Q4 2025 AlTi Global Earnings Call

March 31, 2026

Speaker #1: Good morning. At this time, I would like to welcome everyone to AlTi's fourth quarter 2025 earnings conference call. During the call, your lines will remain in a listen-only mode.

Speaker #1: 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. A replay of the webcast is available on AlTi's investor relations website.

Speaker #1: Now, at this time, I will turn things over to Lily Arteaga, head of investor relations for AlTi. Please go ahead.

Speaker #2: Good morning to everyone on the call today. Today, we will hear from Michael Tiedemann, Nancy Curton, and Mike Harrington. Nancy and Mike Harrington, along with Kevin Moran, our president and COO, will be available to take questions during Q&A.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: Because these forward-looking statements involve both known and unknown risks and uncertainties, they are important factors that could cause actual results to differ materially from those expressed or implied by these statements.

Speaker #2: For discussion of the risks and uncertainties that could cause actual results to differ, please refer to AlTi's filings with the duties and exchange commission, including the annual report on Form 10-K and subsequent quarterly reports on Form 10-Q.

Speaker #2: 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 related SEC filings.

Speaker #2: With that, I'd like to turn the call over to Michael Tiedemann.

Speaker #3: Thank you, Lily, and good morning, everyone. Before we begin, I would like to reflect on where AlTi stands today, three years since our listing.

Speaker #3: In early 2023, we entered the public markets with a clear ambition: to build the premier global wealth management platform focused on the fastest-growing segment of.

Speaker #3: The wealth landscape. The ultra-high net worth segment. I feel immense pride in what we've accomplished over this period and believe our team has created the most complete high-end investment solution set for large and complex families that exists.

Speaker #3: Today, AlTi delivers full-service global wealth management solutions in 19 cities across nine countries. Since our listing, we've grown our AOM and our wealth platform by 70% while maintaining industry-leading client retention rates above 95%.

Speaker #3: We are established in the highest end of the wealth market, with clients that average assets in excess of $50 million—a number that continues to rise as our prospects grow in size over time.

Speaker #3: Our team and the platform we have built is positioned to perform over both the near and long term. Now, I want to turn to an important update.

Speaker #3: Which also was announced earlier this morning with our earnings press release. After more than 25 years leading the company, I will be stepping down as CEO and Nancy Curton our global chief investment officer will become interim CEO.

Speaker #3: I have known Nancy for many years and her leadership has been pivotal to the success of our business. I am confident the company is in capable hands and will continue to be supporting Nancy to ensure a smooth transition.

Speaker #3: Importantly, we've built a world-class team uniquely able to serve the most sophisticated client base in wealth management. I have immense respect and admiration for my colleagues all over the world for the dedication they have to serving our clients.

Speaker #3: Their relentless collaboration defined our corporate culture as a firm. And lastly, I would be remiss not to thank our incredible and loyal client base.

Speaker #3: Who've placed their trust in AlTi over the years allowing us to serve their families across generations. With that, I will turn the call over to Nancy and the leadership team for their prepared remarks in today's subsequent Q&A session.

Michael Tiedemann: Thank you.

Speaker #3: Thank you.

Nancy Curtin: Thank you, Michael. I'm grateful for the opportunity to step into this role and to work with our talented professionals and global leadership team as we continue to drive the business forward. I also want to personally thank Michael for his many years of dedication and focus, which has laid an excellent foundation to advance the company into its next chapter. As he mentioned, AlTi was built to serve the most sophisticated segment of the wealth market. This segment is looking for what we can deliver, a holistic and independent approach to complex wealth management, where client needs span family governance and education, tax and structuring, and multiple generations and jurisdictions. We've been doing this for over two decades and are one of the few firms truly able to deliver customized solutions on a global basis. We're proud of what we've built.

Speaker #2: Thank you, Michael. I'm grateful for the opportunity to step into this role and to work with our talented professionals and global leadership team as we continue to drive the business forward.

Speaker #2: I also want to personally thank Michael for his many years of dedication and focus which has laid an excellent foundation to advance the company into its next chapter.

Speaker #2: As he mentioned, AlTi was built to serve the most sophisticated segment of the wealth market. This segment is looking for what we can deliver.

Speaker #2: Our holistic and independent approach to complex wealth management for client needs spans family governance and education, tax and structuring, and multiple generations and jurisdictions. We've been doing this for over two decades.

Speaker #2: And are one of the few firms truly able to deliver customized solutions on a global basis. We're proud of what we've built. The same investment discipline and long-term client-centered approach also underpins how we serve clients on the platform today.

Nancy Curtin: The same investment discipline and long-term client-centric approach also underpins how we serve clients on the platform today. Alongside our work with families, we have leveraged our institutional capabilities to build a leading global endowment and foundation, or E&F business, using our institutional investment management platform and capabilities. This complementary and growing practice has grown to more than $8 billion in assets under management at year-end 2025, largely serving private and family foundations, and we view it as a natural extension of our wealth management business. Building on that foundation, growth across the platform has been strong. Since our listing, organic growth has been driven by both new client additions and continued expansion of existing relationships as families, endowments, and foundations increase the scope of their engagement with AlTi over time.

Speaker #2: Alongside our work with families, we have leveraged our institutional capabilities to build a leading global endowment and foundation, or ENF, business. Using our institutional investment management platform and capabilities.

Speaker #2: This complementary and growing practice has grown to more than $8 billion in assets under management at year-end 2025. Largely serving private and family foundations, and we view it as a natural extension of our wealth management business.

