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Multi-Family Office Continues Acquisitions

Tom Burroughes

4 April 2024

US-listed – the international multi-family office that was created out of a transatlantic merger completed more than a year ago, has has bought New York-headquartered East End Advisors, a firm with about $5.6 billion in AuM.

The arrival of East End Advisors adds to a business with more than $70 billion in AuM. The acquisition follows the recently-announced strategic investment in AlTi of up to $450 million from Allianz X, an investment arm of Allianz SE, and Constellation Wealth Capital, an investment advisory firm specialising in investing in wealth managers. 

East End expands AlTi Tiedemann Global’s operations in the US and adds to its offering in the outsourced chief investment officer market.

AlTi is acquiring the business for an initial purchase price of about $76 million. An additional contingent consideration will be payable over a five-year period, and on a formula linked to earnings before interest, taxation, depreciation and amortisation. Some of the contingent consideration must 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. 

The multi-family office said the initial purchase price is expected to be funded by the previously-announced investment from Constellation Wealth Capital. The transaction is subject to customary closing conditions and is expected to close early in the second quarter.

AITi has been busy since it was born from the merger between US-based Tiedemann Group and London’s Alvarium. In May last year, AITi acquired Singapore’s AL Wealth Partners, spreading its network to Asia. 

The M&A deal between Alvarium and Tiedemann was one of the largest in the MFO space in recent years. It is also an example of the kind of consolidation that has affected much of the world’s wealth sector in the past decade.

“We have long admired the exceptional team at East End, their investment approach, and the long-standing and trusted relationships they have with their clients. We both share industry-leading client retention and a deep understanding of the complexities and changing demands of ultra-high net worth families and foundations,” Michael Tiedemann (pictured), chief executive of AlTi Tiedemann Global, said. 

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