AlTi Global (a leading independent global wealth and alternatives manager with approximately $68 billion in combined assets) recently announced a strategic investment of up to $450 million by Allianz X and Constellation Wealth Capital (CWC). And Allianz X (an investment arm of Allianz SE, one of the world’s leading insurers and asset managers with over 122 million private and corporate customers in over 70 countries) will invest up to $300 million through one of its affiliates. CWC (an investment advisory firm specializing in making investments in industry-leading wealth managers) will invest $150 million.
AlTi will use the capital principally for funding its mergers and acquisitions (M&A) pipeline and organic growth activities. And this will expand the scale and reach of AlTi’s global ultra-high-net-worth (UHNW) wealth management and strategic alternatives business in existing and new markets, leveraging the industry expertise and relationships of both Allianz and CWC. This partnership with Allianz offers opportunities to provide additional solutions to service both companies’ clients more holistically.
Nazim Cetin, Chief Executive Officer of Allianz X, and another Allianz representative will be appointed to AlTi’s Board of Directors, and CWC will have an observer seat on the Board, upon completion of their respective investments.
Deal Details
Allianz X Investment: $250 million through a combination of: $110 million newly issued Class A Common Stock; $140 million newly created Series A Convertible Preferred Stock; Option to invest up to an additional $50 million in Series A Convertible Preferred Stock to be used for AlTi’s international expansion initiatives; Warrants to purchase 5 million shares of Class A Common Stock; The Series A Convertible Preferred Stock and Warrants will be subject to certain beneficial ownership limitations, and Allianz will be subject to certain lock-up restrictions with respect to the Class A Common Stock it acquires at closing; Right to nominate two directors to AlTi’s board will continue so long as Allianz X holds at least 50% of the Class A Common Stock acquired at closing.
CWC Investment: $150 million in newly created Series C Convertible Preferred Stock; An initial investment of $115 million that is expected to close by March 31, 2024, and a further $35 million that is expected to close by June 30, 2024; Warrants to purchase 2 million shares of Class A Common Stock; The Series C Convertible Preferred Stock and Warrants will be subject to certain voting limitations, and CWC will be subject to certain lock-up restrictions with respect to its Series C Convertible Preferred Stock; The deals are subject to customary closing conditions, including in the case of Allianz X, receipt of certain approvals by regulatory authorities and by AlTi’s stockholders
Advisors
Oppenheimer & Co. is acting as the exclusive financial advisor to AlTi Global, and Cadwalader, Wickersham & Taft is acting as its legal advisor. And Ardea Partners LP is serving as exclusive financial advisor to Allianz X and Sullivan & Cromwell LLP is serving as its legal advisor. Gibson, Dunn & Crutcher LLP is acting as legal advisor to Constellation Wealth Capital.
KEY QUOTES:
“This investment accelerates AlTi’s trajectory to become the leading global independent UHNW wealth management platform, with strategic and targeted expertise in alternatives. The investment further validates the power of our unique business model which combines a global multi-family office and alternatives platform.”
– Michael Tiedemann, Chief Executive Officer of AlTi Tiedemann Global
“Allianz X brings capital and skills to our portfolio companies to foster innovation, fuel growth and realize their ambitions. Our investment in AlTi demonstrates our approach as well as our conviction in wealth management and alternatives, and we believe it will unlock opportunities for scale, new revenue streams and societal impact for the Allianz Group.”
– Dr. Nazim Cetin, Chief Executive Officer of Allianz X
“This partnership represents a significant milestone in our ongoing mission to support innovation and excellence in the wealth management industry. We believe AlTi is ideally positioned to capitalize on future opportunities, in line with their impressive strategic vision.”
– Karl Heckenberg, CWC’s Founder and Managing Partner