Speaker #2: Building on that foundation, growth across the platform has been strong. Since our listing, organic growth has been driven by both new client additions and continued expansion of existing relationships.

Speaker #2: As families, endowments, and foundations increase the scope of their engagement with AlTi over time, over the past three years we've generated over $9 billion of projected billable assets, including nearly $4 billion added in 2025 alone.

Nancy Curtin: Over the past 3 years, we've generated over $9 billion of projected billable assets, including nearly $4 billion added in 2025 alone, reflecting sustained demand from ultra-high net worth and institutional clients across our US and international businesses. At the same time, we've been deliberate in where we focus the business. Over the past 3 years, and especially in 2025, we have remained firmly focused on our core wealth and institutional management business with continued emphasis on delivering excellence in client service. In parallel, we've taken meaningful steps to simplify the organization and address non-core costs, actions that are enabling continued investment in our platform and positioning earnings to scale over time as these initiatives progress.

Speaker #2: Reflecting sustained demand from ultra-high net worth and institutional clients across our US and international businesses. At the same time, we've been deliberate in where we focus the business.

Speaker #2: Over the past three years, an especially in 2025, we have remained firmly focused on our core wealth and institutional management business with continued emphasis on delivering excellence in client service.

Speaker #2: In parallel, we've taken meaningful steps to simplify the organization and address non-core costs. Actions that are enabling continued investment in our platform and positioning earnings to scale over time as these initiatives progress.

Nancy Curtin: As part of that focus, a comprehensive strategic assessment led to the exit of our non-core international real estate business in 2025, eliminating the future costs and obligations associated with that platform. Complementing these efforts, we have adopted zero-based budgeting process as our budget methodology. Through the 2025 and 2026 process, ZBB has enabled us to identify approximately $20 million of recurring annual gross savings, with the majority expected to be realized by year-end 2026. Separately, our investments in alternative strategies continues to strengthen our capital and liquidity position and made a meaningful contribution to our results in 2025. Our interest in these internally and externally managed strategies provide a complementary source of cash flow to our core wealth and institutional management businesses and support future growth initiatives within that segment. With that context, I want to turn to our results highlights for the year.

Speaker #2: As part of that focus, a comprehensive strategic assessment led to the exit of our non-core international real estate business in 2025 eliminating the future costs and obligations associated with that platform.

Speaker #2: Complementing these efforts, we have adopted zero-based budgeting process as our budget methodology. Through the 2025 and 2026 process, ZBB has enabled us to identify approximately 20 million of recurring annual gross savings.

Speaker #2: With the majority expected to be realized by year-end 2026. Separately, our investments in alternative strategies continue to strengthen our capital and liquidity position and made a meaningful contribution to our results in 2025.

Speaker #2: Our interests in these internally and externally managed strategies provide a complementary source of cash flow to our core wealth and institutional management businesses and support future growth initiatives within that segment.

Speaker #2: With that context, I want to turn to our results highlights for the year. In 2025, AlTi generated $255 million in total revenues, representing 29% growth compared to 2024.

Nancy Curtin: In 2025, AlTi generated $255 million in total revenues, representing 29% growth compared to 2024. Total revenues benefited from contributions from our alternative interests, while the core of our revenue base remained anchored in nearly $200 million of predictable recurring management fees. Adjusted EBITDA reached $35 million for the year. As we look ahead, we are increasingly excited by the opportunities to continue to grow organically while continuing to streamline the cost basis of the firm. With the platform now simplified following the restructuring of our non-core international real estate business, we expect our results to increasingly reflect the strong fundamentals of the company. In closing, I want to provide an update on our strategic review. As announced in December, a special committee was formed to review strategic options to maximize long-term value for shareholders.

Speaker #2: Total revenues benefited from contributions from our alternative interests while the core of our revenue base remained anchored in nearly $200 million of predictable recurring management fees.

Speaker #2: Adjusted EBITDA reached $35 million for the year. As we look ahead, we are increasingly excited by the opportunities to continue to grow organically while continuing to streamline the cost basis of the firm.

Speaker #2: With the platform now simplified, following the restructuring of our non-core international real estate business, we expect our results to increasingly reflect the strong fundamentals of the company.

Speaker #2: In closing, I want to provide an update on our strategic review. As announced in December, a special committee was formed to review strategic options to maximize long-term value for shareholders.

Speaker #2: To date, the special committee has not received a proposal that it believes encapsulates the long-term value of the business and it continues to evaluate a full range of alternatives with a clear focus on enhancing shareholder value informed by our clear strategy, strong management team, and simplified platform.

Nancy Curtin: To date, the special committee has not received a proposal that it believes encapsulates the long-term value of the business, and it continues to evaluate a full range of alternatives with a clear focus on enhancing shareholder value informed by our clear strategy, strong management team, and simplified platform. If any proposal is received from any party, the committee will evaluate it consistently with its fiduciary duties. With that, I'll turn it over to Mike Harrington to walk through the financials. Mike?

Speaker #2: If any proposals received from any party, the committee will evaluate a consistently with its fiduciary duties. With that, I'll turn it over to my Carrington to walk through the financials.

Speaker #2: Mike?

Speaker #3: Thanks, Nancy. We made significant progress in 2025 and we expect to see the benefits of that progress in 2026. The exit of non-core activities now complete and the impact of zero-based budgeting beginning to show, we believe the strength of our business will be continued years ahead.

