Category Archives: AltsTech Companies

Infinity Financial Deploys on the Alternative Investment Exchange (AIX) Platform

AIX, AltsTech, AltsTech Announcements

Infinity Financial Deploys on the Alternative Investment Exchange (AIX) Platform

October 11, 2022 | AIX

Alternative Investment Exchange (AIX), the platform making it easy to buy, own, and sell alternative investments, announced that Infinity Financial Services (“Infinity”) is now live on AIX’s alternative investment platform. As an independent broker dealer dedicated to building a robust alternative investment platform for high-net-worth advisors, Infinity’s debut is a testament to the fast, powerful, and intuitive alt investment environment AIX supports.

Infinity sets the bar in providing tech-enabled solutions to financial advisors who allocate alts into their clients’ portfolios. Infinity optimizes functionality that is essential to advisor success such as ease of use, operational efficiency, regulatory compliance, and cybersecurity, among other concerns.

Infinity has constantly challenged historical practices in the name of creating better experiences for their financial advisors and clients – all while enhancing compliance. One innovative aspect of their strategic practice has been to introduce a re-factored pre-trade approval workflow. Traditionally, an advisor recommending a new alternative investment to a client generally completes documentation, gathers client signatures, and forwards paperwork to compliance for review. In situations where compliance does not approve an investment request, advisors must explain to their client and start anew.

Recognizing the client exposure inherent in this process, Infinity turned to AIX to facilitate a pre-trade compliance approval process. In Infinity’s reimagined process, essential information is provided to the compliance team for pre-approval and advisors only propose the investment to their client after receiving supervision consent – avoiding uncomfortable client conversations centered upon re-work.

“We continuously strive to improve the experience of our advisors and their clients. With AIX, we have been able to supercharge efficiency and radically improve alt investment processes,” explained Greg Gilbert, President, CEO, and CCO of Infinity Financial Services. “Our automated pre-trade compliance workflow is just one example of the innovative approaches we offer advisors and is a testament to the capabilities that can be powered by the AIX platform.”

Infinity was founded by Greg Gilbert in 2007 to offer a breadth of services and dynamic culture that independent financial advisors would appreciate. The firm’s advisor practice management services offer an array of asset management, brokerage, insurance, financial planning, benefit plans, insurance, and risk management services. Today, Infinity transacts nearly $350 million annually in alternative investments for its clients.

“Greg and his team have established a state-of-the-art alt investment environment that supports and attracts sophisticated advisors looking to serve the best interests of their clients,” added Brad West, AIX COO. “Infinity leverages the AIX platform as a competitive advantage that ensures its financial advisors can apply their time and focus to revenue-generating activities. This is best for Infinity, best for their advisors, and best for their clients.”

Both AIX (booth #34) and Infinity are exhibiting at this week’s 2022 ADISA Annual Conference & Trade Show at The Cosmopolitan in Las Vegas.

About AIX:

Alternative Investment Exchange (AIX) is an end-to-end digital platform purpose-built to improve the processes related to buying, owning, and selling alternative investments. AIX’s technology reduces friction, mitigates risk, and creates value across all alternative investing stakeholder groups – wealth managers, asset managers, custodians, transfer agents, and fund administrators. By evolving beyond documents to make data the connective tissue between alternative investment players, AIX makes it easier to conduct business and accelerate industry growth. For more information, please visit aixplatform.com or LinkedIn: linkedin.com/company/aix-alternative-investment-exchange.

AIX Media Contact:

Mark Tordik
Broadpath for Alternative Investment Exchange (AIX)
215-644-6503
mtordik@broadpathpr.com

Peachtree Joins the Alternative Investment Exchange Platform

AIX, AltsTech, AltsTech Announcements

Peachtree Joins the Alternative Investment Exchange Platform

October 6, 2022 | AIX

Peachtree Hotel Group (“Peachtree”) has selected the Alternative Investment Exchange’s AIX Platform as the primary electronic platform provider to streamline the investment processes for its independent broker-dealer and registered investment advisor partners.

This enterprise technology allows Peachtree to confirm its client’s product structures, workflows and technologies. The AIX platform will facilitate front-end engagement by providing solutions such as digital subscription documents and moving those documents through the pipeline to the custodians and clearing firms.

“At Peachtree, we’re committed to delivering an elevated experience for our advisors,” explained Jessica Correnti, director, national accounts at Peachtree. “AIX supports these objectives by making the investment process straightforward and seamless. It takes powerful technology to make it this easy for advisors to add alts to their clients’ investment portfolios.”

