Q2 2026 AlTi Global Inc Earnings Call

Speaker #1: Advise all parties that this conference 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 Jeff Shaneborn with Alti Investor Relations.

Speaker #1: Please go ahead.

Speaker #1: Greetings. Welcome to the ACV Q2 2026 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

Speaker #2: Good afternoon, and welcome to Alti Global's second quarter 2026 earnings conference call. On today's call, we will hear prepared remarks from Nancy Curtin and Turn Chief Executive Officer and Global Chief Investment Officer, as well as Pat Keenan, Chief Financial Officer.

Speaker #1: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Tim Fox, Vice President of Investor Relations.

Speaker #2: They will be joined by Kevin Moran, our President and Chief Operating Officer, for the Q&A session. Before we begin, 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 #1: Thank you, Tim. You may begin.

Speaker #2: Good afternoon, and thank you for joining AlTi Global's conference call to discuss our second quarter 2026 financial results. With me on the call today are Michael Tiedemann, Chief Executive Officer, and Michael Harrington, Chief Financial Officer.

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: Before we get started, please note that today's comments include forward-looking statements, including statements regarding future financial guidance. These forward-looking statements are subject to risks and uncertainties and involve factors that could cause actual results to different materially from those expressed or implied by such statements.

Speaker #2: A discussion of the risks and uncertainties related to our business can be found in our SEC filings and in today's press release, both of which can be found on our Investor Relations website.

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: During this call, we will discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is provided in today's earnings materials, which can also be found on our Investor Relations website.

Speaker #2: For discussion of the risks and uncertainties that could cause actual results to differ, please refer to Alti's 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.

Speaker #2: With that, let me turn the call over to George.

Speaker #3: Thanks, Tim. Good afternoon, everyone, and thank you for joining us. We are very pleased with our second quarter performance and execution while facing a challenging market environment.

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 our related SEC filings.

Speaker #3: We delivered record revenue, with adjusted EBITDA exceeding the high end of guidance. In addition to solid financial results, we made significant progress on our three key objectives.

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

Speaker #3: First, we continue to gain market share and expand our dealer partner network to a new record. The combination of increasing our field capacity and penetration of our no-reserve offering contributed to our growth.

Speaker #3: Thank you, Jeff, and good afternoon, everyone. I want to begin with what we believe is one of the most important aspects of the Alti story: the strength, rarity, and long-term relevance of our franchise.

Speaker #3: Second, we had another strong quarter of performance in ACV Transport and ACV Capital, along with growing adoption of our value-added dealer solutions. And third, we are gaining traction with our emerging growth initiatives.

Speaker #3: Globally, the creation of private wealth continues to be supported by powerful secular tailwinds. Wealth creation is expanding not only in the United States but increasingly across Europe, Asia, the Middle East, and other markets.

Speaker #3: Including very strong demand for Viper and momentum in the commercial wholesale segment. While macro headwinds caused conversion rates to compress below expectations in June and July, we believe conditions will begin to stabilize and remain committed to delivering double-digit revenue growth and increased adjusted EBITDA while investing in our exciting growth objectives.

Speaker #3: At the same time, the needs of ultra-high-net-worth families are becoming more complex, more global, and more interconnected. Our focus remains squarely on serving ultra-high-net-worth families, family offices, and institutions.

Speaker #3: The number of independent firms capable of advising families with hundreds of millions or, indeed, billions of dollars of assets across geographies generations and asset classes is remarkably small.

Speaker #3: We're confident that executing on this profitable growth strategy will create significant long-term shareholder value. With that, let's turn to a recap of our results on slide 4.

Speaker #3: We believe this scarcity value creates substantial long-term franchise value. Importantly, we do this as an independent advisor. Our model is designed around the needs of the client rather than proprietary product distribution.

Speaker #3: We delivered another record revenue quarter, with growth of 10%. Despite continuing headwinds in the dealer wholesale market. With volumes contracting approximately 6% year over year.

Speaker #3: We believe that alignment, combined with our global capabilities and highly collaborative culture, differentiates us in the marketplace and contributes to the exceptionally high client retention rates that we enjoy.

Speaker #3: And we continue to gain market share, selling 211,000 vehicles in the quarter. Next, on slide 5, we focus on the pillars of our strategy to maximize long-term shareholder value by delivering innovation that is driving growth and scale.

