AlTi Global, Inc. Q3 FY2024 earnings call

• Partnerships: Established with Allianz X and Constellation Wealth Capital (CWC), leveraging their scale and network. - Acquisitions: Acquired East End Advisors ($6 billion AUM) and Envoi ($3 billion AUM), deepening presence in key U.S. regions and enhancing OCIO capabilities. - Segment Restructuring: Changed segment reporting; core business results now in Wealth & Capital Solutions, real estate in International Real Estate. - Growth Drivers: Wealth & Capital Solutions saw 22% asset growth Y/Y; organic growth in Wealth Management (13% asset increase) and alternative strategies. - Technology: Hired Phil Dundas as CTO to incorporate technology for better client service and platform efficiency.

On a consolidated basis, assets under management and advisement grew 13% over the trailing 12-month period to $77 billion. Like-for-like, assets increased 9%. Revenues were $53.3 million, up 8% from previous quarter and 11% from Q3 2023, with 97% from recurring fees. Consolidated adjusted EBITDA was $9.6 million, up $12.6 million from Q3 2023. The core Wealth & Capital Solutions segment had adjusted EBITDA of $13.4 million, up $8.2 million from Q3 2023 (62% increase). The International Real Estate segment had revenues of $1.5 million in Q3 2024 vs $4.1 million in Q3 2023.

• Management looks forward to updating on fourth quarter and full year 2024 financial results in the New Year. - Confident in executing organic and inorganic growth plans with fortified balance sheet, unique global footprint, and partnerships.

• Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results to differ materially from projections. - Important factors could lead to actual results differing from forward-looking statements as outlined in SEC filings.

Q: Could you talk a little bit about the demand for private debt in ultra high net worth portfolios?

A: Mike Tiedemann stated private debt is already an important allocation in many portfolios, generates competitive returns, and the partnership with Allianz offers unique co-investment and secondary components with a competitive fee structure.

Q: Could you talk a little bit about the run rate for expenses?

A: Steve Yarad mentioned progress on expenses year-over-year, with normalized expenses showing improvement, but expects some offsets as investments in infrastructure and people continue.

Q: Can you talk a little about some of your tech focuses given the hiring of the CTO?

A: Michael Tiedemann said tech focuses include delivering better service and information to clients, improving data controls and efficiency, and creating a robust operating platform for scalability.

Q: Can you talk about some of the impacts of the interest rates on your business or short-term and long-term interest rates, how that impacts deployments and other things in any other interest rate sensitivity and also related talk about any potential U.S. election impacts on the business?

A: Michael Tiedemann mentioned higher base rates offer a better fixed income environment for the firm, and avoided discussing U.S. election impacts, focusing on geopolitical and currency dynamics related to interest rates