech startups.
Additionally, the company's reliance on alternative investments and its exposure to market volatility could pose risks to its financial performance. The recent investigations and allegations surrounding the management of certain real estate funds, such as Home REIT and HLIF, have also raised concerns about potential reputational and legal risks for AlTi Global.
Furthermore, the company's international expansion and acquisition strategy bring integration challenges and the need to navigate complex regulatory environments across multiple jurisdictions. Effectively managing these risks and challenges will be crucial for AlTi Global to maintain its competitive edge and continue its trajectory of growth and profitability.
Industry Trends and Market Position
The global wealth management industry is experiencing robust growth, with estimates suggesting a compound annual growth rate (CAGR) of 7% from 2023 to 2028. This growth is primarily driven by the expansion of the ultra-high-net-worth (UHNW) segment, which aligns perfectly with AlTi Global's specialized focus on providing wealth management and alternative investment solutions to UHNW clients.
With its comprehensive service offerings, global reach, and commitment to impact investing, AlTi Global is well-positioned to capitalize on this market opportunity. The company's ability to offer tailored solutions to UHNW individuals, families, and institutions sets it apart in an increasingly competitive landscape.
Outlook and Conclusion
AlTi Global, Inc. has emerged as a formidable player in the global wealth management landscape, leveraging its innovative approach, strategic partnerships, and targeted acquisitions to drive growth and profitability. The company's comprehensive service offerings, global reach, and commitment to impact investing have positioned it well to capitalize on the rapidly expanding UHNW market, which is estimated to be worth over $102 trillion and growing at a compounded annual rate of 7%.
While AlTi Global has not provided specific numerical guidance for the future, the company has emphasized that it is at a "critical inflection point" and is "poised for significant profitable growth and value creation in 2025 and beyond." The focus on driving further cost efficiencies through zero-based budgeting is expected to unlock significant savings and position the company for sustained profitability going forward.
With the support of its strategic partners, Allianz X and Constellation Wealth Capital, and its ongoing cost-cutting initiatives, AlTi Global is well-positioned to continue its transformation and solidify its position as the go-to global multi-family office for UHNW individuals and institutions. As the company navigates the evolving wealth management landscape, its ability to adapt, innovate, and effectively manage risks will be crucial in driving long-term shareholder value.