Speaker #3: In fact, recent research we conducted among family offices, globally reinforces what we hear from our clients daily. Nearly half of respondents said they have begun to formally define the purpose of wealth and the role it should play across generations.

Speaker #3: I will begin with growth. On slide 7, I will highlight our growth initiatives in dealer wholesale. As we discussed last quarter, we are investing in additional field capacity to broaden our regional growth performance.

Speaker #3: Yet many have not fully engaged the next generation in those discussions. We view this as a powerful validation of the work we do to help families navigate governance, succession planning, stewardship, education, and long-term legacy objectives alongside our sophisticated investment management, planning, and wealth advice expertise.

Speaker #3: This resulted in a record number of dealer visits, inspections, and dealers transacting on our marketplace. We expect that these investments, along with improving conversion rates, will yield accelerated unit growth in the coming quarters.

Speaker #3: We also continue to leverage machine learning, combining inspection data and market data to provide real-time pricing. Our platform powers ACV Guarantees to sellers and delivers no-reserve options to buyers.

Speaker #3: Increasingly, our role is helping to prepare future generations for the responsibilities that come with wealth. We believe that distinction is becoming more important to families around the world, and represents a significant opportunity for Alti to create meaningful long-term value for clients and shareholders.

Speaker #3: This offering remains the fastest-growing channel on our marketplace that benefits sellers, buyers, and ACV. We're removing seller market risk, accelerating bidder engagement, and increasing buyer satisfaction.

Speaker #3: While delivering a 100% conversion rate, we're confident our guaranteed offering will continue to be a key driver of market share gains. Turning to slide 8, let's review our marketplace service offerings.

Speaker #3: As we look ahead, our strategic priorities remain clear: first, is organic growth. We believe strong, net organic growth is the clearest indication of the health of a wealth management business.

Speaker #3: The transport team had strong execution in Q2, with 19% revenue growth and 125,000 transports delivered. By leveraging AI to optimize transport pricing, we continue to drive strong growth and operating efficiency.

Speaker #3: Our focus is on attracting new clients, deepening existing relationships, expanding advisor capacity, and continuing to earn referrals through exceptional service and client outcomes. Second, we continue to invest in our core wealth management franchise.

Speaker #3: And despite the increase in diesel fuel during the quarter, the team executed incredibly well. Delivering a transport revenue margin and a tax rate that remained in line with our mid-term target.

Speaker #3: We remain focused on expanding advisor capacity in key markets, densifying offices where we already have scale, and selectively adding talent and teams that align with our culture.

Speaker #3: Lastly, our off-platform transport service continues to gain traction from our dealer partners creating additional growth opportunities. ACV Capital also delivered strong performance. With a tax rates reaching a new record in the high teens.

Speaker #3: A recent example is our continued investment in Miami, which has emerged as one of the fastest-growing wealth hubs in the United States benefiting from both domestic migration and increasing international wealth flows.

Speaker #3: Our expanded go-to-market strategy, new product offerings, and process enhancements to manage portfolio risk resulted in another strong quarter for the ACV Capital team. On slide 9, we highlight how we're further differentiating ACV and creating additional growth opportunities with our suite of AI-driven products.

Speaker #3: In the second quarter, we announced that Cesar Pashon, joined Alti to lead our Miami office, bringing decades of ultra-high-net-worth client experience and enhancing our strengths in serving globally connected families and family offices.

Speaker #3: Internationally, we remain disciplined and allocating resources to markets that demonstrate strong growth potential and attractive long-term economics. Our global footprint is intentional, reflecting where internationally mobile families increasingly live invest and conduct businesses.

Speaker #3: ClearCar and ACV Max are adding tremendous value to our dealer partners and are also contributing to our wholesale market share. Our partners are able to optimize inventory and automate vehicle selling and buying, strengthening their ability to source more vehicles from consumers.

Speaker #3: In addition, investments in our already substantial private endowments business continued, with the recent addition of Mike Cagnina who brings decades of experience to Alti including many years at SCI's global institutional group, where he co-founded its endowment and foundations practice.

Speaker #3: As a result, our top 100 ClearCar customers doubled the volume of quarterly wholesale transactions on ACV after launching ClearCar. While ClearCar has proven to be a highly effective sourcing tool for our dealer partners, while increasing wholesale volumes on ACV, we are confident that Viper delivers even more value.

