AlTi Tiedemann Global, a publicly traded international wealth management and alternative investment corporation with approximately $68 billion in assets across its subsidiaries, is receiving $450 million in growth capital from Allianz and Karl Heckenberg's new investment firm Constellation Wealth Capital.
Allianz X, an arm of European holding company Allianz SE that buys parts of new and established companies with advanced technology and significant growth potential, is investing $250 million in AlTi Global through a combination of $110 million in common stock of newly issued Class A and $140 million in newly created Series A convertible preferred stock.
Allianz has the option to invest an additional $50 million in preferred stock for international expansion purposes, subject to beneficial ownership restrictions, and warrants to purchase 5 million shares of common stock, which will be subject to “certain restrictions of lock-up with respect to the Class A common share that earns at closing.”
Allianz also secured the right to appoint two directors to AlTi's board, one of whom has been identified as Allianz X CEO Nazim Cetin, as long as he holds at least half of the ordinary shares acquired at the closing of the deal.
“Our investment in AlTi demonstrates our approach as well as our conviction in wealth management and alternatives, and we believe it will open up opportunities for scale, new revenue streams and social impact for Allianz Group,” Cetin said in a statement.
Constellation's $150 million investment includes an initial investment of $115 million in Series C convertible preferred stock, expected to close at the end of March, and another $35 million at the end of June. It includes warrants to purchase up to 2 million shares of Class A common stock. Both are subject to voting restrictions and certain lock-up restrictions will apply to the Series C shares.
constellation, created by Heckenberg last year to invest in growth-oriented wealth management firms, will be given an observer seat on AlTi's board upon completion of its investments.
AlTi said it will use the funds to support continued organic growth and an M&A strategy targeting new and existing markets in the US, UK, Europe and Asia Pacific, “leveraging the industry expertise and relationships of Allianz and CWC”.
“This investment accelerates AlTi's trajectory to become the leading global independent UHNW wealth management platform,” said AlTi CEO Michael Tiedemann. “The investment further validates the strength of our unique business model, which combines a global multi-family office and an alternative platform.”
AlTi Tiedemann Global was created a little over a year ago through the merger of Tiedemann Group and Alvarium Investments through Cartesian Growth Corporation, a special purpose acquisition company created in 2021. Under the label “ALTI”, the combined firm started trading on the Nasdaq stock exchange on January 3, 2023.
At the time, Bloomberg reported that Alvarium Tiedemann had become “one of the largest publicly traded money managers in the world, which focuses on the ultra-wealthy”.
“There's opportunity here,” commented Stephen Caruso, a senior analyst with Cerulli. “There is limited exposure to wealth managers in the public markets and this creates an interesting opportunity for firms that want to get involved. I think overall this represents a unique space for the industry.
“Given Allianz's footprint in Europe and AlTi Tiedemann's combined offering in the UK and, I would assume, Europe in general, I'm sure there are some big synergies there,” he added. “And Constellation Wealth, given their experience in the market, can provide many resources and support solutions to AlTi as they realize this next phase of growth.”