AlTi Global, Inc.

Good afternoon. My name is Matt, and I'll be your conference operator today. At this time, I'd like to welcome everyone to ALDI's first quarter 2025 earnings conference call. During the call, your lines will remain in a listen-only mode, and 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 ALDI's investor relations website. Now, at this time, I'd like to turn things over to Lily Ortega, head of investor relations for ALDI. Thank you. You may begin.

Good afternoon to everyone on the call today. Joining me this afternoon are Michael Tiedemann, our CEO, and Mike Harrington, our CFO. 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. These forward-looking statements include but are not limited to comments made during the prepared remarks and in response to questions. Forward-looking statements can be identified by the use of words such as anticipate, believe, continue, estimate, expect, future, intend, may, planned, and will are similar terms. 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 statements. For discussion of the risks and uncertainties that could cause actual results to differ, please refer to all these filings with the Securities and Exchange Commission including its most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. Altus 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. With that, I'd like to turn the call over to Mike Tiedemann.

Good afternoon, everyone, and thank you for joining us today. Since the beginning of the year, we've made meaningful progress advancing our long-term strategy to become the leading independent global multifamily office and OCIO platform. On the growth front, we closed the acquisition of Comptora, marking our official entry into Germany, the world's third largest ultra-high net worth market. We also began activating the capabilities of our strategic partners, launching our new private credit program to bring differentiated investment opportunities to our clients. These efforts expand our global footprint and enhance the strength of our offering. At the same time, we continue to lay the foundation for long-term profitability and efficiency by advancing our resource optimization program. Through our zero-based budget approach, we are aligning costs with strategic priorities, enabling us to scale with greater focus and discipline. In parallel, we're taking deliberate steps to exit non-core businesses, streamlining our operations, and channeling resources towards our highest conviction opportunities. Together, these initiatives are positioning ALTI to accelerate business performance and deliver sustained value creation through 2025 and beyond. This afternoon, I'll walk you through our first quarter results and highlight the strides we're making towards our long-term strategic priorities and growth agenda. In the first quarter, ALTI generated $58 million in consolidated revenue, representing a 14 percent increase year-over-year. Revenue in our core wealth management and capital solutions segment rose 23 percent, driven by a 10 percent increase in assets under management and advisement, reflecting contributions from last year's acquisitions and solid portfolio performance. Revenues in this segment also benefited from robust investment distributions from our stakes and external managers. Notably, 83 percent of consolidated revenue came from recurring management fees, underscoring the stability and predictability of the business model we are building. Adjusted EBITDA for the quarter was $9 million on a consolidated basis, up from $7 million in the same period last year. The key pillar of our strategy is leveraging the full power of our long-term partners, Allianz X and Constellation Wealth Capital. strategic collaborators who are helping us scale smarter and faster. Together, we're expanding into new markets, broadening our offerings, and strengthening our position as a preferred partner for ultra-high net worth clients globally. A compelling example of this collaboration is our joint venture with Allianz Ice, which is transforming how our clients access private markets. Through this platform, international clients can now invest alongside Allianz's balance sheet. unlocking access to top tier third party managers, secondaries, and co-investments. These are opportunities typically reserved for the world's largest institutions, and we're proud to bring them to our client base. The first launch on the program focused on the 1.5 trillion global private credit market. It's off to a great start. Allianz's scale and track record in the space with approximately 150 billion allocated to the sector brings credibility and reach. Since launching in December, we've secured approximately 240 million in commitments from our international wealth clients through the end of the first quarter, and we see a clear runway for continued momentum. We're also using our partners' capital to accelerate strategic acquisitions. Comptoro is a standout example. The premier Hamburg-based multifamily office manages 14 billion euros in assets and represents our official entry into Germany. As I referenced earlier, the third largest ultra high net worth market globally. This deal, which closed on April 30th, is our first European transaction since securing the capital from Allianz X. From the outset, we saw a natural set. Santora's founder-led independent model aligns with our own, and their 16-year track record of serving ultra high net worth clients across Germany and Austria in a holistic manner made them a clear strategic addition. By connecting them to Alti's global scale and capabilities, particularly in alternatives and impact, we're enabling the next chapter of their growth story. With the addition of Contora, total assets in our wealth and capital solution segments have reached approximately $82 billion, including around $32 billion managed through our international platform, positioning Alti as one of the largest international multifamily offices. Comptoro will be consolidated into our financial results beginning in the second quarter of 2025. We expect the transaction to be accretive to EBITDA this year and to enhance our platform profitability through increased scale and operational synergies. We are already seeing commercial momentum take hold. Since the announcement, Comptoro has secured two major client mandates, a single family