About Peachtree Group

Peachtree is a private equity investment, asset and fund management firm focusing on opportunistically deploying capital across its distinct operating and real estate divisions, including hospitality, commercial real estate lending, residential development, capital markets and media. Since its founding in 2008, the company has completed hundreds of real estate investments valued at more than $7.8 billion in total market capitalization and currently has $1.9 billion in equity under management. For more information, visit www.peachtreegroup.com.

Contact:

Charles Talbert
678-823-7683
ctalbert@peachtreehotelgroup.com

 

CAIS Hires Advisor I/O’s Alex Cavalieri as Director of Marketing Operations

AltsTech, AltsTech Announcements, CAIS

CAIS Hires Advisor I/O’s Alex Cavalieri as Director of Marketing Operations

October 4, 2022 | Diana Britton | WealthManagement.com

Alex Cavalieri, the co-founder and former head of strategy at Advisor I/O (formerly Seven Group), has left the financial advisor marketing platform to join CAIS, as director of marketing operations.

Cavalieri is best known for building Seven Group, the marketing, practice management and content platform, which launched in 2020. The company was acquired by CION Investments Group, an alternative investment solutions platform, in July 2022, and rebranded as Advisor I/O. He was also the host of the popular “Advisor Lab” podcast.

“The team that worked alongside Alex and us to build, launch and grow Advisor I/O over the past three years is continuing to execute our mission of helping advisors scale their marketing efforts in a digital world,” said Michael A. Reisner, co-CEO of CION, in an emailed statement. “In the current environment of market volatility, lower asset values and uncertainty about the future, marketing is even more critical to advisors. We see Advisor I/O as a key element of our commitment to the advisor community.”

In his new role at CAIS, Cavalieri will oversee content, digital and project management, reporting directly to Abby Salameh, who was brought on last November as CMO. He’ll be helping Salameh build on the work she and her team have done over the last year.  

“We had very strong alignment very quickly as it relates to what she foresees is the vision of not only the marketing organization, but the CAIS brand and where the platform is going,” Cavalieri said. “I’m going to help build out what we’re doing from a content and digital perspective—scaling out our processes, from a technology standpoint, automation standpoint and then also how we’re building out our content ecosystem.”

One of his tasks is to build on the digital engagement of CAIS’s educational platform, CAIS IQ, which helps advisors prepare to talk to clients about alternatives.

“You look at the alts space—to the end investor it’s still fairly new from a mass audience standpoint, relative to the market and every other asset class,” he said.

He’ll also be working on how the marketing organization can better utilize data that’s feeding into different parts of the company.

“There are a few data initiatives that we’ve identified and that we can start to tackle, and that’s everything from your traditional dashboarding of marketing activities and different things like that and also to really understanding how we can continue to evolve our data within the firm and how it’s being looked at and analyzed,” he said. “And then the other part of that is really figuring out areas of optimization across automation from advisor communications to internal communications and also making sure that we’re able to provide as much of a personalized experience as we can to the advisor.”

The CAIS platform has been growing quickly the past few years, and recently expanded its relationships with large enterprises, such as Advisor Group and Focus Financial Partners. In April, the company announced a $100 million continuation of a January funding round that saw the company valued at more than $1 billion. The $100 million investment came from Reverence Capital Partners, which gave it a seat on CAIS’ board of directors, filled by Milton Berlinski, managing partner at Reverence.

Ardian and iCapital® Partner to Broaden Private Markets Investment Access for Wealth Managers Globally

AltsTech, AltsTech Announcements, iCapital Network

Ardian and iCapital® Partner to Broaden Private Markets Investment Access for Wealth Managers Globally

October 4, 2022 | iCapital®

Ardian, a world leading private investment house, has entered into a partnership with iCapital1, the leading global fintech platform driving access and efficiency in alternative investing for the asset and wealth management industries to provide wealth managers with access to Ardian’s private market investment strategies. Notably, iCapital products created as a result of this partnership will be available through Allfunds, one of the world’s leading B2B WealthTech platforms.

Marco Bizzozero, Head of International at iCapital, said: “Our mission is to solve the fundamental challenges of investing in private markets for wealth managers and their private clients.”

Ardian will leverage iCapital’s technology platform and structuring solutions to provide wealth managers and their clients with access to Ardian’s deep private markets expertise and suite of alternative investment strategies, based on its global network of 15 offices in Europe, the Americas and Asia. Ardian’s alternative investment strategies spanning Private Equity, Real Assets and Private Credit, will be available to wealth managers.

Private Wealth has always been an important part of Ardian’s investor base. Today, this segment represents more than $8.3 billion of assets under management and over 600 investors. Over the past three years and following the launch of its Private Wealth Solutions unit, Ardian has been developing new ways to give private clients and wealth managers greater access to private market assets.

