AlTi Tiedemann’s Buying East End Advisors

The Acquisition Comes Just After A Strategic Investment Of Up To $450 Million Was Made In AITi By Allianz X And Constellation Wealth.
Michael Tiedemann, CEO, AITi Tiedemann Global; Andrew Douglass, Co-Head, Business Development Strategy, AlTi Tiedemann Global
Michael Tiedemann, CEO, AITi Tiedemann Global; Andrew Douglass, Co-Head, Business Development Strategy, AlTi Tiedemann Global
Jeff Berman, Contributing Editor & Reporter, Wealth Solutions Report
Jeff Berman, Contributing Editor & Reporter, Wealth Solutions Report

AITi Global on Monday announced it is acquiring East End Advisors, a New York-based independent advisory firm with about $5.6 billion in assets under management (AUM), for an initial purchase price of about $76 million.

An additional contingent consideration will be payable over a five-year period, calculated in accordance with an EBITDA-based formula, AITi said.

A certain portion of the contingent consideration will have to be paid in cash based on certain minimum annual thresholds, and the balance may be settled in cash or Class A Common Stock, at AlTi’s discretion, it said.

The transaction is subject to customary closing conditions and is expected by AITi to close early in the current quarter, it said.

The news follows the February announcement that Allianz X and Constellation Wealth Capital made a strategic investment of up to $450 million in AlTi, an independent global wealth and alternatives manager with over $70 billion in combined assets. Allianz X is an investment division of Allianz SE.

The capital will be used by AITi to “accelerate” its strategy to become a global independent wealth management platform for the ultra-high net worth (UHNW) segment, with targeted expertise in alternatives, AITi said.

The initial purchase price of the East End Advisors acquisition is expected to be funded by the previously announced investment in AITi by Constellation Wealth.

East End Advisors specializes in customized portfolio management and investment services for UHNW families and foundations.

The addition of East End Advisors expands AlTi’s operations in key regions of the U.S. and further enhances AlTi’s offering in the growing Outsourced Chief Investment Officer (OCIO) market, it said.

As a result of the transaction, East End’s clients will receive access to a broader set of investment strategies, along with AlTi’s global resources and holistic wealth management solutions while “preserving the firm’s defining characteristics as an independent investment advisor and leading OCIO under a continuation of East End’s leadership team,” according to AITi.

Oppenheimer & Co. is serving as AlTi’s financial advisor, while Houlihan Lokey is serving as AlTi’s financial and tax diligence advisor. Seward and Kissel is acting as AlTi’s legal advisor, while Wachtell, Lipton, Rosen & Katz is serving as legal advisor to East End Advisors.

David Salomon, President, East End Advisors
David Salomon, President, East End Advisors

AITi and East End Advisors “share industry-leading client retention and a deep understanding of the complexities and changing demands of ultra-high net worth families and foundations,” according to Michael Tiedemann, CEO of AITi Tiedemann Global.

Tiedemann plans to provide “further updates on our strategic growth trajectory in the coming months,” he said.

“The addition of East End helps expand our market presence in key regions in the U.S. and accelerates our ability to grow strategically while maintaining a boutique approach,” according to Andrew Douglass, Co-Head of Business Development Strategy for AlTi Tiedemann Global.

“Joining AlTi will further increase our ability to support clients for generations to come,” according to David Salomon, President of East End Advisors.

“We are confident that AlTi’s global platform will benefit East End’s clients through increased access to global perspectives and solutions, and that together we will be able to provide a broader range of compelling ideas and opportunities,” said Salomon.

Jeff Berman, Contributing Editor & Reporter at Wealth Solutions Report, can be reached at jberman@wealthsolutionsreport.com.

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