Investment accelerates AlTi’s strategy to
become the leading global independent wealth management platform
for the ultra-high-net-worth segment.
Investment to be used principally to execute
AlTi’s global mergers and acquisitions pipeline and organic growth
strategy.
AlTi Global, Inc. (NASDAQ: ALTI), a leading independent global
wealth and alternatives manager with approximately $68 billion in
combined assets, today announced a strategic investment of up to
$450 million by Allianz X and Constellation Wealth Capital (“CWC”).
Allianz X, an investment arm of Allianz SE (XETRA: ALV), one of the
world’s leading insurers and asset managers with more than 122
million private and corporate customers in over 70 countries, will
invest up to $300 million through one of its affiliates. CWC, an
investment advisory firm specializing in making investments in
industry-leading wealth managers, will invest $150 million.
AlTi will use the capital principally to fund its mergers and
acquisitions (“M&A”) pipeline and organic growth activities.
This will expand the scale and reach of AlTi’s global
ultra-high-net-worth (“UHNW”) 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.
Nazim Cetin, Chief Executive Officer of Allianz X, and another
Allianz representative will be appointed to AlTi’s Board of
Directors, and CWC will have an observer seat on the Board, upon
completion of their respective investments.
AlTi management will hold a conference call to present the
details of the transactions on February 22, 2024 at 5:00 pm,
Eastern Time.
Michael Tiedemann, Chief Executive Officer of AlTi Tiedemann
Global, said:
“This investment accelerates AlTi’s trajectory to become the
leading global independent UHNW wealth management platform, with
strategic and targeted expertise in alternatives. The investment
further validates the power of our unique business model which
combines a global multi-family office and alternatives
platform.”
Dr. Nazim Cetin, Chief Executive Officer of Allianz X,
said:
“Allianz X brings capital and skills to our portfolio companies
to foster innovation, fuel growth and realize their ambitions. 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.”
Karl Heckenberg, CWC's Founder and Managing Partner,
said:
“This partnership represents a significant milestone in our
ongoing mission to support innovation and excellence in the wealth
management industry. We believe AlTi is ideally positioned to
capitalize on future opportunities, in line with their impressive
strategic vision.”
Transaction Details
Allianz X Investment:
- $250 million through a combination of:
- $110 million newly issued Class A Common Stock
- $140 million newly created Series A Convertible Preferred
Stock
- Option to invest up to an additional $50 million in Series A
Convertible Preferred Stock to be used for AlTi’s international
expansion initiatives.
- Warrants to purchase 5 million shares of Class A Common
Stock.
- The Series A Convertible Preferred Stock and Warrants will be
subject to certain beneficial ownership limitations, and Allianz
will be subject to certain lock-up restrictions with respect to the
Class A Common Stock it acquires at closing.
- Right to nominate two directors to AlTi’s board will continue
so long as Allianz X holds at least 50% of the Class A Common Stock
acquired at closing.
CWC Investment:
- $150 million in newly created Series C Convertible Preferred
Stock.
- An initial investment of $115 million that is expected to close
by March 31, 2024, and a further $35 million that is expected to
close by June 30, 2024.
- Warrants to purchase 2 million shares of Class A Common
Stock.
- The Series C Convertible Preferred Stock and Warrants will be
subject to certain voting limitations, and CWC will be subject to
certain lock-up restrictions with respect to its Series C
Convertible Preferred Stock.
The transactions are subject to customary closing conditions,
including in the case of Allianz X, receipt of certain approvals by
regulatory authorities and by AlTi’s stockholders.
Further details are included in the Company’s current report on
Form 8-K to be filed with the Securities and Exchange
Commission.
Advisors
Oppenheimer & Co. Inc. is acting as exclusive financial
advisor to AlTi Global, Inc. and Cadwalader, Wickersham & Taft
LLP is acting as its legal advisor. Ardea Partners LP is serving as
exclusive financial advisor to Allianz X and Sullivan &
Cromwell LLP is serving as its legal advisor. Gibson, Dunn &
Crutcher LLP is acting as legal advisor to Constellation Wealth
Capital.
Conference Call
AlTi management will host a conference call and webcast on
Thursday, February 22, 2024, at 5:00 pm, Eastern Time to discuss
the transaction. The conference call and supplemental materials
will be available on the Events & Presentations section of the
AlTi Investor Relations website. Participants are invited to access
the conference call by dialing one of the following numbers:
- Domestic: (877) 704-4453
- International: (201) 389-0920
The webcast replay will be available after the conclusion of the
call and remain on the AlTi Investor Relations website for one year
following the conference call.
About AlTi
AlTi is a leading independent global wealth and alternatives
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 and generating a
net positive impact through its business activities. The firm
currently manages or advises on approximately $68 billion in
combined assets and has an expansive network with over 490
professionals across three continents. For more information, please
visit us at www.Alti-global.com.
About Allianz X
Allianz X invests in digital frontrunners in ecosystems relevant
to insurance and asset management. It has a portfolio of over 25
companies and AUM of more than 1.5 billion euros. Allianz X has
counted 12 unicorns among its portfolio so far. The heart and
brains behind it all are a talented team of around 40 people. As
one of the pillars of the Allianz Group’s digital transformation
strategy, Allianz X provides an interface between Allianz Operating
Entities and the broader digital ecosystem, enabling collaborative
partnerships in insurtech, fintech, and beyond. As an investor,
Allianz X supports mature digital growth companies to take the next
bold leap 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 more than 122 million* private and corporate
customers in more than 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 706 billion euros**
on behalf of its insurance customers. Furthermore, our asset
managers PIMCO and Allianz Global Investors manage about 1.7
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 2022,
over 159,000 employees achieved total revenues of 152.7 billion
euros and an operating profit of 14.2 billion euros for the
group***.
