UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 07, 2024
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(Exact name of registrant as specified in its charter)
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Not Applicable
(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 7.01 Regulation FD Disclosure.
AlTi Global, Inc. (the “Company”) has prepared an investor presentation that the Company’s executive management team intends to use from time to time beginning on October 7, 2024 in Los Angeles. A copy of the investor presentation is attached as Exhibit 99.1 to this Current Report on Form 8-K and is also available on the Company’s investor relations website at ir.alti-global.com.
All information included in the presentation is presented as of the dates indicated, and the Company does not assume any obligation to correct or update such information in the future. In addition, the Company disclaims any inferences regarding the materiality of such information that may arise as a result of it furnishing such information under Item 7.01 of this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL Document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: October 7, 2024 | ALTI GLOBAL, INC. | |||||||
| /s/ Michael Tiedemann | ||||||||
| Name: Michael Tiedemann | ||||||||
| Title: Chief Executive Officer | ||||||||
1AlTi Global Non-Deal Roadshow Investor Presentation | October 2024
2AlTi Global Notes and Important Disclosures About AlTi Global AlTi Global is a leading independent global wealth and alternatives manager providing entrepreneurs, multi- generational families, institutions, and emerging next-generation leaders with fiduciary capabilities as well as alternative investment strategies and advisory services. AlTi Global’s comprehensive offering is underscored by a commitment to impact or values-aligned investing and generating a net positive impact through its business activities. The firm currently manages or advises on approximately $72 billion in combined assets and has an expansive network across three continents. Forward-Looking Statements Some of the statements in this press release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking. Words such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “intend,” “may,” “plan” and “will” and similar expressions identify forward-looking statements. Forward-looking statements reflect management’s current plans, estimates and expectations and are inherently uncertain. The inclusion of any forward- looking information in this press release should not be regarded as a representation that the future plans, estimates or expectations contemplated will be achieved. Forward-looking statements are subject to various risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, global and domestic market and business conditions, successful execution of business and growth strategies and regulatory factors relevant to our business, as well as assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity and the risks and uncertainties described in greater detail under “Risk Factors” included in AlTi’s registration statement on Form 10-K filed March 22, 2024, and in the subsequent reports filed with the Securities and Exchange Commission (the “SEC”), as such factors may be updated from time to time. We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. Financial Information The financial information and data contained in this Presentation is unaudited and does not conform to Regulation S-X promulgated under the Securities Act. Accordingly, such information and data may not be included in, may be adjusted in or may be presented differently in, any registration statement that may be filed by AlTi Global. Due to rounding, numbers presented throughout this Presentation may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. Industry and Market Data Certain information contained in this Presentation relates to or is based on studies, publications, surveys and AlTi Global’s own internal estimates and research. In addition, all of the market data included in this Presentation involves a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Finally, while AlTi Global believes its internal research is reliable, such research has not been verified by any independent source and none of AlTi Global or any of its affiliates nor any of their respective control persons, officers, directors, employees or representatives make any representation or warranty with respect to the accuracy of such information. Trademarks This Presentation may contain trademarks, service marks, trade names and copyrights of other companies, which are the property of their respective owners. Solely for convenience, some of the trademarks, service marks, trade names and copyrights referred to in this Presentation may be listed without the TM, SM © or ® symbols, but AlTi Global, will assert, to the fullest extent under applicable law, the rights of the applicable owners, if any, to these trademarks, service marks, trade names and copyrights. Use of Non-GAAP Financial Measures The non-GAAP financial measures contained in this presentation (including, without limitation, Adjusted Net Income, Adjusted EBITDA and EBITDA) are not GAAP measures of AlTi Global’s financial performance or liquidity and should not be considered as alternatives to net income (loss) as a measure of financial performance or cash flows from operations as measures of liquidity, or any other performance measure derived in accordance with GAAP. A reconciliation of such non-GAAP measures to their most directly comparable GAAP measure is included in the Appendix of this presentation. You are encouraged to evaluate each adjustment to non-GAAP financial measures and the reasons management considers it appropriate for supplemental analysis. AlTi Global believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. Our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, these measures may not be comparable to similarly titled measures used by other companies in our industry or across different industries. This Presentation (together with oral statements made in connection herewith, the “Presentation”) is for informational purposes only to assist interested parties in evaluating AlTi Global, Inc. (along with its consolidated subsidiaries, “AlTi Global” or the "Company").