Mike Harrington: Thanks, Nancy. We made significant progress in 2025, and we expect to see the benefits of that progress in 2026. With the exit of non-core activities now complete and the impact of zero-based budgeting beginning to show, we believe the strength of our business will become increasingly evident in the years ahead. Total assets under management reached $50 billion at year-end, up 10% year over year, driven by strong investment performance and the acquisition of Kontora. That growth was achieved despite a more muted market impact in the international business stemming from foreign exchange headwinds related to the US dollar depreciation, given that growth assets within these portfolios are typically unhedged. For the full year of 2025, AlTi generated approximately $255 million total revenue, representing 29% year over year growth.

Speaker #3: Total assets under management reached $50 billion at year-end, up 10% year over year, driven by strong investment performance and the acquisition of Contoura. That growth was achieved despite a more muted market impact in the international business stemming from foreign exchange headwinds related to the U.S. dollar depreciation.

Speaker #3: Given that growth assets within these portfolios are typically unhedged. For the full year 2025, AlTi generated approximately $255 million of total revenue, representing 29% year-over-year growth.

Speaker #3: The increase was driven by robust AUM expansion, along with meaningful contributions from incentive fees, reflecting the strong investment performance throughout the year across the alternatives managers in which we hold ownership stakes.

Mike Harrington: The increase was driven by robust AUM expansion, along with meaningful contributions from incentive fees, reflecting the strong investment performance throughout the year across the alternatives managers in which we hold ownership stakes. Q4 revenue totaled $88 million, up 71% from the prior quarter, reflecting continued AUM growth and a $29 million contribution from incentive fees associated with the strong performance of the arbitrage strategy in 2025, which generated an 11.3% return for the year. Stepping back from the contribution of incentive fees in the year, the underlying strength of our business continues to be reflected in the growth of our recurring management fees.

Speaker #3: Fourth quarter revenue totaled $88 million up 71% from the prior quarter, reflecting continued AUM growth and a 29 million contribution from incentive fees associated with the strong performance of the arbitrage strategy in 2025, which generated an $11.3% return for the year.

Speaker #3: Stepping back from the contribution of incentive fees in the year, the underlying strength of our business continues to be reflected in the growth of our recurring management fees.

Speaker #3: Management fees totaled nearly $200 million a year, up 9% year over year, and $53 million in the fourth quarter, up 14% compared to the same period in 2024, supported by sustained asset growth.

Mike Harrington: Management fees totaled nearly $200 million in the year, up 9% year-over-year, and $53 million in Q4, up 14% compared to the same period in 2024, supported by sustained asset growth. Before turning to expenses, I want to highlight some important nuances in our financials. The results we're presenting today continue to reflect the lag in actions taken and costs incurred in 2025, and as a result, the operating leverage of the business is not yet visible. That said, revenue growth remains strong, and we are seeing benefits from zero-based budgeting in areas such as occupancy, systems, and marketing. At this stage, however, those benefits are being offset in our reported results by discrete one-time items, including temporary costs associated with the strategic review process.

Speaker #3: Before turning to expenses, I want to highlight some important nuances in our financials. The results we're presenting today continue to reflect the lag in actions taken and costs incurred in 2025.

Speaker #3: And as a result, the operating leverage of the business is not yet visible. As said, revenue growth remains strong and we are seeing benefits from zero-based budgeting in areas such as occupancy, systems, and marketing.

Speaker #3: At this stage, however, the benefits are being offset in our reported results by discrete, one-time items including temporary costs associated with their strategic review process.

Speaker #3: We expect these costs to subside in the coming periods and allow the underlying expense trends to become clearer. For the full year, reported operating expenses increased by $72 million to $329 million.

Mike Harrington: We expect these costs to subside in the coming periods and allow the underlying expense trends to become clearer. For the full year, reported operating expenses increased by $72 million to $329 million. The increase was largely driven by higher compensation costs, inclusive of an approximately $14 million bonus accrued associated with the arbitrage incentive fee recorded in Q4, the integration of Kontora in 2025, and other one-time items related to the strategic review process, zero-based budgeting program, and the exit of the international real estate business. On a normalized basis, excluding non-recurring and non-cash items, as well as the arbitrage incentive fee bonus accrual, full year operating expenses were $205 million, compared to $182 million in 2024.

Speaker #3: The increase was largely driven by higher compensation costs, inclusive of an approximately $14 million bonus accrued associated with the arbitrage incentive fee, recorded in Q4, the integration of Contoura in 2025, and other one-time items related to the strategic review process, zero-based budgeting program, and the exit of the international real estate business.

Speaker #3: On a normalized basis, excluding non-recurring and non-cash items, as well as the arbitrage incentive fee, bonus accrual, full-year operating expenses were $205 million, compared to $182 million in 2024.

Speaker #3: Increased primarily reflects higher compensation costs, including the effect of the Contoura acquisition, increased professional fees, and G&A expenses driven partially by the strategic review process, as well as foreign exchange and VAT.

Mike Harrington: Increase primarily reflects higher compensation costs, including the effect of a Kontora acquisition, increased professional fees, and G&A expenses driven partially by the strategic review process, as well as foreign exchange and VAT. Beneath these temporary and non-core items, our cost structure is improving. As zero-based budgeting initiatives continue to progress and non-core items roll off, we expect these improvements to come increasingly visible in our reported results. For the full year, adjusted EBITDA increased 45% to approximately $35 million, reflecting the contribution from incentive-related performance during the year. Adjusted EBITDA for the quarter was $11 million, nearly doubling sequentially, largely driven by the net contribution from the incentive fee. Adjusted EBITDA margins were 14% for the year and 13% for the quarter.

