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): November 8, 2024
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(Exact name of registrant as specified in its charter)
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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) | |||||
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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”) is furnishing an updated form of investor presentation that is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated by reference herein. A copy of the investor presentation is also available on the Company’s investor relations website at ir.alti-global.com.
Exhibit 99.1 and the information set forth therein shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise be subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.
| Item 9.01 | Financial Statements and Exhibits. | ||||
(d) Exhibits.
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.
| ALTI GLOBAL, INC. | ||||||||
| By: | /s/ Michael Tiedemann | |||||||
| Name: | Michael Tiedemann | |||||||
| Title: | Chief Executive Officer | |||||||
Date: November 8, 2024
1AlTi Global Third Quarter 2024 Earnings | November 8, 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 $77 billion in combined assets and has an expansive network across three continents. Forward-Looking Statements Some of the statements in this presentation 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, including statements regarding future financial results, long-term value goals, restructuring and resegmentation expectations. 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 presentation 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. 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"). 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 (Loss), 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.
3AlTi Global at-a-glance U.S. vs. Non-U.S. AUM/AUA for top 25 wealth management clients 62% vs. 38%$77B Consolidated AUM/AUA 5 Acquisitions and integrations completed, or in process, globally since 2023 Client retention rate since 2020 96% 21 Offices across the globe in major financial centers Global strategic partnerships provide growth capital, access and relationships Years operating history focused on UHNW 20+ Note: Information as of September 30, 2024, unless otherwise noted Committed to impact strategies $5B 9 Years of average tenure for Wealth Management advisors ~97% Recurring revenues
4AlTi Global Comprehensive platform for UHNW 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 Becoming the preeminent, global UHNW wealth firm
5AlTi Global Transformative strategic investments from two prominent institutional investors 1980 1999 2009 2023 2024 Establishment of Tiedemann Investment Group (“TIG”) Founded Tiedemann Trust Company (later rebranded as Tiedemann Wealth Management) Merger of entities and listed on NASDAQ on Jan 4, 2023 Rebrand to & Global multi-family office created via development and acquisitions Established the alternatives management firm focused on capital preservation & uncorrelated returns Enhanced suite of solutions by building a U.S.-focused multi-family office providing comprehensive financial advisory Offices in London, Paris, Geneva, Hong Kong, Lugano and Lisbon Now Re-segmentation Strategic investment to fuel AlTi’s M&A pipeline, accelerate its international expansion and drive AlTi’s organic growth Aimed to accelerate the growth, improve capital access and liquidity, and boost the market presence and credibility on a global scale Improve focus on the fast- growing wealth management sector, clarify the brand identity, and position AlTi for the next chapter of our journey How we got here Over the past 40+ years, we have grown into an independent, global Ultra-High-Net-Worth wealth management platform with differentiated Alts and Impact Investing capabilities + Wealth & Capital Solutions International Real Estate Up to $450M (1) 1) Up to $450 million of strategic investment from Allianz X and Constellation Wealth Capital; As of Sep 30, 2024, AlTi has received $250 million investment from Allianz X and $150 million investment from Constellation Wealth Capital
6AlTi Global Our addressable market –Wealth management Market Share by Advisor Channel (6) HNW / UHNW market is estimated at $102T and is expected to grow at a ~7% CAGR to 2028 Enormous upside potential, providing AlTi a long runway for future growth $77B (5) 0.08% 1) Source: Morgan Stanley and Oliver Wyman, “Longevity Unlocked: Retiring in the Age of Aging”: investable personal financial wealth includes investable assets (deposits, equities, bonds, mutual funds and alternatives), excluding assets held in insurance policies, pensions and direct real estate or any other real assets 2) TAM assets for global financial wealth and for high-net-worth (HNW) and ultra-high-net-worth (UHNW) investible financial wealth reflect 2023 figures 3) High-net-worth (HNW) refers to individuals with a net worth of at least $5 million and ultra-high-net-worth (UHNW) refers to individuals with a net worth of at least $50 million 4) Source: Allianz Global Wealth Map; figures in EUR converted to USD using exchange rate of 1.105 as of 12/31/2023; financial wealth includes financial assets for private households 5) Represents AlTi’s AUM/AUA as of September 30, 2024 6) Source: Cerulli, U.S. RIA Marketplace 2023: RIA includes hybrid and independent RIAs; Broker Dealers include National and regional B/D, IBD, Insurance B/D and Retail bank B/D $264T Global Financial Wealth $102T (1) (2) (3) HNW and UHNW Investible Financial Wealth (2) (4) Independent channels continue to gain market share 21% 28% 31% 40% 40% 41% 39% 32% 28% 2014 2024E 2027E RIA B/D Wirehouse (1) (2) (3)
7AlTi Global $9 $17 $29 $30 2017 2023 2029P 2030P 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 Our addressable market – Alternatives and Impact for UHNW 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)
8AlTi Global Business Overview