3AlTi Global Michael Tiedemann Chief Executive Officer Our presenters today Stephen Yarad Chief Financial Officer
4AlTi Global Our goal To empower discerning capital owners to achieve simplicity, capital compounding, and meaningful impact
5AlTi Global Key investment highlights Comprehensive platform for UNHW families and wealth managers Large and expanding addressable market Uniquely global footprint Recurring and diversified revenue Strong capital position underpinned by transformative strategic partners Identified pipeline of inorganic growth opportunities World-class leadership team
6AlTi Global AlTi at a glance Delivering transformational ideas that create enduring value 1) Reflects inclusion of Minneapolis office, which was added after 2Q'24 as part of the acquisition of Envoi, LLC Note: Information as of June 30, 2024, unless otherwise noted; See AlTi Global, Inc. public filings with the SEC Global footprint with presence in 21(1) major financial centers $72B ~430 Assets Under Advisement (AUM/AUA) Professionals with Diverse Experience & Expertise Committed to Impact Strategies Year Operating History Invested Alongside Clients $2B$5B20+
7AlTi Global High and UHNW individuals and families Foundations & endowments Sovereign Wealth Funds Single-family offices Multi-family offices Institutional investors What is ? Leading independent, global Ultra-High-Net-Worth wealth management platform, with targeted expertise in alternatives and impact investing Investment management and advisory Trust and estate planning Extensive family office services Philanthropic giving Financial planning and administrative services Impact investing Capabilities Alternative asset management funds Real assets investments Clients
8AlTi Global One global platform, five pillars A global ecosystem aligned to the five core needs of the world’s most discerning and dynamic owners of capital Simplification Family Office Services Fiduciary Oversight Cross-Border Planning Project Management Overview Preservation Portfolio Management Trust and Estate Planning Tax Structuring Uncorrelated Strategies Growth & Income Endowment-style Investing GP Strategic Solutions Private Equity & VC Private Credit Impact Purpose Alignment Values Based Investing Catalytic Investing Philanthropic Services Succession Family Governance and Education Rising Gen Engagement Trust Services Investment Governance Highly customized solutions alongside unbiased advice Innovative and differentiated access to Alternatives Global scale with the focused attention of a bespoke family office Ability to mobilize and align capital for Impact
9AlTi Global AlTi serves the needs of the fast-growing and lucrative Ultra-High-Net-Worth market… 1) Source: Wealth-X, an Altrata company, World Ultra Wealth Report 2024 2014 2028F +6.6% CAGR 2023 +4.0% CAGR (+13% in U.S. in 2023) 33.7, 89% 4.0, 10% 0.4, 1% $63.0, 42% $39.5, 26% $49.2, 32% UHNW individuals make up an outsized portion of the global Wealth market(1) Global population of HNW individuals (millions of people) Wealth of global HNW individuals ($trillions) The global UHNW population is on the rise(1) Historical and anticipated growth in UHNW individuals High net worth ($1mm-$5mm) Very high net worth ($5mm-$30mm) Ultra high net worth ($30mm+)
10AlTi Global GenX and Millennials Foundations, Charities and Endowments $84T Baby Boomers & Older Generational Wealth Transfer(1) U.S. Wealth Transfer (2021-2045P) $84 trillion wealth transfer creates opportunities for firms that deliver impact, innovation & engagement to clients 1) Source: Cerulli Associates, Cerulli anticipates $84 trillion in wealth transfers through 2045 2) Source: UBS, Global Wealth Report 2023, Global Wealth Report 2017 … against the backdrop of powerful multi-decadal trends that will grow our addressable market… $280 $454 $629 2017 2022 2027P Growth of Global Wealth (2017-2027P) ($Trillions) Expanding Wealth Market(2) Estimated $629 trillion global opportunity with clients increasingly demanding integrated capabilities
