ALTI

Market Position and Client Opportunity

• ALTI serves ultra-high net worth (UHNW) families, family offices, and institutions, a market segment supported by strong secular tailwinds of global wealth creation that is expanding across North America, Europe, Asia, and the Middle East.
• Client research confirms growing demand for intergenerational wealth planning, governance, succession planning, and legacy support alongside core investment management, creating a significant long-term growth opportunity for ALTI.

Core Strategic Priorities

• Organic Growth: Prioritize attracting new UHNW clients, deepening existing client relationships, expanding advisor capacity, and driving client referrals through strong service and client outcomes to grow AUM organically.
• Investment in Core Wealth Management Franchise: Expand advisor capacity in high-potential key markets, densify existing scaled office locations, and selectively add experienced talent and teams. Recent additions include César Pachon to lead the growing Miami wealth hub, and Mike Cagnina to expand ALTI's private endowments business.
• Improve Profitability and Operating Efficiency: Undertake a comprehensive organizational streamlining initiative to simplify operations, reduce complexity, improve scalability, and lower expenses. Early benefits are already visible, with more improvements expected in 2027.
• Global Expansion Discipline: Allocate capital to markets with strong long-term growth economics aligned with the needs of internationally mobile UHNW families; the recent German Contour acquisition has built a strong foothold in Europe.

Operational Updates

• One of ALTI's three external strategic managers, the Asian Credit and Special Situations Strategy, will unwind its fund within 12 months following an unexpected decision by the manager's board after the founder/CIO suffered a serious sudden health event. ALTI recorded a $19 million unrealized loss on its stake in the strategy; the two remaining external strategic managers are performing as expected.
• The ongoing strategic review process led by the special committee is still active, with no new updates to share as of the call.
• Year-to-date GAAP operating loss improved 37% in 2026 compared to the first half of 2025, driven by revenue growth and non-compensation expense reductions from efficiency initiatives.

• Management expects the benefits of current cost control, vendor rationalization, and zero-based budgeting efficiency initiatives to accelerate in 2027, as streamlining efforts continue to reduce operating expenses.
• Management reaffirms confidence in long-term profitability growth from the combination of organic revenue growth and ongoing cost discipline. No changes to previous full-year financial guidance were provided.

ALTI reports total consolidated revenue of $58 million in Q2 2026, an 11% year-over-year increase. Recurring management and advisory fees, which make up 93.1% of total revenue, reached $54 million, up 11% year-over-year and 5% sequentially, driven by $700 million in net organic AUM growth. Distributions from investments rose 28% year-over-year, driven by higher distributions from the European Equity Strategy and Real Estate Bridge Lending Strategy. The unwind of the Asian Credit and Special Situations Strategy contributed 0.75% of ALTI's recurring management fees and 6.5% of total incentive investment distributions year-to-date, and contributions from this fund are expected to decline going forward. Adjusted EBITDA for the quarter was over $5 million, up 9% year-over-year, with an adjusted EBITDA margin of 9.3%. GAAP operating expenses totaled $69 million, a 12% year-over-year decrease, with total compensation and benefits expense at $41 million (down 5% YoY) and non-compensation expenses down 20% YoY. ALTI's total assets under management grew to $51 billion as of Q2 end 2026, up 8% year-over-year and 6% quarter-over-quarter, with gross client inflows of $800 million and net inflows of $700 million in the quarter.

• Forward-looking statements are subject to inherent known and unknown risks and uncertainties that could cause actual results to differ materially from projections, with additional details available in ALTI's SEC filings.
• The unexpected unwind of the Asian Credit and Special Situations Strategy will eliminate future revenue contributions from this fund, which contributed 0.75% of recurring management fees and 6.5% of incentive investment distributions year-to-date. ALTI recorded a $19 million unrealized loss on its stake in the fund this quarter.
• Low net market exposure external hedge fund and event-driven strategies will deliver muted performance during periods of sharp short-term market rallies, even though they provide downside protection during market downturns.

Q: Given the large year-over-year improvement in Q2 operating expenses, what is the progress of zero-based budgeting (ZBB) and what cost trends should be expected in coming quarters? / A: ZBB has now been used for two consecutive annual budgeting cycles (2025 and 2026). Management remains laser focused on reducing the overall cost structure across both compensation and non-compensation expenses to improve profitability. Management expects ongoing cost discipline to continue driving expense reductions in coming periods. (234 characters)

Q: What can you share about Q2 net flows, and what is your outlook for organic growth going forward? / A: ALTI delivered strong organic growth in Q2 with $700 million in positive net flows, an encouraging result amid volatile market conditions this year. Combined with solid market performance driven by ALTI's long-term positioning aligned with client goals, this produced strong Q2 AUM growth. Organic growth remains a top strategic priority for the firm. (282 characters)

Q: What is ALTI's appetite for M&A, and which geographies are priority targets for future deals, including expansion in Europe or more U.S. opportunities? / A: ALTI remains opportunistically open to acquisitions in core, strategically attractive markets. The U.S. is a strong core market, and the recent Contour acquisition in Germany has built a successful European foothold that ALTI will build on. ALTI does not pursue a roll-up strategy, and only targets companies and management teams that align with ALTI's philosophy and UHNW client focus. (332 characters)

Q: Is there any update on the ongoing strategic review process? / A: As is standard, ALTI cannot comment on details of the ongoing review, and will not address rumors or speculation. The special committee remains active, and continues to evaluate all potential opportunities that would increase long-term shareholder value, while protecting client, employee, and franchise value. No further updates are available at this time. (301 characters)