AlTi Global (ALTI) Q3 2024 earnings summary

Executive summary

• Achieved significant expansion of the global platform, focusing on ultra high net worth clients and alternatives/impact investing, with strategic partnerships and $400M in equity capital from Allianz and Constellation supporting growth.

• Completed acquisitions of East End Advisors ($6B AUM), Envoi ($3B AUM), and Pointwise, deepening U.S. presence and OCIO capabilities.

• Restructured into Wealth & Capital Solutions and International Real Estate segments, exiting certain real estate businesses and enhancing technology integration with a new CTO.

• AUM/AUA reached $77.3B, up 19% since the Business Combination, with Wealth & Capital Solutions AUM/AUA up 34%.

• Ongoing remediation of material weaknesses in internal controls and continued review of real estate businesses.

Financial highlights

• Q3 2024 revenue was $53.3M, up 11% year-over-year; nine-month revenue was $153.6M.

• Adjusted EBITDA for Q3 2024 was $9.6M, up $12.6M year-over-year; nine-month Adjusted EBITDA was $21.9M.

• GAAP net loss for Q3 was $111.4M, including $116.1M in non-cash goodwill and intangible asset impairment charges; nine-month net loss improved to $98.6M.

• Normalized operating expenses for Q3 were $47.2M, down from $51.5M in Q3 2023; compensation expense decreased $18.2M year-over-year for the nine months.

• Cash and cash equivalents at quarter-end were $222.1M; debt was $131.2M.

Outlook and guidance

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

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

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