Speaker #3: A third strategic priority remains our laser-focused on improving profitability and operating efficiency. We've undertaken a comprehensive effort to streamline the organization, simplify operations, reduce complexity, and improve scalability.

Speaker #3: Through a powerful suite of ACV-enabled solutions. We have received very positive feedback during our successful early access beta program. And are pleased that today marks the official launch of commercial availability for Viper.

Speaker #3: We are in the early stages of seeing the benefits and we believe the organization is becoming leaner and better positioned for long-term growth. While reported numbers do not yet fully reflect that progress, our underlying expense trajectory is improving.

Speaker #3: We are already engaged with half of the top 50 dealer groups in the country, and our pipeline continues to grow. Through Viper, our industry-leading inspection data, and vehicle pricing capabilities, we enable dealers to unlock consumer vehicle acquisition at scale in the service lane.

Speaker #3: These efforts are aimed at better aligning the business with its core strengths and ensuring our financial results more accurately reflect Alti's long-term earnings power.

Speaker #3: Turning to our second quarter financial results, assets under management grew to $51 billion. For the wealth management business, AUM growth reflected gross client inflows of nearly $800 million in the second quarter of 2026, while net flows totaled about $700 million.

Speaker #3: And seamlessly identify service upsell opportunities. We are also on track to integrate with the leading dealer software vendors to create a truly seamless experience in dealership service lanes.

Speaker #3: Market appreciation also had a positive impact on AUM, supported by staying the course in more difficult markets and our positioning in technology, energy, and power infrastructure all benefiting from longer-term secular demand tailwinds.

Speaker #3: We remain on track to grow Viper's footprint in coming quarters. Offering a Viper bundle with wholesale to create a powerful new lever to drive unit growth and expand our network.

Speaker #3: AUM growth was achieved even as we maintain a significant portion of the portfolio in alternatives which do not price at quarter-end. Our external strategic managers, run with low net market exposure, so they tend to have a more muted performance when markets move higher in short bursts, but continue to provide both diversification and downside protection.

Speaker #3: In addition, we've also started to leverage Viper for vehicle inspections at our remarketing centers. While it's still early, we are confident that this solution will be an additional lever to drive improved unit economics.

Speaker #3: Lastly, as we highlighted in recent quarters, the internal adoption of AI tools across ACV has enabled us to gain meaningful velocity and efficiency. As such, we have even more confidence in delivering our differentiated product roadmap to support our growth objectives.

Speaker #3: During the second quarter, one of these three external managers, the Asian Credit and Special Situation Strategy, experienced an extraordinary circumstance. Unfortunately, its founder and chief investment officer experienced a sudden and serious health event.

Speaker #3: Our thoughts are with him as well as his family and colleagues, and he has our very best wishes for a full recovery. Following this event, this external manager and his board made the unexpected decision to unwind the fund within a 12-month time horizon.

Speaker #3: Next on slide 10, I'll wrap up the growth section with our commercial wholesale strategy. A larger adjacent market with both upstream and downstream opportunities.

Speaker #3: Our team has made significant progress on our software platform and we believe this new digital model and end-to-end experience will transform commercial vehicle remarketing.

Speaker #3: As a result, for the second quarter, we recorded an unrealized investment loss on our stake in the strategy. This was an extraordinary event, unrelated to investment performance and, importantly, our stakes in the two other external strategic managers, our performing solidly, as expected.

Speaker #3: Our differentiated offering is attracting large commercial consignors. We recently began remarketing vehicles from a top-five fleet consignor and are in the final stages of securing a second large-scale consignor.

Speaker #3: Turning to the top line, Alti generated $58 million in total revenue, representing 11% growth compared to the same period of last year. Recurring management and advisory fees total $54 million, up 11% year over year, and continue to represent the majority of our revenue base, reflecting the stability and recurring nature of our business model.

Speaker #3: We're also integrating with a large captive finance, off-lease company, and adding another top four rental car consignor to our marketplace. The commercial segment.

Speaker #3: We're also pleased to report that adjusted EBITDA for the second quarter of 2026 was over $5 million. Up 9% compared to the prior year quarter, largely driven by the revenue increase along with early improvements in our operating expenses which we expect to accelerate in 2027 as cost controls and vendor rationalization take hold.

