The stock price of AlTi Global, Inc. (NASDAQ: ALTI) saw an impressive rise, rising 21.13% to $7.05 at the end of the most recent trading session. The company’s announcement of a strategic investment served as the catalyst for this notable jump. In this calculated move, AlTi Global said that two well-known companies, Constellation Wealth Capital (CWC) and Allianz X, have committed a sizeable investment of up to $450 million.
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The famous global insurer and asset management Allianz X, a branch of Allianz SE (XETRA: ALV), which serves millions of consumers globally, has committed to investing up to $300 million through one of its affiliates. Meanwhile, $150 million has been donated to the cause by respected wealth management advice company CWC.
Allianz X’s investment strategy involves injecting $250 million into AlTi Global, comprising $110 million in newly issued Class A Common Stock and $140 million in newly created Series A Convertible Preferred Stock.
Moreover, it retains an option to further invest up to $50 million in Series A Convertible Preferred Stock, earmarked for AlTi’s international expansion endeavors. Allianz will also hold warrants to buy 5 million shares of Class A Common Stock and Series A Convertible Preferred Stock as part of the agreement, subject to lock-up and ownership restrictions.
Alternatively, CWC’s investment comprises $150 million of freshly issued Series C Convertible Preferred Stock, with a $115 million first investment tranche projected to be completed by March 31, 2024, and a $35 million second tranche due to close by June 30, 2024. Along with warrants to purchase two million shares of Class A Common Stock and Series C Convertible Preferred Stock, CWC will also have certain voting and lock-up restrictions.
Upon completion of their respective investments, Nazim Cetin, Chief Executive Officer of Allianz X, along with another Allianz representative, will join AlTi’s Board of Directors, while CWC will secure an observer seat. These transactions are subject to customary closing conditions and regulatory approvals.
