AlTi Global, Inc. (NASDAQ:ALTI) Q2 2023 Earnings Call Transcript

Michael Tiedemann: Q2 for the Asia Credit strategy was a challenging environment for their marketplace, worse than the index would indicate because they have a range of credit which does expand in the distress. So they did a very good job of preserving capital and retaining liquidity to buy into that weakness. There hasn’t necessarily been a quick recovery in Q3, but the profile and the earnings profile of their investments is quite robust, so as you roll the clock forward the next 12 months, we’re actually very encouraged by that strategy and the team’s ability to survive challenging markets and retain earnings power going forward. Our long-short equity fund is really non-directional and, as an example, made 20-some-odd percent in a down year last year, so they are a non-correlating strategy.

Their opportunity set is really week-to-week in terms of how they move and maneuver themselves to take advantage of it. And arbitrage, as I mentioned, did very well relative and has recovered quite nicely in Q3, as I mentioned earlier. Bridge lending strategy, it’s an unbelievable backdrop, particularly as you look at the regional banks and their capital challenges. So being a private lender into real estate or just generally in private credit as a strategy, there’s a lot of tailwinds and obviously a lot of investor interest. So, that’s a strategy that we’re really focused on and making sure that we’re able to grow over the coming 12 to 24 months.

Wilma Burdis: Okay. Thank you guys very much.

Michael Tiedemann: Thank you, Wilma.

Operator: There are no further questions in the queue. I’d like to hand the call back to management for closing remarks.

Michael Tiedemann: Thank you, Operator. We invite you to contact us with any questions or if you have any need for a scheduled follow-up call, we’d be happy to have one. I want to thank the AlTi team members around the world who are fellow shareholders for their hard work and dedication as we advance this strategy that we’ve laid out today. I’m confident that our diversified platform is built to perform well in any economic cycle and our progress this quarter illustrates that fact. We look forward to connecting with you this fall and wish everyone a healthy and happy rest of the summer. Take care.

Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.