Speaker #3: Finally, with respect to the ongoing strategic review process, the committee continues its work. As of today, there's nothing further to report. We will provide updates as appropriate.

Speaker #3: Now, with that, I'll turn the call over to our CFO, Pat Keenan, to walk through the financials in more detail. Pat.

Speaker #2: Thank you, Nancy, and good afternoon, everyone. Assets under management on June 30, 2026 were $51 billion. Up 8% year over year and 6% from March 31, 2026, driven by strong investment performance and net positive client inflows.

Speaker #2: In the second quarter of 2026, Alti generated $58 million of total revenue, representing an 11% increase versus the same period last year. Recurring management and advisory fees totaled $54 million, up 11% year over year and 5% sequentially, primarily due to approximately $700 million of net organic growth in AUM in the second quarter of 2026.

Speaker #2: Distributions from investments increased 28% year over year without performance by our external strategic managers as reflected in higher distributions related to management fees in the European equity strategy and the real estate bridge lending strategy.

Speaker #2: As discussed during our last earnings call, the incentive portion of investment distributions tend to be most significant in the first quarter of each year, which accounted for their contribution in the first three months of 2026.

Speaker #2: These distributions can play an important role in diversifying cash flows and contributing to results across different market environments. Due to the unexpected decision by the Asian Credit and Special Situations Manager to unwind the fund within a 12-month time horizon, we anticipate diminishing contributions to Alti revenues from this fund.

Speaker #2: For context, this year to date, this strategy represented about $75 basis points of Alti recurring management fees and about $650 basis points of the incentive portion of distributions.

Speaker #2: Also, as a result of the manager's decision to unwind, we recorded an unrealized investment loss of nearly $19 million, on our stake in the fund.

Speaker #2: Turning to operating expenses, we are beginning to see the early benefits of Alti's comprehensive effort to streamline the organization, simplify operations, reduce complexity, and improve scalability.

Speaker #2: We expect these benefits to accelerate in 2027 as cost controls and vendor rationalization take hold. For the quarter, reported operating expenses totaled $69 million, improving 12% from $78 million in the year ago period.

Speaker #2: With reductions in both compensation and non-compensation expenses. Total compensation and benefits expense improved to $41 million, down 5% from the year ago period, reflecting our expense reduction efforts.

Speaker #2: Comp and benefits declined 26% sequentially, given elevated first quarter expenses associated with Alti's management restructuring earlier this year, as well as our focus on cost controls.

Speaker #2: Non-compensation expenses improved by 20% from the year ago period, reflecting progress under our zero-based budgeting initiatives. This included a 40% reduction in professional fees compared to the second quarter of 2025, as well as lower technology, occupancy, and marketing expenses.

Speaker #2: These reductions also reflect our focus on cost controls as did the 8% decrease in non-compensation expenses for the first half of 2026 compared to the same period last year.

Speaker #2: For the second quarter of 2026, adjusted EBITDA was over $5 million, up 9% from the prior year period, driven by growth in total revenue and recurring management fees, as well as lower operating expenses.

Speaker #2: Adjusted EBITDA margin was 9.3% in the second quarter of 2026, compared to 9.5% in the prior year period. Adjusted EBITDA margin of 20% in the first three months of 2026, reflect the impact of the incentive fees from investment holdings and external managers, which, as discussed, are primarily a first quarter complement to recurring management fee revenues.

Speaker #2: Other expense for the quarter was $20 million including the effect of the unrealized investment loss on the Asian Credit and Special Situations stake compared to other expense of $5 million in the year ago period.

Speaker #2: On a gap basis, we reported an operating loss of $11 million, a 58% year-over-year improvement, reflecting growth in total revenue and recurring management fees, as well as lower compensation and non-compensation expenses.

Speaker #2: We also improved year-to-date gap operating loss by 37% in 2026, compared to the first half of 2025, driven largely by revenue growth as well as reductions in non-compensation expenses that resulted from our efficiency initiatives.

Speaker #2: And finally, on a gap basis, we reported a net loss from continuing operations of $31 million for the quarter, compared to $26 million in the prior year period, with that I'll turn it back to Nancy for her closing remarks.

Non-compensation expenses improved by 20% from the year-ago period, reflecting progress under our zero-based budgeting initiatives.

