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    ALTI
    Earnings call· Jun 2026(Q2 FY26)

    AlTi Global Q2 FY26 earnings call ALTI

    Aug 10, 2026 Source

    Executive summary

    AlTi Global Q2 FY26 — Strong AUM Growth and Cost Discipline

    AlTi Global demonstrated solid Q2 FY26 performance with robust AUM growth driven by strong net client inflows and positive market performance, alongside an 11% increase in total revenue. The company continues to prioritize organic growth and strategic investments in its wealth management platform, while also implementing comprehensive cost discipline initiatives expected to accelerate benefits in 2027. An unexpected unwind of an external strategic manager's fund resulted in a significant unrealized investment loss, but management remains focused on long-term value creation for ultra-high net worth clients.

    Highlights

    6

    • Assets Under Management (AUM) grew to $51 billion, up 8% YoY and 6% QoQ.

    • Net client inflows totaled $700 million in Q2 FY26.

    • Total revenue increased 11% YoY to $58 million.

    • Recurring management and advisory fees grew 11% YoY to $54 million.

    • Adjusted EBITDA was over $5 million, up 9% YoY, with a 9.3% margin.

    • Reported operating expenses improved 12% YoY to $69 million.

    Concerns

    3

    • Unrealized investment loss of nearly $19 million due to the unexpected unwind of an Asian Credit and Special Situations Strategy fund.

    • Anticipated diminishing contributions to ALTI revenues from the unwound fund, which represented 75 basis points of recurring management fees and 650 basis points of incentive portion of distributions year-to-date.

    • Adjusted EBITDA margin slightly declined to 9.3% from 9.5% in the prior year period.

    Guidance & targets

    1
    CategoryTargetConfidence
    Operating efficiency benefits
    Accelerate
    medium materiality
    High

    Operational metrics

    16
    Assets Under Management (AUM)
    $51 billionup 8% year over year and 6% from March 31, 2026
    Q2 FY26

    Driven by strong investment performance and net positive client inflows.

    Gross client inflows
    $800 million
    Q2 FY26
    Net client inflows
    $700 million
    Q2 FY26
    Total revenue
    $58 million11% growth compared to the same period of last year
    Q2 FY26
    Recurring management and advisory fees
    $54 millionup 11% year over year, and 5% sequentially
    Q2 FY26

    Continue to represent the majority of our revenue base.

    Adjusted EBITDA
    over $5 millionup 9% compared to the prior year quarter
    Q2 FY26

    Largely driven by revenue increase and early improvements in operating expenses.

    Adjusted EBITDA margin
    9.3%compared to 9.5% in the prior year period
    Q2 FY26
    Reported operating expenses
    $69 millionimproving 12% from $78 million in the year-ago period
    Q2 FY26

    With reductions in both compensation and non-compensation expenses.

    Total compensation and benefits expense
    $41 milliondown 5% from the year-ago period; declined 26% sequentially
    Q2 FY26

    Reflecting expense reduction efforts and elevated Q1 expenses associated with management restructuring.

    Non-compensation expenses
    improved by 20%from the year-ago period
    Q2 FY26

    Reflecting progress under zero-based budgeting initiatives.

    Professional fees reduction
    40%compared to the second quarter of 2025
    Q2 FY26

    Part of non-compensation expense reduction.

    Unrealized investment loss
    nearly $19 million
    Q2 FY26

    On stake in Asian Credit and Special Situations Strategy fund due to unexpected unwind.

    Asian Credit and Special Situations Strategy contribution to recurring management fees
    75 basis points
    YTD

    Expected to diminish due to fund unwind.

    Asian Credit and Special Situations Strategy contribution to incentive portion of distributions
    650 basis points
    YTD

    Expected to diminish due to fund unwind.

    GAAP operating loss
    $11 million58% year-over-year improvement
    Q2 FY26
    GAAP net loss from continuing operations
    $31 millioncompared to $26 million in the prior year period
    Q2 FY26

    Industry KPIs

    5
    MetricValueDetails
    Pretax margin9.3%%
    Organic fee growth11%%
    Fundraising inflows$700 millionUSD
    Performance revenue650 basis pointsbps
    Fee related earnings$54 millionUSD

    Deals & partnerships

    1
    ContourAcquisition of a firm in Germany to expand European footprint.

    The acquisition of Contour in Germany was cited as a successful strategic move to expand the company's presence in Europe.