Speaker #3: Beneath these temporary and non-core items, our cost structures improving. As zero-based budgeting initiatives continue to progress and non-core items roll off, we expect these improvements to come increasingly visible in our reported results.

Speaker #3: For the full year, adjusted EBITDA increased 45% to approximately $35 million, reflecting the contribution from incentive-related performance during the year. Adjusted EBITDA for the quarter was $11 million, nearly doubling sequentially, largely driven by the net contribution from the incentive fee.

Speaker #3: Adjusted EBITDA margins were 14% for the year and 13% for the quarter. On a GAAP basis, we reported a net loss of $155 million for the year and $15 million for the quarter, driven largely by non-cash, non-recurring items.

Mike Harrington: On a GAAP basis, we reported a net loss of $155 million for the year and $15 million for the quarter, driven largely by non-cash, non-recurring items. For the full year, other loss was $31 million, primarily attributable to a $35 million impairment charge of the arbitrage fund recorded in Q3. In Q4, we recorded a loss of $8 million, reflecting fair value adjustments on certain items. Looking ahead, we expect 2026 to mark a turning point for the business. As initiatives continue to take hold, progress should become increasingly evident in our normalized results, supported by additional savings from optimizing office occupancy and completing the wind down of legacy technology and vendor contracts.

Speaker #3: For the full year, other loss was $31 million, primarily attributable to a $35 million impairment charge of the arbitrage fund recorded in Q3. In the fourth quarter, we recorded a loss of $8 million, reflecting fair value adjustments on certain items.

Speaker #3: Looking ahead, we expect 2026 to mark a turning point for the business. As initiatives continue to take hold, progress should become increasingly evident in our normalized results, supported by additional savings from optimizing office occupancy, and completing the wind-down of legacy technology and vendor contracts.

Speaker #3: As revenues continue to grow and the platform scales, the impact of zero-based budgeting and platform efficiencies should become clearer, allowing the financial profile of the business to reflect its underlying strength.

Mike Harrington: As revenues continue to grow and the platform scales, the impact of zero-based budgeting and platform efficiencies should become clearer, allowing the financial profile of the business to reflect its underlying strength. With a focused strategy, durable client relationships, and a simplified operating model, we believe AlTi is well positioned to deliver sustained growth and increased profitability over time. With that, I'll turn it back to Nancy Curtin for her closing remarks.

Speaker #3: With a focused strategy, durable client relationships, and a simplified operating model, we believe AlTi is well positioned to deliver sustained growth and increased profitability over time.

Speaker #3: And with that, I'll turn it back to Nancy Curtin for her closing remarks.

Speaker #2: Thank you, Mike. 2025 was a critical year for AlTi. While we continued to grow our clients, we also made necessary decisions to simplify the business, sharpen our focus, and position for long-term value creation.

Nancy Curtin: Thank you, Mike. 2025 was a critical year for AlTi.

Nancy Curtin: While we continue to grow our business and deliver for our clients, we also made necessary decisions to simplify the business, sharpen our focus, and position the firm for long-term value creation. As a result, we enter 2026 with a cleaner structure, a stronger operating model, and a platform aligned around recurring revenue, wealth and asset management. Thank you for your continued interest and support. We look forward to updating you on our progress in the quarters ahead. I'm now turning over to the operator for questions.

Speaker #2: As a result, we enter 2026 with a cleaner structure, a stronger operating model, and a platform aligned around recurring revenue, wealth, and investment management.

Speaker #2: Thank you for your continued interest and support. We look forward to updating you on our progress in the quarters ahead. I'm now turning it over to the operator for questions.

Speaker #3: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad.

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question will come from Wilma Burdis with Raymond James.

Speaker #3: A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue.

Speaker #3: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. And our first question will come from Wilma Burtis with Raymond James.

Speaker #4: Hey, good morning. Could you provide a little bit more color on the decision to transition CEOs and just talk about what the search process looks like from here?

Wilma Burdis: Hey, good morning. Could you provide a little bit more color on the decision to transition CEOs, and just talk about what the search process looks like from here? Thanks.

Speaker #4: Thanks.

Speaker #2: Well, first of all, Wilma, it's Nancy, and thank you very much for your support of the company. I think it was a bit broken up, but I think you asked the question, "Can we give a little more color on the transition process?" Is that right?

Nancy Curtin: Well, first of all, Wilma, it's Nancy, and thank you very much for your support of the company. I think, it was a bit broken up, but I think you asked the question, can we give a little more color on the transition process? Is that right?

Speaker #4: Yes.

Speaker #2: Yeah, okay, great. So, it was a thoughtful discussion, as you can imagine, between the Board and management as part of AlTi's ongoing focus and next phase of growth.

Wilma Burdis: Yes.

Nancy Curtin: Yeah. Okay, great. It was a thoughtful discussion, as you can imagine, between the board and management, as part of AlTi's ongoing focus, and next phase of growth. I think we just decided it was the right time to appoint a new leader for AlTi's next chapter, in growth ahead and continuing to execute our strategy. I want to say upfront that while there's a change in leadership, obviously myself, you know, our overall strategy of being a preeminent ultra high net worth firm operating on a global basis, with excellent client service, independent advice, and all those characteristics that both Mike and I spoke to, that remains. You know, continuity, momentum, and the strategy that's already in place is absolutely what we aim to continue to deliver on.

Speaker #2: And I think we just decided it was the right time to appoint a new leader for AlTi's next chapter in growth ahead, and continuing to execute our strategy.