This included a 40% reduction in professional fees compared to the second quarter of 2025, as well as lower technology, occupancy, and marketing expenses.

Speaker #3: Thank you, Pat. As you've heard today, we continue to make meaningful progress across the areas that we have prioritized, for our business. We remain focused on organic growth, thoughtful investment in our wealth management platform, strong and diversifying market gains, and operating efficiency improvement across the organization.

These reductions also reflect our focus on cost controls, as did the 8% decrease in non-compensation expenses for the first half of 2026 compared to the same period last year.

So, in the second quarter of 2026, adjusted EVA was over $5 million, up 9% from the prior year period, driven by growth in total revenue and recurring management fees, as well as lower operating expenses.

Speaker #3: We believe the secular trends supporting the growth of ultra-high net worth market remain firmly intact, and we continue to see increasing demand for the comprehensive advice, family office capabilities, and global perspective that distinguish Alti in the marketplace.

Hi Justin, even though margin was 9.3% in the second quarter of 2026.

compared to 9.5% in the prior-year period.

Adjusted. Even a margin of 20% in the first three months of 2026 reflects the impact of the incentive fees from Investment Holdings and external managers, which, as discussed, are primarily a first quarter complement to recurring management fee revenues.

Speaker #3: I would like to thank our clients for their trust, our advisors, and employees for their commitment, and our shareholders for their continued support. Now I'll turn the call back to the operator for questions.

Other expense for the quarter was, including the effect of the unrealized investment loss on the Asian credit and special situation snake compared to other expensive 5 million dollars in the year ago. Period.

Speaker #4: 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.

On a GAAP basis, we reported an operating loss of $11 million, a 58% year-over-year improvement, reflecting growth in total revenue and recurring management fees, as well as lower compensation and non-compensation expenses.

Speaker #4: A confirmation tone will then indicate you're a line is in the question queue. You may press star two if you would like to remove your question from the queue.

We also improved year-to-date GAAP operating loss by 37% in 2026 compared to the first half of 2025.

Speaker #4: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for first question comes from Wilma Burdis with Raymond James.

as well as reductions in non-compensation expenses that resulted from our efficiency initiatives.

And finally, on a gap basis. We reported a net loss from continuing operations of 31 million for the quarter compared to 26 million in the prior year period with that. With that, I'll turn it back to Nancy for her closing remarks.

Thank you, Pat.

Speaker #4: Please go ahead.

As you've heard today, we continue to make meaningful progress across the areas that we have prioritized for our business. We remain focused on our organic growth.

Speaker #5: Hey, good afternoon. Reported operating expenses seem to improve considerably. Can you give us some color on where you are as far as rolling on the ZVB benefits and where should we expect that to trend in the coming quarters?

Thoughtful investment in our wealth management platform, strong and diversifying market gains.

And operating efficiency improvement across the organization.

Speaker #3: Wilma, excellent question. And thanks for participating today. Let me turn to Kevin, who's really spearheaded that initiative. But we're really pleased with the beginning results we're seeing this year, and the ongoing expense reductions that we think will come through in 2027.

We believe the secular Trend supporting the growth of ultra high. Net worth Market remains firmly intact.

And we continue to see increasing demand for the comprehensive advice, family office capabilities and Global Perspective. That

Distinguish, Alti and the marketplace.

Speaker #3: Kevin?

Speaker #6: Hi, Wilma. Thanks, Nancy. Yes, the zero-based budgeting, I think, as we've talked about in prior calls, is the budgeting methodology that we're using at Alti so we've now used it, I think this is the second year that we've used it.

I would like to thank our clients for their trust, our advisors and employees for their commitment, and our shareholders for their continued support.

Now, I'll turn the call back to the operator for questions.

Thank you.

Speaker #6: We used it for the 2025 and now the 2026 budgeting process. So I think, as Nancy and managers spoke about on prior calls, we're laser focused on reducing our cost structure of the business to improve profitability, combine that with revenue growth, which leads us to be really confident about the future of the business.

You will now be conducting a question-and-answer session. If you would like to ask a question, please press *1 on your telephone keypad. A confirmation tone will then indicate your line is in the question queue. You may press *2 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.

Speaker #6: So we would expect, and certainly we're very focused on continuing the cost discipline and continuing to drive down all elements of our cost structure, both comp and non-comp.