With more than $141 billion in alternative assets under management and long-standing experience as a private investment house, Ardian’s partnership with iCapital comes amid a surging interest in alternative investing from the global wealth management community and their clients, who have historically had more limited access to appropriately structured alternative investing opportunities. These investors are also increasingly prioritising ESG when making their investment decisions. Ardian has been developing its approach to responsible investment for over 10 years, notably through its annual Secondaries portfolio ESG monitoring. Ardian’s objective is to amplify its impact by assessing GP’s practices and actively engaging with them to improve ESG integration in private investments.

Erwan Paugam, Head of Private Wealth Solutions and Managing Director at Ardian, said: “In 2020, we launched our Private Wealth Solutions initiative based on our conviction that alternative investment opportunities should be accessible to wealth managers and their private clients around the world. Joining forces with iCapital ensures that wealth managers can now seamlessly access our broad expertise in Private Equity, Real Assets and Private Credit investing. Through this partnership, we are combining iCapital’s innovative technology platform with our long-standing commitment to meet the evolving demands of the global wealth management community, to bring a leading solution to wealth managers and help their clients achieve their investment goals.”

Marco Bizzozero, Head of International at iCapital, said: “Our mission is to solve the fundamental challenges of investing in private markets for wealth managers and their private clients. iCapital’s solutions help asset managers and wealth managers facilitate their clients’ access to the growth and diversification opportunities of private markets. This partnership represents another important milestone in our global expansion. We are very pleased to support Ardian’s commitment to bring attractive alternative investment opportunities to the wealth management channel globally and to help advisors and their clients achieve their investment objectives.”

About Ardian

Ardian is a world leading private investment house, managing or advising $141bn of assets on behalf of more than 1,300 clients globally. Our broad expertise, spanning Private Equity, Real Assets and Credit, enables us to offer a wide range of investment opportunities and respond flexibly to our clients’ differing needs. Through Ardian Customized Solutions we create bespoke portfolios that allow institutional clients to specify the precise mix of assets they require and to gain access to funds managed by leading third-party sponsors. We also provide a specialist service for private clients through Ardian Private Wealth Solutions. Ardian is majority-owned by its employees and places great emphasis on developing its people and fostering a collaborative culture based on collective intelligence. Our 900+ employees, spread across 15 offices in Europe, the Americas and Asia, are strongly committed to the principles of Responsible Investment and are determined to make finance a force for good in society. Our goal is to deliver excellent investment performance combined with high ethical standards and social responsibility. At Ardian we invest all of ourselves in building companies that last.
www.ardian.com

About iCapital

Founded in 2013, iCapital is the leading global fintech company powering the world’s alternative investment marketplace. iCapital has transformed the way the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions; education tools and resources; and robust diligence, compliance, and portfolio analytics capabilities. iCapital’s solutions enable organizations to streamline and scale their alternative investments operational infrastructure and to provide access to direct investments and feeder funds at lower minimums through simplified digital workflows. iCapital-managed platforms offer wealth advisors and their high-net-worth clients access to an extensive menu of private investments including equity, credit, real estate, infrastructure, structured investments, annuities and risk-managed solutions. iCapital has been recognized on the Forbes FinTech 50 list in each year 2018 through 2022, the Forbes America’s Best Startup Employers in 2021 and 2022, and MMI/Barron’s Industry Awards as Solutions Provider of the Year in 2020 and 2021. As of August 31, 2022, iCapital services more than US$138 billion in global client assets, of which more than US$32.7 billion are from international investors (non-US Domestic), across more than 1,100 funds. Employing more than 1,000 people globally, iCapital is headquartered in NYC and has offices worldwide including in Zurich, London, Lisbon, Hong Kong, Singapore, and Toronto.

For additional information, please visit the iCapital website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork

See disclosures here.

1 Institutional Capital Network, Inc. and its affiliates (together, “iCapital”)

Contacts

Ardian Media Contacts
United Kingdom, Headland
ardian@headlandconsultancy.co.uk / +44 (0)20 3435 7469

North America, The Neibart Group, Rachelle Gaynor
ardian@neibartgroup.com / + 1 631 278 2046

iCapital Media Contacts
United Kingdom, Viktor Tsvetanov
icapital@headlandconsultancy.com / +44 (0)20 3435 7469

North America, Morgan Miller
icapital@neibartgroup.com / +1 919- 602-2806

Switzerland, Tanja Kocher
tanja.kocher@holisticom.ch / +41 31 311 43 48

Italy, Marina Riva
m.riva@barabino.it / +39 02/72.02.35.35

Asia, Marylene Guernier
icapital@secnewgate.hk / + 852 5225 7820

 

SS&C Rolls Out Unified SS&C Blue Prism Intelligent Automation Platform

AltsTech, AltsTech Announcements, SS&C

SS&C Rolls Out Unified SS&C Blue Prism Intelligent Automation Platform

October 3, 2022 | SS&C

SS&C Technologies Holdings, Inc.(Nasdaq: SSNC) today announced at its SS&C Deliver Conference the rollout of its intelligent automation portfolio under the SS&C Blue Prism brand. SS&C Blue Prismcombines RPA, BPM and low and no-code capabilities to provide a comprehensive menu of intelligent automation (IA) services.