Speaker #2: But I want to say upfront that while there's a change in leadership—obviously myself—our overall strategy of being a preeminent, ultra-high-net-worth firm operating on a global basis with excellent client service, independent advice, and all of those characteristics that both Mike and I spoke to, that remains.

Speaker #2: Continuity, momentum, and the strategy that's already in place is absolutely what we aim to continue to deliver on. And Mike, Wilma, it might be helpful just to turn to Kevin, who's sitting next to me as well, and he can comment on it.

Nancy Curtin: Mike, well, it might be helpful just to turn to Kevin, who's sitting next to me as well, and he can comment on it. Kevin and I are working side by side, and we look forward to the partnership together.

Speaker #2: Kevin and I are working side by side. And we look forward to the partnership together.

Speaker #5: Thanks, Nancy. Wilma, I've joined I've spoken to you in the past on some of these calls. I think you know myself, Nancy, Mike Tiedemann, the management team here at the firm has been together for a very long time.

Kevin Moran: Thanks, Nancy. Wilma, I've spoken to you in the past on some of these calls. As I think you know, myself, Nancy, Michael Tiedemann, like, the management team here at the firm has been together for a very long time. I've been with the firm for about 18 years. That's the case for many at the management level. As Nancy says, we believe in the strategy. There will be continued execution on the go-forward strategy that Michael Tiedemann put in place, you know, 25 years ago when he launched what was at that point, Tiedemann Advisors. We at the management team, it's a very cohesive, long-tenured team, and we remain absolutely focused on continuing to grow and execute the business strategy that Nancy and Michael Tiedemann laid out in their remarks.

Speaker #5: I've been with the firm for about 18 years, and that's the case for many of the management levels. So, as Nancy says, we believe in the strategy.

Speaker #5: We continued execution on the go-forward strategy that Mike Tiedemann put in place 25 years ago, when he launched what was at that point Tiedemann Advisors.

Speaker #5: And we at the management team, it's a very cohesive, long-tenured team, and we remain absolutely focused on continuing to grow and execute the business strategy that Nancy and Mike Tiedemann laid out in their remarks.

Speaker #4: Great. And I think you made a few comments on the process on the call, but can you just give us an update? I mean, it sounds like is this more of a pivot towards focusing on operating?

Wilma Burdis: Great. I think you made a few comments on the process on the call, but can you just give us an update? I mean, it sounds like is this more of a pivot towards focusing on operating? Can you just talk a little bit more about, you know, how that all fits together? Thanks.

Speaker #4: Can you just talk a little bit more about how that all fits together? Thanks.

Speaker #2: So let me take one. I think what you're saying, again, it's a strange line, but I think the strategy of being the preeminent global leader executing in a marketplace that is growing with ultra-high net worth, huge intergenerational wealth transfer, and are already existing excellent clients that we have in place, remains unchanged.

Nancy Curtin: Let me think, Wilma. I think what you're saying, again, it's straight lines. I think the strategy of being the preeminent global leader, executing, in a marketplace that is growing with ultra high net worth, huge, intergenerational wealth transfer, and our already existing excellent clients that we have in place remains unchanged. Let me turn to Kevin because a core part of that is of course growing our business organically and, from time to time, opportunistically and strategically, looking at inorganic, but there's nothing on the horizon at the moment. Also continuing to be mindful of ZBB, which is a core part of our cost discipline and process, and continuing to think about how we scale the business.

Speaker #2: But let me turn to Kevin, because a core part of that is, of course, growing our business organically and, from time to time, opportunistically and strategically looking at inorganic. But there's nothing on the horizon at the moment.

Speaker #2: But also, continuing to be mindful of ZBB, which is a core part of our cost discipline and process, and continuing to think about how we scale the business.

Speaker #2: So let me turn to Kevin to pick up on that because he's really led that over the last couple of years.

Speaker #5: Sure, thanks, Nancy. This is so we’re very focused, as we’ve talked about on previous calls—I think at length—and talked again about today, on further optimizing our cost structure. What we’re really looking to do is make sure that our cost structure is as optimized as possible to allow us to continue to scale the business.

Nancy Curtin: Let me turn to Kevin to pick up on that because he's really led that over the last couple of years.

Kevin Moran: Sure. Thanks, Nancy. We're very focused, as we've talked about on previous calls. I think I might even talk again about today on further optimizing our cost structure. What we're really looking to do is make sure that our cost structure is as optimized as possible to allow us to continue to scale the business. We're very focused on the cost structure, but at the same time we're very focused on growth. Organic growth for us is really the hallmark of a really healthy business. We're very focused on continuing to. We think we have a terrific service model and one of the best platforms for servicing the ultra high net worth client base that exists globally, certainly United States and elsewhere.

Speaker #5: So we're very focused on the cost structure, but at the same time, we're very focused on growth. So organic growth for us is really the hallmark of a really healthy business.

Speaker #5: And we're very focused on continuing to we think we have a terrific service model and one of the best platforms for servicing the ultra-high net worth client base that exists globally, certainly in the United States and elsewhere.

Speaker #5: So we're very confident in our ability to win business and bring on clients, and service them in the best way possible in the industry.

Kevin Moran: We're very confident in our ability to win business and bring on clients and service those in the best way possible in the industry. That's on the growth side. Nancy said we're uniquely positioned to also execute inorganic growth both in the United States and elsewhere. We have a just a terrific opportunity set in terms of both growing organically and inorganically. At the same time, we are surely not taking our eye off the ball on the expense side. We're gonna make investments. We're seeing that on the technology sides. We're making technology investments that we think will drive efficiencies over time. Think of everything from mid to back office and even on the front office side. There's a lot to do in AI and technology initiatives.