    Risks & headwinds

    1
    Unexpected unwind of Asian Credit and Special Situations Strategy fundFund to unwind within 12 months

    Unrealized investment loss of nearly $19 million; diminishing contributions to ALTI revenues (75 bps of recurring management fees, 650 bps of incentive distributions YTD).

    Mitigation: Management expressed best wishes to the founder and noted other external strategic managers are performing solidly.

    What to watch in Q3 FY26

    4

    Acceleration of cost controls and vendor rationalization benefits

    2027
    CurrentEarly benefits seen in Q2 FY26
    TargetAccelerated benefits

    Why it matters

    This is a key strategic priority for improving profitability and operating efficiency, with benefits expected to accelerate in the next fiscal year.

    we expect these benefits to accelerate in 2027 as cost controls and vendor rationalization takes hold.

    Q&A highlights

    5

    Can you provide color on the benefits of zero-based budgeting and what to expect for operating expense trends in coming quarters?

    Management confirmed ZBB is the budgeting methodology for 2025 and 2026, expressing confidence in continuing cost discipline and driving down both compensation and non-compensation expenses, with benefits expected to accelerate in 2027.

    “we would expect and certainly are very focused on continuing the cost discipline and continuing to drive down all elements of our cost structure, both comp and non-comp.”

    asked by Wilma Burtis · answered by Kevin Moran

    2 min read6 chapters

    Detailed Narrative

    01

    Focus on Ultra-High Net Worth Clients

    AlTi Global emphasizes its unique position in serving ultra-high net worth families, family offices, and institutions globally, highlighting the increasing complexity and global nature of their needs. The firm differentiates itself through independent advice, global capabilities, and high client retention, reinforced by recent research showing nearly half of family offices are formally defining wealth purpose across generations. This focus on governance, succession planning, and sophisticated investment management positions AlTi to create long-term value.

    02

    Strategic Priorities and Organic Growth

    The company's strategic priorities include organic growth, attracting new clients, deepening existing relationships, and expanding advisor capacity. Management views strong net organic growth as the clearest indication of business health. In Q2 FY26, AlTi achieved $700 million in net client inflows, which, combined with positive market performance, contributed to a pleasing AUM result and reinforced the firm's positioning for longer-term client objectives.

    03

    Investment in Wealth Management Platform

    AlTi continues to strategically invest in its core wealth management franchise. This includes expanding advisor capacity in key markets, such as Miami, which is identified as one of the fastest-growing wealth hubs in the United States due to domestic migration and international wealth flows. The firm also selectively adds talent, exemplified by César Pachon joining to lead the Miami office and Mike Cagnina enhancing the private endowments business, bringing decades of relevant experience.

    04

    Profitability and Operating Efficiency Initiatives

    A comprehensive effort is underway to streamline the organization, simplify operations, reduce complexity, and improve scalability, with the goal of enhancing profitability and operating efficiency. While the full impact is not yet reflected in reported numbers, the underlying expense trajectory is improving. Management anticipates these benefits, stemming from cost controls and vendor rationalization, will accelerate in 2027, better aligning the business with its core strengths and earnings power.

    05

    Impact of External Manager Unwind

    An unexpected health event involving the founder of an external strategic manager (Asian Credit and Special Situations Strategy) led to the decision to unwind the fund within a 12-month timeframe. This resulted in AlTi recording an unrealized investment loss of nearly $19 million on its stake in the fund during Q2 FY26. This event is expected to diminish future revenue contributions from this specific fund, although other external strategic managers are performing as expected.

    06

    Strategic Review Process

    The special committee overseeing the strategic review process continues its work. Management stated that there is nothing further to report at this time, adhering to public company disclosure policies regarding rumor and speculation. The committee's mandate remains to review all opportunities that could enhance shareholder value, client experience, employee commitment, and the long-term franchise value of the firm.

    AI-generated summary of the company’s earnings call. Not investment advice.