9AlTi Global - Tax optimization - Optimal wealth structures - Global trustee services - Administration of partnership structures How we serve our clients 1) General guidance; may differ based on specific client circumstance Trust & Fiduciary Family Office Services Philanthropy & Purposeful Giving Governance & Education Investment Advisory Services Estate & Wealth Planning - Customized portfolios - Differentiated expertise in alternatives and impact - Newly established private debt partnership with Allianz - Comprehensive, integrating reporting - Values and mission development - Wealth review and beneficiary alignment - Family engagement / family governance / meeting facilitation - Multigenerational education - Estate and succession planning - Event and asset planning - Tax management and mitigation - Mission and outcomes - Tax and planning strategies - Governance and board management - Foundation management - Accounting and financial modelling - Bill pay, payroll and benefits, reporting - Entity creation and management - Coordination with outside advisors Clients Minimum of ~$25M in investable assets1 UHNW individuals and families Foundations & endowments Sovereign Wealth Funds Single-family offices Multi-family offices Institutional investors Clients
10AlTi Global How we generate revenue AlTi’s topline performance is driven by recurring fee streams ~ 80% Recurring revenue (1) ~ 20% Non-recurring revenue (1) Management / advisory fees • Investment management, advisory, trustee, and administration fees • Management fees in Distributions from investments (4) • Earned principally from Wealth & Capital Solutions segment • Calculated primarily as a percentage of AUM/AUA Other revenue • Incentive fees in Distributions from investments (2) • Incentive / performance fees (3) • Other fees / income 1) Percentage represents illustrative contribution to total revenue informed by historical performance 2) Includes incentive fees distributed from AlTi’s economic interest in the External Strategic Managers 3) Includes primarily incentive fees from funds managed by AlTi’s Arbitrage platform; primarily recognized in Q4 of a given year 4) Includes management fees distributed from AlTi’s economic interest in the External Strategic Managers Stable fee rates, long-duration clients and largely fee-on-assets revenue base underpin the recurring revenue model Highly recurring revenue nature
11AlTi Global Note: Illustrative only; denotes general characteristics in each category Differentiated, comprehensive, and independent platform Well-positioned to meet and exceed the diverse needs of an expanding client base Boutique Multi-Family Offices Independent Wealth Managers End-market focus Platform approach HNW / UHNW expertise Tailored solutions Global Banks Size and scale International presence Independent, Integrated and International
12AlTi 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 Unique global footprint Long-term expansion plan leveraging combined global footprint 9 Countries 21 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 Note: Information as of September 30, 2024
13AlTi Global AlTi is at an inflection point Strategic investment from Allianz X 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 Complementary 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
14AlTi Global Strategic investments provide capital, access and relationships 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 announced 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
15AlTi 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 • 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) AlTi expects to use the and capital principally to fund accretive M&A
16AlTi Global Allianz partnership extends beyond growth capital AlTi and Allianz Global Investors announced a private markets investment program for UHNW wealth segment To provide unprecedented access to leading third-party managers with low minimum ticket sizes and expanded investment opportunities across strategies including secondaries & co-investments. Market Focus on $1.5 trillion global private credit market, initially focused on private debt Experience Tapping Allianz’ established, 25-year track record in private markets Scale Allianz represents one of the largest global private debt investors Growth Opportunity to reach massive, complementary Allianz client base and expand program into additional private markets asset classes Key Attributes A majority-owned joint venture to pioneer UHNW wealth access to private credit
17AlTi Global Broad, global industry experience 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
18AlTi Global 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
19AlTi Global Public shares Increase in publicly traded shares(1) Shareholder composition (2) 53% 55% 60% 60% 66% 67% 47% 45% 40% 40% 34% 33% 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Class A Class B 34.2%(3) 12.0%(4) 16.1%(5) 4.2% (6) 33.4%(7) Strategic advisors (affiliates) Section 16 Officers Directors and employees Institutional holders Other public holders1) Source: Company SEC filings 2) As of September 2024 3) Strategic advisors (affiliates) include Allianz SE, IlWaddi Holdings, and Global Goldfield Limited, as disclosed on Schedule 13D 4) Section 16 officers refer to key members of the Company’s executive team who own common shares, as disclosed on Forms 3 and 4 5) Directors’ share holding is based on Form 3 and 4 disclosure; Employees’ share holding is based on estimated employee floor 6) Key institutional investors include Vanguard Group, BlackRock Institutional Trust, Geode Capital Management, and State Street Global Advisors, as disclosed on Schedule 13F 7) 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 • 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, ~9 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
20AlTi Global 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 Expected financial drivers Well-defined path with a clear trajectory for long term growth
21AlTi Global Financial Highlights
