AlTi Global announced a strategic investment of up to $450 million by Allianz X and Constellation Wealth Capital (“CWC”).
Allianz X will invest up to $300 million through one of its affiliates and CWC will invest $150 million.
AlTi will use the capital principally to fund its M&As pipeline and organic growth activities. This will expand the scale and reach of AlTi’s global UHNW wealth management and strategic alternatives business in existing and new markets, leveraging the industry expertise and relationships of both Allianz and CWC.
The 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.
“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,” Cetin said.
The investment in AlTi, detailing $250 million through a combination of $110 million in newly issued Class A Common Stock and $140 million in newly created Series A Convertible Preferred Stock. Additionally, Allianz X has been granted the option to invest up to an additional $50 million in Series A Convertible Preferred Stock, earmarked for AlTi’s international expansion initiatives.
Warrants for the purchase of 5 million shares of Class A Common Stock are also part of the investment package. These Series A Convertible Preferred Stocks and Warrants will be subjected to certain beneficial ownership limitations, and Allianz will face lock-up restrictions regarding the Class A Common Stock it acquires upon closing.
Furthermore, Allianz X retains the right to nominate two directors to AlTi’s board as long as it holds at least 50% of the Class A Common Stock acquired at closing.
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