“SS&C Blue Prism’s comprehensive suite of products and second-to-none support options are a critical part of our business processes. By utilizing its intelligent automation platform and extensive industry expertise, we’re able to deliver high quality and innovative services.” Giovanni GentileManaging Director, Bionics, State Street Bank

Supported by technologies such as Process Intelligence, AI/ML, and Intelligent Document Processing, the portfolio enables businesses to unify the workforce, transform customer, employee and user journeys and scale enterprise-wide.

SS&C Blue Prism’s recent integrations and developments include:

• SS&C | Blue Prism® Intelligent Automation Platform – Blue Prism’s enterprise platform integrates with Chorus BPM, now branded SS&C Blue Prism® Chorus, enabling simplified workflow management and greater visibility and control.

• SS&C | Blue Prism® UX Builder – the new intuitive no-code development capability enables business users to rapidly build enterprise applications and automate processes without relying on developers. Simple drag-and-drop functionality allows users to choose app elements from SS&C Blue Prism’s robust menu assets, supported by built-in governance and security controls.

In addition, SS&C Blue Prism will release several key product enhancements and delivery options in the coming months, with more information being released to customers attending the SS&C Deliver conference.

• SS&C Blue Prism® Capture includes process definition, optimization, and solution design, helping organizations unify their workforces and transform their journeys.

• SS&C Blue Prism® Director, a new workforce coordination capability that organizes work items by business priority and SLA, scaling IA by ensuring the most important items are completed first.

• SS&C Blue Prism® Email AI will transform journeys by providing significant time savings through extracting and classifying information from emails.

• SS&C Blue Prism® Cloud will now also be available on Amazon Web Services (AWS) and can be purchased on AWS Marketplace, enabling organizations to adopt and scale IA in the cloud with a fully managed and hosted solution.

“We are proud of the progress we’ve made in the seven months since SS&C closed on the Blue Prism acquisition, delivering a comprehensive IA solution with BPM, RPA, no code and AI capabilities. The flexibility of our model ensures we can tailor versatile, scalable solutions to our client’s businesses. Our deep expertise and industry experience ensures we can support our clients’ accelerated business growth.” Bill StoneChairman and CEO, SS&C Technologies

More than 2,800 customers worldwide run their operations on SS&C Blue Prism, digitizing operations across financial services, insurance, health and pharma, banking, and more.

 

iCapital® and Tikehau Capital Announce Partnership to Broaden Wealth Managers’ Access to Private Markets across EMEA

AltsTech, AltsTech News, iCapital Network

iCapital® and Tikehau Capital Announce Partnership to Broaden Wealth Managers’ Access to Private Markets across EMEA

September 15, 2022 | iCapital

Tikehau Capital (Paris:TKO), the global alternative asset manager, and iCapital[1], the leading global fintech platform driving access and efficiency in alternative investing for the asset and wealth management industries, today announced a partnership to increase wealth managers’ access to Tikehau Capital’s private market investing opportunities.

Through the partnership, Tikehau Capital will launch a customized marketplace powered by iCapital’s technology to deliver Tikehau Capital’s suite of alternative offerings to wealth managers and their high-net-worth clients in the EMEA region.

Initially, the digital solution will provide wealth managers with access to alternative investments which are generally accessible to institutional investors only. It includes the second vintage of Tikehau Capital’s Impact-driven real estate value-add strategy, and the third vintage of Tikehau Capital’s special opportunities strategy, which allows investors to seize credit opportunities across market cycles and credit dislocation.

Tikehau Capital’s offerings will also be made available via Allfunds, the world’s largest fund distribution network. iCapital and Allfunds announced a strategic partnership in June 2021 through which iCapital makes private market investment opportunities available for Allfunds’ clients.

While institutional investors have long had access to alternative investing opportunities, high-net-worth investors and their advisors have historically faced significant barriers such as high investment minimums and difficulties in accessing top-tier asset managers.

iCapital’s technology automates the subscription process, provides transparency into each step of the investing process and seamlessly integrates performance and reporting for alternative investments in an end-to-end digital platform, meaningfully improving the efficiency and client experience of alternative investing.

“We are delighted to partner with iCapital, the leading platform in the alternative investment market for the asset management industry. This strategic partnership is a key step for Tikehau Capital, allowing us to expand our investor base and provide investors with solutions across multiple assets classes,” said Antoine Flamarion, co-founder of Tikehau Capital.