22AlTi Global Financial(1) Key Performance Metrics • Consolidated revenues of $53.3 million, increased 11% YoY • Wealth & Capital Solutions revenues of $51.7 million, up 18% YoY • 97% of Total Revenues are recurring • GAAP Net Loss of $111.4 million, Adjusted Net Loss of $2.3 million • Non-cash Impairment loss on goodwill and intangible assets of $116.1 million • Consolidated Adjusted EBITDA of $9.6 million, increased $12.6 million YoY • Wealth & Capital Solutions adjusted EBITDA of $13.4 million, up 62% YoY and Adjusted EBITDA margin of 26% Third Quarter 2024 Highlights • $68.3 billion of AUM/AUA, increased 21.6% YoY, reflecting the East End Advisor and Envoi acquisitions, as well as strong market performance Wealth & Capital Solutions • $9.0 billion of AUM/AUA, decreased 24.9% YoY reflecting the sale of LXi and the repositioning of the business International Real Estate 1) Adjusted EBITDA and Adjusted Net Income (Loss) are non-GAAP measures. See reconciliations of non-GAAP measures and definitions in the Appendix. Corporate • Completed the acquisition of Envoi, a Minneapolis-based MFO with ~$3 billion in AUM in on July 1st • Received $250 million investment from Allianz X on July 31st, as part of strategic investment of up to $450 million from Allianz X and Constellation Wealth Capital • Commenced the previously announced strategic review of the real estate co-investment and fund management business and re-segmented the financials to better align with go-forward growth imperatives • After quarter end, on November 4th, announced a joint venture with Allianz X through which ultra-high-net-worth clients will be able to invest in top tier private market managers alongside Allianz Global Investors
23AlTi Global ($ in Millions) 3Q’24 2Q’24 3Q’23(2) Revenue $53.3 $49.5 $48.2 Mgmt./Advisory Fees 49.6 47.0 44.0 Incentive Fees 0.1 0.1 0.9 Distributions from Investments(1) 3.6 2.2 2.6 Other Income/Fees 0.1 0.1 0.7 Total Operating Expenses $69.4 $64.4 $73.3 Operating Income (Loss) (16.0) (15.0) (14.0) Other Income (Loss) (104.9) 5.2 (149.5) GAAP Net Income (Loss) $(111.4) $(9.0) $(172.8) Adjusted Net Income (Loss) $(2.3) $(2.6) $(7.4) Adjusted EBITDA $9.6 $5.5 $(3.0) Adjusted EBITDA Margin 18% 11% N/A AUM/AUA ($B) $77.3 $71.9 $68.2 Third Quarter 2024 Select Financial and Operating Metrics • Revenue of $53.3M increased 11% YoY primarily due to an increase in management fees from the 13% increase in AUM/AUA associated with the acquisitions of East End Advisors and Envoi, as well as strong market performance. On a like for like basis, adjusting for the acquisitions and dispositions, total revenues would have also been up 11% YoY. 97% of total revenues in the quarter were from recurring fees. • Total Operating Expenses of $69.4M decreased by $3.9M YoY. Normalized operating expenses, which exclude non-cash compensation, expenses related to severance costs, depreciation and amortization, and certain transaction and deal-related expenses, were $47.2 million, down $4.3 million, or 8% to the comparable period in 2023. In both cases the decline was due to foreign currency losses on intra-group funding arrangements in the prior year period. • Other Loss of $104.9M primarily due to $116.1M goodwill and intangible asset impairment charges. Prior year period includes $153.9M of goodwill and intangible asset impairment charges • Adjusted EBITDA of $9.6 increased $12.6 million YoY primarily reflecting higher recurring management fees in the current period and foreign currency losses in the prior year period. The adjusted EBITDA margin was 18%, compared to a negative margin in the comparable period in 2023 • Adjusted Net loss was $2.3M. • AUM/AUA of $77.3B, composed of Wealth & Capital Solutions $68.3B and International Real Estate $9.0B, increased 13% YoY 1) Includes $2.0M, $1.9M and $2.6M in management fees from External Strategic Managers in Q3 2024, Q2 2024, and Q3 2023, respectively 2) Q3 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.
24AlTi Global • Revenue of $51.7M increased 17% YoY, primarily due to an increase in management fees from the 22% increase in AUM/AUA associated with the acquisitions of East End Advisors and Envoi, as well as strong market performance. Distributions from investment from our External Managers also contributed to the revenue growth in the quarter. On a like for like basis, adjusting for the acquisition of East End Advisors and Envoi and the disposition of the European trust and private office business, revenues increased 9%. 97% of revenues were from recurring fees. • Total Operating Expenses of $53.8M increased 6% over the prior year period. Normalized operating expenses, which exclude non-cash compensation, expenses related to severance costs, depreciation and amortization, and certain transaction and deal-related expenses, were $38.9M, up 4% YoY, primarily due to higher IT related costs. • Adjusted EBITDA of $13.4M increased 62% YoY reflecting the acquisitions as well as the increased distributions from investments. The adjusted EBITDA margin was 26%, compared to 19% in the comparable period in 2023, reflecting the accretive acquisitions. • AUM/AUA of $68.3B increased 22% over the comparable quarter of 2023 reflecting the acquisitions and strong market performance. Excluding the East End acquisition and the disposition of the European trust and private offices business, AUM/AUA increased 13%. ($ in Millions) 3Q’24 2Q’24 3Q’23 Revenue $51.7 $48.5 $44.0 Mgmt./Advisory Fees 48.1 46.2 40.5 Incentive Fees 0.1 0.1 0.9 Distributions from investments(1) 3.6 2.2 2.6 Other Income/Fees 0.0 (0.1) 0.1 Total Operating Expenses $53.8 47.9 $50.8 Operating Income (Loss) (2.0) 0.6 (6.8) Adjusted EBITDA $13.4 $13.2 $8.2 Adjusted EBITDA Margin 26% 27% 19% AUM/AUA ($B) $68.3 $63.3 $56.2 Wealth & Capital Solutions Select Financial and Operating Metrics 1) Includes $2.0M, $1.9M and $2.6M in management fees from External Strategic Managers in Q3 2024, Q2 2024, and Q3 2023, respectively Note: Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided.
