AlTi Tiedemann Global, a publicly traded, international wealth management and alternative investments corporation with around $68 billion in assets across its subsidiaries, is receiving $450 million in growth capital from insurance heavyweight Allianz and Karl Heckenberg’s new investment vehicle, Constellation Wealth Capital.
Allianz X, an arm of European holding company Allianz SE that buys pieces of new and established companies with cutting-edge tech and considerable growth potential, is investing $250 million in AlTi Global through a combination of $110 million in newly issued Class A common stock and $140 million in newly created Series A convertible preferred stock.
Allianz has the option to invest another $50 million in preferred stock for international expansion purposes, subject to beneficial ownership limitations, and warrants to purchase 5 million shares of common stock, which will be subject to “certain lock-up restrictions with respect to the Class A Common Stock it acquires at closing.”
Allianz also secured the right to name two directors to AlTi’s board, one of whom has been identified as Allianz X CEO Nazim Cetin, for as long as it holds at least half of the common stock acquired at the deal’s closing.
“Our investment in AlTi demonstrates our approach as well as our conviction in wealth management and alternatives, and we believe it will unlock opportunities for scale, new revenue streams and societal impact for the Allianz Group,” Cetin said in a statement.
Constellation’s investment of $150 million includes an initial investment of $115 million in new Series C convertible preferred stock, expected to close at the end of March, and another $35 million at the end of June. It includes warrants to purchase up to 2 million shares of Class A common stock. Both are subject to voting limitations and certain lock-up restrictions will apply to the Series C shares.
Constellation, created by Heckenberg last year to invest in growth-minded wealth management firms, will be granted an observer seat on the AlTi board upon completion of its investments.
AlTi said it will use the funds to support continued organic growth and an M&A strategy targeting new and existing markets in the U.S., U.K., Europe and Pacific Asia, “leveraging the industry expertise and relationships of both Allianz and CWC.”
“This investment accelerates AlTi’s trajectory to become the leading global independent UHNW wealth management platform,” AlTi CEO Michael Tiedemann said. “The investment further validates the power of our unique business model which combines a global multi-family office and alternatives platform.”
AlTi Tiedemann Global was created a little more than a year ago through the merger of Tiedemann Group and Alvarium Investments via Cartesian Growth Corporation, a special purpose acquisition company created in 2021. Under the ticker tag ‘ALTI,’ the combined firm began trading on the Nasdaq stock exchange on Jan. 3, 2023.
At the time, Bloomberg reported that Alvarium Tiedemann had become “one of the world’s biggest publicly traded money managers that focuses on the ultra-wealthy.”
“There's opportunity here,” commented Stephen Caruso, a senior analyst with Cerulli. “There’s limited exposure to wealth managers in the public markets and that produces an interesting opportunity for firms that want to get involved. I think overall this represents a unique space for the industry.
“Given Allianz’s footprint in Europe and the combined AlTi Tiedemann’s offering in the U.K. and, I would assume, Europe at large, I’m sure there are some great synergies there,” he added. "And Constellation Wealth, given their experience in the market, can provide a lot of resources and supportive solutions for AlTi as they figure out this next stage of growth.”