AlTi Global Q2 2025 slides: revenue up 7%, AUM surges 35% amid strategic expansion

AlTi Global Inc (NASDAQ:ALTI) reported second quarter 2025 results on August 11, showing year-over-year revenue growth of 7% to $53.1 million, while assets under management and advisement (AUM/AUA) jumped 35% to $97.2 billion. The wealth management firm highlighted its strategic investments from Allianz (ETR:ALVG) and Constellation Wealth Capital as catalysts for continued expansion in the ultra-high-net-worth (UHNW) market.

Quarterly Performance Highlights

AlTi’s second quarter showed solid year-over-year growth, though revenues declined sequentially from the $58 million reported in Q1 2025. The company’s core Wealth & Capital Solutions segment delivered revenue of $52.4 million, up 8% from the same period last year, with management fees increasing 6% to $49 million.

The firm emphasized that 99% of its revenues are now recurring, up from 83% in the previous quarter, providing greater stability to its business model. However, adjusted EBITDA came in at $3.8 million, down significantly from the $9 million reported in Q1.

As shown in the following comprehensive financial overview, total operating expenses increased 29% year-over-year to $83.3 million:

The Wealth & Capital Solutions segment, which represents the core of AlTi’s business following its exit from the International Real Estate business, showed strong performance metrics:

Strategic Initiatives & Partnerships

A major focus of AlTi’s presentation was its strategic partnership with Allianz and Constellation Wealth Capital, which provides up to $450 million in investment capital. The company is using this funding to accelerate its M&A strategy, international expansion, and organic growth initiatives.

AlTi highlighted its global footprint spanning 19 offices across 9 countries, positioning it to capture a larger share of the growing UHNW wealth management market:

The company’s acquisition strategy is already bearing fruit, with completed or announced acquisitions including East End Advisors, Manz Envoi, and Kontora. These acquisitions align with AlTi’s focus on the UHNW segment, targeting firms with $2-20 billion in AUM.

AlTi’s partnership with Allianz extends beyond capital investment to include a private markets investment program for UHNW clients, providing access to the $1.5 trillion global private credit market with smaller ticket sizes than typically available.

Detailed Financial Analysis

AlTi’s presentation emphasized the substantial market opportunity in wealth management, with the HNW/UHNW market estimated at $102 trillion and expected to grow at approximately 7% CAGR through 2028. The company currently captures just 0.08% of this market, suggesting significant room for expansion:

The company’s service model is tailored to UHNW individuals and families, foundations, endowments, sovereign wealth funds, and family offices, with a minimum requirement of $25 million in investable assets. Its comprehensive service offering includes:

AlTi’s assets under management in its core Wealth Management segment reached $42.9 billion, up 20.8% year-over-year, while assets under advisement grew to $60.6 billion, a 13.3% increase. The company maintains a 96% client retention rate since 2021, demonstrating strong client relationships.

Forward-Looking Statements

AlTi described itself as being at an "inflection point" with several factors positioning it for future growth:

The company’s financial drivers focus on topline growth, margin expansion, and balance sheet strength. Management highlighted that cost reduction initiatives are underway, which may help address the 29% year-over-year increase in operating expenses seen in Q2.

AlTi’s stock closed at $4.56 on August 11, representing a 32.6% increase from its $3.44 price following Q1 earnings, despite the sequential decline in revenue and adjusted EBITDA. The stock is currently trading well above its 52-week low of $2.33 but below its 52-week high of $5.00.

Looking ahead, AlTi is positioned to benefit from several industry tailwinds, including the growing demand for alternatives among UHNW investors and increasing preference for ESG considerations in wealth management. The company’s strategic investments and global expansion strategy aim to capitalize on these trends while driving operational efficiencies to improve profitability.

Full presentation:

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