AlTi Global, Inc.

Good afternoon. My name is Matt, and I'll be your conference operator for today. At this time, I'd like to welcome everyone to ALTI's fourth 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 will turn things over to Lily Ortega, head of investor relations for ALTI. Please go ahead.

Good afternoon to everyone on the call today. Joining me this afternoon are Michael Tiedemann, our CEO, Kevin Moran, our President and CEO, Mike Harrington, our CFO, and Patrick Keenan, our CAO. We invite you to visit the Investor Relations section of our website at www.alti-global.com to view our earnings materials, including our 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 the words such as anticipate, believe, continue, estimate, expect, future, intend, may, planned, and will, or similar words. Because these forward-looking statements involve both known and unknown risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. ALTI 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 presentations and our related SEC filings. With that, I'd like to turn the call over to Mike.

Good afternoon, everyone, and thank you for joining us this afternoon. I'm excited to share the significant progress we've made in 2024 as we advance towards our goal of becoming the world's leading independent ultra net worth wealth management firm with targeted expertise and alternatives and impact. Additionally, I'm pleased to introduce Mike Harrington, our CFO. We're thrilled to have him on board, bringing deep experience across key sectors and a proven ability to scale organizations while driving cost efficiency and strategic growth. 2024 has been a transformative year for Alty. We established groundbreaking strategic partnerships, advanced our growth strategy, streamlined non-core assets, and we structured our segments to focus on stable recurring revenue businesses. Importantly, we strengthened our cost cutting and efficiency initiatives to optimize our operations. As a result, we are at a critical inflection point, poised for significant profitable growth and value creation in 2025 and beyond. Before diving into the results, it's worth noting that year-over-year comparisons are impacted by a one-time $41 million incentive fee recorded in Q4 2023, which skews direct comparisons. On a consolidated basis, our assets under management and advisement grew 6% year over year. In our core wealth and capital solution segment, however, assets increased 15%, driven by the inclusion of EastEnd and Envoy along solid portfolio performance. For 2024, ALTI generated $207 million in revenues, with 96% of that coming from recurring management fees, a significant increase from 77% in 2023. This shift is a key indicator of the stability and sustainability of our revenue base. Consolidated adjusted EBITDA was $17 million for the year, while our core wealth management and capital solutions segment delivered adjusted EBITDA of $37 million, with a 19% margin, reflecting the stronger profitability of this key segment. I would like to highlight the key accomplishments of 2024, which I mentioned earlier and are just beginning to be reflected in our financials. Early in 2024, we announced a strategic partnership with Allianz X and Constellation Wealth Capital, which includes a combined investment of up to $450 million and supports our ambition to become the go-to global multifamily office for ultra-high net worth individuals with a specialized focus on alternative investments. Importantly, these partnerships bring more than just growth capital. They offer strategic collaboration, which have already proven instrumental in executing on our strategic acquisitions in key markets globally, such as our recently announced acquisition of Contora, expanding our reach, fortifying our team, and enhancing our service offerings. A great example of the latter is our recently announced partnership with Allianz, which provides unprecedented private market access to the ultra high net worth segment by enabling clients to invest alongside Allianz's balance sheet. This partnership, facilitated through a joint venture with Allianz X, is a game changer for our clients, opening doors to exclusive investment opportunities. Through this unique private market investment program, All T clients, both existing and prospective, will benefit from Allianz's extensive network and scale of an allocator. They gain access to leading third-party managers with exceptional track records, significant cost savings, and expanded investment opportunities, including secondaries and co-investments. In November, we announced the first fund under the program focused on the global private credit market, which was estimated at $1.5 trillion. Allianz, with approximately $150 billion allocated to the sector, is one of the largest private debt investors worldwide, further underscoring the strength and potential of this collaboration. We're excited by the fund's progress since its December launch. The joint venture launched and secured $150 million in subscriptions solely from LTE's international wealth management clients for the January 1st close and is on track to secure at least an additional $50 million in April. We expect robust ongoing growth, including from the U.S. client launch scheduled in the second half of the year. In 2024, we made significant strides in executing our growth strategy. We achieved 15% asset growth in our core wealth management and capital solutions segment, fueled by both inorganic and organic growth. This success stemmed from strategic