Alti Global, Inc. has announced the acquisition of East End Advisors, an independent advisory firm with approximately $5.6 billion in assets under management (AUM). This acquisition follows a strategic investment in Alti of up to $450 million from Allianz X and Constellation Wealth Capital. The capital will be used to accelerate Alti's strategy to become the leading global independent wealth management platform for the ultra-high-net-worth (UHNW) segment, with targeted expertise in alternatives.
The acquisition of East End Advisors will expand Alti's operations in key regions within the US and further enhance its offering within the growing outsourced chief investment officer (OCIO) market. East End's clients will benefit from access to a broader set of investment strategies, as well as Alti’s global resources and holistic wealth management solutions, while preserving the firm’s defining characteristics as an independent investment advisor and leading OCIO under a continuation of East End’s leadership team.
The initial purchase price for the acquisition of East End Advisors is approximately $76 million, with an additional contingent consideration payable over a five-year period, calculated in accordance with an EBITDA-based formula. A certain portion of the contingent consideration is required to be paid in cash based on certain minimum annual thresholds, and the balance may be settled in cash or class A common stock, at Alti’s discretion. The initial purchase price is expected to be funded by the previously announced investment from Constellation Wealth Capital.
Alti is a leading independent global wealth and alternatives manager with over $70 billion in combined assets under management or advisement and an expansive network with approximately 480 professionals across three continents. As a result of these announcements, the company's shares have moved 1.2% on the market, and are now trading at a price of $5.73. For more information, read the company's full 8-K submission here.