11AlTi Global $9 $17 $29 $30 2017 2023 2029P 2030P … with a client base that is increasingly interested in alternatives and impact investing 1) Source: Preqin, Global alternatives markets on course to exceed $30tn by 2030 2) Source: Capgemini research institute, 2024 World Wealth Report 3) Source: Capgemini research institute, Wealth managers can reignite investors’ waning ESG enthusiasm 71% of relationship managers say UHNW investors favor alts more than clients from other wealth bands(2) Alternative AUM/AUA Growth and Forecast (2017-2030P) Relevance of ESG Factors $Trillions Global Demand for Alternatives(1) Increasing demand for alternatives, an estimated $30 trillion market by the end of 2030, aligns with our expertise Clients and investors understand and want to invest responsibly and with intent, as they think about legacy 68% 32% Request ESG scores Do not request ESG scores 68% of HNWIs request ESG scores for their sustainable product investments 45% of UHNW investors view ESG as essential in their wealth management decisions(3) With Impact Priority(2)
12AlTi Global is one of the only at-scale wealth management firms with alternatives in our DNA AlTi offers truly differentiated alternatives expertise and products, while maintaining an independent, trusted fiduciary partner Alts are critical to our UHNW clients... … and we offer compelling solutions Our core Wealth business benefits materially from our Alts offerings ✓ Differentiated alternatives expertise ✓ Proprietary, uncorrelated alternatives products ✓ Bespoke solutions while retaining fiduciary independence • Alts are among the fastest growing segments in investment management • UHNW investors are sophisticated and increasingly desire alts as an asset class • Alts offer differentiated returns and uncorrelation benefits that improve portfolio performance • We offer private equity, arbitrage, impact and real estate products to institutional investors • Our professionals are knowledgeable about alts products and adept at finding solutions for our clients • Significant M&A opportunities to further build alts capabilities
13AlTi Global Our impact Committed to serving our clients in an objective and transparent way Responsible Investing • Multi-asset class portfolios generating quantifiable social & environmental outcomes • Embedded ESG evaluation throughout the investment process • Proprietary values-based survey to tailor portfolios to client’s Impact & values objective • ESG and Impact reporting fully integrated into client portfolio reporting We succeed together by managing our collective impact on the world. Increased investable assets committed to impact strategies among UHNW investors
14AlTi Global Toronto Aspen Seattle Portland San Francisco Dallas Miami Minneapolis Washington, D.C. Palm Beach Wilmington New York Lisbon Lugano Geneva Zurich Milan London Paris Singapore Hong Kong Global Footprint Unlocking global opportunities and empowering success worldwide with AlTi's innovative solutions Long-term expansion plan leveraging combined global footprint 9 Countries 21(1) Cities Market Opportunity Significant market size for UHNW clients Partner Footprint Strong AlTi and partner footprints Market Entry Low regulatory barriers and/or limited competition Scale Augment existing market presence or enter new markets with a clear path to meaningful scale AlTi Presence Global Headquarters 1) Reflects inclusion of Minneapolis office, which was added after 2Q'24 as part of the acquisition of Envoi, LLC
15AlTi Global Our business is global, long-duration and built for further scale 1) Top 25 Client Asset composition by geography 2) Manager stakes consolidate 100% of AUM/AUA 3) Data presented for pre-listing period (i.e. FY2019 to FY2022) represent combined financial results for TWMH, TIG and Alvarium Note: Information as of June 30, 2024, unless otherwise noted Event-driven RE Bridge Lending European L/S Equities Asia Credit Strategic Alternatives Fund strategies by AUM/AUM $47 $53 $61 $65 $71 $72 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 Q ' 2 4 Wealth Management AUM/AUA by Geography(1) U.S. 65% Non-U.S. 35% AUM / AUA ($B)(2)(3) $173 $199 $265 $240 $251 $242 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 Q ' 2 4 L T M Revenue ($MM)(3) High client retention 97% Wealth management client retention since 2020 Long-tenured clients ~8 Years average tenure of wealth management clients Experienced team 20+ Years Years of operating history across market cycles