“We believe that the trend of retail investors seeking alternative sources of returns that can offer diversification from traditional markets will be a significant force for change, and it is important for Tikehau Capital to address this trend and increase wealth manager’s access to private market investment opportunities” added Mathieu Chabran, co-founder of Tikehau Capital.

“Wealth managers working with individual investors are increasingly looking at the private markets to potentially generate high risk-adjusted returns with portfolio diversification. We believe that both Tikehau Capital strategies that will be distributed on the platform are particularly adapted to the current economic context and will meet investors demand.” added Vincent Archimbaud, head of Wholesale Europe, Tikehau Capital.

“Today marks another important milestone in our global expansion, and we are extremely pleased to partner with Tikehau Capital, a highly respected alternative asset manager, to provide EMEA wealth managers and their clients with institutional-quality private market investment opportunities,” said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital.”

“Wealth creation is increasingly taking place outside the public markets. We are delighted to support Tikehau Capital in their ambition to offer banks and wealth managers across EMEA with greater access to the growth and diversification opportunities the private markets can offer to client portfolios,” commented Marco Bizzozero, Head of International at iCapital.

About iCapital

Founded in 2013, iCapital is the leading global fintech company powering the world’s alternative investment marketplace. iCapital has transformed the way the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions; education tools and resources; and robust diligence, compliance, and portfolio analytics capabilities. iCapital’s solutions enable organizations to streamline and scale their alternative investments operational infrastructure and to provide access to direct investments and feeder funds at lower minimums through simplified digital workflows. iCapital-managed platforms offer wealth advisors and their high-net-worth clients access to an extensive menu of private investments including equity, credit, real estate, infrastructure, structured investments, annuities and risk-managed solutions. iCapital has been recognized on the Forbes FinTech 50 list in each year 2018 through 2022, the Forbes America’s Best Startup Employers in 2021 and 2022, and MMI/Barron’s Industry Awards as Solutions Provider of the Year in 2020 and 2021. As of August 31, 2022, iCapital services more than US$138 billion in global client assets, of which more than US$31 billion are from international investors (non-US Domestic), across more than 1,100 funds. Employing more than 1,000 people globally, iCapital is headquartered in NYC and has offices worldwide including in Zurich, London, Lisbon, Hong Kong, Singapore, and Toronto.

For additional information, please visit the iCapital website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork

See disclosures here.

About Tikehau Capital

Tikehau Capital is a global alternative asset management group with €36.8 billion of assets under management (at 30 June 2022).

Tikehau Capital has developed a wide range of expertise across four asset classes (private debt, real assets, private equity and capital markets strategies) as well as multi-asset and special opportunities strategies.

Tikehau Capital is a founder led team with a differentiated business model, a strong balance sheet, proprietary global deal flow and a track record of backing high quality companies and executives.

Deeply rooted in the real economy, Tikehau Capital provides bespoke and innovative alternative financing solutions to companies it invests in and seeks to create long-term value for its investors, while generating positive impacts on society. Leveraging its strong equity base (€3.1 billion of shareholders’ equity at 30 June 2022), the firm invests its own capital alongside its investor-clients within each of its strategies.

Controlled by its managers alongside leading institutional partners, Tikehau Capital is guided by a strong entrepreneurial spirit and DNA, shared by its 725 employees (at 30 June 2022) across its 13 offices in Europe, Asia and North America.

Tikehau Capital is listed in compartment A of the regulated Euronext Paris market (ISIN code: FR0013230612; Ticker: TKO.FP). For more information, please visit: www.tikehaucapital.com.

Disclaimer

The funds are managed by TIKEHAU INVESTMENT MANAGEMENT SAS (on behalf of the funds that it manages), a portfolio management company approved by the AMF since 19/01/2007 under number GP-0700000006.

This document does not constitute an offer of securities for sale or investment advisory services. It contains general information only and is not intended to provide general or specific investment advice. Past performance is not a reliable indicator of future earnings and profit, and targets are not guaranteed. Certain statements and forecasted data are based on current forecasts, prevailing market and economic conditions, estimates, projections and opinions of Tikehau Capital and/or its affiliates. Due to various risks and uncertainties. actual results may differ materially from those reflected or expected in such forward-looking statements or in any of the case studies or forecasts. All references to Tikehau Capital’s advisory activities in the US or with respect to US persons relate to Tikehau Capital North America.

