Good morning, my name is Zico, and I will be the conference operator for today. At this time I would like to welcome everyone to AlTi Third Quarter 2024 Earnings Conference Call. During the call your lines will remain in listen-only mode. After the speaker’s remarks there will be a question-and-answer session. I would like to advise all parties that this conference call is being recorded and a replay of the webcast is available on AlTi’s Investor Relations website. Now, at this time I will turn things over to Lily Arteaga, Head of Investor Relations for AlTi. Please go ahead.

Good morning to everyone on the call today. Joining me this morning are Michael Tiedemann, our CEO; and Stephen Yarad, our CFO. We invite you to visit the Investor Relations section of our website at www alti-global.com to view our earnings materials including our investor presentation. I would like to remind everyone that certain statements made during the call may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the use of the words such as anticipate, believe, continue, estimate, expectations, future, intend, may, plan and will or similar words. Because these forward-looking statements involve both known and unknown risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. 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 presentations and our related SEC filings. With that, I’d like to turn the call over to Mike.

Thank you, Lily, and thank you all for joining us this morning. In the third quarter we made significant strides in expanding our global platform and further establishing ourselves as the preeminent global wealth management firm focused on ultra-high-net-worth clients with expertise in alternatives and impact investing. Our target margin, the upper end of the global wealth band, represents a $102 trillion addressable market and is expected to grow by 7% CAGR by 2028. In our view, AlTi is the only public company tailored and continually curated to meet every need of this market. We believe the future is bright and I’m looking forward to sharing the progress we’ve made on our strategy with you today. A transformative point in the execution of our strategy is the partnership established with Allianz X and Constellation Wealth Capital or CWC earlier this year. Before I turn to our financial results, I want to highlight this important milestone and AlTi’s ability to quickly leverage the capital and strategic relationship associated with our investment partners. Our partners scale and network have allowed us to not only expand and strengthen our footprint, but importantly to fortify our wealth management solutions. Prior to closing Allianz’s $250 million investment in the end of July, we had already put capital to work from our partnership with CWC to fund the acquisitions of Envoi and East End Advisor. More on these in a moment, but these deals deepen our presence in key regions of the U.S., add OCIO capabilities and enhance our relationships with the ultra-high-net-worth segment. Our new partners represent more than just growth capital, they are strategic investors. A great example of this is the recently announced partnership with Allianz, which brings unprecedented private market access to the ultra-high-net-worth segment by allowing clients to invest alongside Allianz’s…

Thank you, Mike. As Mike mentioned, we continue to simplify our financial reporting which we believe provides a clearer picture of AlTi’s underlying strengths and core business results. On that note, I want to offer a little more color on the changes to our segment reporting. Concurrent with the closing of the investment from Allianz at the end of July, management commenced a strategic review of the Real Estate Co-investment and Fund Management businesses. One of the outcomes of the review to date is the decision to change the composition of AlTi’s reporting segments. As discussed earlier, our go forward segments are Wealth & Capital Solutions and International Real Estate. The Wealth & Capital Solutions segment includes the results of our global Wealth Management business, the internally managed event driven strategy and our stakes in three externally managed alternative investment strategies. International Real Estate includes the businesses previously reported as Real Estate Co-investment and Real Estate Fund Management. Additionally, in order to reconcile the aggregated segment results to our GAAP results, corporate activities are reported separately. These corporate activities include certain compensation and non-compensation costs primarily related to public company reporting and certain other items primarily related to fair value accounting which are not directly attributable to the underlying businesses. Due to these changes in segment reporting, we were required to assess goodwill and intangible assets for impairment. The assessment involved comparing the estimated fair value of the previously reported Wealth Management and Strategic Alternatives segments to the net book equity allocated to each segment. While the estimated fair value was below the segment, net book equity and non-cash impairment charge was recorded. The results of this assessment were as follows: For the previously reported Wealth Management segment, fair value exceeded net book equity resulting in no impairment of goodwill.…

Thank you, Steve. We’re pleased with the progress we’ve made so far this year. To date, we’ve welcomed Allianz and CWC as strategic partners, closed on two impactful acquisitions, established a unique private credit program with Allianz and focused on driving operating leverage. We’ve done this while restructuring our business to focus on our core competencies. These are key steps to position AlTi for robust growth, profitability and deliver sustainable shareholder value. With that, I’ll open the call for questions.

Thank you. [Operator Instructions] The first question comes from Wilma Burdis with Raymond James. Please go ahead.

