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AlTi Tiedemann Global Acquires $3B Multi-family Office Envoi

The deal adds to AITi’s recent moves aimed at expanding its scale and entering new markets to serve UHNW clients.

AlTi Global Inc., a publicly traded international wealth management and alternative investments corporation with more than $70 billion in assets across its subsidiaries, has acquired Envoi LLC, a multi-family office with $3 billion of AUM.

The deal comes six weeks after AlTi reported it was acquiring East End Advisors in New York City for an initial $76 million and is part of a strategy to build a platform aimed at the UHNW segment, including incorporating alternatives.

AlTi is using up to $450 million in capital from Allianz X and Constellation Wealth Capital to fund its mergers and acquisitions pipeline and organic growth activities. In its quarterly earnings, AlTi reported it had received $115 million from an investment from Constellation, with the remaining $35 million  from the firm expected to close this month. 

Based in Minneapolis, Envoi is a management-owned family office. The deal is valued at $25.2 million, contingent on post-closing payments payable over a four-year period, according to a spokesperson for Tiedemann. 

The move also follows AlTi’s recent growth in Dallas, with the hiring of Richard Joyner as its head of Central U.S.

"We felt an immediate cultural alignment with the Envoi team.," AlTi Tiedemann Global CEO Michael Tiedemann said during the firm's first quarter earnings call today. He pointed to the firm double its average client size in 2016 with a retention rate of 97% as part of what made the firm an attractive target. 

“As we contemplated the next phase in our evolution, AlTi Tiedemann Global emerged as the best partner to deliver a permanent family office solution to our 35 client families,” Envoi Principal Ryan Steensland said in a statement. “They share our commitment to represent the best interests of clients and seek excellence in providing customized and innovative strategies to grow wealth. Combining with a firm of AlTi Tiedemann’s global stature will enhance opportunities for our Minneapolis-based staff and support our commitment to growing our Midwest presence.”

The transaction is subject to customary closing conditions and is expected to close early in the third quarter. Houlihan Lokey Inc. is serving as AlTi’s financial and tax diligence advisor. Seward and Kissel LLP is acting as AlTi’s legal advisor. Piper Sandler & Co. and Stinson LLP are serving as Envoi's financial and legal advisors, respectively.

First quarter highlights

AiTi Global also reported its first quarter results, which included $50.8 million revenues, GAAP net income of $22 million, adjusted net Income of $0.2 million and adjusted EBITDA of $6.8 million. Revenues were down 12% year-over-year

Among its two primary business lines, the firm reported $53.5 billion in AUA in its wealth management arm at the end of the quarter (up 17% year-over-year and 5% quarter-over-quarter) and $17.5 billion in AUA/AUM for its strategic alternatives business, (down 17% year-over-year and 14% quarter-over-quarter). The decline in its alternative assets stemmed from its sale of the LXi REIT,  a closed-ended real estate investment company. 

“Our top priority goal is and will always be organic growth. The importance of integrating our offices, and our operations globally is because of the collaboration and the support for the business development efforts that can be driven by that leads to organic growth," Tiedemann said during the earnings call. “So, that is a critical focus and will always be. The more we get integration behind us, the more organic growth begins to accelerate.”

A secondary focus is talent acquisition. 

"As we think about our various jurisdictions and where we have offices across these various regions, we want to be able to bring in revenue-producing talent," he added. "We have the infrastructure to support them. We have a global infrastructure that is unique and we are now turning our recruiting efforts to bringing in talent."

Lastly, the firm will consider further acquisition opportunities in both its business lines to expand to new markets and broaden its alternatives business. 

In its wealth management business, it reported revenues of $37 million, up 17% year-over-year, with 99% of other revenues in the form of recurring fees. The line posted adjusted EBITDA of $7 million, which was up 60% year-over-year. 

For its strategic alternatives business, it posted revenues of $14 million, down $13 million compared to the first quarter of 2023 due to reduced distributions from investments and lower assets. Adjusted EBITDA for that line decreased to $0.1 million.

"We have clear momentum across our business and believe we can drive accelerated growth and profitability in the quarters to come," Tiedemann said during the earnings call.

AlTi Tiedemann Global (ALTI) launched in early 2023 through the merger of Tiedemann Group and Alvarium Investments via Cartesian Growth Corporation, a blank check company created in 2021.

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