AlTi Global (NASDAQ:ALTI) reported a narrower loss and lower operating expenses for the third quarter of 2026, while warning that redemptions at an external investment manager are expected to result in a further non-cash loss in the fourth quarter.
The wealth manager reported $58 million in third-quarter revenue, up 1% from a year earlier. Its net loss from continuing operations narrowed to $11 million from $87 million, while assets under management rose 5% year over year to $51.6 billion as of Sept. 30.
Interim Chief Executive Officer and Global Chief Investment Officer Nancy Curtin said portfolio performance was the primary driver of asset growth, even as the company recorded approximately $250 million in net wealth management outflows during the quarter.
Fees rise as expenses decline
Recurring management and advisory fees totaled $55 million, up 7% from a year earlier and 2% from the second quarter. Chief Financial Officer Pat Keenan said distributions from investments declined 17% year over year, primarily because of lower distributions related to management fees in a real estate bridge lending strategy.
Reported operating expenses fell 25% to $64 million from $86 million a year earlier. Compensation and benefits expenses declined 6% to $39 million, while non-compensation expenses dropped 44%.
Keenan attributed the non-compensation decline partly to zero-based budgeting and other cost controls, as well as the absence of prior-year nonrecurring bad debt and redress provisions associated with a strategic portfolio realignment. Professional fees fell 37% from the third quarter of 2025.
Curtin said AlTi reduced global headcount by approximately 8% over the preceding 12 months and 3% since the end of June. The company is also reviewing professional fees, technology duplication, outside providers and occupancy costs, she said.
Adjusted earnings before interest, taxes, depreciation and amortization exceeded $6 million, up 1% year over year and 15% from the second quarter. The adjusted EBITDA margin was 11%, unchanged from a year earlier. On a generally accepted accounting principles basis, the company reported a $6 million operating loss, a 79% improvement from the prior-year quarter.
Keenan said AlTi expects additional expense reductions in the fourth quarter, with results beginning to appear in the first and second quarters. The company plans to repeat its zero-based budgeting process for fiscal 2027 and expects to continue seeing benefits through 2027 and 2028, he said.
Outflows and investment loss
Curtin said the quarter’s wealth management outflows reflected a reduction in lower-fee legacy accounts, partially offset by new client wins at higher fee rates. She said the prospect pipeline remains encouraging but noted that flows can be uneven because of the time between signing clients and receiving their funds.
AlTi recorded a $7 million unrealized loss in the third quarter on its stake in European equities manager Zebedee. Curtin said the manager has moved to a co-chief investment officer portfolio management structure, a process that is prompting some redemptions.
The company expects an additional unrealized, non-cash loss of approximately $20 million to $23 million on the stake in fourth-quarter other expense. Curtin described AlTi’s non-strategic stakes in external managers as largely passive investments that have provided liquidity to fund its core wealth business.
Credit facility supports obligations and hiring
AlTi entered an $85 million credit agreement with Diameter Finance Administration in October. Keenan said the facility was intended to help manage expenses associated with past acquisition earnouts and payments owed to the administrator following the placement of the company’s international real estate business into administration in the U.K.
A $28 million term loan was drawn when the facility closed, while the revolving portion remained undrawn, Keenan said. A delayed-draw term loan could be used for future acquisitions.
President and Chief Operating Officer Kevin Moran said the company is interested in using that funding to recruit advisers and teams, including in the U.S. and overseas. Curtin said such hires could expand adviser capacity and make greater use of existing offices without the integration challenges associated with larger acquisitions.
On the company’s ongoing strategic review, Curtin said the special committee continues its work and had nothing further to report.
About AlTi Global (NASDAQ:ALTI)
AlTi Global, Inc is a global independent wealth manager that provides investment and advisory services to entrepreneurs, families, foundations and institutions. The company helps clients manage and preserve wealth through customized portfolio management, financial planning, investment advisory and family-office solutions.
Its services include traditional and alternative investment strategies, private markets and impact investing, as well as advice on governance, philanthropy, estate planning and other complex financial matters.