25AlTi Global ($ in Billions) 3Q’24 3Q'23 Beginning Balance: $40.4 $32.8 New Clients, Net (0.0) 0.0 Cash Flow, Net (0.3) (0.0) Market Performance, net 1.6 (0.8) Acquisitions 3.0 0.9 AUM at Period End $44.7 $32.9 Average AUM $42.5 $32.9 ($ in Billions) 3Q’24 3Q'23 Beginning Balance: $55.9 $48.6 Change 5.1 (0.1) AUA at Period End $61.0 $48.5 Average AUA $58.5 $48.5 Wealth & Capital Solutions – Wealth Management Operating Metrics – AUM/AUA Assets Under Management (AUM)Assets Under Advisement (AUA) See definitions in the Appendix. Note: Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided. Wealth Management AUM: $44.7 billion AUA: $61.0 billion
26AlTi Global Wealth & Capital Solutions – Alternatives Operating Metrics – AUM/AUA Alternatives Platform Alternatives Platform Fund Performance(2) ($ in Millions) 3Q'24 2Q’24 1Q’24 4Q’23 Event-Driven 0.60% 0.02% -0.26% 5.40% External Strategic Managers: Real Estate Bridge Lending -0.09% 0.81% 0.40% 0.34% European Long Short Equities 1.78% 5.29% 1.64% -0.11% Asian Credit and Special Situations 2.53% 2.78% 5.37% 3.20% ($ in Millions) July 1, 2024 Gross Appreciation Subscriptions Redemptions Distributions September 30, 2024 Average AUM/AUA Event-Driven $2,108 $31 $53 $(160) $(5) $2,027 $2,068 External Strategic Managers: Real Estate Bridge Lending(1) 2,081 4 - - 10 2,095 2,088 European Long Short Equities 1,732 54 85 (91) (7) 1,773 1,753 Asian Credit and Special Situations 1,426 48 1 (91) (9) 1,375 1,401 External Strategic Managers 5,239 106 86 (182) (6) 5,243 5,242 Total AUM/AUA $7,347 $137 $139 $(342) $(11) $7,270 $7,310 See definitions in the Appendix. 1) The fair value of this investment is reported on a one-month lag. 2) Past performance does not guarantee or indicate future results. The historical net performance presented above are unaudited. Please refer to Appendix for additional information.
27AlTi Global International Real Estate Select Financial and Operating Metrics ($ in Billions) 3Q’24 3Q’23 Beginning Balance: $8.6 $12.4 Change 0.4 (0.4) AUM/AUA at quarter end(1) $9.0 $12.0 Average AUM/AUA $8.8 $12.2 ($ in Millions) 3Q’24 2Q’24 3Q’23 Revenue $1.5 $1.0 $4.2 Mgmt./Advisory Fees 1.5 0.8 3.5 Other Income/Fees 0.0 0.2 0.6 Total Operating Expenses $8.0 9.6 $11.4 Operating Income (Loss) (6.5) (8.6) (7.3) Adjusted EBITDA $(2.1) $(3.3) $(3.5) Adjusted EBITDA Margin N/A N/A N/A AUM/AUA ($B) $9.0 $8.6 $12.0 Real Estate - Public & Private Funds See definitions in the Appendix. 1) AUA is reported with a one-quarter lag for HLIF as management fees are billed on that basis.