office and an entrepreneurial family, and is actively engaged with several high potential prospects. These opportunities are being driven by enhanced international reach, cross-border capabilities, and access to impact-focused solutions enabled by the all-T combination. It's a clear sign that our integration is resonating in the market and opening the door for meaningful long-term growth opportunities. As we look ahead, our priorities remain clear, driving growth through both organic initiatives and strategic acquisitions by expanding into new markets and deepening our presence in existing ones. across the U.S. and internationally. We've had a strong year on the M&A front, including the recent acquisition of Contora, and have made meaningful progress integrating teams and offices across the platform. That said, we see significant untapped potential in our organic growth engine and are encouraged by our current A-list prospect pipeline. Accelerating our organic momentum is a key focus in 2025, and we're taking deliberate steps to strengthen this pillar of our strategy. To support this, we're advancing our marketing strategy with a strong emphasis on segmentation. We're finding how we position our value proposition to better resonate with both existing and emerging client segments. By tailoring our approach to the distinct needs of each segment, we aim to drive differentiated growth through a more compelling client experience, broader offerings, and a sharper delivery of our advice and insights. In parallel, we're embedding technology more deeply across the business, transforming our technology stack to support global consistent workflows, increase advisor productivity, and further elevate service quality. Together, these marketing and technology actions position us to scale more effectively and execute on our long-term strategy. Of course, successfully delivering on that strategy requires staying attuned to the broader market environment. Since the beginning of the year, markets have experienced significant volatility. In the first quarter, our portfolios remained resilient. Our broad diversification across asset classes and focus on manager selection helped mitigate downside risk and preserve capital. Performance was supported by active underweights to concentrated equity exposures, alongside positive contributions from real assets, private credit, and international markets. In difficult markets, our clients' long-term horizon has meant that we maintain stable asset allocations and use volatility to our advantage to deploy capital as attractive opportunities emerge. Hence, we remain focused on thoughtful portfolio construction, balancing liquid and illiquid exposures, managing risk with discipline, and maintaining a long-term lens. Our approach is built to navigate complexity and volatility while helping clients understand capture durable risk-adjusted return. This disciplined investment philosophy is core to our broader mission, becoming the leading independent global multifamily office and OCIO platform with deep capabilities and alternatives and impact. That mission extends beyond performance. It includes helping clients align their wealth with their values. On that note, I want to highlight the recent launch of the 2025 Alty Global Social Progress Index, developed in partnership with the Social Progress Imperative. This index, which tracks the performance of 170 countries across key drivers like health, education, and rights, highlights where private capital can have the greatest impact at a time when global progress has stalled. As a global wealth manager, we see growing demand from clients to align investments with purpose. And this index provides a practical tool to help drive meaningful social outcomes along financial returns. Importantly, the index offers investors real-world data and evidence that their capital is contributing to the impact they intend to achieve. Delivering impact for our clients is at the core of our mission, but realizing our long-term vision also demands a sharp focus on operational excellence. To support sustained profitable growth and unlock greater operating leverage, we launched a program in late 2024 aimed at driving productivity and enhancing cost efficiency. One important tool in this broader effort was the execution of a zero-based budgeting process. Introduced late last year, CBB, provides a rigorous line-by-line approach to expense management, enabling us to reexamine every dollar spent and reallocate resources towards our most strategic priorities. We've already begun implementing aspects of our plan across our wealth management segment and corporate functions with a focus on high-impact spend categories, such as professional services, technology, marketing, travel, and occupancy. At the end of April, we've completed reviews across most of the non-compensation cost space, identifying substantial annual savings that we expect to materialize over the remainder of this year and be fully reflected in 2026. Reductions in recurring costs are expected across all major non-compensation expense categories. To ensure that this is not a one-time exercise, we've also implemented cost governance tools, including centralized procurement function and a new executive-level cost approval committee designed to ensure ongoing discipline and accountability. As part of our broader operational screenlining, we're also sharpening our focus on recurring revenue in our core businesses. Building on what we shared last quarter, We've made meaningful progress towards exiting our international real estate segment, which we've identified as non-core to our strategy. We've advanced this effort over the last quarter and expect to provide a definitive plan of action next quarter. With the plan to optimize our operating efficiency close to completion, the contour acquisition set to be consolidated in Q2, and the decision on international real estate forthcoming, we expect to share more detailed guidance on our long-term financial outlook, including margin expansion and capital allocations later this year. By focusing on our highest conviction businesses and executing decisively on cost optimization, we're positioning ALTI for sustainable, profitable growth and delivering increased value for shareholders in 2025 and beyond. With that, I'd like to turn the call over to Mike Harrington.