Discontinued Operations

12 Months Ended

Dec. 31, 2025

Discontinued Operations and Disposal Groups [Abstract]

On July 11, 2025, the Company placed its International Real Estate Businesses under administration in accordance with the insolvency laws of England and Wales and Teneo, as appointed administrators, took control of each of them. 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 19 (Segment Reporting). The Company recognized a loss upon disposal of its International Real Estate

Businesses of $20.1 million, which is included in the Net income (loss) from discontinued operations in the Consolidated Statement of Operations for the year ended December 31, 2025.

Upon deconsolidation, intercompany balances between the Company and the International Real Estate Businesses were recognized as third-party balances, which include receivables of $17.8 million, which were recorded in Other assets, and payables of $26.0 million, which were recorded in Accounts payable and accrued expenses, in the 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 December 31, 2027 or earlier based on agreement with the Administrators. 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 $4.0 million, which includes on-going services of $1.3 million, were paid against the third party Accounts payable balance through December 31, 2025. As of December 31, 2025, the balance of the Other assets and Other payables amounted to $2.1 million and $22.0 million, respectively.

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



Deferred tax assets, net	60
Other assets, net	9,409
Contingent consideration receivable	$	1,389

Assets of discontinued operations	$	22,445
Liabilities
Accounts payable and accrued expenses	8,587
Accrued compensation and profit sharing	153


Deferred tax liability	281
Other liabilities, net	4,087

Liabilities of discontinued operations	$	13,108

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


	For the Year Ended
(Dollars in Thousands)		December 31, 2025		December 31, 2024		December 31, 2023
Revenue
Management/advisory fees		$	1,976	$	7,856	$	20,076
Incentive fees		—		—		702

Other income/fees		1		688		4,994
Total revenue		1,977		8,544		25,772
Operating Expenses
Compensation and employee benefits		3,039		13,766		39,064
Systems, technology and telephone		457		927		1,267
Sales, distribution and marketing		129		397		323
Occupancy costs		433		267		2,104
Professional fees		4,253		14,359		17,657
Travel and entertainment		135		589		816
Depreciation and amortization		—		125		6,642
General, administrative and other		3,280		6,030		8,920
Total operating expenses		11,726		36,460		76,793
Total operating income (loss)		(9,749)		(27,916)		(51,021)
Other Income (Expenses)
Impairment loss on goodwill and intangible assets		—		(42,502)		(206,777)
Gain (loss) on investments		(21,556)		(2,055)		(19,643)





Interest expense		—		(12)		209
Interest income		13		156		1,301
Other income (expense)		—		(5)		(3,643)
Income (loss) before taxes		(31,292)		(72,334)		(279,574)
Income tax (expense) benefit		(61)		277		10,028
Net income (loss) from discontinued operations, net of income tax		$	(31,353)	$	(72,057)	$	(269,546)

Cash flows related to the disposal of the International Real Estate Businesses are included in the discontinued operations section of the 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 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 21 (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.