AlTi Global (NASDAQ:ALTI) used its fourth-quarter 2025 earnings call to highlight a year of higher revenue, continued asset growth, and cost-reduction initiatives, while also announcing a leadership transition and providing an update on its ongoing strategic review.
Leadership transition announced
Founder and CEO Michael Tiedemann said he will step down after more than 25 years leading the firm, with Global Chief Investment Officer Nancy Curtin becoming interim CEO. Tiedemann said the move was announced alongside the company’s earnings release and added that he would continue to support Curtin to ensure “a smooth transition.”
President and COO Kevin Moran also joined the discussion, describing AlTi’s leadership team as “very cohesive” and long-tenured, and said the firm remains focused on executing the strategy Tiedemann put in place.
Business overview and platform focus
Tiedemann reflected on AlTi’s progress since going public in early 2023, saying the company operates in 19 cities across nine countries. He said AlTi has grown its AUM and wealth platform by 70% since listing while maintaining client retention “above 95%,” and that clients average “assets in excess of $50 million.”
Curtin said AlTi’s platform is designed to serve complex, multi-jurisdictional needs, including family governance, tax and structuring, and multigenerational planning. She also pointed to the firm’s endowment and foundation business, which she said exceeded $8 billion in AUM at year-end 2025 and is “a natural extension” of the wealth management business.
On growth, Curtin said the firm has generated more than $9 billion of projected billable assets over the past three years, including nearly $4 billion added in 2025. She also said AlTi conducted a “comprehensive strategic assessment” that led to exiting its non-core International Real Estate business in 2025, which she said eliminated future costs and obligations associated with that platform.
2025 financial performance: revenue growth and incentive fees
Chief Financial Officer Mike Harrington reported that total AUM reached $50 billion at year-end, up 10% year over year, driven by investment performance and the acquisition of Kontora. Harrington said international growth faced foreign-exchange headwinds tied to U.S. dollar depreciation because growth assets in those portfolios are typically unhedged.
For full-year 2025, Harrington said AlTi generated about $255 million in total revenue, a 29% increase from 2024, driven by AUM expansion and “meaningful contributions from incentive fees” related to strong investment performance across alternative managers in which AlTi holds ownership stakes. Curtin similarly said total revenues were supported by alternative interests, while the company’s core revenue base included nearly $200 million in “predictable recurring management fees.”
In the fourth quarter, Harrington said revenue totaled $88 million, up 71% from the prior quarter, including a $29 million contribution from incentive fees tied to performance in the arbitrage strategy. Harrington said the arbitrage strategy generated an 11.3% return for 2025. Management fees totaled nearly $200 million for the year, up 9%, and $53 million in the fourth quarter, up 14% from the same period in 2024, supported by asset growth.
In response to a question on merger arbitrage, management reiterated that incentive fees are “crystallized at the end of the year” and said it does not have a view on 2026 performance. Curtin added that M&A activity appears to be “broadly picking up,” while noting uncertainty tied to conflict in the Middle East.
Expenses, profitability metrics, and cost actions
Harrington said reported operating expenses increased by $72 million to $329 million in 2025. He attributed the increase largely to higher compensation costs, including a roughly $14 million bonus accrual associated with the arbitrage incentive fee recorded in the fourth quarter, Kontora integration, and other one-time items related to the strategic review process, the zero-based budgeting (ZBB) program, and the International Real Estate exit.
On a normalized basis—excluding non-recurring and non-cash items as well as the incentive-fee-related bonus accrual—Harrington said operating expenses were $205 million for 2025 versus $182 million in 2024. He cited higher compensation, the impact of the Kontora acquisition, increased professional fees and G&A expenses partially driven by the strategic review, and foreign exchange and VAT.
Harrington said Adjusted EBITDA rose 45% to about $35 million in 2025, reflecting incentive-related performance. Fourth-quarter Adjusted EBITDA was $11 million, nearly doubling sequentially, “largely driven by the net contribution from the incentive fee.” Adjusted EBITDA margins were 14% for the year and 13% for the quarter, according to Harrington.
On a GAAP basis, Harrington said AlTi reported a net loss of $155 million for the year and $15 million for the quarter, “driven largely by non-cash non-recurring items.” He also reported an “other loss” of $31 million for the full year, primarily due to a $35 million impairment charge of the arbitrage fund recorded in the third quarter. The fourth quarter included an $8 million loss reflecting fair value adjustments on certain items.
Executives discussed ZBB as a key lever to improve operating efficiency. Curtin said the firm adopted ZBB as its budget methodology and identified approximately $20 million of recurring annual gross savings through the 2025 and 2026 processes, with the majority expected to be realized by year-end 2026. Moran said the savings span non-compensation expenses and are being realized over an extended period because many items are contract-based, such as leases and technology vendors. He said 2026 should bring additional reductions tied to technology and occupancy as leases and contracts expire over the next several quarters.
Strategic review, Allianz filing, and capital flexibility
Curtin provided an update on the strategic review previously announced in December, when the board formed a special committee to evaluate options “to maximize long-term value for shareholders.” She said the committee “has not received a proposal that it believes encapsulates the long-term value of the business” and continues to evaluate alternatives. Curtin said any proposal received would be evaluated consistent with the committee’s fiduciary duties.
During Q&A, Burdis asked about a 13D filing by Allianz. Curtin said Allianz has been a strategic partner for the last 18 months and that AlTi has “no further insight” into Allianz’s intentions. She noted that if Allianz plans to increase its engagement, it is required to file a 13D, and added that any strategic proposal would go to the board’s special committee of independent directors.
Moran said Allianz X has a standstill agreement in place and would need board consent to waive it, adding that any such discussions would involve the special committee.
On capital and M&A capacity, Moran said the company does not see a need for incremental funding to execute its organic growth initiatives. However, he said that if the firm identifies an attractive inorganic opportunity requiring capital, management believes capital is “readily available” and said the company is confident it could raise funds to pursue an accretive deal.
Looking ahead, Harrington said the company expects 2026 to be “a turning point,” as non-core items roll off and additional savings emerge from optimizing office occupancy and completing the wind down of legacy technology and vendor contracts. Curtin said the company entered 2026 with a “cleaner structure” and a platform aligned around recurring revenue wealth and investment management.
About AlTi Global (NASDAQ:ALTI)
AlTi Global, Inc provides wealth and asset management services individuals, families, foundations, and institutions in the United States, the United Kingdom, and internationally. It operates through two segments, Wealth Management and Strategic Alternatives. The company offers discretionary investment management, non-discretionary investment advisory, and investment management and advisory services. It also provides trust and administration services, such as entity formation and management; creating or modifying trust instruments and administrative practices to meet beneficiary needs; corporate, trustee-executor, and fiduciary services; provision of directors and company secretarial services; administering entity ownership of intellectual property rights; advisory and administration services in connection with investments in marine and aviation assets; and administering entity ownership of fine art and collectibles.
