Transaction Overview

On September 20, 2021, Alvarium Investments announced plans to merge with Tiedemann Group and Cartesian Growth Corporation, a special purpose acquisition company, to establish Alvarium Tiedemann Holdings, or AlTi. This new entity is anticipated to have a pro forma equity value of approximately $1.4 billion. Alvarium Tiedemann aims to become a prominent independent global investment firm with assets under management (AUM) totaling $54 billion. The firm will provide fiduciary capabilities and various investment strategies and services to institutions, entrepreneurs, families, and emerging leaders.

The merger of these firms is expected to create an extensive international network across four continents, leveraging diverse expertise and access to private and institutional capital. This will enable a robust portfolio of services, emphasizing values-aligned and impact investing. The firm will also offer trusted advisory services to family-owned businesses, along with direct and co-investment opportunities in real assets. Following the completion of the merger, anticipated in the first quarter of 2022, the public shares of Alvarium Tiedemann will be listed on Nasdaq with the ticker symbol “GLBL,” and the firm will be headquartered in New York.

Company Background

Alvarium is an independent investment firm and global multi-family office offering bespoke solutions for families, foundations, and institutions across the Americas, Europe, and Asia-Pacific. It specializes in providing direct and co-investment opportunities sourced from alternative managers and real asset operating partners within the real estate and innovation economy sectors. Alvarium employs over 220 individuals and 28 partners across 14 locations in 10 countries, managing approximately $22 billion in assets through four primary service areas: investment advisory, co-investments, merchant banking, and family office services.

Tiedemann Group Overview

Tiedemann Group includes Tiedemann Advisors and TIG Advisors. Tiedemann Advisors serves as an independent investment and wealth advisor catering to high-net-worth individuals, family offices, trusts, foundations, and endowments. Established in 1999, Tiedemann Advisors operates nine offices throughout the United States and offers trust services via Tiedemann Trust Company, which is located in Wilmington, Delaware. Tiedemann's international division, Tiedemann Constantia, is based in Zurich, Switzerland, and collectively, these firms manage $25 billion in assets under advisement.

TIG Advisors, based in New York, specializes in alternative asset management with about $7 billion in AUM, including affiliated managers' assets. The focus of TIG Advisors is on growth equity investments in global alternative specialists, possessing a strong history of identifying non-correlated investment opportunities in diverse markets. Their investment strategies are carefully aligned with various global investor needs.

Industry Insights

The investment management industry in the United States is characterized by diverse offerings and a competitive landscape, driven by increasing demand for specialized investment strategies. Regulatory changes and evolving market conditions have moved firms to innovate continuously, enhancing the need for comprehensive financial planning services. Independent firms like Alvarium and Tiedemann Group are well-positioned to capitalize on this environment by providing tailored solutions that navigate complex investment landscapes.

Furthermore, the trend toward values-driven and impact investing has gained traction among investors, shifting focus from solely financial returns to social and environmental considerations. This growing awareness presents significant opportunities for firms that can convincingly integrate these principles into their investment strategies.

In light of these trends, the combined strengths of Alvarium and Tiedemann Group are likely to enhance their competitive edge, particularly in offering customized solutions that reflect clients' unique values and objectives. The anticipated merger aligns with current market demands for holistic financial advisory services, emphasizing trust and long-term relationships with clients.

Rationale for the Deal

The strategic merger between Alvarium Investments, Tiedemann Group, and Cartesian Growth Corporation is driven by the objective of creating a leading independent investment firm with a vast array of services and enhanced market presence. By combining their respective strengths in investment management, wealth advisory, and alternative assets, Alvarium Tiedemann Holdings is set to provide unmatched services to its clients while achieving greater efficiency and operational synergies. This consolidation allows the new entity to navigate the complexities of the investment landscape more effectively and maintain a competitive advantage.

Another critical factor in this merger is the emphasis on impact and values-aligned investing, which resonates with an increasing segment of the market that prioritizes social responsibility alongside financial performance. This focus on holistic investment strategies is likely to attract significant interest from a diverse global investor base, increasing the firm’s AUM and enhancing overall growth potential.

Investor Insights

The primary investors in this transaction include Alvarium Investments, Tiedemann Group, and Cartesian Growth Corporation. Alvarium is recognized as a leading independent investment firm specializing in family office services, while Tiedemann Group boasts a strong presence in wealth management for high-net-worth individuals. Cartesian Growth Corporation acts as a catalyst for growth by combining high-potential businesses with experienced strategic partners. Together, these entities bring a wealth of experience and a broad strategic vision, which will be instrumental in driving the success of Alvarium Tiedemann Holdings.

The collaboration promises to harness the financial acumen, industry expertise, and diverse investment opportunities, thereby creating an attractive platform for growth and value creation. As such, the new firm will be strategically positioned to cater to the evolving needs of its clients within the global investment community.

View of Dealert

In evaluating the merger of Alvarium Investments and Tiedemann Group, alongside Cartesian Growth Corporation, it appears to be a promising investment opportunity with solid long-term potential. The combination of diverse service offerings and strong operational synergies may provide a competitive edge in the evolving market landscape. By focusing on values-aligned investing, Alvarium Tiedemann Holdings is positioned to attract socially responsible investors, which could bolster their asset base further.

However, the venture's success will depend on its ability to effectively integrate operations and align its corporate culture post-merger. The commitment to personalized services and maintaining deep relationships with clients while expanding their offerings is crucial. If successful, the new entity can navigate market complexities with agility and a client-centered approach.

Moreover, the strategic emphasis on impact investing aligns with current market trends, where investors increasingly seek to make a positive social impact through their financial activities. This positions Alvarium Tiedemann Holdings to capitalize on growing demand in this sector, potentially enhancing its reputation and attracting new, like-minded investors.

In summary, the merger of these established firms represents a meaningful opportunity to create a market leader in diversified investment services. While the challenges of integration should not be underestimated, the potential rewards, both in terms of financial performance and enhanced industry reputation, make this a deal worth watching closely.

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