28AlTi Global ($ in Thousands, except share data) 3Q'24 3Q'23 Revenue Unaudited Unaudited Management/advisory fees $49,633 $44,004 Incentive fees 88 885 Distributions from investments 3,562 2,596 Other income/fees 60 701 Total income 53,343 48,186 Operating Expenses Compensation and employee benefits 40,470 40,009 Systems, technology and telephone 4,779 3,812 Sales, distribution and marketing 757 658 Occupancy costs 3,892 3,223 Professional fees 11,002 13,338 Travel and entertainment 1,178 1,082 Depreciation and amortization 4,621 3,676 General, administrative and other 2,657 7,455 Total operating expenses 69,356 73,254 Total operating income (loss) (16,013) (25,069) Other Income (Expenses) Impairment loss on goodwill and intangible assets (116,082) (153,859) Gain (loss) on investments 5,962 (1,959) Gain (loss) on TRA (2,536) 11,535 Gain (loss) on preferred stock tranche liability 1,140 - Gain (loss) on warrant liabilities 3,904 (49,743) Gain (loss) on earnout liabilities 4,413 48,304 Interest expense (5,194) (3,668) Interest income 2,685 - Other income (expense) 833 (91) Income (loss) before taxes (120,888) (174,550) Income tax (expense) benefit 9,483 1,782 Net income (loss) (111,405) (172,768) Net loss (income) attributed to non-controlling interests in subsidiaries (42,767) (83,097) Net income (loss) attributable to AlTi Global, Inc. $(68,638) $(89,671) Net Income (Loss) Per Share Basic $(0.88) $(1.41) Diluted $(0.88) $(1.41) Weighted Average Shares of Class A Common Stock Outstanding Basic 86,399,551 63,568,646 Diluted 86,399,551 63,568,646 Consolidated Income Statement Note: Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided.
29AlTi Global ($ in Thousands, except share data) As of September 30, 2024 As of December 31, 2023 Assets Unaudited Unaudited Cash and cash equivalents $222,138 $ 15,348 Fees receivable, net 33,763 70,421 Investments at fair value 168,127 165,894 Equity method investments 7,411 14,194 Intangible assets, net of accumulated amortization 479,727 435,677 Goodwill 379,845 411,634 Operating lease right-of-use assets 54,269 48,313 Other assets, net 58,404 48,182 Contingent consideration receivable 2,408 - Assets held for sale - 56,634 Total assets $1,406,092 $1,266,297 Liabilities Accounts payable and accrued expenses $19,161 $37,156 Accrued compensation and profit sharing 40,634 61,768 Accrued member distributions payable 3,353 7,271 Warrant liabilities, at fair value 5,930 - Earn-out liabilities, at fair value 54,795 63,444 TRA liability 29,670 17,607 Preferred Stock Tranche liability 3,400 - Delayed share purchase agreement - 1,818 Earn-in consideration payable 942 1,830 Operating lease liabilities 65,615 56,123 Debt, net of unamortized deferred financing cost 128,422 186,353 Deferred tax liability, net 2,026 14,109 Deferred income 93 66 Other liabilities, net 14,026 22,467 Liabilities held for sale - 13,792 Total liabilities $368,067 $483,804 Mezzanine Equity Series A Redeemable Cumulative Convertible Preferred stock, $0.0001 par value 141,330 - Series C Redeemable Cumulative Convertible Preferred stock, $0.0001 par value 157,340 - Shareholders' Equity Common stock, Class A, $0.0001 par value (1) 9 7 Common stock, Class B, $0.0001 par value (2) - - Common stock, Class C Non-Voting, $0.0001 par value - - Additional paid-in capital 642,359 536,509 Retained earnings (accumulated deficit) (238,810) (193,527) Accumulated other comprehensive income (loss) 3,323 9,155 Total AlTi Global, Inc. shareholders’ equity 705,551 352,144 Non-controlling interest in subsidiaries 332,474 430,349 Total shareholders’ equity 1,038,025 782,493 Total liabilities, mezzanine equity, and shareholders’ equity $1,406,092 $1,266,297 Consolidated Balance Sheet 1) 93,686,980 shares outstanding as of September 30, 2024 2) 46,138,876 shares outstanding as of September 30, 2024 Note: Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided.
30AlTi Global For the Three Months Ended 9/30/2024 For the Three Months Ended 9/30/2023 (Dollars in Thousands) Wealth & Capital Solutions International Real Estate Corporate Total Wealth & Capital Solutions International Real Estate Corporate Total Revenue Management/advisory fees $48,101 $1,532 $- $49,633 $40,460 $3,544 $- $44,004 Incentive fees 88 - - 88 884 1 - 885 Distributions from investments 3,562 - - 3,562 2,596 - - 2,596 Other income/fees 27 3 30 60 92 609 - 701 Total income $51,778 $1,535 $30 $53,343 $44,032 $4,154 $- $48,186 Operating Expenses: Compensation and employee benefits 34,525 2,327 3,618 40,470 32,333 4,855 2,821 40,009 Systems, technology, and telephone 4,205 199 375 4,779 3,110 288 414 3,812 Sales, distribution, and marketing 620 66 71 757 491 49 118 658 Occupancy costs 3,438 232 222 3,892 2,676 454 93 3,223 Professional fees 3,787 4,270 2,945 11,002 6,391 3,527 3,422 13,340 Travel and entertainment 795 156 227 1,178 766 84 232 1,082 Depreciation and amortization 4,173 33 415 4,621 2,497 1,166 13 3,676 General, administrative, and other 2,234 748 (325) 2,657 2,546 995 3,914 7,455 Total operating expenses $53,777 $8,031 $7,548 $69,356 $50,810 $11,418 $11,027 $73,255 Operating income (loss) (1,999) (6,496) (7,518) (16,013) (6,778) (7,264) (11,027) (25,069) Other Income (Expenses): Impairment loss on goodwill and intangible assets (74,267) (41,815) - (116,082) - (153,859) - (153,859) Gain (loss) on investments 5,607 368 (13) 5,962 1,574 (3,517) (16) (1,959) Gain (loss) on Preferred stock tranche liability - - 1,140 1,140 - - - - Gain (loss) on warrant liabilities - - 3,904 3,904 - - - - Gain (loss) on earn-out liabilities (5,304) - 9,717 4,413 - - 9,335 9,335 Gain (loss) on TRA - - (2,536) (2,536) - - 761 761 Interest expense (562) (79) (4,553) (5,194) (557) 50 (3,161) (3,668) Interest income 610 120 1,955 2,685 - - - - Other income 840 - (7) 833 (88) (3) - (91) Income (loss) before taxes (75,075) (47,902) 2,089 (120,888) (5,849) (164,593) (4,108) (174,550) Income tax (expenses) benefit (437) 1 9,919 9,483 (885) (395) 3,062 1,782 Net income (loss) $(75,512) $(47,901) $12,008 $(111,405) $(6,734) $(164,988) $(1,046) $(172,768) Segment Income Statement Note: Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided.
