AlTi Global, Inc.

and I'll be your conference operator for today. At this time, I would like to welcome everyone to ALTI's second quarter 2025 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 would 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 today are Michael Tiedemann, our CEO, and Mike Harrington, our CFO. We invite you to visit the investor relations section of our website at www.alt-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, or 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 a 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 10Q. 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 presentation and our related SEC filings. With that, I'd like to turn the call over to Mike Tiedemann.

Thank you, Lily, and good afternoon, everyone. The second quarter of 2025 was an important quarter for AltE because of the strategic actions we executed to strengthen and simplify our business. These actions reflect the vision we've been advancing for more than two decades to be the leading global wealth management and OCIO platform serving the ultra high net worth community, the fastest growing segment of the wealth market. AltE is truly differentiated by the scale, breadth, and strength of its platforms. We have a global footprint that spans three continents, nine countries, and more than 20 cities, allowing us to serve large families seamlessly across those jurisdictions. We operate as an open architecture investment and service platform, giving clients access to best in class solutions. And we use our increasing scale to benefit our clients with improved pricing and access. Our offering is comprehensive. from investment advisory and OCIO to trust and fiduciary services, impact investing, family office solutions, estate planning, governance, family dynamics, and education. We are strategically positioned in the fastest growing segment of the wealth market, ultra high net worth, in which clients have fewer liquidity needs, allowing their capital to stay invested and to compound over time. We have operated our own trust company since inception, providing fully integrated fiduciary capabilities within the U.S. This structure ensures comprehensive oversight, strategic planning, and seamless execution, positioning us to serve the complex needs of multigenerational families. We've built and continue to invest in operational centers of excellence, Lisbon for international operations, and Delaware for U.S. trust and fiduciary services. Our client relationships are exceptionally strong, tenured and built on trust, with a 96% retention rate, supported by senior advisors who bring more than 20 years of industry experience. Each client engagement expands our repository of best practices, enabling us to continuously refine and apply those insights to future projects, driving greater efficiency and value to every new client that joins the firm. Through AltE's strategic partnerships with Allianz and Constellation Wealth Capital, we benefit from their expertise, scale, insights, and growth capital. For example, our private credit partnership with Allianz allows our clients to invest alongside its balance sheet at reduced rates, while also accessing unique co-investment and secondary opportunities at preferential terms. As the firm has grown, our enhanced quality and capabilities have been widely recognized. earning us multiple industry awards, including most recently the award for best multifamily office, over $25 billion, and best outsourced CIO. As we've scaled and advanced our platform, strengthening our foundation has been a top priority. We're driving efficiency through zero-based budgeting, uncovering substantial savings, and instilling a culture of discipline across the organization. In parallel, we've advanced the automation of key finance functions, and made progress towards full Sarbanes-Oxley readiness, while enhancing governance and controls globally, all under the vigilant oversight of an independent board. These efforts position our platform for sustainable growth and scalable expansion, and the second quarter was a quarter of deliberate execution to sharpen its focus. The exit of our international real estate business marks a major milestone in simplifying the firm and reallocating resources towards our highest conviction area, businesses anchored in recurring revenue and positioned for scalable growth. Over the past six months, we've enhanced client engagement through leadership initiatives, including the launch of our Family Office Operational Excellence Report and the ALTI Global Social Progress Index, both of which have garnered strong interest across key markets. And with the consolidation of Contora, we expanded our European presence, adding meaningful scale in one of the largest ultra-high net worth markets in the world. Additionally, we continue to execute on our organic growth strategy with meaningful client wins, both from new relationships and expanded mandates from existing clients across the U.S. and key international markets. This afternoon, we'll walk you through our second quarter results, and then expand on the progress we made towards our long-term strategic priorities and growth agenda. In the second quarter, Alt-T generated consolidated revenues of $53 million, up 7% year-over-year. Revenue in our core wealth management and capital solutions segment rose 8% to $52 million year-over-year, driven by an increase in AUM, reflecting strong market performance, the contributions from our acquisitions, and improved ROA on the assets raised. Compared to the first quarter, management fees in this segment increased by 10%, reflecting the same positive factors. Importantly, 99% of the revenue came from recurring management fees, highlighting the durability of our model. Adjusted EBITDA was $4 million on a consolidated basis and $14 million in our core wealth management and capital solution segment. While revenues are