AlTi Global Reports $174.3 Million Net Loss for 2024, Revenue Declines to $206.9 Million

AlTi Global, Inc. reported a net loss of $174.3 million for the year ended December 31, 2024, compared to a net loss of $311.2 million for the year ended December 31, 2023. Total revenues decreased by $39.98 million to $206.9 million in 2024. This decrease was primarily driven by a significant decline in incentive fees ($40.1 million decrease), partially offset by an increase in management and advisory fees ($9.6 million increase). Distributions from investments also decreased by $4.9 million. The decrease in incentive fees was attributed to lower performance in the TIG Arbitrage strategy.

Operating expenses decreased by $52.4 million in 2024, primarily due to lower compensation costs ($38.4 million decrease) and professional fees ($14 million decrease). The decrease in professional fees reflected lower costs associated with the Business Combination and other transactions completed in 2023. Other income (expenses) increased by $113.9 million in 2024, primarily due to lower goodwill and impairment charges and higher net unrealized gains on fair value items. The 2023 figures included significant impairment charges related to business exits and restructuring.

Significant developments during the year included the completion of strategic investments from Allianz ($250 million) and Constellation ($150 million), totaling up to $450 million. The company also completed several acquisitions: East End Advisors ($93.1 million), Pointwise Partners Limited ($8 million), and Envoi, LLC ($34.3 million). Conversely, AlTi divested its European Family Office Services business (FOS) for $19.5 million and LXi REIT Advisors Limited (LRA) for $33.1 million plus contingent consideration. The company also identified material weaknesses in its internal control over financial reporting, primarily related to insufficiently documented risk assessments, process-level controls, and information technology controls.

As of December 31, 2024, AlTi managed or advised approximately $75.7 billion in assets under advisement (AUA), with $67.3 billion in AUA within the Wealth & Capital Solutions segment and $8.4 billion in AUA within the International Real Estate segment. The company employed approximately 430 professionals in 19 cities across eight countries. The company's Alternatives Platform, which includes internally managed and externally managed funds, had approximately $6.8 billion in AUM/AUA as of December 31, 2024. The company noted that the businesses within its International Real Estate segment were not additive to its long-term strategy and that several strategic options were under consideration.

AlTi's outlook is focused on organic growth through acquisitions and expansion into new markets. The company anticipates continuing to evaluate and execute inorganic growth opportunities, leveraging its global footprint and strategic partnerships with Allianz and Constellation to accelerate top-line growth. The company also highlighted several risk factors, including macroeconomic conditions, competition, regulatory changes, and cybersecurity risks. The company acknowledged material weaknesses in its internal control over financial reporting and outlined its remediation plan.