Welcome, everyone, to ALTI's second quarter 2026 earnings conference call. I would like to advise all parties that this conference is being recorded and a replay of the webcast is available on ALTI's Investor Relations website. Now, at this time, I will turn things over to Jeff Shaneborn with ALTI Investor Relations. Please, go ahead.

Good afternoon, and welcome to ALTI Global's second quarter 2026 earnings conference call. On today's call, we will hear prepared remarks from Nancy Curtin, Interim Chief Executive Officer and Global Chief Investment Officer, as well as Pat Keenan, Chief Financial Officer. Today we'll be joined by Kevin Moran, our President and Chief Operating Officer, for the Q&A session. Before we begin, I would like to remind everyone that certain statements made during the call may be deemed forward-looking statements within the meeting of the Private Securities Litigation Reform Act, of 1995. These forward-looking statements include but are not limited to comments made during the prepared remarks and in response to questions. Forward-looking statements can be identified by the use of words such as anticipate, believe, continue, estimate, expect, future, intend, may, planned, and will, or similar terms. Because these forward-looking statements involve both known, and unknown risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these statements. For discussion of the risks and uncertainties that could cause actual results to differ, please refer to ALTE's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. ALTI assumes no obligation or responsibility to update any forward-looking statements. During this call, some comments may include references to non-GAAP financial measures. Full reconciliations can be found in our earnings presentation and our related SEC filings. With that, I'd like to turn the call over to Nancy Kirksey.

Thank you, Jeff, and good afternoon, everyone. I want to begin with what we believe is one of the most important aspects of the Alti story. The strength, rarity, and long-term relevance of our franchise. Globally, the creation of private wealth continues to be supported by powerful secular tailwinds. Wealth creation is expanding not only in the United States, but increasingly across Europe, Asia, the Middle East, and other markets. At the same time, the needs of ultra-high net worth families are becoming more complex, more global, and more interconnected. Our focus remains squarely on serving ultra-high net worth families, family offices, and institutions. The number of independent firms capable of advising families with hundreds of millions, or indeed billions of dollars of assets, across geographies, generations, and asset classes is remarkably small. We believe this scarcity value creates substantial long-term franchise value. Importantly, we do this as an independent advisor. Our model is designed around the needs of the client rather than proprietary product distribution. We believe that alignment combined with our global capabilities and highly collaborative culture differentiates us in the marketplace and contributes to the exceptionally high client retention rates that we enjoy. In fact, recent research we conducted among family offices globally reinforces what we hear from our clients daily. Nearly half of respondents said they have begun to formally define the purpose of wealth and the role it should play across generations. Yet many have not fully engaged the next generation in those discussions. We view this as a powerful validation of the work we do to help families navigate governance, succession planning, stewardship, education, and long-term legacy objectives, alongside our sophisticated investment management, planning, and wealth advice expertise. increasingly our role is helping to prepare future generations for the responsibilities that come with wealth we believe that distinction is becoming more important to families around the world and represents a significant opportunity for all to create meaningful long-term value for clients and shareholders as we look ahead our strategic priorities remain clear First is organic growth. We believe strong, net organic growth is the clearest indication of the health of a wealth management business. Our focus is on attracting new clients, deepening existing relationships, expanding advisor capacity, and continuing to earn referrals through exceptional service and client outcomes. Second, we continue to invest in our core wealth management franchise. We remain focused on expanding advisor capacity in key markets, densifying offices where we already have scale, and selectively adding talent and teams that align with our culture. A recent example is our continued investment in Miami, which has emerged as one of the fastest growing wealth hubs in the United States, benefiting from both domestic migration and increasing international wealth flows. In the second quarter, we announced that César Pachon joined Alti to lead our Miami office, bringing decades of ultra-high net worth client experience, enhancing our strength in serving globally connected families and family offices. Internationally, we remain disciplined in allocating resources to markets that demonstrate strong growth potential and attractive long-term economics. Our global footprint is intentional, reflecting where internationally mobile families increasingly live, invest, and conduct businesses. In addition, investments in our already substantial private endowments business continued, with the recent addition of Mike Cagnina, who brings decades of experience to ALTI, including many years at SCI's Global Institutional Group, where he co-founded its endowment and foundations practice. A third strategic priority remains our laser focus on improving profitability and operating efficiency. We've undertaken a comprehensive effort to streamline the organization, simplify operations, reduce complexity, and improve scalability. We are in the early stages of seeing the benefits, and we believe the organization is becoming leaner and better positioned for long-term growth. While reported numbers do not yet fully reflect that progress, our underlying expense trajectory is improving. These efforts are aimed at better aligning the business with its core strengths and ensuring our financial results more accurately reflect ALTI's long-term earnings power. Turning to our second quarter financial results, assets under management grew to $51 billion. For the wealth management business, AUM growth reflected gross client inflows of nearly $800 million in the second quarter of 2026, while net flows totaled about $700 million. Market appreciation also had a positive impact on AUM, supported by staying the course in more difficult markets and our positioning in technology, energy, and power infrastructure, all benefiting from longer-term secular demand tailwinds. AUM growth was achieved even as we maintain a significant portion of the portfolio in alternatives, which do not price a quarter end. General strategic managers run with low net market exposure, so they tend to have a more muted performance when markets move higher in short bursts, but continue to provide both diversification and downside protection. During the second quarter, one of these three external managers, the Asian Credit and Special Situation Strategy, experienced an extraordinary circumstance. Unfortunately, its founder and chief investment officer experienced a sudden and serious health event. Our thoughts are with him, and he has our very best wishes for a full recovery. To unwind the fund within a 12-month time horizon. As a result, for the second quarter, we recorded an unrealized investment loss on our stake in the strategy. This was an extraordinary event, unrelated to investment performance, and importantly, our stakes in the two other external strategic managers are performing solidly. We generated $58 million in total revenue, representing 11% growth compared to the same period of last year. Recurring management and advisory fees total $54 million, up 11% year over year, and continue to represent the majority of our revenue base, reflecting the stability and recurring nature of our business model. We're also pleased to report that adjusted EBITDA for the second quarter of 2026 was over $5 million, up 9% compared to the prior year quarter, largely driven by the revenue increase, along with early improvements in our operating expenses, which we expect to accelerate in 2027. Finally, with respect to the ongoing strategic review process, the committee continues its work. As of today, there's nothing further to report. We will provide updates as appropriate. Now, with that, I'll turn the call over to our CFO, Pat Keenan, to walk through the financials in more detail.

