One of the largest multi-family offices and non-bank wealth management organizations globally, AITi Global has just over half of all its assets under management/administration in the US, with the rest in other jurisdictions.

AITi Global, the multi-family office that has expanded via a series of acquisitions in Europe and Asia over recent years, has gotten close to holding $100 billion in assets under management and administration. The AuM/A figure rose to $97.2 billion at the end of June. 

That figure is a 28 per cent rise from the end of March, and up 35 per cent on a year earlier, the group said in its financial results yesterday. AITi Global has been listed on the Nasdaq market since 2023.  

Revenues rose less dramatically in percentage terms, up 7 per cent year-on-year at $53 million, helped by AuA/A growth and the purchases of the Kontora and Envoi businesses. 

Kontora, a Hamburg-based wealth manager, was acquired in May this year; Envoi, a family office based in Minneapolis, was acquired last year. Since 2023, six acquisitions and integrations have been wrapped up around the world or are in the process of going through. 

So far, as the firm has built out its capabilities – helped along the way by a $450 million capital investment infusion from Constellation Wealth Capital (CWC) and Allianz – shares in the group have advanced this year. Shares in AITi Global have risen 2.3 per cent, and over a 12-month period, they have surged by 23.7 per cent.

The group said its total operating expenses rose to $83 million at the end of June from $64 million in Q2 2024, mainly caused by one-time professional fees tied to its Zero-Based Budgeting program and the provisioning of receivables associated with the international real estate business, as well as higher compensation costs tied to acquisitions and organizational streamlining initiatives. 

Normalized operating costs, which exclude non-cash compensation, expenses related to severance costs, depreciation and amortization, and certain transaction and deal-related expenses, were $50 million, compared with $44 million a year earlier, it said in a statement. 

The group made a net loss, on GAAP terms, of $30 million in the quarter, widening from a $9.4 million loss a year earlier. Adjusted earnings before interest, taxation, depreciation and amortization were $3.8 million, down from 31 per cent on a year before.

Wealth, capital solutions
In the wealth and capital solutions business, total AuM/A rose 39 per cent year-on-year to $87.8 billion; adjusted EBITDA dipped 2 per cent to $13.6 million. 

In other metrics, AITi Global said its client retention rate has been 96 per cent since 2021 with an identical percentage for recurring revenues. When broken down by geography, the US wealth management business in terms of AuM/A accounts for 59 per cent of the total, showing how more diversified the firm has become in recent years. It has 19 offices. 

CWC and Allianz made their strategic investment into AITi Global to drive its growth, including in the international sphere.

In early January 2023, Tiedemann Group, the US-based multi-family office, wrapped up its acquisition – first announced in 2021 – of London’s Alvarium Investments, having finally won shareholder approval in November 2022. Close to when the final stages were in view, US correspondent Charles Paikert looked at the group’s ambitions under the microscope.

This news service also spoke to the head of the family office practice at the firm about its strategy.