AlTi Global NASDAQ: ALTI reported second-quarter 2026 revenue growth and higher assets under management, while an unexpected wind-down of an external Asian credit strategy led to a nearly $19 million unrealized investment loss and a wider net loss from continuing operations.
Assets under management totaled $51 billion as of June 30, up 8% from a year earlier and 6% from the end of the first quarter. Interim Chief Executive Officer and Global Chief Investment Officer Nancy Curtin said the increase reflected approximately $800 million of gross client inflows and roughly $700 million of net flows during the quarter, along with market appreciation.
The firm reported total revenue of $58 million, up 11% year over year. Recurring management and advisory fees rose 11% to $54 million, representing the majority of AlTi's revenue base.
AUM Growth Supported by Client Flows and Markets
Curtin said the company's investment positioning in technology, energy and power infrastructure benefited from longer-term demand trends. She also said AlTi remained invested during more turbulent market conditions earlier in the year, which contributed to the second-quarter result as markets recovered.
AlTi maintains a meaningful allocation to alternatives, which do not necessarily price at quarter-end, Curtin said. Its external strategic managers generally operate with low net market exposure, which can dampen gains during rapid market rallies but is intended to provide diversification and downside protection.
During the question-and-answer session, Curtin characterized the $700 million in net flows as a positive result amid a volatile year for markets. Organic growth remains a central focus, she said, alongside attracting new clients, expanding adviser capacity and deepening existing client relationships.
Asian Credit Fund Wind-Down Weighs on Results
One of AlTi's three external strategic managers, its Asian Credit and Special Situations strategy, is being unwound over a 12-month period after its founder and chief investment officer suffered a sudden serious health event, Curtin said. The manager and its board made the decision to unwind the fund, which AlTi described as unrelated to investment performance.
Chief Financial Officer Pat Keenan said AlTi recorded an unrealized investment loss of nearly $19 million on its stake in the strategy. The fund represented about 75 basis points of AlTi's recurring management fees year to date and about 650 basis points of the incentive portion of investment distributions, he said. The company expects diminishing revenue contributions from the fund as it is wound down.
Other expense totaled $20 million during the quarter, compared with $5 million a year earlier, including the effect of the unrealized loss. AlTi reported a net loss from continuing operations of $31 million, compared with a $26 million loss in the prior-year quarter.
In response to an analyst question, Curtin said the company's event-driven and hedge fund strategies typically run with lower net exposure and therefore did not participate as fully in the market's second-quarter rebound after helping protect capital during the first quarter. She described the event-driven strategy as deal-specific and focused on announced transactions where the manager believes the risk-return profile is appropriate.
Cost Controls Begin to Reduce Expenses
Reported operating expenses fell 12% to $69 million from $78 million a year earlier. Compensation and benefits expense declined 5% to $41 million, while non-compensation expenses decreased 20% year over year.
Keenan said professional fees declined 40% from the second quarter of 2025, while technology, occupancy and marketing expenses also fell. Non-compensation expenses for the first half of 2026 were down 8% from the same period last year.
Adjusted EBITDA exceeded $5 million, up 9% from the prior-year quarter, supported by revenue growth and lower operating expenses. Adjusted EBITDA margin was 9.3%, compared with 9.5% a year earlier. On a GAAP basis, operating loss improved 58% year over year to $11 million.
Kevin Moran, AlTi's president and chief operating officer, said the company has used zero-based budgeting for its 2025 and 2026 planning processes and remains focused on reducing both compensation and non-compensation costs. Curtin and Keenan said AlTi expects the benefits of cost controls and vendor rationalization to accelerate in 2027.
Growth Investments and Strategic Review Continue
AlTi said it continues to invest selectively in its wealth-management franchise, including in Miami, where it appointed Cesar Pachon to lead the office. Curtin said Miami has become a rapidly growing U.S. wealth hub supported by domestic migration and international wealth flows.
The company also added Mike Cagnina to its private endowments business. Curtin said Cagnina brings experience in endowments and foundations, including prior work at FCI's global institutional group.
Asked about acquisition opportunities, Curtin said AlTi remains open to strategic deals in core markets but is not pursuing a roll-up strategy. She pointed to the company's Kontora acquisition in Germany as an important foothold in Europe and said AlTi would evaluate companies with aligned management teams, client focus and independent advisory models.
On the company's ongoing strategic review, Curtin said the special committee remains in place and continues to evaluate opportunities that could enhance value for shareholders, clients, employees and the firm's long-term franchise. She said there was no further update to report.
About AlTi Global (NASDAQ:ALTI)
AlTi Global, Inc provides wealth and asset management services individuals, families, foundations, and institutions in the United States, the United Kingdom, and internationally. It operates through two segments, Wealth Management and Strategic Alternatives. The company offers discretionary investment management, non-discretionary investment advisory, and investment management and advisory services. It also provides trust and administration services, such as entity formation and management; creating or modifying trust instruments and administrative practices to meet beneficiary needs; corporate, trustee-executor, and fiduciary services; provision of directors and company secretarial services; administering entity ownership of intellectual property rights; advisory and administration services in connection with investments in marine and aviation assets; and administering entity ownership of fine art and collectibles.
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