AlTi Global, Inc.

Please stand by, we are about to begin. Good morning, my name is Sherry and I will be your conference operator today. At this time, I would like to welcome everyone to ALTI's first quarter 2024 earnings conference call. During the call, your lines will remain in a listen-only mode. After the speaker's remarks, there will be a question and answer session. I'd like to advise all parties that this conference call is being recorded. and a replay of the webcast is available on ALTI's Investor Relations website. Now, at this time, I'll turn things over to Lily Artiga, Head of Investor Relations for ALTI. Please go ahead.

Good morning to everyone on the call today. Joining me this morning are Michael Tiedemann, our CEO, and Stephen Yarad, our CFO. We invite you to visit the Investor Relations section of our website at www.investorrelations.com. to view our earnings materials, including our updated investor presentation. I would like to remind everyone that certain statements made during the call may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of words such as anticipate, believe, continue, estimate, expect, future, intent, may, plan, and will are similar words. Because these forward-looking statements involve both known and unknown risks and uncertainties, there are important factors that could cause actual results that differ materially from those expressed or implied by these forward-looking statements. ALL-P assumes no obligation or responsibility to update any forward-looking statements. During this call, some comments may include references to non-GAAP financial measures Full reconciliations can be found in our earnings presentation and our related SEC filings. As I mentioned, we filed an updated investor presentation earlier today. With that, I'd like to turn the call over to Mike.

