AlTi Global, Inc. (ALTI) - 10-K Summary for Fiscal Year Ended December 31, 2025
Business Context and Reporting Period
This Annual Report on Form 10-K covers the fiscal year ended December 31, 2025. AlTi Global, Inc. is a global wealth and investment partner serving families, foundations, and institutions. As of the reporting date, the Company manages or advises approximately $93.1 billion in combined assets (AUA) and employs approximately 490 professionals across 19 cities in 9 countries.
Significantly, the Company disposed of its International Real Estate segment during the third quarter of 2025, placing those businesses into administration in England and Wales. Consequently, the Company now operates as a single reportable segment focused on Wealth & Capital Solutions and its Alternatives Platform.
Key Financial Metrics
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total Revenue | $254.96 million | $198.39 million | +28.5% |
| Net Loss (Continuing Ops) | $(123.72) million | $(102.25) million | Widened |
| Adjusted EBITDA | $34.78 million | $24.04 million | +44.7% |
| Cash and Cash Equivalents | $41.16 million | $64.42 million | Decreased |
| Debt Outstanding | $0.88 million | $0 | Acquired via Kontora |
Revenue Breakdown (2025): Management/advisory fees ($198.41M), Incentive fees ($34.71M), Distributions from investments ($20.84M), and Other income ($1.00M).
Assets Under Management/Advisement: AUM ended at $47.94 billion; AUA ended at $85.82 billion (Note: Text mentions $93.1B combined assets in overview, table shows $85.8B AUA ending balance).
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased by $56.6 million, driven primarily by a $31.5 million surge in incentive fees due to crystallized performance in the TIG Arbitrage strategy and higher distributions from External Strategic Managers.
- Expense Increases: Operating expenses rose by $71.6 million to $328.9 million. This was driven by a $33.7 million increase in compensation (acquisition-related and streamlining) and a $37.9 million increase in non-compensation expenses, including $15.5 million in non-recurring bad debt related to the real estate divestment.
- Impairments: The Company recognized a $35.0 million impairment loss on intangible assets (specifically the TIG Investment Management Agreement) in 2025, compared to $74.3 million in goodwill and intangible impairments in 2024.
- Segment Restructuring: The International Real Estate businesses were deconsolidated and classified as discontinued operations following the appointment of administrators in July 2025.
Guidance, Outlook, Risks, and Contingencies
Outlook and Strategy: Management believes cash and cash equivalents are sufficient for the next 12 months. The Company continues to pursue growth through organic expansion and selective acquisitions (e.g., Kontora in Germany). Strategic partnerships with Allianz and Constellation remain central to the growth strategy.
Material Weaknesses in Internal Controls: The Company disclosed that its internal controls over financial reporting were ineffective as of December 31, 2025, due to a remaining material weakness regarding insufficiently documented process-level controls. Remediation efforts are ongoing, with sustainability testing planned for 2026.
Legal and Regulatory Risks:
- Home REIT / HLIF: Ongoing investigations by the UK FCA and potential litigation regarding historic management of these real estate funds. A provision of $3.6 million was recognized for potential redress.
- Intercompany Balances: Following the administration of the International Real Estate businesses, the Company faces uncertainty regarding the resolution of intercompany balances, though a subsequent event in March 2026 noted a settlement of £11.2 million ($15.0 million) to be paid in installments.
- Tax Receivable Agreement (TRA): The Company has a liability of approximately $25.7 million under the TRA, contingent on future taxable income and exchanges of Class B Units.
Investor Verification Checklist
- Internal Control Remediation: Verify the timeline and success of remediation for the remaining material weakness in process-level controls, as this impacts the reliability of future financial reporting.
- Real Estate Litigation Exposure: Monitor the outcome of UK FCA investigations and shareholder litigation related to Home REIT and HLIF, as penalties or settlements could be material.
- Intercompany Settlement: Confirm the terms and payment schedule of the $15.0 million settlement with the administrators of the International Real Estate businesses.
- Tax Receivable Agreement (TRA): Assess the Company's ability to generate sufficient taxable income to utilize tax benefits and the resulting cash outflow obligations under the TRA.
- Adjusted EBITDA vs. GAAP Loss: Reconcile the significant difference between the reported GAAP net loss ($123.7M) and Adjusted EBITDA ($34.8M) to understand the impact of non-cash items and one-time charges.