31AlTi Global For the Three Months Ended 6/30/2024 (Dollars in Thousands) Wealth & Capital Solutions International Real Estate Corporate Total Revenue Management/advisory fees $46,248 $780 $- $47,029 Incentive fees 52 - - 52 Distributions from investments 2,240 - - 2,240 Other income/fees (89) 219 - 130 Total income $48,452 $999 $105 $49,451 Operating Expenses: Compensation and employee benefits 29,998 5,362 3,533 38,893 Systems, technology, and telephone 4,163 238 409 4,809 Sales, distribution, and marketing 1,058 191 (48) 1,202 Occupancy costs 3,560 233 232 4,025 Professional fees 2,914 2,958 1,731 7,602 Travel and entertainment 946 137 243 1,326 Depreciation and amortization 3,599 45 169 3,813 General, administrative, and other 1,623 425 691 2,739 Total operating expenses $47,861 $9,589 $6,958 $64,409 Operating income (loss) 590 (8,590) (6,958) (14,957) Other Income (Expenses): Impairment loss on goodwill and intangible assets - (695) - (695) Gain (loss) on investments 13,794 (2,486) 49 11,356 Gain (loss) on Preferred stock tranche liability - - - Gain (loss) on warrant liabilities - - 409 409 Gain (loss) on earn-out liabilities (758) - (1,188) (1,945) Gain (loss) on TRA - - 389 389 Interest expense (190) 35 (4,696) (4,850) Interest income 186 - 376 562 Other income 7 (1) 7 13 Income (loss) before taxes 13,630 (11,737) (11,611) (9,718) Income tax (expenses) benefit (796) 122 1,430 756 Net income (loss) $12,833 $(11,615) $(10,180) $(8,961) Segment Income Statement (cont.) Note: Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided.
32AlTi Global For the Three Months Ended 9/30/2024 For the Three Months Ended 9/30/2023 ($ in Thousands) Wealth & Capital Solutions International Real Estate Corporate Total Wealth & Capital Solutions International Real Estate Corporate Total Net income before taxes $(75,075) $(47,902) $2,089 $(120,888) $(5,849) $(164,593) $(4,108) $(174,550) Stock based compensation (1) 6,516 (10) 1,031 7,537 7,040 340 464 7,844 Transaction expenses (2) 4,015 (522) 2,432 5,924 3,375 2,074 2,403 7,852 Change in fair value of warrant liabilities (3) - - (3,904) (3,904) - - - - Change in fair value of (gains)/losses on TRA (4) - - 2,536 2,536 - - (761) (761) Changes in fair value of (gains)/losses on investments (5) (6,383) (447) (5) (6,835) 188 - - 188 Change in fair value of earn-out liabilities (6) 5,340 - (9,717) (4,377) - - (9,335) (9,335) Organization streamlining cost (7) 53 4,000 4,053 624 1,323 411 2,358 Impairment (non-cash) (8) 44,920 1,544 - 46,464 - 1,862 - 1,862 Impairment goodwill (9) 29,367 40,357 - 69,724 - 153,859 - 153,859 (Gains)/Losses on EMI/Carried Interest (non-cash) (10) (50) 285 - 235 (183) (255) - (438) EMI Adjustments (Interest, Depreciation, Taxes & Amortization) (11) - 492 - 492 - 787 - 787 Change in fair value of Preferred stock tranche liability (12) - - (1,140) (1,140) - - - - Adjusted income (loss) before taxes 8,703 (2,203) (6,679) (179) 5,195 (4,603) (10,926) (10,334) Adjusted income tax benefit (expense) (2,300) 151 - (2,149) (1,221) 921 3,262 2,962 Adjusted Net Income 6,403 (2,052) (6,679) (2,328) 3,974 (3,682) (7,664) (7,372) Interest expense 562 79 4,553 5,194 557 (50) 3,161 3,668 Income tax (benefit) expense 437 (1) (9,919) (9,483) 885 395 (3,062) (1,782) Net income tax adjustments 1,863 (150) 9,919 11,632 336 (1,316) (200) (1,180) Depreciation and amortization 4,173 33 415 4,621 2,497 1,166 13 3,676 Adjusted EBITDA $13,438 ($2,091) $(1,711) $9,636 $8,249 $(3,487) $(7,752) $(2,990) 7) Represents cost to implement organization change to derive cost synergy. 8) Represents impairment of carried interest/equity method investments and intangible assets. 9) Represents the impairment of goodwill. 10) Represents the amortization of the step-up in equity method investments. 11) Represents reported interest, depreciation, amortization, and tax adjustments of the Company's equity method investments. 12) Represents the change in fair value of Preferred stock tranche liability. Note: Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided. Non-GAAP Reconciliation 1) Add-back of non-cash expense related to awards of Class A Common stock (approved post-Business Combination). 2) Add-back of transaction expenses related to the Business Combination, subsequent acquisitions or divestitures, and issuance of preferred and common stock, including professional fees. 3) Represents the change in fair value of the warrant liabilities. 4) Represents the change in unrealized gains/losses related primarily to the TRA liability. 5) Represents the change in unrealized gains/losses related to Investments held at fair value. 6) Represents the change in fair value of the earn-out liabilities.
