NEW YORK - AlTi Global, Inc. (NASDAQ: ALTI), an independent global wealth and alternatives manager, has announced the acquisition of East End Advisors, a firm specializing in wealth management for ultra-high-net-worth families and foundations, with assets under management of approximately $5.6 billion.
The deal, which includes an initial purchase price of $76 million plus additional contingent consideration, is part of AlTi's strategy to expand its services and market presence, particularly in the United States.
The acquisition follows a strategic investment in AlTi by Allianz (ETR:ALVG) X and Constellation Wealth Capital, totaling up to $450 million, intended to accelerate AlTi's growth in the ultra-high-net-worth segment and alternatives market.
East End Advisors, based in New York, is known for its strong investment record and experienced team, which is expected to enhance AlTi Tiedemann Global's operations in key U.S. regions and contribute to the firm's offerings in the Outsourced Chief Investment Officer market.
Clients of East End Advisors are anticipated to gain from AlTi's broader range of investment strategies and global resources while maintaining the firm's independent advisory and OCIO leadership. Michael Tiedemann, CEO of AlTi Tiedemann Global, expressed admiration for East End's team and their approach to client relationships. David Salomon, President of East End Advisors, echoed the sentiment, highlighting the benefits of joining AlTi for their clients' complex needs.
The transaction's initial purchase price is expected to be funded by the investment from Constellation Wealth Capital, and the deal is set to close early in the second quarter, subject to customary closing conditions. AlTi is acquiring East End Advisors with the option to settle a portion of the contingent consideration in cash or Class A Common Stock, at its discretion.
AlTi, which manages over $70 billion in assets, provides fiduciary capabilities and alternative investment strategies to a diverse client base, including entrepreneurs and multi-generational families. The firm emphasizes impact and values-aligned investing, with a professional network spanning three continents.
Advisors for the transaction include Oppenheimer & Co. Inc. and Houlihan Lokey (NYSE:HLI), Inc. for financial and tax diligence, with Seward and Kissel and Wachtell, Lipton, Rosen & Katz acting as legal advisors to AlTi and East End Advisors, respectively.
This article is based on a press release statement.
InvestingPro Insights
As AlTi Global, Inc. (NASDAQ: ALTI) makes strategic moves to bolster its wealth management services for ultra-high-net-worth individuals, the company's financial health and market performance remain key considerations for investors. According to InvestingPro data, AlTi has a market capitalization of approximately $675.41 million, reflecting its size and scale within the industry. Despite a challenging period, the company has demonstrated significant revenue growth over the last twelve months, with an increase of 226.36%, indicating a strong capacity to expand its operations and market reach.
InvestingPro Tips highlight that AlTi is expected to see net income growth this year, which could signal a positive turn for the company's profitability. Additionally, the firm's liquid assets exceed its short-term obligations, suggesting a solid financial footing for handling immediate financial needs. These insights are particularly relevant as AlTi pursues growth through acquisitions, such as the recent purchase of East End Advisors.
Investors should note that while AlTi has experienced a notable return over the last week, with a 7.6% price total return, the stock has also been subject to high price volatility and has seen a significant price decline over the last year. These metrics may influence investment strategies, especially for those looking at short-term versus long-term horizons.
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With a total of 9 additional InvestingPro Tips available for AlTi, investors can gain a comprehensive understanding of the company's financial health and market potential. These tips, along with real-time metrics, are accessible on the InvestingPro platform for those looking to deepen their market analysis.
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