Speaker #5: So that's on the growth side. Nancy said we're uniquely positioned to also execute inorganic growth, both in the United States and elsewhere. So we have just a terrific opportunity, she said, in terms of both growing organically and inorganically.

Speaker #5: At the same time, we are certainly not taking our eye off the ball on the expense side. We're going to make investments. We're seeing that on the technology side.

Speaker #5: So we're making technology investments that we think will drive efficiencies over time. I think of everything from mid to back office, and even on the front office side.

Speaker #5: There's a lot to do in AI and technology initiatives. At the same time, we're looking to really streamline the rest of our non-comp costs. So we've been really proactive around occupancy, as an example.

Speaker #5: And you’re seeing that in the numbers. We’re going to continue to make sure that we’re right-sizing our occupancy expense. And then the major area where you’re going to see continued improvements is on tech spend.

Kevin Moran: At the same time, looking to really streamline the rest of our non-comp costs. We've been really proactive around occupancy as an example, and you're seeing that in the numbers. We're gonna continue to make sure that we're right-sizing our occupancy expense. Then the major where you're gonna see continued improvements is on tech spend. Well, eventually, we're investing into technology. We're also actively managing the technology spend. Some contracts where you'll see continued improvement on the tech spend. Then professional fees, again, that's where, you know, Mike Harrington's remarks talking about some of the noise that we've seen through costs related to the strategic initiatives and elsewhere. As those one-time expenses come off, you'll also see improvement on the professional fees.

Speaker #5: So eventually, we're investing into technology. We are also actively managing the technology spend. So some contracts we're off, you'll see continued improvement on the tech spend.

Speaker #5: And then professional fees, again, that's where Mike Harrington's remarks talking about some of the noise that we see through cost-related to the strategic initiatives and elsewhere.

Speaker #5: As those one-time expenses come off, you'll also see improvement on the professional fees. So, it's the management team that's very focused on both the top-line growth as well as bottom-line improvement on the expense side.

Kevin Moran: It's the management team that's very focused on both the top line growth as well as, bottom line improvement on the expense side.

Speaker #4: Great, thank you. And then it looked like you had pretty solid merger arbitrage performance in the quarter. Maybe give us a little bit more color on that.

Speaker #4: Thanks.

Wilma Burdis: Great. Thank you. It looked like you had pretty solid merger arbitrage performance in the quarter. Maybe give us a little bit more color on that. Thanks.

Speaker #5: Yeah, so the merger arbitrage strategy has been operating for a very long time. 2025 had a strong year, so I think performance was a little over 11% for the year, and that correlated to the improving management fees, which are based upon improving AUM growth as well as a strong incentive fee.

Kevin Moran: Yeah. The merger arbitrage strategy has been operating for a very long time. 2025 had a strong year, so the performance was up a little over 11% for the year, and that correlated to obviously improving management fees, which are based upon improving AUM growth as well as a strong incentive fee. As you know, the incentive fees for that are crystallized at the end of the year. Those, you know, based on the performance for the full year, we earned a pretty strong incentive fee for 2025. We don't have a view on 2026 because again, we don't know what performance will be for the strategy, but that strategy has a very long track record of doing pretty well in most market environments.

Speaker #5: As you know, the incentive fees for that are crystallized at the end of the year. So, those are based upon the performance of the full year. We earned a pretty strong incentive fee for 2025.

Speaker #5: We don't have a view on 2026 because, again, we don't know what performance will be for the strategy. But that strategy has a very long track record of doing pretty well in most market environments.

Speaker #2: I guess I would just add to that, Wilma. I mean, we'll have to see what happens, of course, with the conflict in the Middle East.

Speaker #2: But M&A activity is broadly picking up, both the volume and value of transactions. And this represents a pretty ripe opportunity for the arbitrage strategy.

Nancy Curtin: I guess I would just add to that, Wilma. I mean, we'll have to see what happens, of course, with the conflict in the Middle East, but M&A activity is broadly picking up both the volume and value of transactions, and this represents a pretty ripe opportunity for the arbitrage strategy. You know, we'll see what happens this year, but it's a good indicator. He manages to produce performance in all sorts of years, but I would say M&A activity, it looks like again, assuming we get through the conflict, will be a strong year in 2026.

Speaker #2: So we'll see what happens this year. But it's a good he manages to produce performance in all sorts of years, but I would say M&A activity looks like, again, assuming we get through the conflict, will be a strong year in 2026.

Speaker #4: Okay, great. And it looked like there were some pretty solid additions in AUA. Can you just touch on that a little bit?

Wilma Burdis: Okay, great. It looked like there were some pretty, solid additions in AUA. Can you just touch on that a little bit?

Speaker #5: Yes, sir. So, I think you're seeing on the AUA growth, we have the TOR acquisition. So, that was the acquisition of the German multifamily office that we completed last April, and that led to increased—obviously, revenue numbers increased as a result of that transaction.

Kevin Moran: Yes. Wilma, I think you're seeing on the AUA growth, we have the Kontora acquisition. That was the acquisition of the German multifamily office that we completed last April that led to increased, obviously, revenue. Our revenue numbers increased as a result of that transaction. Also they have their business, multifamily office. They have AUM and the AUA. You're seeing the uptake in the AUA really from that acquisition. Part of the business strategy behind that acquisition was over time to convert their AUA assets to AUM assets, which we have had a very long successful track record to be able to do with the rest of the business. That was really the main driver in the AUA uptake in 2025.

