AlTi Tiedemann Global announces closing of previously announced strategic investment from Allianz X

Rhea-AI Summary

AlTi Global, Inc. (NASDAQ: ALTI) has closed a strategic investment of $250 million from Allianz X, with an option for an additional $50 million. This is part of a larger $450 million investment that includes $150 million from Constellation Wealth Capital (CWC). The funds will be used to finance AlTi's mergers and acquisitions pipeline and organic growth activities, expanding its global ultra-high-net-worth wealth management and strategic alternatives business.

As part of the deal, AlTi sold 140,000 shares of Series A Cumulative Convertible Preferred Stock and 19,318,580.96 shares of Class A common stock. The partnership aims to enhance client services for both companies. Andreas Wimmer from Allianz SE and Nazim Cetin from Allianz X will join AlTi's board following the investment.

Positive

• Secured $250 million investment from Allianz X with option for additional $50 million
• Total strategic investment of up to $450 million including CWC's contribution
• Funds to be used for M&A pipeline and organic growth activities
• Partnership with Allianz offers opportunities to enhance client services
• Addition of two experienced board members from Allianz

Negative

• Potential dilution of existing shareholders due to issuance of new shares and warrants

Insights

Financial Analyst

AlTi Global's strategic investment from Allianz X marks a significant milestone in the company's growth trajectory. The $250 million initial investment, with an option for an additional $50 million, provides AlTi with substantial capital to fuel its expansion plans. This move is particularly noteworthy for several reasons:

• Expansion Potential: The influx of capital positions AlTi to aggressively pursue its M&A pipeline and organic growth initiatives. This could lead to rapid expansion of its $70 billion asset base, potentially elevating AlTi's status in the wealth and alternatives management sector.
• Strategic Partnership: Allianz's involvement goes beyond mere financial investment. The appointment of two Allianz executives to AlTi's board suggests a deep strategic alliance. This partnership could open doors to Allianz's vast network of 125 million customers across 70 countries, providing AlTi with unprecedented access to new markets and client bases.
• Market Positioning: The deal structure, involving preferred stock, common stock and warrants, indicates a complex transaction designed to align interests while providing Allianz with significant upside potential. This structure could impact AlTi's stock dynamics and valuation metrics going forward.

Investors should closely monitor how AlTi deploys this capital, particularly its M&A strategy and the synergies realized from the Allianz partnership. The success of this investment could be a game-changer for AlTi's market position and long-term growth prospects.

Market Research Analyst

The strategic investment in AlTi Global by Allianz X is a move that could reshape the competitive landscape of the wealth and alternatives management industry. Here's why this deal is particularly intriguing:

• Market Consolidation: This investment signals a trend towards consolidation in the fragmented wealth management sector. As larger players seek to expand their reach and capabilities, we may see more such strategic partnerships and acquisitions.
• Cross-Sector Synergies: The collaboration between a wealth manager (AlTi) and an insurance giant (Allianz) highlights the growing trend of cross-sector partnerships in financial services. This could lead to innovative product offerings that blend wealth management with insurance solutions.
• Ultra-High-Net-Worth Focus: AlTi's emphasis on the ultra-high-net-worth segment is particularly noteworthy. This niche market is highly competitive and lucrative, with significant growth potential globally. The Allianz partnership could provide AlTi with the resources and global reach to capture a larger share of this market.

From a market perspective, this deal could trigger a ripple effect, prompting other wealth management firms to seek similar strategic alliances to remain competitive. It also underscores the increasing importance of scale and diversification in the financial services industry. Investors should watch for potential shifts in market share and any new product offerings that may emerge from this partnership.

Legal Expert

The strategic investment by Allianz X into AlTi Global presents several legal and regulatory considerations that investors should be aware of:

• Regulatory Scrutiny: Given the size and cross-border nature of this deal, it's likely to attract regulatory attention. The transaction may require approvals from financial regulators in multiple jurisdictions, potentially including antitrust reviews.
• Corporate Governance: The appointment of Allianz executives to AlTi's board raises questions about corporate governance. Investors should monitor how AlTi maintains its independence while benefiting from Allianz's expertise. There may be potential conflicts of interest that need to be carefully managed.
• Securities Issuance: The complex structure of the deal, involving preferred stock, common stock and warrants, has implications for existing shareholders. The issuance of new securities could lead to dilution and may affect voting rights and dividend policies.
• Disclosure Obligations: As a publicly traded company, AlTi will need to ensure transparent and timely disclosures about the use of funds and the progress of its expansion plans. This includes regular updates on material developments in its M&A activities and organic growth initiatives.

From a legal standpoint, this deal underscores the importance of robust compliance frameworks and clear governance structures in strategic partnerships. Investors should closely examine AlTi's future SEC filings for more details on the terms of the agreement and any potential risks associated with this significant transaction.

NEW YORK--(BUSINESS WIRE)-- AlTi Global, Inc. (NASDAQ: ALTI) (“AlTi” or the “Company”), a leading independent global wealth and alternatives manager with over $70 billion in combined assets, today announced the closing of a strategic investment of up to $300 million by Allianz X. Allianz X, an investment arm of Allianz SE (XETRA: ALV), one of the world’s leading insurers and asset managers with around 125 million private and corporate customers in almost 70 countries, has made an investment of $250 million, through one of its affiliates, and has the option to invest up to an additional $50 million.

