We always take a disciplined approach to our pipeline and acquisition criteria and consider the target’s profile, footprint, and operational fit as it relates to AlTi’s positioning in the marketplace. These partnerships enhance AlTi’s current strengths to further differentiate the firm from the competition as client demands continue to evolve. As we’ve indicated, of the total of investment to be made by CWC, which is $150 million, $115 million is projected to close in the coming weeks. As such, we expect to begin executing on our pipeline in the short term. We will update you on the progress in a timely manner. This was an important year for our organization and we’re excited about what AlTi can accomplish in 2024. As we onboard strategic partners, deploy growth capital, and expand our global footprint, we are positioning the platform for long-term success.
We look forward to demonstrating how our strategic priorities will lead to accelerated growth, profitability, and notably create sustainable shareholder value. With that, I’ll turn the call over to Steve to provide further details of our financial results.
Stephen Yarad: Thank you, Mike. Last year we achieved many milestones that have already set the stage for continued topline growth in 2024, and importantly, increased profitability in the years to come. Before we review the results, I want to note the results in our regulatory filings are presented as a comparison between predecessor and successor companies, as required by the accounting guidelines. In our case, Tiedemann Wealth Management Holdings is the predecessor company and AlTi is the successor. As such, the year-over-year results are not directly comparable and my comments will be focused primarily on the quarter-over-quarter comparisons. AlTi generated revenues of $92 million in the fourth quarter, up 86% from the third quarter, driven primarily by incentive fees generated in our Strategic Alternative segment.
The strong topline performance in the quarter also reflected increased management fees, driven by the growth in AUM and AUA in the quarter, and the realization of incentive fees in our Wealth Management segment and higher origination fees in our Strategic Alternative segment. Given the significant incentive fee recorded in the quarter, recurring revenues were approximately 53% of total revenues in the fourth quarter. Full year 2023 revenues were $251 million, 77% of which reflects recurring revenues from management and advisory fees. These results highlight the diversification and strength of our platform, which we anticipate will continue to strengthen in 2024. Revenues in our Wealth Management segment increased 9% sequentially to $38 million in the fourth quarter, reflecting 5% growth in assets resulting from robust market performance and net client wins, as well as incentive fees recorded in the period.
For the full year 2023, Wealth Management segment revenue was $138 million. Importantly, recurring revenues in the segment were 95% and 99% for the quarter and the year, respectively. Now, Strategic Alternative segment revenue totaled $54 million in Q4, an increase of $40 million compared to the prior quarter, largely driven by crystallized incentive fees associated with the event-driven strategy. The origination fee related to the London real estate deal also contributed to segment results in the quarter. For the full year 2023, Strategic Alternative segment revenue was $113 million. 52% of this topline performance was from recurring management and advisory fees, including distributions from our Alternatives platform. Despite pleasing progress in the top line results, we recorded a net loss of $87 million in the fourth quarter, reflecting $51 million of impairment and other charges in our Strategic Alternative segment, higher incentive compensation accruals, as well as certain other expenses which we expect to be non-recurring.
Normalized for one-off items, our adjusted net loss in the fourth quarter was $6 million. $34 million of the impairment charges related to the termination of our management contract for LXi, the UK-based publicly traded REIT, in connection with LXI’s merger with LondonMetric, which was completed earlier this month. In connection with the merger, we agreed to terminate the management contract for initial payment of $32 million and potential future payments of up to GBP4 million, depending on LondonMetric’s future performance. The impairment charge recorded essentially reflects the difference between the initial consideration received and the carrying value of the intangible asset for the management contract that was recorded prior to the transaction.
I would like to note that LXI contributed $2.3 billion to AUM at year-end, which, following the sale in early March, will no longer be reflected in our assets at the end of the first quarter. Further, $17 million of impairment and other charges were recorded related to our private real estate business, reflecting restructured arrangements with several partners, which resulted in adjustments to amounts recorded for certain equity method investments, carried interest, and other receivables deemed non-collectible. Normalized operating expenses for the fourth quarter, which exclude non-cash compensation, expenses related to difference costs, depreciation and amortization, and certain transaction and deal-related expenses were $82 million. This represents an increase of $30 million compared to the prior quarter, primarily driven by the higher incentive compensation accrual recorded in the fourth quarter, largely attributed to the strong performance of the event-driven strategy.
Excluding compensation expenses, normalized operating expenses were lower by $2 million. Fourth quarter adjusted EBITDA was $10 million, an increase of $13 million compared to the third quarter, driven by higher incentive fees, partly offset by the related incentive compensation accrual. Our adjusted EBITDA margin improved to 11% in Q4. On a full-year basis, our adjusted EBITDA was $29 million and our adjusted EBITDA margin was 12%. As growth and cost savings initiatives take hold in 2024, including those resulting from the strategic investments by Allianz X and CWC, we expect to see the impact of operating leverage to drive improvements, and greater consistency in our GAAP results and adjusted EBITDA. Given that the Allianz X transaction is subject to regulatory approvals, which may take several months to obtain, we are reserving any updates to our financial targets until later this year after that investment is closed.
With that, I will turn it back to Mike for concluding remarks.