[1] Institutional Capital Network, Inc. and its affiliates (together, “iCapital”)

Contacts

iCapital Media Contacts
USA – Morgan Miller – + 1 919-602-2806 / icapital@neibartgroup.com
UK – Viktor Tsvetanov – +44(0)78 8466 7775 / vtsvetanov@headlandconsultancy.com
Italy – Marina Riva – +39 02/72.02.35.35 / m.riva@barabino.it
Switzerland – +41 31 311 43 48 / tanja.kocher@holisticom.ch
Hong Kong – Marylène Guernier + 852 3758 2696 / icapital@secnewgate.hk

Tikehau Capital Media Contact
Valérie Sueur – +33 1 40 06 39 30
UK – Prosek Partners: Alexa Bethell – +44 (0) 7940 166 251
USA – Prosek Partners: Trevor Gibbons – +1 646 818 9238
press@tikehaucapital.com

Tikehau Shareholder and Investor Contacts
Louis Igonet – +33 1 40 06 11 11
Théodora Xu – +33 1 40 06 18 56
shareholders@tikehaucapital.com

Inside the V(ALT), with AIX

AIX, Podcasts

Inside the V(ALT), with AIX

Joe Ujobai (Chief Executive Officer, AIX) discusses the democratization of alternative investments in this episode of Inside the V(ALT). Is it really happening? Why or why not?

This podcast is not intended for the general public; it is intended for viewers who are financial professionals that are either registered with FINRA broker dealers or are registered investment advisers. 

Inside the V(ALT), with WealthForge

Podcasts, WealthForge

Inside the V(ALT), with WealthForge

Bill Robbins (CEO, WealthForge) discusses Altigo’s recent milestone, lessons learned, and technology holdouts in this episode of  Inside the V(ALT).

This podcast is not intended for the general public; it is intended for viewers who are financial professionals that are either registered with FINRA broker dealers or are registered investment advisers. 

Phoenix American Releases White Paper on Operational and Strategic Considerations for Investment Fund Managers in Uncertain Economic Times

AltsTech, AltsTech News, Phoenix American

Phoenix American Releases White Paper on Operational and Strategic Considerations for Investment Fund Managers in Uncertain Economic Times

September 2, 2022 | Phoenix American

Report Provides Insights and Data on Interest Rates, Consumer Sentiment and Investor Perspective

Phoenix American, a full-service fund administration provider for alternative investment funds, has published a new white paper examining the current state the economy and key considerations for alternative fund managers. Fund Operations and Strategy in Uncertain Economic Times analyses the current inflationary and rising interest rate environment in the US economy and the outlook for alternative investment fund managers in 2022 and beyond.

The paper draws on Phoenix American’s perspective as an administration provider for real estate funds and features contributions from FactRight, a leading provider of due diligence on sponsors and products in the alternative investment industry.

Ambiguous Consumer and Investor Sentiment

Top takeaways from the report include: 

• Conflicting outlook of consumers. Data shows that Americans have a stronger view of the state of the overall economy and outlook for business than for their personal economic prospects.

• Higher but not high interest rates. The Federal Reserve has taken alarmingly fast and aggressive action on interest rates but they remain well below their long-term average.

• Operational considerations for fund managers. Fund sponsors can guard against the effects of economic fluctuations with lean back-office efficiency and the elimination of key-person risk.

• Strategic review. Fund managers should take the opportunity to examine any assumptions of their fund strategy that may expose performance to volatility risk from key economic indicators.  

50 Years of Fund Administration for Alternative Investments

Phoenix American has supported the back office needs of alternative funds since 1972, through times of both economic expansion and upheaval. The company’s systems and services enable real estate and other alternative fund sponsors to respond operationally to major changes in strategy with innovative and flexible solutions. New approaches to fund raising, cash flow and deal acquisition employed by Phoenix American client funds are supported by a versatile and robust back-office infrastructure.

“Inflation and high interest rates are a challenge for investment funds, no doubt,” said Andrew Constantin, Chief Operating Officer for Phoenix American. “But some are definitely better prepared than others, strategically and operationally, for sudden changes in market conditions.”

About Phoenix American

Phoenix American Financial Services provides full-service fund administration, fund accounting, transfer agent and investor services as well as sales and marketing reporting to fund sponsors in the alternative investment industry. The Phoenix American Aviation ABS group provides managing agent and accounting services for securitizations specializing in the commercial aviation leasing industry. The company is a subsidiary of Phoenix American Incorporated along with Phoenix American SalesFocus Solutions. Phoenix American was founded in 1972 and is headquartered in San Rafael, CA.