Pat.

Thank you, Nancy, and good afternoon, everyone. Assets under management on June 30, 2026 were $51 billion, up 8% year-over-year and 6% from March 31, 2026, driven by strong investment performance and net positive client inflows. In the second quarter of 2026, ALTI generated $58 million of total revenue, representing an 11% increase versus the same period last year. Recurring management and advisory fees totaled $54 million of 11% year-over-year and 5% sequentially, primarily due to approximately $700 million of net organic growth in AUM in the second quarter of 2026. Distributions from investments increased 28% year-over-year without performance by our external strategic managers as reflected in higher distributions related to management fees in the European equity strategy and the real estate bridge lending strategy. The incentive portion of investment distributions tend to be most significant in the first decision to unwind. We recorded an unrealized investment loss of nearly $19 million in marketing.

...continue to make meaningful progress across the areas that we have prioritized toward the growth of ultra-high net worth market remain firmly intact. And we continue to see increasing demand for the comprehensive advice, family office capabilities, and global perspective in the marketplace. I would like to thank our clients for their trust, our advisors and employees for their commitment, and our shareholders for their continued support. Now, I'll turn the call back to the operator for questions.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will then indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions.

And our first question comes from Wilma Burtis with Raymond James.

Please go ahead.

Hey, good afternoon. Reported operating expenses seem to improve considerably. Can you give us some color on where you are as far as rolling on the ZBB benefits and, you know, where should we expect that to trend in the coming quarters?