16AlTi Global Highly recurring revenue model (1) Includes management and incentive fees distributed from AlTi’s economic interest in three external managers (Arkkan, Zebedee and Romspen), which are not consolidated by AlTi (2) Includes incentive fees from funds managed by AlTi’s Arbitrage platform; primarily recognized in Q4 of a given year (3) Percentage represents illustrative contribution to total revenue informed by historical performance • Investment management, advisory, trustee, and administration fees • Earned from both Wealth and Alternatives segments • Calculated as a percentage of AUM / AUA Distributions from investments(1) • Distributions from External Strategic Managers through profit sharing arrangements • Earned from Alternatives segment • Partially recurring (management fee component) Recurring & Non-recurring Incentive / performance fees (2) • Carried interest, performance fees on investment performance, etc. • Calculated using a percentage of customer’s net profit • Performance-related; variable in nature Non-recurring 1 Management / advisory fees Recurring 2 4 Other fees / income • Transaction fees from advisory, brokerage, and placement agency services • Generally non-recurring and commission or transaction- based 3 Non-recurring Stable fee rates, long-duration clients and largely fee-on-assets revenue base underpinned by an 80%+ recurring revenue model(3)
17AlTi Global Comprehensive platform Well-positioned to meet the diverse needs of an expanding client base AlTi Global Banks Global Alternative Managers Family Offices Boutique Investment Firms Global Presence Comprehensive Capabilities Alignment with Clients Customized Services Nimble to Capture Opportunities Permanence & Access to Capital Robust Financial Profile Note: Illustrative only; denotes general characteristics in each category
18AlTi Global Broad, global industry experience World-class leadership Michael Tiedemann Chief Executive Officer Kevin Moran President / Chief Operating Officer Stephen Yarad Chief Financial Officer Colleen Graham Global General Counsel and CRO Claire Verdirame Chief Marketing Officer Jed Emerson Chief Impact Officer Executive Team US Europe Business Leads Nancy Curtin CIO – Global WM Brooke Connell President – US WM Craig Smith Chair- Global WM Robert Weeber President – International WM Spiros Maliagros Alternatives Platform Patrick Flaton Real Estate Office Colin Peters Chief Human Resources Officer
19AlTi Global AlTi’s recent strategic investment from Allianz X and Constellation Wealth Capital is a game-changer Global financial services provider across the insurance and asset management sectors, providing financial security and certainty to its customers for 130+ years. CWC provides flexible, long-term capital solutions and strategic advisory support to scaled wealth management platforms, leveraging its deep industry experience and relationships. AlTi has received a strategic investment of up to $450M from our partners, Allianz X and CWC Fund M&A pipeline for compelling inorganic growth opportunities1 benefits from the strategic investment Accelerate international growth and expand global footprint2 Execute upon organic growth and efficiency initiatives3 Strategic partnerships with deeply experienced partners4
20AlTi Global U.S. & International Markets $2B to $20B AUM per Target in UHNW Managers $1B to $10B AUM per Target in Strategic Alternatives Profile • Proven low volatility, long-duration earnings • Bias towards management vs. performance/incentive fee income • Attractive top-line growth potential • Proven high and sustainable margins • Accretive to earnings Footprint/solutions • Enter new, complementary and strategic markets • Grow market share in existing markets • Enhance solution set Fit • Ease of integration • Cultural alignment • Long-term, financially committed and incentivised management teams Pipeline and criteria for future acquisitions AlTi expects to use the and capital principally to fund accretive M&A • Minneapolis-based UHNW wealth manager with ~$3B AUM • Expands operations to the Midwest region of the U.S., fortifying AlTi’s domestic footprint • Completed on July 1, 2024 • New York-based independent advisory firm with ~$6B AUM • Enhances Outsourced Chief Investment Officer (OCIO) capabilities • Completed on April 3, 2024 Allianz and CWC’s investment is already bearing fruit Notable acquisitions completed in 2024 1) See Form 8-K filed on July 1, 2024 and other Company filings with the SEC 2) See Form 8-K filed on April 1, 2024 and other Company filings with the SEC (1) (2)
21AlTi Global Expected financial drivers Well-defined path with a clear trajectory for long term growth Stable recurring revenue foundation Topline growth fueled by new partnerships Revenue diversification through emerging strategies and solutions Economies of scale that leverage global distribution platform Efficiencies driven by centralizing operations Accretive acquisition strategy Financial flexibility to capitalize on future growth opportunities 01. Topline Growth 02. Margin Expansion 03. Balance Sheet Strength