Media Contact

David Fisher
Director
dfisher@phxa.com

iCapital® to Acquire US Alternative Investments Feeder Fund Platform from UBS

AltsTech, AltsTech News, iCapital Network

iCapital® to Acquire US Alternative Investments Feeder Fund Platform from UBS

August 23, 2022 | iCapital

iCapital1, the leading global fintech platform driving access and efficiency in alternative investing for the asset and wealth management industries, and UBS (NYSE: UBS) today announced they entered into a definitive agreement whereby iCapital will acquire UBS Fund Advisor LLC, UBS’s legacy proprietary US alternative investment manager and the feeder fund platform it manages. The platform, generally referred to as “AlphaKeys Funds,” represents more than US$7 billion in client assets.

With this transaction, iCapital will assume the management and operation of the platform, which includes private equity, hedge fund and real estate feeder funds. UBS Financial Advisors will continue to serve their high and ultra-high net worth clients that hold feeder funds as they always have, providing advice and solutions to help meet their unique needs and financial goals.

“iCapital has a long-standing global relationship with UBS through which we utilize our market-leading technology to facilitate the management of their direct and feeder funds on a single platform and offer their advisors the tools they need to be successful,” said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital. “We are thrilled to expand that relationship to include management of UBS Fund Advisor and the feeder fund platform.”

“This agreement underscores the importance of having partners like iCapital, with aligned values and priorities to support clients’ financial goals,” said Jerry Pascucci, Global Co-Head of Alternative Investment Solutions at UBS Global Wealth Management. “iCapital is uniquely qualified to manage the on-going operations of this platform and service our clients’ existing investments, enabling us to help our financial advisors focus on what’s important – providing personalized advice and solutions to their clients.”

In 2017, UBS became an investor in iCapital and entered into a strategic relationship with the firm to structure new feeder funds for UBS to distribute going forward. At that time, UBS also integrated iCapital’s proprietary technology into its private fund operations to streamline and automate its alternative investment offerings. In 2021, the strategic partnership was enhanced to further digitize the UBS Advisor experience, improving the information and analytics of clients’ private market investments across its international locations, including Switzerland, Hong Kong, and Singapore.

The transaction is expected to close during the second half of 2022. Terms of the agreement were not disclosed.

About iCapital
Founded in 2013, iCapital is the leading global fintech company powering the world’s alternative investment marketplace. iCapital has transformed the way the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions; education tools and resources; and robust diligence, compliance, and portfolio analytics capabilities. iCapital’s solutions enable organizations to streamline and scale their alternative investments operational infrastructure and to provide access to direct investments and feeder funds at lower minimums through simplified digital workflows. iCapital-managed platforms offer wealth advisors and their high-net-worth clients access to an extensive menu of private investments including equity, credit, real estate, infrastructure, structured investments, annuities and risk-managed solutions. iCapital has been recognized on the Forbes FinTech 50 list in each year 2018 through 2022, the Forbes America’s Best Startup Employers in 2021 and 2022, and MMI/Barron’s Industry Awards as Solutions Provider of the Year in 2020 and 2021. As of July 31, 2022, iCapital services more than US$136 billion in global client assets, of which more than US$32 billion are from international investors (non-US Domestic), across more than 1,080 funds. Employing more than 1,000 people globally, iCapital is headquartered in NYC and has offices worldwide including in Zurich, London, Lisbon, Hong Kong, Singapore, and Toronto.

For additional information, please visit the iCapital website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork

See disclosures here.

About UBS
UBS convenes the global ecosystem for investing, where people and ideas are connected and opportunities brought to life, and provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as to private clients in Switzerland. UBS offers investment solutions, products and impactful thought leadership, is the leading global wealth manager, provides large-scale and diversified asset management, focused investment banking capabilities, and personal and corporate banking services in Switzerland. The firm focuses on businesses that have a strong competitive position in their target markets, are capital efficient and have an attractive long-term structural growth or profitability outlook.

UBS is present in all major financial centers worldwide. It has offices in more than 50 regions and locations, with about 30% of its employees working in the Americas, 30% in Switzerland, 19% in the rest of Europe, the Middle East and Africa and 21% in Asia Pacific. UBS Group AG employs more than 72,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).

1. Institutional Capital Network, Inc. and its affiliates (together, “iCapital”)

Contacts

iCapital Media Contact
Morgan Miller
919-602-2806
icapital@neibartgroup.com

UBS Media Contact
Erica Chase
212-713-1302
erica.chase@ubs.com

Recession

Recession and Resilience: Looking to Leading Indicators

AltsTech, AltsTech News, CAIS

Recession and Resilience: Looking to Leading Indicators

August 5, 2022 | Andrew Snyder, Linge Sun, & Nicholas Reade | CAIS

The Fed continues navigating what appears to be an ever-finer line between a hard and soft landing for the U.S. economy. We look past the most recent GDP estimate to leading economic indicators that have historically proven to have greater predictive power to signal turning points in the economy1 in an attempt to better understand the probability of an impending recession.