33AlTi Global For the Three Months Ended 6/30/2024 ($ in Thousands) Wealth & Capital Solutions International Real Estate Corporate Total Net income before taxes $13,581 $(11,787) $(11,509) $(9,715) Stock based compensation (1) 3,076 40 483 3,599 Transaction expenses (2) 4,973 1,900 1,480 8,353 Change in fair value of warrant liabilities (3) - - (409) (409) Change in fair value of (gains)/losses on TRA (4) - - (6,322) (6,322) Changes in fair value of (gains)/losses on investments (5) (11,163) 243 5,892 (5,028) Change in fair value of earn-out liabilities (6) 722 - 1,187 1,909 Organization streamlining cost (7) 972 234 1,256 2,462 Impairment (non-cash) (8) 2,354 3,813 - 6,167 Impairment goodwill (9) - - - - (Gains)/Losses on EMI/Carried Interest (non-cash) (10) (4,433) 274 - (4,159) EMI Adjustments (Interest, Depreciation, Taxes & Amortization) (11) - (54) - (54) Change in fair value of Preferred stock tranche liability (12) - - - - Adjusted income (loss) before taxes 10,082 (5,337) (7,941) (3,197) Adjusted income tax benefit (expense) (1,693) 393 1,900 601 Adjusted Net Income 8,389 (4,944) (6,041) (2,596) Interest expense 190 (35) 4,696 4,851 Income tax expense 796 (122) (1,430) (756) Net income tax adjustments 897 (271) (470) 155 Depreciation and amortization 3,599 45 169 3,813 Adjusted EBITDA $13,871 $(5,327) $(3,076) $5,467 Non-GAAP Reconciliation (cont.) 7) Represents cost to implement organization change to derive cost synergy. 8) Represents impairment of carried interest/equity method investments and intangible assets. 9) Represents the impairment of goodwill. 10) Represents the amortization of the step-up in equity method investments. 11) Represents reported interest, depreciation, amortization, and tax adjustments of the Company's equity method investments. 12) Represents the change in fair value of Preferred stock tranche liability. Note: Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided. 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, subsequent acquisitions or divestitures, and issuance of preferred and common stock, including professional fees. 3) Represents the change in fair value of the warrant liabilities. 4) Represents the change in unrealized gains/losses related primarily 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 liabilities.