Thank you, Lily, and thank you all for joining us this morning. The first quarter of 2024 will serve as a catalyst for ALTI in the quarters and years to come. During the quarter, we established groundbreaking strategic partnerships, progressed our growth strategy, and importantly, further streamlined away from non-core assets and strategies to focus on stable, recurring revenue businesses. We have immense traction across both our core operations and our M&A pipeline, as you can see through the two deals we announced since our last call less than 60 days ago. Today, I'm going to share more details on our Q1 results and the progress we are making towards our long-term goals and growth initiatives. Excluding LXI, We have grown our consolidated assets under management and advisement by 10% over the past 12 months to $71 billion. In the first quarter, ALTI generated revenues of $51 million. Importantly, 96% of the revenues in the quarter were from recurring fees. We reported net income of $22 million, adjusted EBITDA was $7 million, and the adjusted EBITDA margin was 13%. Turning to our segments in wealth management, we reported 17% AUM growth in the last year, largely boosted by strong market performance and acquisitions closed in 2023. This robust growth will be further enhanced throughout 2024 as we integrate our recently announced acquisitions. In April, we announced the acquisition of East End Advisors, which adds nearly 6 billion of AUM to our wealth management platform. Headquartered in New York, East End boasts a strong investment record and an experienced team that will densify our operations in key regions across the U.S. Additionally, EastEnd enhances our outsourced Chief Investment Officer, or OCIO, capabilities as we seek to capitalize on that growing market. Altie has long admired the exceptional team at EastEnd, their investment approach, and the longstanding and trusted relationships they have with their clients. Both firms share industry-leading client retention and a deep understanding of the complexities and changing demands of ultra-high net worth families and foundations. We've been pleased with the reception around this transaction so far, and East End clients can now begin benefiting from access to ALTI's global resources and holistic wealth management solutions. Yesterday, after the close, we announced the acquisition of Envoy, a $3 billion AUM ultra-high net worth wealth manager based in Minneapolis. Envoy expands our operations into the Midwest region of the United States and has a multi-decade track record within the ultra-high net worth segment. From our earliest conversations, we felt immediate cultural alignment with the Envoy team. Additionally, the firm has not only grown its client base, but has doubled its average client size since 2016, all while maintaining a client retention rate of 97%. Envoy was an ideal fit as we look to deepen our domestic footprint in key markets. We look forward to supporting Envoy's growth through Alty's global reach, perspectives, and comprehensive service offering. Following the consolidation of these acquisitions, our net asset growth and wealth management will be nearly 45% since Alty's listing, reflecting the successful execution of our organic and inorganic growth strategy. Importantly, They significantly reorganize our firm-wide asset composition towards core strategies and recurring revenues, all while replacing the top-line and bottom-line contributions of the non-core assets we've divested from in the past year. On the international front, earlier this week, we closed our acquisition of the remaining 50% stake in Pointwise Partners, an independent ultra-high net worth wealth management firm based in London. We're delighted to bring the entirety of the Pointwise team onto the ALTI platform and to deepen our operations in the UK. Additionally, I'm pleased to report that the previously announced sale of our European-based trust and private office service businesses received regulatory approval and closed subsequent to quarter end. These businesses were previously held for sale assets, and the proceeds for the sale were approximately 19 million. The transaction is a result of our efforts to streamline, divest, and reinvest in our international wealth operations to focus our operations on our robust service and investment offerings and core recurring revenue businesses. We are also very pleased with the great strides we've made on our organic growth initiatives, and we are excited about the prospects for both our domestic and international businesses. The AUM of the U.S. business has increased 15% on an organic basis over the past 12 months. This robust growth results from strong portfolio performance as well as inflows from new client wins driven by our business development initiatives. These efforts were fortified at the beginning of this year as we welcomed Richard Joyner, an award-winning advisor with more than 35 years of experience delivering comprehensive family office services to ultra high net worth clients. Based out of our Dallas office, Richard heads our central U.S. business and will collaborate closely with the Envoy team in this key region. Internationally, we are also attracting talented and seasoned professionals, and we look forward to updating you on the progress of future calls. Turning to our strategic alternative segment, we have successfully repositioned certain businesses and have advanced new initiatives to bring our clients innovative investment opportunities. Recurring revenues made up 88% of the segment's top-line contribution in the quarter and were essentially flat quarter over quarter despite the sale of LXI and the broader repositioning of our private real estate business. Importantly, our streamlining efforts have resulted in significant reduction in segment-level costs. Normalized operating expenses in the first quarter decreased by $10 million compared to the same period in 2023. Our uncorrelated strategies, the foundation of our alternative platform, exhibited positive performance in the quarter. The performance of our Asia credit strategy was particularly robust, up 5.4% in the first quarter. We remain committed to providing access to innovative and differentiated investment opportunities within our comprehensive range of services and solutions. To that end, We are excited to announce our partnership with leading tech investor Hero Tomorrow to collaborate on a private market equity strategy, investing in growth stage technology companies. We have a longstanding model of successfully partnering with leading fund managers, and this latest partnership is set to capitalize on the current compelling valuation environment and dynamic opportunity set of growth stage tech names in the venture ecosystem. We believe this partnership exemplifies the complimentary nature of our platform. We're able to allocate capital actively and passively across the platform, not only to benefit our clients, but also to produce uncorrelated returns for all T. As we execute our strategy, we will continue to allocate capital based on identified megatrends, including disruptive technology, which provide a framework for attractive returns with a blended goal of positively impacting the environment and society. As I wrap up my comments on our progress, I would like to highlight the significant advancements we've made on our enterprise strategy. We were pleased to announce the strategic relationships with Allianz X and Constellation Wealth Capital, or CWC, which are transformative for Alty. These investments, which total up to $450 million, support our strategy to become the leading global independent multifamily office for the ultra-high net worth segment with a targeted expertise in alternatives. The first installment of CWC's investment, totaling $115 million, closed in March, and we expect the remaining $35 million to fund later this month. We anticipate closing our agreement with Allianz X in the second half of 2024. As we've discussed, these partnerships are designed to both enable Altie to expand and to fortify our global footprint in key markets and to fuel accretive acquisitions through disciplined deployment of growth capital. partnership with CWC is already proving to be immensely valuable as they are helping to attract and recruit revenue generating talent and enhance our relationships in the ultra net worth wealth management sector. With respect to Allianz, we're excited by the opportunity to strengthen and grow client relationships, expand our platform of client solutions, and benefit from an experienced team, global scale, and broad network when that transaction closes later this year. On the M&A side, we've been leveraging the expertise and capital from our partners, as demonstrated by our recently announced transactions. As we integrate these acquisitions into our existing platform, they'll considerably augment our asset base and accelerate margin expansion through enhancing operating leverage. This is an extremely exciting time to be leading Altie. We have clear momentum across our business and believe that we can drive accelerated growth and profitability in the quarters to come. With that, I'll turn the call over to Steve to take you through a deeper dive in our financials.