Speaker #5: But also, they have their business; it's a multifamily office. They have AUM and AUA. So you're seeing the uptick in the AUA really from that acquisition. Part of the business strategy behind that acquisition was, over time, to convert their AUA assets to AUM assets, which we have had a very long, successful track record of being able to do with the rest of the business.

Speaker #5: That was really the main driver in the AUA uptick in 2025.

Speaker #4: Oh, I guess drilling into that a little bit more, I think there was some AUA that was added in Q4. Just was curious on that.

Speaker #5: I think what you're seeing there is just the typical sort of movement of client assets in and out of their portfolios. We provide holistic services across clients' entire net worth.

Wilma Burdis: Oh, I guess drilling into that a little bit more. I think there was some AUA that was added in in Q4. I was just curious on that.

Kevin Moran: I think what you're seeing there is just the typical sort of movement of client assets in and out of their portfolios. We, you know, we provide holistic services across a client's entire network. Everything from real assets like real estate to investment assets. You know, Nancy and the investment team have done a terrific job of managing client portfolios. I think where there is nothing unusual, it's just, you know, as we particularly if we can bring on large clients, they may have at times very large AUA as opposed to AUM assets. Just think of AUA as really non-financial assets, just anything else an ultra-high net worth client could own. Real estate, artwork, collectibles, those would all be flowing into our AUA as opposed to our AUM.

Speaker #5: So, everything from real assets, like real estate, to investment assets—Nancy and the investment team have done a terrific job of managing client portfolios.

Speaker #5: So, I think where you’re there, it’s nothing unusual. It’s just, as we—particularly if we can bring on large clients—they may have, at times, very large AUA as opposed to AUM assets.

Speaker #5: And just think of AUA as really non-financial assets, just anything else in the ultra-high net worth clients could own. So real estate, artwork, collectibles, those would all be flowing into our AUA as opposed to our AUM.

Speaker #5: But it's really core to the service model for us to be able to oversee a report and manage and advise on both the AUA and the AUM.

Kevin Moran: It's really core to the service model for us to be able to oversee and report, manage, and advise on both the AUA and the AUM.

Speaker #4: Did you guys have a little more color on the 13D that was filed by Allianz? Thanks.

Speaker #2: Yeah. Thank you for that question, Wilma. So as you know, Allianz has been a strategic partner of the firm for the last 18 months.

Wilma Burdis: Could you give us a little more color on the Schedule 13D that was filed by Allianz? Thanks.

Nancy Curtin: Yeah. Thank you for that question, Wilma. As you know, Allianz has been a strategic partner of the firm for the last 18 months. They filed a Schedule 13D. We have no further insight into what their intentions or plans are. From a regulatory perspective, if they have any plans to increase their engagement, they are required to file a Schedule 13D. They've been a trusted and excellent partner. If they decide to move forward and we don't have any visibility into that at this point, that could be welcome.

Speaker #2: And they filed the 13D. We have no further insight into what their intentions or plans are. But from a regulatory perspective, if they have any plans to increase their engagement, they are required to file a 13D.

Speaker #2: They've been a trusted and excellent partner. And if they decide to move forward—and we don't have any visibility into that at this point—that would be welcome.

Speaker #2: Of course, in any event, as you're aware, we have a special committee of the board of directors and any kind of proposal about the company's strategically would go into our special committee who is committed.

Nancy Curtin: Of course, in any event, as you're well aware, we have a special committee of the board of directors, and any kind of proposal about the company strategically would go into our special committee, who is committed of the independent directors, to delivering the value for shareholders and representing all shareholders of the company. That's all I can say at the moment, but thank you for the question.

Speaker #2: The independent directors are delivering value for shareholders and representing all shareholders of the company. So that's all I can say at the moment.

Speaker #2: But thank you for the question.

Speaker #4: Thank you. And then could you just give us a little bit more detail on ZBB—where you stand with that, what's to come, what else you're doing there?

Speaker #4: Thanks.

Wilma Burdis: Thank you. Could you just give us a little bit more detail on ZBB, where you stand, with that? What's to come? What else you're doing there? Thanks.

Speaker #5: So Wilma, it's Kevin again. I can take that one. And Nancy, you're Mike, may want to jump in. So zero-day budgeting is, I think, primarily one is the budgeting approach we're taking going forward.

Speaker #5: So what the numbers, the $20 million number that we talked about was based upon the zero-day budgeting approach that we use for the 2024 sorry, for the 2025 budget.

Kevin Moran: Well, this is Kevin again. I can take that one, and Nancy or Mike may wanna jump in. Zero-based budgeting is, I think, primarily one is the budgeting approach we're taking going forward. The numbers, the $20 million number that we talked about was based upon the zero-based budgeting approach that we used for the 2025 budget. Of the $20 million, right, it's really it was across the entire scope of non-comp expenses. The expenses that we identified were expected to be realized over probably about 9 quarters, going into Q1 2027. The reason it's an extended period of time is that a lot of those expenses are subject to contracts.

Speaker #5: So of the $20 million right, it's really it was across the entire scope of non-comp expenses. The expenses that we identified were expected to be realized over probably about nine quarters, so going into the first quarter of 2027.

Speaker #5: The reason it's an extended period of time is that a lot of those expenses are subject to contracts. So, think of anything from leases to technology vendors.