22AlTi Global Public investor considerations – public shares Increase in publicly traded shares(1) • AlTi has two classes of common shares – Class A and Class B • Shares of Class B Common Stock are not publicly traded; however, Class B shareholders have the right to convert their Class B stock to Class A on a one-for-one basis • Since de-SPAC, over 7 million Class B shares have been exchanged to Class A shares, increasing AlTi’s traded stock liquidity • 30% of original employee and sponsor shares, i.e. ~12 million Class A shares and ~12 million Class B shares, will unlock in January 2025 Shareholder composition 34%(2) 12%(3) 18%(4) 4%(5) 32%(6) Strategic advisors (affiliates) Section 16 Officers Directors and employees Institutional holders 53% 55% 60% 60% 66% 47% 45% 40% 40% 34% 2Q'2023 3Q'2023 4Q'2023 1Q'24 2Q'24 Class A Class B 1) Source: Company SEC filings 2) Strategic advisors (affiliates) include Allianz SE, IlWaddi Holdings, and Global Goldfield Limited, as disclosed on Schedule 13D 3) Section 16 officers refer to key members of the Company’s executive team who own common shares, as disclosed on Forms 3 and 4 4) Directors’ share holding is based on Form 3 and 4 disclosure; Employees’ share holding is based on estimated employee floor 5) Key institutional investors include Vanguard Group, BlackRock Institutional Trust, Geode Capital Management, and State Street Global Advisors, as disclosed on Schedule 13F 6) Other public holders’ shareholding is calculated as the difference between total common shares outstanding and identified holders’ holding Note: All figures on this page are estimates based on company SEC filings and publicly available information
23AlTi Global Public investor considerations – governance Timothy Keaney Bank of New York Board Chair Norma Corio American Express Global Business Travel Mark Furlong BMO Harris Bank Tracey Brophy Warson Citi Private Bank Independent Board Directors Trusted fiduciaries with strong individual track records Audit, Finance and Risk Environmental, Social, Governance and Nominating Human Capital and Compensation Transaction Board Committees Karl Heckenberg CWC Nazim Cetin (1) Allianz X Andreas Wimmer (1) Allianz SE Board Observer Ali Bouzarif IlWaddi representative Dependent Board Directors Michael Tiedemann Chief Executive Officer 1) Denotes Allianz Board Representatives
24AlTi Global AlTi is at an inflection point Strategic investment from Allianz and CWC Partnerships and growth capital to turbocharge AlTi’s growth story World-class team AlTi has the management, governance, and employee talent to win Complimentary businesses Interplay between Wealth and Alts is synergistic and underscores our unique story Operational efficiency AlTi is optimizing our operations and expense base to maximize efficiency Experience as a public company Two years after de-SPAC, AlTi has matured into a compelling story for public investors Tailwinds in UHNW Wealth Management AlTi’s core customer base is expected to grow substantially, benefitting our business
25AlTi Global Thank You
26AlTi Global Appendix
27AlTi Global Financial(1) Key Performance Metrics • Revenues of $49.5 million • 99% of Total Revenues are recurring • GAAP Net Loss of $9.0 million, Adjusted Net Loss of $2.6 million • Adjusted EBITDA of $5.5 million • $55.9 billion of AUM/AUA, increased 15% YoY and 5% QoQ Wealth Management • $16.0 billion of AUM/AUA, decreased 21% YoY and 9% QoQ primarily related to the repositioning of the business Strategic Alternatives Corporate In the second quarter: • Received $35 million additional investment from CWC to complement initial $115 million received in March • Completed the acquisition of East End Advisors, a NY- based MFO with ~$6 billion in AUM • Completed our acquisition of the remaining 50% stake in UK-based Pointwise • Completed the sale of the European trust and private office services businesses, previously held for sale assets After quarter end: • Completed the acquisition of Envoi, a Minneapolis-based MFO with ~$3 billion in AUM in on July 1st • Received $250 million investment from Allianz, as part of strategic investment of up to $450 million from Allianz and CWC on July 31st Second quarter 2024 highlights 1) Adjusted EBITDA and Adjusted Net Income are non-GAAP measures. See reconciliations of non-GAAP measures and definitions in the Appendix.