34AlTi Global Appendix
35AlTi Global Glossary Assets Under Management and Assets Under Advisement. For financial presentation purposes, total assets under management and assets under advisement (“AUM/AUA”) of AlTi Global is calculated as set forth below: AUM/AUA includes billable and non-billable assets. Billable assets represent the portion of assets on which we charges fees, including under co-investment arrangements. For the purpose of calculating co-investment assets, we include the gross asset value of all assets managed or supervised by operating partner subsidiaries, affiliates and joint ventures in which we hold either a majority or minority stake. Non-billable assets are exempt of fees. They consist of assets such as cash and cash equivalents, real estate, investment consulting assets and other designated assets. Our AUM/AUA also includes the assets under management of each of our External Strategic Managers. Unless otherwise defined, AUM refers to assets on which a business provides continuous and regular billable supervisory or management services. As noted, our AUM/AUA includes the AUM of our external strategic managers as we believe including such AUM presents a more accurate depiction of the respective businesses. However, the AUM of the external strategic managers should not be viewed as part our AUM for regulatory and/or statutory purposes under the U.S. Investment Advisers Act of 1940, as amended. Adjusted EBITDA. We use Adjusted EBITDA as a non-US GAAP measure to track our performance and assess our ability to service our borrowings. This is a non-US GAAP financial measure supplement and should be considered in addition to and not in lieu of, the results of operations, prepared in accordance with US GAAP. Adjusted EBITDA is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of net income (loss). Adjusted EBITDA represents adjusted net income plus (a) interest expense, net, (b) income tax expense, (c) adjusted income tax expense less income tax expense, and (d) depreciation and amortization expense. Adjusted Net Income. We use Adjusted Net Income as a non-US GAAP measure to track our performance and assess our ability to service our borrowings. This is a non-US GAAP financial measure supplement and should be considered in addition to and not in lieu of, the results of operations, prepared in accordance with U.S. GAAP. Adjusted Net Income represents net income (loss) before taxes plus (a) equity-settled share-based payments, (b) transaction-related costs, including professional fees, (c) impairment of equity method investments, (d) change in fair value of investment or other financial instruments, (e) onetime bonuses recorded in the statement of operations, (f) compensation expense related to the earn-in of certain variable interest entities, and (g) adjusted income tax expense. Billable Assets. Represents the portion of our AUM/AUA on which we charge fees. External Strategic Managers. are those managers in which the we have made an external investment, and the strategies of these managers include Real Estate Bridge Lending, European Long/Short Equity and Asian Credit and Special Situations. MFO. Multi-family office Mgmt./Advisory Fees. Mgmt./Advisory fees represent fees recurring in nature, primarily management fees. Impact Investing. Investment practices seeking to generate various levels of financial performance together with the generation of positive measurable environmental and social impacts. Recurring revenues. Management/Advisory fees plus the management fee portion of distribution from investments. UHNW. Ultra High Net Worth individuals are people with a net worth of at least $30 million.
36AlTi Global Footnotes Past performance does not guarantee or indicate future results. The historical net performance presented are unaudited. A description of the strategies is provided below: Event-driven: The Event-driven strategy is based in New York. This strategy, which has $2.1 billion of AUM as of September 30, 2024, focuses on 0-to-30-day events within the merger process. The investment team employs deep research on each situation in the portfolio with a focus on complex, hostile, up-for-sale situations where our primary research work can drive uncorrelated alpha. The research and investment process is focused on hard catalyst events and is not dependent on deal flow. Real Estate Bridge Lending : The Real Estate Bridge Lending strategy is managed by an external manager based in Toronto and focuses on complex construction, term, and pre-development bridge loans throughout North America. The strategy has $2.1 billion AUM as of September 30, 2024. The strategy’s diversified portfolio primarily consists of first lien mortgages with little to no structural leverage. The team places an emphasis on risk management via rigorous underwriting consisting of borrower analysis, vetting, and extensive monitoring across all major real estate asset classes. European Long Short Equities: The European Long Short Equities strategy is managed by an external manager based in London. The strategy has $1.8 billion AUM as of September 30, 2024, and trades the portfolio actively and absolute return-oriented with a focus on financials, cyclicals, and mining and minerals. The strategy is market agnostic and runs with a variable net exposure, equally comfortable net long or net short. Asia Credit and Special Situations: The Asia Credit and Special Situations strategy is managed by an external manager based in Hong Kong. The strategy has $1.4 billion AUM as of September 30, 2024, and includes performing, stressed, and distressed bonds and loans throughout the Asia Pacific region. The manager strives to capitalize on what it believes is an under-researched and inefficient market with limited competition and attractive levels of stressed and distressed activity.
37AlTi Global Investment • Up to $300M ($250M funded July 31, 2024. Option to invest an additional $50M in the future) • $150M ($115M funded in April 2024 and $35M funded in May 2024) Common stock • $110M at close through a new issue of 19.3 million shares of common stock (Class A) at a price of $5.69 • Ownership cap to prevent Allianz ownership of voting securities from exceeding 24.9% of total common stock • N/A Preferred instrument • $140M at close via new convertible preferred stock (Series A) • Additional $50M also via new convertible preferred stock (Series A) • $150M via new convertible preferred stock (Series C) Dividend rate • 9.75% PIK, paid 50% in common stock and 50% in new Series A preferred stock • Dividend rate reduces if AlTi stock price >$12.50 • 9.75% PIK, paid in new Series C preferred stock • Dividend rate reduces if AlTi stock price >$12.50 • AlTi can elect to settle all or a portion of PIK dividends in cash Conversion Right • Holder has conversion right after 2 years into AlTi common stock at a conversion price of $8.70 • Mandatory conversion after 3 years if daily VWAP is equal or greater than $15.23 • Holder has conversion right after 5 years into AlTi common stock at a conversion price of $8.70 • AlTi can elect to settle any conversion in cash rather than common stock Redemption rights • AlTi and Holder have redemption rights after 30 years • Investor has a redemption right after 5 years • AlTi has a redemption right after 3 years • AlTi can elect to settle part of the redemption value in AlTi common stock Warrants • Warrants over 5 million shares of Class A common stock • Strike price of $7.40 • Warrants over 2 million shares of Class A common stock • Strike price of $7.40 Strategic Partnerships
38AlTi Global Thank You