Wilma, excellent question, and thanks for participating today. Let me turn to Kevin, who's really spearheaded that initiative, but we're really pleased with the beginning results we're seeing this year and the ongoing expense reductions that we think will come through in 2027.

Hi, Wilma. Thanks, Nancy. Yes, the zero-based budgeting, I think as we talked about on prior calls, is the budgeting methodology that we're using at ALTI. So we've now used it, I think this is the second year that we've used it. We used it for the 2025 and now the 2026 budgeting process. So I think as Nancy and management spoke about on prior calls, we're laser focused on reducing our cost structure of the business to improve profitability, combine that with revenue growth, which leads us to be really confident about the future of the business. So we would expect and certainly are very focused on continuing the cost discipline and continuing to drive down real all elements of our cost structure, both comp and non-comp. I think you've seen that in the Q2 numbers.

Thank you.

And can you talk a little about the net flows in the quarter and how you guys are thinking about organic growth going forward? Thanks.

So, organic growth is a clear priority for our business, and it was, I think, quite pleasing. It's been a volatile year, to say the least, in markets, et cetera, but it was quite pleasing to see about $700 million of net flows in the second quarter. that combined with market performance, I said, led to a very pleasing result. And part of the market performance, I would add, we stayed invested during the more turbulent first quarter. We felt our positioning was rightly aligned for what longer-term clients were looking for, and that bounced back quite nicely. So the combination of positive net flows and reaping the benefits of market performance, I think, characterized quite nicely this second quarter.

Thank you. And can you talk about the appetite for further M&A deals and which maybe just touch on which geographies would be interesting to all be following Contora? Does it make sense to expand the European footprint or are domestic opportunities more attractive? Maybe just talk about that.

Thanks, Wilma. We always are open to acquisition opportunities in the core and strategic markets that we think are most attractive. Of course, the United States has been a very successful market for us, and the recent acquisition, Contour in Germany, has also been really a great foothold to expand our presence there. So we will continue to look opportunistically. It is not something we're trying as a sort of roll-up strategy. That's not what we do. We look strategically for management teams and companies that align from a philosophy, a target client, client-first mentality, and the type of independent, integrated, holistic advice that we provide. And that's really important that we find those companies, and if we do, in strategic markets that we can integrate them. So nothing to comment on at the moment, but always part of our longer-term strategy.

Okay, thank you. And then I realize you may not be able to say too much about this, but is there any update on the strategic review or just maybe just give an update of what you guys are thinking there?

Yeah, of course, as you can imagine, as a public company, there's not too much that we can comment on and we don't comment on rumor and speculation, what I would say is the special committee, as you would expect, will continue to review any and all opportunities that will enhance the value for shareholders, of course, our clients, employees, and the long-term franchise value of the firm. So we're guided by those principles. The special committee is still in place. But that's really all I can comment on today.

Okay. Thank you. And then maybe just last one for me. Can you talk a little bit about the event-driven platform and the trends there that you're seeing?

On the event-driven side, first of all, I would say that generally our external and hedge fund strategies tend to run with a much lower level of net exposure. So they're not strategies are going to move with the market going down violently and then going up. So they protected capital quite nicely in the first quarter. But the second quarter, when you see a robust recovery of markets, is really not the environment for those strategies. And Arm, in particular, is going to be very, very deal specific. It doesn't invest in speculative transactions. It has only announced deals where there's complexity and a spread that Drew thinks is, you know, worth the sort of the risk return payoff is appropriate. So, I would say a little bit more muted performance, but again, these things can change quite quickly as the M&A environment changes, and often the fourth quarter tends to be a much better quarter generally for hedge fund strategies.

Okay, thank you.

At this time, we have no further questions. I'd like to hand the call back to Nancy Curtin for closing remarks. Nancy?

I'd like to thank everyone for participating today. We look forward to updating you on our progress in the quarters ahead as we remain laser-focused on organic growth and cost discipline. We appreciate your interest and look forward to speaking with you again next quarter. So thank you, everyone.

This concludes today's teleconference. You may just connect your lines at this time. Thank you for your participation.