Discontinued Operations

9 Months Ended

Sep. 30, 2025

Discontinued Operations and Disposal Groups [Abstract]

On July 11, 2025, the Company placed its International Real Estate Businesses under administration in accordance with insolvency laws within the United Kingdom by giving control to the appointed administrators, Teneo, for purposes of conducting an orderly wind-down. The Company determined it was appropriate to deconsolidate its International Real Estate Businesses resulting from the disposition of the Company’s controlling interest. We concluded that the transaction meets the criteria for discontinued operations as the disposal of the International Real Estate Businesses is a strategic shift that will have a significant effect on our operations and financial results.

As such, the assets and liabilities, results of operations and cash flows of the International Real Estate Businesses have been classified as discontinued operations for all periods presented in accordance with ASC 205-20, Discontinued Operations. As a result, the Company only has one reportable segment remaining. See Note 18 (Segment Reporting). The Company recognized a loss upon disposal of its International Real Estate Businesses of $19.6 million, which is included in the Net income (loss) from discontinued operations in the Condensed Consolidated Statement of Operations as of September 30, 2025.

Upon deconsolidation, intercompany balances between the Company and the International Real Estate Businesses were recognized as third-party balances, which include Other receivables of $2.1 million, which are recorded in Other assets, and other payables of $22.1 million, which are recorded in Accounts payable and accrued expenses, in the Condensed Consolidated Statement of Financial Position as part of continuing operations. Additionally, certain on-going services such as payroll, information technology, and other administrative support, in which the Company acts as a service provider will continue to be provided to the International Real Estate Businesses through the end of the transitionary wind-down period of December 31, 2027. As part of the arrangement with Teneo, these on-going services are recognized as payments against the third party Accounts payable balance. A total of $3.3 million, which includes on-going services of $0.6 million, were paid against the third party Accounts payable balance as of the third quarter ended September 30, 2025.

The following table provides a summary of the assets and liabilities classified as discontinued operations:


(Dollars in Thousands)	As of December 31, 2024
Assets
Cash and cash equivalents	$	1,077
Fees receivable	3,396
Equity method investments	7,114
Intangible assets	—
Goodwill	—
Operating lease right-of-use assets	1,353
Deferred tax assets, net	1,736
Other assets, net	9,409
Contingent consideration receivable	$	1,389

Assets of discontinued operations	$	25,474
Liabilities
Accounts payable and accrued expenses	8,587
Accrued compensation and profit sharing	153
Debt, net of unamortized deferred financing cost	—
Operating lease liability	2,070
Deferred tax liability	—
Other liabilities, net	4,087

Liabilities of discontinued operations	$	14,897

The following table provides a summary of net income (loss) from discontinued operations, net of taxes:


	For the Three Months Ended				For the Nine Months Ended
(Dollars in Thousands)	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Revenue
Management/advisory fees	$	349	$	1,532	$	1,976	$	6,450


Other income/fees	—		3		1		239
Total income	349		1,535		1,977		6,689
Operating Expenses
Compensation and employee benefits	85		2,327		3,039		13,814
Systems, technology and telephone	21		200		457		705
Sales, distribution and marketing	(27)		66		129		274
Occupancy costs	(5)		232		433		761
Professional fees	(544)		4,270		4,253		8,919
Travel and entertainment	4		156		135		398
Depreciation and amortization	—		33		—		124
General, administrative and other	916		748		3,280		1,928
Total operating expenses	450		8,032		11,726		26,923
Total operating income (loss)	(101)		(6,497)		(9,749)		(20,234)
Other Income (Expenses)
Impairment loss on goodwill and intangible assets	—		(41,815)		—		(42,510)
Gain (loss) on investments	(19,845)		368		(21,049)		(1,960)





Interest expense			(6)		—		(6)
Interest income	2		47		13		120
Other income (expense)			(3)		—		(3)
Income (loss) before taxes	(19,944)		(47,906)		(30,785)		(64,593)
Income tax (expense) benefit	(1)		1		(61)		(70)
Net income (loss) from discontinued operations, net of income tax	$	(19,945)	$	(47,905)	$	(30,846)	$	(64,663)

Cash flows related to the disposal of the International Real Estate Businesses are included in the discontinued operations section of the Condensed Consolidated Statement of Cash Flows for all periods presented.

International Real Estate

Prior to deconsolidation, the Company’s International Real Estate segment included its Real Estate Co-Investment and Real Estate Fund Management businesses.

Real Estate Co-Investment

Real Estate Co-Investment oversaw deal origination, documentation, and structuring from inception to exit for a variety of strategies, including development, income, value-add, and planning. Investors were typically HNWIs, single family offices, and institutional investors. Management fees were earned through private real estate fund advisory and recurring fees. These fees, governed by an investment advisory agreement, were calculated on a sliding scale based on the fund’s NAV. As a sponsor of private market transactions, the Real Estate Co-Investment businesses generated income from debt and equity structures, including arrangement, management, advisory, performance, and transaction fees. If feeder vehicles were established for clients, additional administration and advisory fees also applied.

Real Estate Fund Management

Prior to the first quarter of 2024, the Real Estate Fund Management business managed two funds based in the United Kingdom: LXi REIT plc (“LXi”), and Home Long Income Fund (“HLIF”), a private fund. As described further below, during 2024 the Company had exited the management of LXi.

Home Long Income Fund

Home Long Income Fund was an English open-ended investment company launched in October 2018. Its investment objective was to deliver secure inflation-protected income and capital growth by investing in a portfolio of UK homeless shelters. HLIF was advised by SHIA and AFM UK acted as its alternative investment fund manager. Both SHIA and AFM UK were wholly owned subsidiaries of the Company. See Note 20 (Commitments and Contingencies) for discussion on HLIF’s litigation status.

LXi REIT plc

LXi was an English real estate investment trust company, launched in February 2017, whose shares are traded on the premium segment of the London Stock Exchange’s Main Market. LXi was advised by LXi REIT Advisors Limited (“LRA”), and its investment objective was to deliver inflation-protected income and capital growth over the medium-term for its shareholders through investing in a diversified portfolio of UK property that benefited from long-term index-linked leases with institutional-grade tenants. On January 9, 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 Property Plc (“LondonMetric”). This disposal was completed on March 6, 2024.