Tiedemann eyeing M&A deals after SPAC deal creates $60 billion wealthy firm

Two decades ago, Michael Tiedemann abandoned his Wall Street banking career to start an asset management firm focused on the world’s super-rich.

In recent years, the former Credit Suisse First Boston executive has expanded his business by partnering with foreign competitors or supporting their buyout. Now, after completing a blanche merger with Alvarium Investments last week, he is eyeing further deals.

However, like many Wall Street investors, he is waiting for the economy and markets to shake up in the coming months, and the outlook remains as uncertain as ever.

“We will have inorganic strategic opportunities,” said Tiedemann, 51, chief executive of New York-based Alvarium Tiedemann Holdings Inc. “Obviously the time frame around one quarter, next or next year is yet to be determined.”

Tiedemann and London-based Alvarium completed their merger through a special acquisition company, Cartesian Growth Corp. This comes after it advanced in the volatile SPAC market, which has undergone a painful reversal since the boom of the pandemic era.

The two firms each brought in about $30 billion in assets, making Alvarium Tiedemann one of the world’s largest public wealth managers targeted at the super-rich.

Shares of the combined company have fallen 46% since they began trading in New York last Wednesday, highlighting the volatility of SPAC deals, and fell 8% to $8.74 at 12:09 p.m. Monday. However, Tiedemann said he and his partners, along with their investors, supported the structure because they did not want to get rid of the shares. Members of Qatar’s ruling dynasty, the Al-Thani family, are among Alvarium’s investors, British documents show.

“We are committed to the long term,” said Tiedemann, who previously led sales for Credit Suisse First Boston in Latin America. “We strongly felt that the environment for SPAC would become more challenging.”

The competition to manage the wealth of the super-rich has intensified in recent years, with Wall Street giants including Goldman Sachs Group Inc. and Citigroup Inc. are expanding their private banking operations outside the US. to increase hiring.

“Employees are easier to equalize—that’s another tool we can use,” he said. “We compete directly with global banks and we feel like we have the best value proposition for clients.”

Tiedemann is targeting investments in real estate and alternative asset managers for the firm, which grew in part from a multi-manager hedge fund business created by his father Carl, former president of Donaldson Lufkin & Jenrette.

Tiedemann teamed up with his father in 2000 to create a welfare consultant that eventually expanded to about a dozen offices across the US. bought the London multi-family office of Holbein Partners two years later.

In the meantime, Alavarium was also founded as a multi-family office offering wealth and asset management services. Founded in 2009, the firm has also expanded by investing in other ventures, buying French asset management company Iskander and New Zealand-based ethical investment firm Pathfinder over the past five years.

“It’s rare to find a band that has the right stuff,” Tiedemann said.

Tiedemann, who said he never thought he would be running a publicly traded business when he retired from banking, should ring the Nasdaq opening bell on Thursday. It comes more than two years after they first talked about the possibility of merging their business with Alvarium, the Latin word for beehive.

“This is the year we have to prove ourselves,” he said. “We did it as a private company and now we have the opportunity and the responsibility to prove that we are going to be an interesting public company.”

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