AlTi Global (ALTI) Q3 2024 earnings summary

Executive summary

• Consolidated revenues reached $53.3M in Q3 2024, up 11% year-over-year, with 97% from recurring sources.

• Wealth & Capital Solutions segment drove growth, aided by acquisitions of Envoi and East End Advisors and strong market performance.

• Strategic investments from Allianz X and Constellation Wealth Capital provided $400M in new capital, fueling M&A and expansion.

• Announced joint venture with Allianz X to offer UHNW clients access to private market managers.

• Ongoing strategic realignment and technology investments position the firm for continued growth.

Financial highlights

• Q3 2024 consolidated revenue: $53.3M (+11% YoY); Wealth & Capital Solutions revenue: $51.7M (+17% YoY); AUM/AUA totaled $77.3B (+13% YoY), with Wealth & Capital Solutions at $68.3B (+22% YoY) and International Real Estate at $9.0B (-25% YoY).

• Adjusted EBITDA was $9.6M, up $12.6M YoY; Wealth & Capital Solutions Adjusted EBITDA up 62% to $13.4M, margin at 26%.

• GAAP net loss for Q3 was $111.4M, including $116.1M in non-cash goodwill and intangible asset impairment charges; adjusted net loss was $2.3M.

• Operating expenses decreased $3.9M YoY to $69.4M; normalized operating expenses down 8%.

• Cash and cash equivalents at quarter-end were $222M; debt was $128M.

Outlook and guidance

• Positioned for robust organic and inorganic growth, leveraging recent capital raises for accretive acquisitions.

• Focus on topline growth through new partnerships, margin expansion via operational efficiencies, and balance sheet strength.

• Continued cost discipline, technology investment, and scalable infrastructure to drive future profitability.

• Ongoing review and repositioning of the real estate business, with decisions expected by year-end.