AlTi Global (ALTI) Q3 2024 earnings summary

Executive summary

• Consolidated revenues reached $53.3M in Q3 2024, up 11% year-over-year, with 97% from recurring sources; nine-month revenue was $153.6M.

• Wealth & Capital Solutions segment drove growth, aided by acquisitions of Envoi and East End Advisors and strong market performance.

• Strategic investments from Allianz X and Constellation Wealth Capital provided $400M in new capital, fueling M&A and expansion.

• GAAP net loss for Q3 was $111.4M, mainly due to a $116.1M non-cash impairment; adjusted net loss was $2.3M.

• Announced joint venture with Allianz X to expand UHNW client access to private markets and alternatives.

Financial highlights

• Q3 2024 consolidated revenue: $53.3M (+11% YoY); Wealth & Capital Solutions revenue: $51.7M (+17% YoY); nine-month revenue: $153.6M.

• Adjusted EBITDA for Q3 was $9.6M, up $12.6M YoY; Wealth & Capital Solutions Adjusted EBITDA up 62% to $13.4M, margin at 26%.

• AUM/AUA totaled $77.3B (+13% YoY), with Wealth & Capital Solutions at $68.3B (+22% YoY) and International Real Estate at $9.0B (-25% YoY).

• Operating expenses decreased $3.9M YoY to $69.4M; normalized operating expenses down 8% YoY.

• Goodwill and intangible asset impairment charges totaled $116.1M in Q3 2024.

Outlook and guidance

• Focus on topline growth through new partnerships, accretive acquisitions, and revenue diversification.

• Margin expansion expected via operational efficiencies and economies of scale.

• Continued organic and inorganic growth leveraging recent capital raises and a strong balance sheet.

• Ongoing review and repositioning of the real estate business to align with growth priorities.