1 moment, please while we pull for questions.

Speaker #6: I think you've seen that in the Q2 numbers.

Speaker #5: Thank you. And can you talk a little about the net flows in the quarter and how you guys are thinking about organic growth going forward, thanks?

And our first question comes from Wilma berdis with Raymond James, please go ahead.

Speaker #3: So organic growth is a clear priority for our business, and it was, I think, quite pleasing. It's been a volatile year, to say the least, in markets, etc., but it was quite pleasing to see about 700 million of net flows.

Hey, good afternoon. Um reporting operating expenses seem to improve considerably.

Can you give us some color on where you are as far as rolling on the zbb benefits? And uh, you know, where should we expect that to Trend in the coming quarters?

Speaker #3: In the second quarter, that combined with market performance, I said, led to a very pleasing result. And part of the market performance I would add, we stayed invested, during the more turbulent first quarter we felt our positioning was rightly aligned for what longer-term clients were looking for, and that bounced back quite nicely.

Later thanks. Well my excellent question and and thanks for participating today. Let me turn to Kevin who's really spearheaded that initiative but we're really pleased uh with the beginning results, we're seeing this year uh and the ongoing uh expense reductions that we think will come through in 2027 Kevin I willma. Thanks Nancy.

Speaker #3: So the combination of positive net flows and reaping the benefits of market performance, I think, characterized quite nicely the second quarter.

Yes. So zero-based budgeting, I think, as we've talked about on prior calls, is the budgeting methodology that we're using at AlTi. So we've now used it—I think this is the second year that we've used it. We used it for the 2025, and now the 2026, budgeting process.

So, I think, as Nancy and, um,

Speaker #5: Thank you. And can you talk about the appetite for further M&A deals and which maybe just touch on which geographies would be interesting to Alti?

As we spoke about on prior calls, we’re laser-focused on reducing our cost structure of the business to improve profitability. Combine that with revenue growth,

Speaker #5: Following Contoura, does it make sense to expand the European footprint, or are domestic opportunities more attractive, maybe just talk about that? Thank you.

Which leads us to be really confident about the future of the business. So we would expect it's really very focused on continuing the cost discipline and continuing to drive down, really, all elements of our cost structure, both comp and non-comp.

Speaker #3: Thanks, Wilma. We are always open to acquisition opportunities in the core and strategic markets that we think are most attractive. Of course, the United States has been a very successful market for us, and the recent acquisition Contoura in Germany is also been really a great foothold to expand our presence there.

I think you've seen that in the Q2 numbers.

Thank you. And can you talk a little about Netflix?

How you guys are thinking about organic growth going forward. Thanks.

So, um, organic growth is a clear priority for our business, and it—

Speaker #3: So we will continue to look opportunistically. It is not something we're trying as a sort of roll-up strategy. That's not what we do. We look strategically for management teams and companies that align from a philosophy, a target client, client-first mentality, and the type of independent integrated holistic advice that we provide.

In a volatile year uh to say the least in markets, Etc. But it was quite pleasing uh to see about 700 million of net flows. Uh in the second quarter, uh, that combined uh, with market performance. I said, let let to a very pleasing uh, result. And, and part of the market performance, I would add we, you know, we stayed invested, uh, during the more turbulent, uh, first quarter, uh, we felt our position.

Speaker #3: And that's really important, that we find those companies, and if we do, in strategic markets that we can integrate them. So nothing to comment on at the moment, but always part of our longer-term strategy.

Name was right. The line for what longer-term clients were looking for, and that bounced back quite nicely. So, the combination of positive net flows and reaping the benefits of market performance, I think, characterized quite nicely the second quarter.

Speaker #5: Okay. Thank you. And then I realize you may not be able to say too much about this, but is there any update on the strategic review, or how just maybe it's given update of what you guys are thinking there?

Thank you. And can you talk about the appetite for further M&A deals?

And maybe just touch on which geographies would be interesting to op.

Speaker #5: Thanks.

Speaker #3: Yeah. Of course. As you can imagine, as a public company, there's not too much that we can comment on, and we don't comment on rumor and speculation.

Following Contour, does it make sense to expand the European footprint, or...

Our domestic opportunities are more attractive. Maybe we can just talk about that. Thank you.