Speaker #5: That as we identify and then we just don't renew the contract, we have to wait till the contract itself runs out. So what we saw in 2025 is really the non-contractual expenses.

Kevin Moran: Think of anything from leases to technology vendors that, you know, as we identify and then we just don't renew the contract, we have to wait till the contract itself, it runs out. What we saw in 2025 was really the non-contractual expenses. What Nancy talked about or Mike Harrington, we talked about things like, marketing, travel, entertainment, and tech expenses where we had contracts expiring in 2025. That's what we've seen so far. Same thing with occupancy. We made a significant improvement in reducing our occupancy expense. What we'll see in 2026 is continued cost reductions around, technology and occupancy as we continue to move through, leases and contracts that are expiring over the next four to five quarters.

Speaker #5: So what Nancy talked about or Mike Harrington, we talked about things like marketing, travel, entertainment. And the tech expenses where we had contracts expiring in 2025.

Speaker #5: So that's what we've seen so far. Same thing with occupancy. We made a significant improvement in reducing our occupancy expense. So what we'll see in 2026 is continued cost reductions around technology and occupancy as we continue to move through leases and contracts that are expiring over the next five quarters.

Speaker #4: Just following on the earlier question on Allianz, can you just remind us? It seemed like I thought Allianz had a multi-year stance. So can you just remind us where that stance, I guess, no pun intended?

Wilma Burdis: Just following up on the earlier question on Allianz. Could you just remind us, it seemed like I thought Allianz had a multi-year standstill. Can you just remind us where that stands? I guess no pun intended.

Speaker #2: Yeah. No. I mean, Kevin, take that. Kevin?

Speaker #5: Yes. When Allianz invested, they did have a stance still. So they would need board approval or board consent to potential can be waived. They do have one.

Speaker #5: In place. So they will discuss that with the special committee, in terms of how to move forward, if they wish to do so.

Nancy Curtin: Yes. Oh yes, Kevin, take that. Kevin.

Kevin Moran: Yes. With Allianz Investment, they did have a standstill, so they would need board approval or board consent for us to waive the standstill. The standstill can be waived. They do have one in place, so they will discuss that with the special committee in terms of how to, you know, move forward, if they wish to do so.

Speaker #4: Makes a lot of sense. And then, could you just give us a quick reminder of where you stand with capital and the potential to grow, acquire new advisors, or new platforms?

Speaker #4: Thanks.

Speaker #2: So that's a core part of our strategy. It's both organic, which is the priority, but of course, inorganic as well. Let me turn to Kevin on that.

Wilma Burdis: Makes a lot of sense. Could you just give us a quick reminder of where you stand with capital and potential to grow, acquire, you know, new advisors or new, platforms? Thanks.

Speaker #2: It's a so he can talk about the funding that we have and sources we have to continue to allow us to pursue inorganic opportunities.

Nancy Curtin: That's a core part of our strategy. It's both organic, which is the priority, but of course, inorganic as well. Let me turn to Kevin on that. He can talk about the funding that we have and sources we have to continue to allow us to pursue inorganic opportunities. Kevin.

Speaker #2: Kevin?

Speaker #5: Thanks, Nancy. That's one of the organic sides. We don't see the need for funding to allow us to continue to execute on the organic growth initiative.

Speaker #5: We have a terrific group of advisors and support staff and consultant teams globally to allow us to continue to pursue organic growth. What we have in the event we identify an attractive and an A opportunity or a larger lift out that would require capital, we have had discussions with capital providers and think that capital is readily available for us.

Kevin Moran: Thanks, Nancy. Yes. On the organic side, we don't see a need for funding to allow us to continue to execute on the organic growth initiatives. We have a terrific group of advisors, support staff, and consultant teams globally to allow us to continue to pursue organic growth. We have, you know, in the event we identify an attractive M&A opportunity or a larger opportunity, you know, that would require capital, we have had discussions with capital providers and think that capital is readily available for us. We can execute on a great idea, and we can show a capital provider, you know, how accretive that transaction will be. To sum it up, on the organic side, we don't see a need for capital at this time to continue to execute.

Speaker #5: We can execute on a great idea, and we can show a capital provider how treated that transaction will be. So to sum it up, on the organic side, we don't see a need for capital at this time to continue to execute.

Speaker #5: If and when we identify an organic opportunity, we are comfortable to be able to raise capital to fund and execute on that.

Speaker #4: Okay. Thank you. I can review, potentially. Thanks.

Kevin Moran: If and when we identify an inorganic opportunity, we are confident we'll be able to raise capital to fund and execute on that.

Speaker #3: And as a reminder, that is star one. If you would like to ask a question, then we'll pause for just a moment. And this now concludes our question and answer session.

Wilma Burdis: Okay. Thank you. I can requeue potentially. Thanks.

Nancy Curtin: Okay.

Operator: As a reminder, that is star one if you would like to ask a question, and we'll pause for just a moment. This now concludes our question and answer session. I would like to turn the floor back over to Nancy Curtin for closing comments.

Speaker #3: I would like to turn the floor back over to Nancy Curtin for closing comments.

Speaker #2: Thank you very much for joining us on the call this morning. Of course, we look forward to sharing updates on our progress on our first quarter call.

Speaker #2: And thank you for the excellent questions. Very much appreciated. And thank you for your time.

Nancy Curtin: Thank you very much for joining us on the call this morning. Of course, we look forward to sharing updates on our progress, on our Q1 call. Thank you for the excellent questions. Very much appreciated, and thank you for your time.

Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.

Q4 2025 AlTi Global Earnings Call

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