Intangible Assets, net

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

The following table provides a reconciliation of Intangible assets, net reported on the Condensed Consolidated Statement of Financial Position.


	As of June 30, 2024
(Dollars in Thousands)	Weighted Average Amortization Period (in years)	Gross Carrying Amount (2)		Impairment		Accumulated Amortization		Net Carrying Amount
Intangible assets
Amortizing intangible assets
Customer relationships	22.8	$	258,765	$	—	$	(12,139)	$	246,626
Investment management agreements	20.6	6,673		(695)		(4,619)		1,359
Trade names	9.4	12,478		—		(2,115)		10,363
Acquired internally developed software	5.0	1,300		—		(315)		985
Other intangible asset	0.0	622		—		(622)		—
Total amortized intangible assets		279,838		(695)		(19,810)		259,333
Non-amortized intangible assets (1)
Investment management agreements		245,900		—		—		245,900
Total intangible assets		$	525,738	$	(695)	$	(19,810)	$	505,233

(1) The Company’s non-amortized intangible assets consist of management contracts for open-ended fund products, in which there is no contractual termination date.

(2) As of June 30, 2024, gross carrying amounts related to the Company’s intangible assets include additions to intangibles of $77.1 million related to the PW and EEA Acquisitions (see Note 3 Business Combinations and Divestitures) and foreign currency translation differences of $(1.0) million.


	As of December 31, 2023
(Dollars in Thousands)	Weighted Average Amortization Period (in years)	Gross Carrying Amount (3)		Impairment		Disposal		Held for Sale		Accumulated Amortization		Net Carrying Amount
Intangible assets
Amortizing intangible assets
Customer relationships	25.3	$	186,832	$	—	$	(254)	$	(2,128)	$	(7,180)	$	177,270
Investment management agreements (1)	19.6	100,269		(50,283)		—		(43,299)		(4,545)		2,142
Trade names	10	14,945		(2,635)		—		(1,231)		(1,514)		9,565
Acquired internally developed software	5	1,000		—		—		—		(200)		800
Other intangible asset	0	622		—		—		—		(622)		—
Total amortized intangible assets		303,668		(52,918)		(254)		(46,658)		(14,061)		189,777
Non-amortized intangible assets (2)
Investment management agreements		245,900		—		—		—		—		245,900
Total intangible assets		$	549,568	$	(52,918)	$	(254)	$	(46,658)	$	(14,061)	$	435,677

(1) During the year ended December 31, 2023, the Company deconsolidated AHRA (See Note 3 Business Combinations and Divestitures) and as a result, recorded an impairment charge of $29.4 million to the carrying value of AHRA’s investment advisory agreement with Home REIT, which is recorded in the line item Impairment loss on goodwill and intangible assets in the Consolidated Statement of Operations. On January 9th, 2024, AlTi RE Public Markets Limited entered into heads of terms to sell 100% of the equity of LRA, the advisor to the publicly-traded fund LXi, to LondonMetric for fixed consideration of approximately $33.1 million and up to an estimated $5.1 million of contingent consideration based on the exchange rate as of the balance sheet date, as applicable. The contingent consideration meets the definition of a derivative and is recorded as Contingent consideration receivable on the Condensed Consolidated Statement of Financial Position as of June 30, 2024. This contingent consideration will be remeasured at fair value at each reporting date in accordance with ASC 820, Fair Value Measurement, with changes in fair value recognized in the Condensed Consolidated Statement of Operations in the period of change. The disposal completed on March 6, 2024. As a result, during the year ended December 31, 2023, AlTi recognized an intangible asset impairment charge of $23.5 million in Impairment loss on goodwill and intangible assets in the Consolidated Statement of Operations. In addition, as of December 31, 2023, the major classes of assets and liabilities of LRA were presented as held for sale in the Consolidated Statement of Financial Position. As of the six months ended June 30, 2024, there was no gain on disposal recognized in Gain (loss) on investments in the Condensed Consolidated Statement of Operations.

(2) The Company’s non-amortized intangible assets consist of management contracts for open-ended fund products, in which there is no contractual termination date.

(3) Gross carrying amounts related to the Company’s intangible assets include foreign currency translation differences of $7.4 million as of December 31, 2023.

Amortization expense of approximately $3.4 million and $3.3 million for the three months ended June 30, 2024 and June 30, 2023, respectively, and approximately $5.8 million and $7.6 million for the six months ended June 30, 2024 and June 30, 2023, respectively, were recognized.

The estimated future amortization for finite-lived intangible assets for each of the next five years and thereafter are as follows:


(Dollars in Thousands)	As of June 30, 2024

2024	$	6,901
2025	13,801
2026	13,801
2027	13,801
2028 and beyond	211,029
Total	$	259,333