AlTi Global (ALTI) Q2 2024 earnings summary

Executive summary

• Reported $100.3 million in revenue and $12.8 million net income for H1 2024, with AUM/AUA reaching $71.9 billion, up 4% year-over-year, driven by Wealth Management growth and acquisitions.

• Completed acquisitions of East End Advisors and Pointwise Partners, and divested non-core businesses such as FOS and LXi REIT Advisors, generating gains and streamlining operations.

• Raised $150 million from Constellation and $250 million from Allianz, strengthening the capital base for future growth and acquisitions.

• Strategic review of the Real Estate Co-Investment and Fund Management businesses is underway, with potential changes to segment structure and goodwill allocation expected by Q3 2024.

• Net cash provided by financing activities was $112.2 million for the first half of 2024, primarily from preferred equity issuance.

Financial highlights

• Revenue for the six months ended June 30, 2024 was $100.3 million, down 8% year-over-year, mainly due to lower incentive and distribution fees in Strategic Alternatives.

• Net income for the first half of 2024 was $12.8 million, compared to a net loss of $62.2 million in the prior year period.

• Adjusted EBITDA for the first half of 2024 was $12.3 million, with a margin of approximately 12%.

• Operating expenses decreased 22% year-over-year to $129.9 million, driven by lower compensation and professional fees.

• Cash and cash equivalents increased to $60.0 million as of June 30, 2024, from $15.3 million at year-end 2023, primarily due to preferred equity issuances.

Outlook and guidance

• Management expects operating expenses to trend downward in 2024 as cost-saving initiatives and business simplification take effect.

• The company anticipates deploying new capital from Allianz and Constellation for accretive investments, supporting future growth in GAAP results and Adjusted EBITDA.

• Strategic review of real estate businesses may result in changes to segment structure and potential goodwill impairment, with outcomes expected by Q3 2024.