Hey, good morning everyone. I guess first question, could you talk a little bit about the demand for private debt in ultra high net worth portfolios? Are a lot of these portfolios allocated to private debt right now or is that going to be a new asset class for many of them and maybe just talk about what you think an allocation could be over the longer run? Thanks.

Hi Wilma, this is Mike. Yes, so I’ll answer the first part of the question related to, will this be an allocation? It most certainly already is in many cases, but we believe you’ve seen this with the growth in the space and the talent and continued success within the space as an area in which to allocate and then drive additive results to portfolios. There are nuances, there are tax differences, but ultimately the space generates a very competitive and very consistent return that anchors portfolios and helps ultimately competitively diversify and help battle against inflation as you look forward in the coming years. So it is an important asset within portfolios for wealth management. It’s an important asset beyond taxable or tax exempt investors on and offshore investors. There are obviously institutional demand and we think the partnership with Allianz and the structure itself is extraordinarily unique in so much that the fee structure is highly competitive. But then the co-investment and the secondary components will be increasingly interesting over time, specifically in more challenging times in the credit market. So there are some differentiations as well as an extremely competitive fee structure within the structure.

Okay, thank you. And then could you talk a little bit about the run rate for expenses? Seems like overall, improving a little bit, I know there’s still some kind of one timers in there, but maybe just talk a little bit about that and what we can expect in the coming quarters. Thanks.

Hi Wilma, it’s Steve Yarad. How are you?

I’m doing well, how are you?

I’m well. Good. So yes, I think as you’ve seen the year progress, you’ve seen progress on expenses overall on a gross reported basis and also on a normalized basis. Year-over-year I think you’ve seen significant progress in terms of the normalized expenses, in any given quarter you might see some one timers or some increases depending on transaction expenses and the things that might be going on in a particular quarter. But generally speaking, I think we’ve been showing improvement. So where we’re getting to now, is I think in the short-term perhaps a relatively good run rate. But we continue to work very hard on reducing expenses and keeping a very tight cost discipline. So the story with expenses as we move forward is yes, we do expect to make progress in certain areas, but you might see some offsets as we continue to make investments in infrastructure and people as well.

Got it. And with that, can you talk a little about some of your tech focuses given the hiring of the CTO? Thank you.

Well, there’s several components there. One, the primary is the delivery of service and information to clients and so the consistency and the effectiveness in which that is delivered. The second is, as an operating platform to create efficiency collection of data controls. So if there’s a control environment we want to continue to improve, there’s a data environment we want to continue to invest and improve. And there are obviously efficiencies that can be created as we scale the platform. So having that architecture as robust as possible is an investment we think will pay off and in spades and one that we are excited about from the standpoint of Phil’s perspective and its immediate impact on the business as we begin to evaluate all these opportunities.

Okay, and last one for me and then maybe I’ll re-queue, but can you talk about some of the impacts of the interest rates on your business or short-term and long-term interest rates, how that impacts deployments and, other things in any other interest rate sensitivity and also related talk about any potential U.S. election impacts on the business? Thanks.

Well, in dealing with large families I’ll answer the first question last. Always best to avoid discussing politics. So in terms of our engagement with our clients, I think it’s very clear we have a in our research team immediately came out with a very thoughtful piece about the impact on our portfolios, which on balance we were very well positioned for the outcome. But we other than that, stray away from politics. There’s no question that this will have geopolitical dynamics that will be likely different and currency effects that can arguably be different over time. But we’ll be talking about those in the coming quarters and certainly we’ll be addressing that related to our portfolios and with our clients. The first part of the question is related to interest rates. Obviously at a corporate level, the rate will matter in terms of our debt load, but our long-term ambition is to use debt capital markets as an effective tool to fund growth. So to the degree that rates are falling, that will obviously be helpful. But in terms of portfolios, it’s an important dynamic for everyone to understand that for 12, 13 year period, portfolios had extraordinarily low suppressed interest rates as a large portion of their portfolios. So just that higher base rate now offers a much greater organic platform for these portfolios to compound towards the 6% target that we project. So on a portfolio level, in terms of our assets and for our clients, this is obvious. Significantly more attractive fixed income environment for the firm itself. We obviously will continue to manage and anticipate managing our debt very carefully, but falling rates will obviously be to the benefit of our ability to borrow.

Thank you.

Thank you.

Thank you. As there are no further questions, I would now like to hand the conference over to Mike Tiedemann, CEO for closing comments.

Thank you, Operator. And thank you all for joining us this morning. We look forward to updating you on our fourth quarter and full year 2024 financial results in the New Year.

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