28AlTi Global • Revenue of $49.5M decreased 4% YoY primarily due to a decrease in other income related to transactional fees. Management fees were essentially flat as fee reductions from businesses exited were compensated by the acquisition of East End, which contributed $5M in the quarter. On a like for like basis, adjusting for the acquisitions and dispositions, total revenues would have been up 4% YoY. 99% of total revenues in the quarter were from recurring fees. • Total Operating Expenses of $64.4M were flat YoY and lower by $1.1M compared to the previous quarter. Normalized operating expenses, which exclude non-cash compensation, expenses related to severance costs, depreciation and amortization, and certain transaction and deal-related expenses, were up slightly to $46M YoY. Excluding East End, normalized operating expenses would have decreased 4% compared to the first quarter. • Other Income of $5.2M compared to $25.7M in Q2 2023 as the prior year period included an unrealized gain on earn-out liabilities, compared to an unrealized loss in the current period. This decline was partially offset by lower impairment charges in the current year period, as well as gains on investments, compared to losses in the prior year period . • Adjusted EBITDA of $5.5 decreased YoY primarily due to lower transactional revenues from exited or restructured businesses. • Adjusted Net loss was $2.6M. • AUM/AUA of $71.9B, composed of Wealth Management $55.9B and Strategic Alternatives $16.0B. ($ in Millions) 2Q’24 1Q’24 2Q’23(2) Revenue $49.5 $50.8 $51.3 Mgmt./Advisory Fees 47.0 46.2 46.8 Incentive Fees 0.1 0.2 0.5 Distributions from Investments(1) 2.2 4.2 2.2 Other Income/Fees 0.1 0.3 1.8 Total Operating Expenses $64.4 $65.5 $64.3 Operating Income (Loss) (15.0) (14.7) (13.1) Other Income (Loss) 5.2 36.8 25.7 GAAP Net Income (Loss) $(9.0) $21.8 $28.1 Adjusted Net Income (Loss) $(2.6) $0.2 $2.4 Adjusted EBITDA $5.5 $6.8 $11.1 Adjusted EBITDA Margin 11% 13% 22% AUM/AUA ($B) $71.9 $71.0 $68.9 Second quarter 2024 Select Financial and Operating Metrics 1) Includes $1.9M, $2.7M and $2.2M in management fees from External Strategic Managers in Q2 2024, Q1 2024 and Q2 2023, respectively. 2) Q2 2023 results throughout this presentation reflect immaterial changes to the previously reported figures. Note: Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided
29AlTi Global Consolidated income statement ($ in Thousands, except share data) 2Q’24 1Q’24 2Q’23 Revenue Unaudited Unaudited Unaudited Management/advisory fees $47,029 $46,224 $46,844 Incentive fees 53 163 469 Distributions from investments 2,240 4,170 2,203 Other income/fees 131 255 1,769 Total income 49,453 50,812 51,285 Operating Expenses Compensation and employee benefits 38,893 39,557 33,952 Systems, technology and telephone 4,809 4,314 4,110 Sales, distribution and marketing 1,202 765 568 Occupancy costs 4,025 3,477 3,352 Professional fees 7,602 11,370 14,863 Travel and entertainment 1,326 1,411 1,306 Depreciation and amortization 3,813 2,567 3,655 General, administrative and other 2,738 2,019 2,538 Total operating expenses 64,408 65,480 64,344 Total operating income (loss) (14,955) (14,668) (13,059) Other Income (Expenses) Impairment loss on goodwill and intangible assets (695) - (29,393) Gain (loss) on investments 11,357 (3,661) (5,154) Gain (loss) on TRA 389 5,933 (1,792) Gain (loss) on warrant liability 409 (340) 76 Gain (loss) on earn-out liability (1,945) 39,454 66,083 Interest expense (4,851) (4,840) (3,371) Interest income 563 260 - Other income (expense) 13 (30) (706) Income (loss) before taxes (9,715) 22,108 12,684 Income tax (expense) benefit 756 (363) 15,446 Net income (loss) (8,959) 21,745 28,130 Net loss (income) attributed to non-controlling interests in subsidiaries (2,965) (7,604) (14,610) Net income (loss) attributable to AlTi Global, Inc. ($5,994) $29,349 $42,740 Net Income (Loss) Per Share Basic ($0.18) $0.38 $0.72 Diluted ($0.18) $0.18 $0.25 Weighted Average Shares of Class A Common Stock Outstanding Basic 71,738,190 66,718,427 59,286,346 Diluted 71,738,190 120,561,316 114,319,307 Note: Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided
30AlTi Global Consolidated balance sheet ($ in Thousands, except share data) As of June 30, 2024 As of March 31, 2024 As of December 31, 2023 Assets Unaudited Unaudited Audited Cash and cash equivalents $59,984 $134,237 $15,348 Fees receivable, net 32,381 35,087 70,421 Investments at fair value 162,234 160,469 165,894 Equity method investments 7,504 12,137 14,194 Intangible assets, net of accumulated amortization 505,233 432,247 435,677 Goodwill 440,997 408,209 411,634 Operating lease right-of-use assets 53,854 48,851 48,313 Other assets 58,709 53,740 48,182 Contingent consideration receivable 1,834 1,931 - Assets held for sale - 13,030 56,634 Total assets $1,322,730 $1,299,938 $1,266,297 Liabilities Accounts payable and accrued expenses $25,350 $31,930 $37,156 Accrued compensation and profit sharing 30,087 36,016 61,768 Accrued member distributions payable 3,348 4,618 7,271 Warrant liabilities, at fair value 2,934 2,820 - Earn-out liability, at fair value 49,124 23,920 63,444 TRA liability 24,911 24,933 17,607 Delayed share purchase agreement - - 1,818 Earn-in consideration payable 969 1,711 1,830 Operating lease liabilities 64,281 57,476 56,123 Debt, net of unamortized deferred financing cost 163,986 183,663 186,353 Deferred tax liability, net 12,897 7,785 14,109 Deferred income 221 48 66 Other liabilities 21,101 23,208 22,467 Liabilities held for sale - 3,467 13,792 Total liabilities $399,209 $401,595 $483,804 Commitments and contingencies Series C Redeemable Cumulative Preferred stock, $0.0001 par value 153,442 115,093 - Shareholders' Equity Class A common stock, $0.01 par value 7 7 7 Class B common stock, $0.01 par value - - - Additional paid-in capital 549,998 553,717 536,509 Retained earnings (accumulated deficit) (170,172) (164,178) (193,527) Accumulated other comprehensive income (loss) 6,942 6,299 9,155 Total AlTi Global, Inc. shareholders' equity 540,217 510,939 352,144 Non-controlling interest in subsidiaries 383,304 387,405 430,349 Total shareholders' equity 923,521 898,343 782,493 Total liabilities and shareholders' equity $1,322,730 $1,299,938 $1,266,297 Note: Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided
31AlTi Global Non-GAAP reconciliation Q2 2024 2Q’24 ($ in Thousands) Total AlTi Net income (loss) before taxes ($9,715) Stock based compensation(1) 3,599 Transaction expenses(2) 8,353 Changes in fair value of warrant liability(3) (409) Changes in fair value of (gains)/loss on TRA(4) (389) Changes in fair value of (gains)/loses on investments(5) (10,961) Change in fair value of earn-out liability(6) 1,909 Organization streamlining cost(7) 2,462 Impairment (non-cash)(8) 6,167 (Gains)/Losses on EMI/Carried Interest (non-cash)(9) (4,159) EMI Adjustment (Interest, Depreciation, Taxes & Amortization)(10) (54) Adjusted income (loss) before taxes (3,197) Adjusted income tax expense 601 Adjusted Net Income (Loss) (2,596) Interest expense, net 4,851 Income tax (benefit) expense (756) Adjusted income tax expense less income tax expense 155 Depreciation and amortization 3,813 Adjusted EBITDA $5,467 1) Add-back of non-cash expense related to awards of Class A Common stock (approved post-Business Combination). 2) Add-back of transaction expenses related to the Business Combination, and subsequent business combinations/divestitures including professional fees. 3) Represents the change in fair value of the warrant liability. 4) Represents the change in unrealized gains/losses related primarily related to the TRA liability. 5) Represents the change in unrealized gains/losses related to Investments held at fair value and includes the non-recurring realized gain for the sale of FOS ($9.4M) 6) Represents the change in fair value of the earn-out liability. 7) Represents cost to implement organization change to derive cost synergy. 8) Represents impairment of carried interest/equity method investments. 9) Represents the amortization of the step-up in equity method investments. 10) Represents reported interest, depreciation, amortization, and tax adjustments of the Company’s equity method investments. Note: Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided.