AITi Global revenue rises 11% as takeover talk builds

Consolidated revenue for the second quarter was $58 million. That is 11% above a year earlier. Its GAAP operating loss narrowed to $11 million. That works out to a 58% improvement. Adjusted EBITDA came to just over $5 million. That was 9% higher than a year earlier. The firm credited growth in revenue and recurring fees, plus lower operating costs.

Management fees reached $54 million in the quarter. That was 11% higher than a year earlier. They were also 5% above the first quarter. Assets under advisement ended June at $96 billion. Managed assets stood at $51 billion. That was 8% higher than a year earlier, helped by net inflows and market gains. About 70% of the money it manages for wealth clients is in the US. The firm counts about 830 clients. Average client assets run $60 million.

Operating expenses came to $69 million in the second quarter. That was 12% lower than a year earlier. Other expenses hit $20 million. The year-earlier figure was $5 million. The increase came from an unrealized loss on AITi’s stake in the Asian Credit and Special Situations fund. The fund’s manager has decided to unwind it within 12 months.

Fresh speculation has emerged about a change in AITi Global’s ownership, possibly including a de-listing. Family Wealth Report said Franklin Templeton declined to comment on a report that it was in talks to buy the firm. AITi Global did not respond to requests for comment, the outlet said.

AITi Global has closed seven acquisitions since 2023. In its earnings presentation, the firm names its priorities: accelerating organic revenue growth, weighing selective acquisitions in core markets, and simplifying the cost structure. It says reported expenses do not yet fully reflect progress because the strategic review is ongoing. The firm that has been buying may now be the one bought.