acquisitions, enhanced business development efforts, a growing team, and a unique global offering designed for the expanding ultra-high net worth market. With $102 trillion addressable market growing at 7% compounding, the ultra-high net worth segment is wealth management's fastest growing market. During the year, our assets under management and advisement also benefited from the strong performance of our diverse portfolio exposures. Our platform success in 2024 has been recognized with several prestigious awards, including Best Multifamily Office over $25 billion for the second consecutive year, as well as Best Outsourced CIO. These accolades from the With Intelligence Private Asset Management Awards laud the strength of our platform and client relationships and support our business development efforts. Strategic and accretive M&A remains a key priority and driver of both top-line growth and margin expansion as we build on our existing platform. We take a disciplined approach to our acquisition pipeline, carefully evaluating the prospective profile, footprint, service offerings, and fit within ALTI. In 2024, we actively executed on this strategy with notable activity in the U.S. and Europe. In April, we completed the acquisition of East End Advisors, a New York-based independent advisory firm. This acquisition added nearly $6 billion of assets under management to the Altie Wealth and Capital Solutions platform, positioning us to better compete in the growing outsourced chief investments or OCIO market. And since closing, the teams have been collaborating on investment analysis and client portfolio development, and we have a strong pipeline of potential new clients. At the start of the third quarter, we successfully completed the acquisition of Envoy, a Minneapolis-based wealth manager with $3 billion in assets under management. This acquisition expands our footprint to the Midwest and positions us to serve the needs of the ultra high net worth families and foundations in the region through a distinctive offering which combines Envoy's local expertise with our comprehensive wealth management services and global platform. Over the past few months, We've been integrating the business into our platform and leveraging our combined expertise to strengthen our business development efforts in the region. Last year, we also fortified our European presence. In May, we completed the acquisition of Pointwise Partners, a London-based wealth management firm, increasing our ownership to 100%. This transaction, which enabled us to deepen our operations in the UK, demonstrates our our ability to offer tailored services while benefiting from the backing of a global platform. As referenced earlier in the call, with the acquisition of Contour, this momentum has carried us into 2025. Last week, we announced the acquisition of this leading Hamburg-based multifamily office with 14 billion euros in our management, marking our entry into Germany, the third largest ultra-high net worth market in the world. This strategic transaction is The first European deal post-investment from our partners will boost our assets in the wealth management and capital solutions segment to approximately $76 billion, a 62% increase since our listing. For the transaction, which we expect will be accretive to our EBITDA this year, we are leveraging the funding from Allianz X earmarked for ALTI's expansion into this attractive market. From the onset, we saw strong cultural alignment with Contoura's independent and entrepreneurial foundation. founder-run team. With nearly 20 years offering a range of services, including family office and investment solutions to ultra-high net worth clients in Germany and Austria, Contoro is an ideal fit as we expand our international platform. We look forward to supporting its growth by leveraging the significant scale benefits of Alty's global platform, including our superior access to world-class investment opportunities at attractive terms. Going forward, we will continue to focus on complementary domestic and international markets with attractive characteristics, including markets of significant size, which remain underserved by the independent wealth model. Our expansion plans will build on ALTI's existing presence, as well as the relationships and footprints of our partners. As part of our ongoing focus on enhancing our core recurring revenue businesses, In 2024, we also took important steps to divest non-strategic businesses. In the first quarter, we closed the sale of LRA, the advisor to the UK publicly traded fund LXI, for $33 million, plus a contingent consideration. In May, we completed the sale of our European Trust and Private Office Services businesses, which primarily serve third-party clients, for approximately $20 million. As we mentioned last quarter, following a strategic review, we determined the business currently reported in our international real estate segment are not additive to our long-term strategy. We are currently in advanced stages of negotiating to exit this business and expect to provide an update next quarter. With these divestitures, we are sharpening our focus on the wealth management and capital solution segments, which will drive long-term recurring revenues and profitabilities. I'll now hand the call over to Kevin to discuss our cost-cutting initiatives and provide a deeper dive into our financials, giving Mike Harrington, who is today celebrating his second week at All-C, the opportunity to acquaint himself with our business and financials in more depth.