AlTi Global (ALTI) Q2 2024 earnings summary

Executive summary

• Achieved 4% growth in assets under management and advisement to $71.9 billion over the trailing twelve months, with wealth management assets up 15% to $55.9 billion, reflecting a focus on core recurring revenue businesses.

• Completed four significant acquisitions, including East End Advisors (~$6B AUM), Envoi ($3B AUM), and Pointwise Partners, and increased ownership of AWMS, while divesting non-core European trust/private office services and FOS.

• Secured $250 million investment from Allianz and $150 million from Constellation Wealth Capital, strengthening the balance sheet and enabling further expansion and acquisitions.

• Reported $100.3 million in revenue and $12.8 million net income for H1 2024, reflecting improved profitability and cost discipline compared to a net loss in the prior year period.

• Strategic review of real estate co-investment and fund management businesses is underway, with potential changes to segment structure and goodwill allocation expected by Q3 2024.

Financial highlights

• Q2 2024 revenues were $49.5 million, down 4% year-over-year; adjusting for acquisitions and divestitures, revenues would have been up 4%.

• 99% of Q2 revenues were from recurring fees; wealth management segment revenues increased 20% to $40.9 million, with 100% recurring.

• Adjusted EBITDA was $5.5 million with an 11% margin in Q2 2024; adjusted EBITDA for H1 2024 was $12.3 million, down from $21.9 million prior year.

• Net income for H1 2024 was $12.8 million, compared to a net loss of $62.2 million in the prior year period.

• Operating expenses decreased 22% year-over-year to $129.9 million for H1 2024, driven by lower compensation and professional fees.

Outlook and guidance

• Management expects operating expenses to continue trending downward in 2024 as cost-saving initiatives and business simplification take hold.

• Full $250 million Allianz investment remains available for deployment toward accretive M&A and growth opportunities.

• Strategic review of real estate businesses may result in changes to segment structure and potential goodwill impairment, with outcomes expected by Q3 2024.

• Secular tailwinds from generational wealth transfer and global demand for alternatives expected to drive long-term growth.