Speaker #3: What I would say is the special committee as you would expect, will continue to review any and all opportunities that will enhance the value for shareholders, of course, our clients, employees, and the long-term franchise value of the firm.

Speaker #3: So we're guided by those principles, the special committee is still in place, but that's really all I can comment on today.

Speaker #5: Okay. Thank you. And then maybe just last one for me. Could you talk a little bit about the event-driven platform and the trends there that you're seeing?

Speaker #5: Thanks.

Speaker #3: So on the event-driven side, first of all, I would say that generally, our external and hedge fund strategies tend to run with a much lower level of net exposure.

Speaker #3: So they're not strategies that are going to move with the market going down violently and then going up. So they protected capital quite nicely in the first quarter.

Markets that we think are most attractive. Uh, of course, the United States has been a very successful market for us, uh, and uh, the recent acquisition, uh, Contour in Germany, uh, is also, uh, been been really a great foothold to expand our presence there. Um, so we will continue to look opportunistically. It is not something we're trying, uh, as a sort of roll-up strategy. That's not what we do. We look strategically, uh, for uh, management teams and companies that align from a philosophy, a Target client client first mentality, uh, and the type of independent, uh, integrated holistic advice that we provide, um, and that's really important that we find those companies. And if we do, uh, in strategic markets that we can integrate them. So, uh, nothing to comment on at the moment, but always, uh, part of our longer term strategy.

Speaker #3: But the second quarter, when you see a robust recovery in markets, is really not the environment for those strategies. And ARM, in particular, is going to be very, very deal-specific.

Speaker #3: It doesn't invest in speculative transactions. It is only announced deals, where there's complexity and a spread that drew things is worth sort of the risk-return payoff is appropriate.

Okay, thank you. And then, I realize you may not be able to say too much about this, but is there any update on the strategic review? Or, you know, just maybe give an update on what you guys are thinking there. Thanks.

Speaker #3: So I would say a little bit more muted performance, but again, these things can change quite quickly as the M&A environment changes and often the fourth quarter tends to be a much better quarter generally for hedge fund strategies.

Speaker #5: Okay. Thank you.

Yeah, of course. Um, as you can imagine, if a public company, uh, there's not too much that we can comment on and we don't comment on rumor and speculation. Uh, what I would say is the special committee. Uh, as you would expect will continue uh, to review any and all opportunities, uh, that will enhance, uh, the value for shareholders, of course, our clients employees, uh, and the long-term, uh, franchise value of the firm. So, uh, we're guided um, by those principles. Uh, the special committee is still in place, but that's really Wilma. All I can comment on today.

Speaker #2: And at this time, we have no further questions. I'd like to hand the call back to Nancy Curtin for closing remarks. Nancy.

Speaker #3: I'd like to thank everyone for participating today. We look forward to updating you on our progress in the quarters ahead. As we remain laser-focused on our organic growth and cost discipline, we appreciate your interest and look forward to speaking with you again next quarter.

Okay, thank you and then maybe just lasts 1 for me. Could you talk a little bit about the event driven platform and the trends there that you're seeing?

Thanks.

Speaker #3: So thank you, everyone.

So, um, on the event driven side, the first of all, I would say that generally our um, external and uh, you know, hedge fund strategies, uh, tend to run with a much lower level of net exposure. So they're not strategies, they're going to move with the market, you know, going down violently and then going up. So they protected Capital quite nicely in the first quarter. But the second quarter when you see a robust recovery in markets is really not the environment. Uh for those strategies and or in particular is going to be very, very deals specific. Uh, it doesn't invest in speculative transactions. It is only and then

Announced deals, uh, where there's complexity and a spread, uh, that Drew things is, uh, you know, worth, uh, the sort of the risk return payoff, is is appropriate. So, I would say a little bit more muted performance, but again, these things can change quite quickly. Uh, as the m&a environment changes and often the fourth quarter, uh, tends to be a much better quarter generally, uh, for a hedge fund strategies.

Okay, thank you.

And at this time, we have no further questions. I'd like to hand the call back to Nancy curtain for closing remarks. Nancy

I'd like to thank everyone for participating today. We look forward to updating you on our progress in the quarters ahead, as we remain laser-focused on our organic growth and cost discipline. We appreciate your interest and look forward to speaking with you again next quarter. So, thank you everyone.

This concludes today's teleconference. You may disconnect your line at this time. Thank you for your participation.