This investment is part of the previously announced strategic investment of up to $450 million from Allianz X and Constellation Wealth Capital (“CWC”). The $150 million investment from CWC, an alternative asset management platform specializing in making tailored investments in well-positioned wealth management firms, closed earlier this year and was used to fund the acquisitions of East End Advisors and Envoi, LLC in April and July, respectively.

AlTi expects to use the capital principally to continue to fund its mergers and acquisitions pipeline and organic growth activities. This will expand the scale and reach of AlTi’s global ultra-high-net-worth wealth management and strategic alternatives business in existing and new markets, leveraging the industry expertise and relationships of both Allianz and CWC. The partnership with Allianz offers opportunities to provide additional solutions to service both companies’ clients more holistically.

In connection with the closing of the investment, Andreas Wimmer, Member of Board of Management of Allianz SE, Asset Management, US Life Insurance, and Nazim Cetin, Chief Executive Officer of Allianz X, will be appointed to the AlTi board.

Under the terms of the agreement AlTi sold 140,000 shares of newly created Series A Cumulative Convertible Preferred Stock and 19,318,580.96 shares of AlTi’s Class A common stock, for a purchase price equal to $250 million, and issued warrants for 5,000,000 shares of Class A common stock. Further details are included in the Company’s current report on Form 8-K filed with the Securities and Exchange Commission.

About AlTi

AlTi Tiedemann Global is a leading independent global wealth manager providing entrepreneurs, multi-generational families, institutions, and emerging next-generation leaders with fiduciary capabilities as well as alternative investment strategies and advisory services. AlTi’s comprehensive offering is underscored by a commitment to impact or values-aligned investing. The firm currently manages or advises on over $70 billion in combined assets and has an expansive network with approximately 400 professionals across three continents. For more information, please visit us at www.Alti-global.com.

About Allianz X

Allianz X invests in innovative growth companies in ecosystems relevant to insurance and asset management. It has a global portfolio of over 25 companies and assets under management of more than 1.7 billion euros. Allianz X has counted 12 unicorns among its portfolio so far. The heart, brains, and drive behind it all are a talented team of around 40 people in Munich and New York.

On behalf of leading global insurer and asset manager Allianz Group, Allianz X provides an interface between Allianz companies and the broader ecosystem, enabling collaborative partnerships in insurtech, fintech, wealth, and beyond.

As an investor, Allianz X supports growth companies to take the next bold steps and realize their full potential.

Keep up with the latest at Allianz X on Medium, LinkedIn, and X (formerly Twitter).

About Allianz

The Allianz Group is one of the world's leading insurers and asset managers with around 125 million* private and corporate customers in nearly 70 countries. Allianz customers benefit from a broad range of personal and corporate insurance services, ranging from property, life and health insurance to assistance services to credit insurance and global business insurance. Allianz is one of the world’s largest investors, managing around 746 billion euros** on behalf of its insurance customers. Furthermore, our asset managers PIMCO and Allianz Global Investors manage about 1.8 trillion euros** of third-party assets. Thanks to our systematic integration of ecological and social criteria in our business processes and investment decisions, we are among the leaders in the insurance industry in the Dow Jones Sustainability Index. In 2023, over 157,000 employees achieved total business volume of 161.7 billion euros and an operating profit of 14.7 billion euros for the group.

* Including non-consolidated entities with Allianz customers.
** As of March 31, 2024

Forward-Looking Statements

Some of the statements in this press release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking. Words such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “intend,” “may,” “plan” and “will” and similar expressions identify forward-looking statements. Forward-looking statements reflect management’s current plans, estimates and expectations and are inherently uncertain. The inclusion of any forward-looking information in this press release should not be regarded as a representation that the future plans, estimates or expectations contemplated will be achieved. Forward-looking statements are subject to various risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, global and domestic market and business conditions, successful execution of business and growth strategies and regulatory factors relevant to our business, as well as assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity and the risks and uncertainties described in greater detail under “Risk Factors” included in AlTi’s registration statement on Form 10-K filed March 22, 2024, as amended on April 5, 2024, and in the subsequent reports filed with the SEC, as such factors may be updated from time to time. We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240731842155/en/

AlTi Global Investor Relations:

Lily Arteaga, Head of Investor Relations, investor@alti-global.com



AlTi Global Media Relations:

Alex Jorgensen, pro-alti@prosek.com



Allianz X Media Relations:

Gregor Wills, Head of PR & Communications, gregor.wills@allianz.com

Source: AlTi Global, Inc.

FAQ

How much did Allianz X invest in AlTi Global (ALTI)?

Allianz X invested $250 million in AlTi Global (ALTI), with an option to invest an additional $50 million, totaling up to $300 million.

What is the total strategic investment amount for AlTi Global (ALTI)?

The total strategic investment for AlTi Global (ALTI) is up to $450 million, including $300 million from Allianz X and $150 million from Constellation Wealth Capital.

How will AlTi Global (ALTI) use the investment funds?

AlTi Global (ALTI) plans to use the investment funds primarily to finance its mergers and acquisitions pipeline and organic growth activities, expanding its global wealth management and alternatives business.

Who will join AlTi Global's (ALTI) board following the Allianz X investment?

Andreas Wimmer, Member of Board of Management of Allianz SE, and Nazim Cetin, CEO of Allianz X, will be appointed to AlTi Global's (ALTI) board following the investment.