up, the reported numbers don't yet reflect the full potential of our business model. They include temporary noise from transformation initiatives and only partial contribution from recent strategic investments, while the benefit of our efficiency programs are still ahead of us. In short, the reported figures understate the momentum we're building and the earnings power embedded in our platform. As I mentioned earlier, this quarter reflects deliberate execution on key priorities, actions designed to strengthen our platform, drive operating leverage, and deliver sustainable value. In July, we executed one of the most significant steps in our transformation, the exit of our international real estate business. This decisive action marks a defining moment in ALTI's evolution, sharpening our focus on our core, recurring revenue wealth management business, simplifying our platform, and unlocking operating leverage to drive sustained profitability and margin expansion. This move underscores our commitment to our highest conviction business and positions ALTI for scalable, profitable growth. As referenced earlier, we also completed the implementation of zero-based budgeting, another critical initiative in our transformation. This disciplined approach to expense management reflects a cultural shift towards efficiency and accountability across the organization. Separate from the organizational streamlining efforts, ZBB focuses primarily on non-compensation expense optimization through a comprehensive bottom-up review of our cost structure. Key actions include bringing certain professional services in-house, consolidating vendors, renegotiating contracts, terminating underutilized technology providers, rationalizing systems, optimizing global office occupancy through rent and space reductions, and driving G&A savings by restructuring vendor agreements. These initiatives are expected to deliver a total of approximately $20 million in recurring annual gross savings across our non-compensation expense categories starting in the second half of 2025, creating a leaner operating model. In short, the ZBB and organizational streamlining we have undertaken position us to expand margins, strengthen profitability, and capture the full operating leverage inherent in our platform. driving long-term value creation for our shareholders. In the second quarter, we completed the acquisition of Contora, entering the German market and adding approximately $16 billion in a billable AUA and significantly expanding our European platform into one of the largest global economies and ultra-high net worth markets. This acquisition is about more than scale. It reflects our strategy to combine best-in-class local expertise with the resources of a global multifamily office and OCIO leader. Our integration approach remains disciplined, focused on operational alignment, cultural fit, and delivering seamless and improved client service. Contour also accelerates our organic growth strategy by expanding our presence in Europe and positioning us to capture new relationships in a market where demand for independence and independent advice continues to grow. Together, this reinforces our vision to build a differentiated international wealth management platform with global scale, local insight, and operational excellence at its core. Organic growth remains a core pillar of our long-term strategy. In this quarter, we made meaningful progress. With integration and efficiency initiatives now largely complete, our focus has shifted to building a robust pipeline across existing and new markets, leveraging our integrated global platform, deep client relationships, and differentiated service model to drive new opportunities. Our international wealth business, including Comptora, is showing strong momentum. In the first half of the year, we signed new clients with over $500 million in projected billable assets and expanded assets across nearly 50 existing client relationships, underscoring the global strength of our platform. Looking ahead, the most compelling opportunities internationally is in the Middle East, one of the fastest-growing wealth markets. This region is undergoing a generational wealth transition and showing a strong growing preference for truly independent, conflict-free advice. We've served clients there for many years, and our increased focus has already resulted in new client relationships, and we're building a robust pipeline of substantial opportunities. We're also seeing strong momentum in the U.S., actively expanding relationships and deepening our reach with large, sophisticated families. Through June, new and expanded mandates totaled nearly $430 million in projected billable assets. Additionally, our pipeline is among the largest in our history, including several sizable OCIO opportunities. While onboarding timelines can vary, our strong track record gives us confidence in converting these opportunities into long-term relationships. Finally, we've reinforced our leadership in the ultra-high net worth and family office segment with the launch of our 2025 Family Office Operational Excellence Report, developed in partnership with Kens and Wealth. This report is more than a publication. It's a growth platform generating new opportunities in advisory and OCIO services. Engagement has been strong with over 300 plus downloads, 220 family office leaders briefed, and exclusive events across New York, London, and Milan. With the business now simpler and more focused, Driven by the implementation of ZBB, the exit of international real estate, the acquisition of Contour, and targeted organic growth initiatives, we expect, starting in the second half, our results to progressively reflect the strength of recurring revenue business with meaningful operational leverage from a leaner, more disciplined cost structure. With that, I'll turn it over to Mike Harrington to share the details of our results.