Wilma Burdis: Got you. And it doesn’t — it’s not going to be — have any benefits from the wind down or…
Stephen Yarad: Yes, that’s included in that. And to — some of our things relate to severance costs and the like and just because of the way severance employment all works in certain jurisdictions, it’s not like it comes off your books straight away. So it takes a little bit of time for some of those things to come through. In addition, we have benefits coming through from facilities changes and changing the footprint of our facilities. And so that takes a little bit of time to come through and there’s some trailing expenses associated with that in the third quarter, and there’ll be a little bit of that in the fourth quarter as well. But once we get into beginning of 2024, we’ll start to see the benefits of those changes come through as well.
Wilma Burdis: Got you. Could you talk a little bit about the global real estate market? It seems like the AUM was down a little bit on interest rates. Any areas or any regions you’re concerned on or, I guess, on the other side of that coin, any places where there’s opportunities?
Michael Tiedemann: Yes, that’s a great question. And I’ll start with the real estate — private real estate and equity side, i.e., equity investments into private real estate. For starters, the market was, for the better part of the year, very challenged, frozen. And so there was a pricing gap between sellers and buyers. That has begun to unlock. We — in the fourth quarter, just did really, we think an excellent transaction in London by our team. That was the first transaction we’ve done in quite some time. There is more interest and capital now freeing up and assets are getting to clear. So you’re also seeing that reflected in this quarter, not Q3, but in Q4, you’re beginning to see inflationary pressures globally abate. And you’re starting to see the publicly listed REITs, in particular, the one that we own recover quite quickly.
So the underlying fundamentals of these REITs and underlying fundamentals of these yielding assets and the assets themselves, the mark-to-market value has been all over the place, and there was obviously immediate pricing in the public markets and a pricing gap in private markets that now has really begun to close. But in general, directionally, it is positive and capital flows are beginning to really pick up in a meaningful way in our view.
Wilma Burdis: Got you. And then just maybe give a little bit more color into the Wealth Management pipeline. It seems like there’s been a few really nice wins in the last couple of quarters. Anything in the pipeline? Or are there attractive deals there?
Michael Tiedemann: Yes. So the — I’ll answer that organically, which is client pipeline because the client pipeline is terrific. We have a really robust and collaborative team working across the jurisdictions across offices and it is really bearing fruit. In terms of how we’re presenting ourselves the ways in which we can engage with families and foundations, what have you. So on the organic side, we’re very optimistic about our future and really feel we have a very competitive model. On the inorganic side, there, we are a destination, as we mentioned. We’re a firm that has a unique platform, our global footprint, our range of services. These are in the industry, it is a unique structure with breadth that most do not have. So when a firm that deals with the ultra high net worth client is evaluating, making a strategic decision, we are a very credible counterparty because as they evaluate that, the first thing they’re going to think about is will my clients be well served merging into or being acquired by this firm.
And ultimately, the determination more often than not is yes, with our firm. So we have a — we do have a pipeline. There are less firms, it’s not a high volume opportunity set, but there are some high, high-quality firms that have been competitors of ours for years that are willing to engage and see us as a viable long-term option for them.
Operator: Thank you. And ladies and gentlemen, this concludes our question-and-answer session. I’d like to turn the conference back over to Michael Tiedemann for any closing remarks.
Michael Tiedemann: Okay. Thank you, operator. We invite you to contact us with any questions you have or schedule follow-up calls. As mentioned on the call, we are positioning the ALTi platform for the long term, and we see a lot of exciting opportunities in both Wealth and Asset Management as we close 2023 and enter 2024. I’m immensely proud of our team where all fellow shareholders are working diligently to execute our strategic priorities. Our talent is what make — our talent is what will make ALTi the leading platform across Wealth and Asset Management in the years to come. We look forward to connecting with you in the new year and wish you all a happy, healthy holiday season. Thank you.
Operator: Thank you. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines, and have a wonderful day.