* Including non-consolidated entities with Allianz customers. **
As of September 30, 2023. *** As reported – not adjusted to reflect
the application of IFRS 9 and IFRS 17.
About Constellation Wealth Capital
Constellation Wealth Capital is an alternative asset management
platform dedicated to the wealth management sector. CWC provides
flexible, long-term capital solutions, and strategic advisory
support to scaled wealth management platforms.
CWC leverages its deep industry experience and relationships for
the benefit of its partner firms. Learn more at
www.constellationwealthcapital.com.
Forward-Looking Statements
Certain statements made in this press release are
“forward-looking statements” within the meaning of Section 27A of
the Securities Act and Section 21E of the Exchange Act, and are
subject to the safe harbor created thereby under the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
“estimate,” “plan,” “project,” “forecast,” “intend,” “will,”
“expect,” “anticipate,” “believe,” “seek,” “target,” “guidance,”
“outlook“ or other similar expressions that predict or indicate
future events or trends or that are not statements of historical
matters. These forward-looking statements may include, but are not
limited to, statements regarding the consummation of the
investments, the entry into the transaction documents, our M&A
pipeline and expected benefits of the investments. These statements
are based on various assumptions, whether or not identified in this
press release, and on the current expectations of the Company’s
management and are not predictions of actual performance. These
forward-looking statements are provided for illustrative purposes
only and are not intended to serve as, and must not be relied on by
any investor as, a guarantee, an assurance, a prediction or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and may differ
from assumptions. Many actual events and circumstances are beyond
the control of the Company. These forward-looking statements are
subject to a number of risks and uncertainties, including the
Company’s ability to successfully consummate the investments; and
obtain stockholder approval; the Company’s projected financial
information, growth rate, and market opportunity; the effect of
economic downturns and political and market conditions beyond the
Company’s control, including a reduction in consumer discretionary
spending that could adversely affect the Company’s business,
financial condition, results of operations and prospects; company’s
ability to grow and manage growth profitably; Company’s ability to
raise financing in the future, if and when needed; the impact of
applicable laws and regulations, whether in the United States,
United Kingdom or other foreign countries, and any changes thereof,
on the Company; the impact of the company’s dependence on leverage
by certain funds, underlying investment funds and portfolio
companies and related volatility; the Company’s ability to
successfully compete against other companies; and the risks
discussed in the Company’s Annual Report on Form 10-K filed on
April 17, 2023, including under the heading “Risk Factors” and
other documents of the Company filed, or to be filed, with the SEC.
If any of these risks materialize or any of the company’s
assumptions prove incorrect, actual results could differ materially
from the results implied by these forward-looking statements. There
may be additional risks that the company presently does not know of
or that the Company currently believes are immaterial that could
also cause actual results to differ from those contained in the
forward-looking statements. In addition, forward-looking statements
reflect the Company’s expectations, plans or forecasts of future
events and views as of the date of this press release. The Company
anticipates that subsequent events and developments will cause the
company’s assessments to change. However, while the Company may
elect to update these forward-looking statements at some point in
the future, the Company specifically disclaims any obligation to do
so. These forward-looking statements should not be relied upon as
representing the Company’s assessments as of any date subsequent to
the date of this press release. Accordingly, undue reliance should
not be placed upon the forward-looking statements.
Additional Information and Where to Find It
The Company intends to file with the Securities and Exchange
Commission (the “SEC”) a proxy statement and other relevant
materials in connection with the transactions and the Company’s
solicitation of proxies for use at either the 2024 annual meeting
of stockholders or a special meeting of common stockholders, or at
any adjournment or postponement thereof, to vote in favor of
approval of amendments to the Company’s amended and restated
certificate of incorporation and the issuance of an amount of Class
A Common Stock to Allianz equal to 20% or more of the
pre-transactions issued and outstanding Class A Common Stock and
Class B Common Stock, taken together and, in the case of the 2024
annual meeting of stockholders, to vote on any other matters that
shall be voted upon at the Company’s 2024 annual meeting of
stockholders, such as the election of directors. The proxy
statement will be mailed to the stockholders of the Company as of a
to-be-determined record date. Before making any voting or
investment decision with respect to the transactions, investors and
stockholders of the Company are urged to read the proxy statement
and the other relevant materials when they become available because
they will contain important information about the transactions. The
proxy statement and other relevant materials (when they become
available), and any other documents filed by the Company with the
SEC, may be obtained free of charge at the SEC’s website at
www.sec.gov. In addition, investors and stockholders of the Company
may obtain free copies of the documents filed with the SEC from
https://ir.alti-global.com/financial-information/sec-filings.
The Company and its executive officers and directors may be
deemed to be participants in the solicitation of proxies in
connection with the transactions. Information about those executive
officers and directors of the Company and their ownership of the
Company’s common stock is set forth in the Company’s Annual Report
on Form 10-K, which was filed with the SEC on April 17, 2023.
Investors and security holders may obtain additional information
regarding direct and indirect interests of the Company and its
executive officers and directors in the transactions by reading the
proxy statement and prospectus when it becomes available.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240221248373/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 Constellation Wealth
Capital Media Relations: Mike Geller, mgeller@prosek.com
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