As recession risks appear to rise, investors may find opportunities in alternative investments to attempt to increase the protection of their portfolios and seek to take advantage of potentially worsening economic conditions.

Strategies designed to enable capital preservation, like protection-focused notes, and those that can provide portfolio diversification, like hedge funds, may be particularly impactful in recessionary periods. In addition, special situations and distressed debt strategies may enable investors to access opportunities that typically arise as companies navigate a challenging environment of higher interest rates and increasing economic uncertainty.

Leading Indicators with Predictive Power2

GDP has been estimated to have fallen for the second consecutive quarter into 2022. Meanwhile, the Fed3 and the White House4 have emphasized that they do not believe the U.S. is currently in a recession and rebuffed the view that a recession is officially inaugurated through two consecutive contractions of GDP.

While the topic of GDP’s contribution to the definition of recession has been a hotly debated topic, it is important to remember that GDP growth is a lagging indicator of the state of the economy.5 To analyze the risk and potential severity of a recession, we look beyond GDP and through the slew of economic data to focus on indicators which tend to change in advance of the rest of the economy—specifically those statistically compelling in signaling past U.S. recessions (Exhibit 1).6

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SS&C: Closing the Customer Knowledge Gap

AltsTech, AltsTech Announcements, SS&C

SS&C: Closing the Customer Knowledge Gap

August 17, 2022 | SS&C

Asset managers have access to more data today than ever before. By harnessing it, savvy firms can unlock powerful insights into their customers’ profiles, preferences and priorities. These insights, in turn, can enable firms to design more efficient and effective distribution strategies built on a solid and accurate foundation of customer knowledge.

Closing the customer knowledge gap is a top priority for asset managers, and with the wealth of data now available, it is a goal that is increasingly within reach.

How well do you know your customer? Download our whitepaper to learn more.

Download White Paper

Clearing Up Misconceptions about Alts

AltsTech, AltsTech News, WealthForge

Clearing Up Misconceptions about Alts

August 12, 2022 | John Rickman | WealthForge

Have you ever wondered why alternative investments are called “alternative” investments? Industry insiders know that “alts” are essentially anything other than stocks, bonds, or cash. They can include real estate, hedge funds, private equity, and even fine art and antiques.

Unfortunately, broadly referring to these types of investments as “alternative” creates a visceral reaction among some wealth managers and their clients that allocating to alternatives exposes them to the same risks associated with cryptocurrency, Richard Hillson of Hillson Consulting says. “That’s like saying I had a bad experience with a stock once, and I’ll never pick a stock again,” he adds.

The alternative investment space is vast and varied, but includes tried-and-true asset classes such as real estate that have predictable returns and less market volatility.

Do your clients have questions about alts? Check out the full video, presented by Alta Trust and Altigo.

Watch Video

BNY Mellon’s Pershing Delivers Next-Gen Technology and Integration Capabilities for Smarter, More Personalized, Highly Efficient Experiences

AltsTech, AltsTech News, BNY Mellon | Pershing

BNY Mellon’s Pershing Delivers Next-Gen Technology and Integration Capabilities for Smarter, More Personalized, Highly Efficient Experiences

June 15, 2022 | BNY Mellon Pershing

BNY Mellon’s Pershing (“Pershing”) today announced the next generation of technology solutions for advisors and wealth management professionals from its flagship conference INSITE 2022. Experience and efficiency are front-and-center in this latest round of updates with the introduction of the new NetX360®+ platform and enhancements to its NetXServices integration portal. Both have been optimized to deliver a more intuitive, seamless user experience, from the advisor experience to operations and business processing.

“We’re launching our next-generation professional platform, NetX360+,” said Tim Foley, Managing Director, Technology, BNY Mellon | Pershing. “It works with you as a personal digital partner — the more you engage with it, the more it will provide a curated experience, including insights tailored just for you. We have an incredible wealth of data that we’re using to make the experience smarter, more personalized, and more intuitive. It’s extremely powerful, spotlighting better ways to serve your clients and targeted opportunities to grow your business.”

NetX360+, Pershing’s redesigned, premier platform equips advisors with a more streamlined user interface and more intuitive experience, available today, including:

• Hyper-personalization based on individual user profile and usage patterns

• Machine learning-driven search results for faster access to relevant data

• New data insights based on client behavior and market activity that highlight recommended next best actions to proactively support client needs and business growth opportunities

• Integrated learning via a digital adoption platform to help users achieve swifter proficiency with new features and tools

NetXServices Integration Portal, Pershing’s next-generation integration source which launched last year, has been enhanced on several fronts. The portal now delivers an easy way to access all integration capabilities, including one of the fastest account openings in the market. Pershing’s Integration Hub delivers bi-directional, real-time data synchronization with a growing network of integrated third-party providers. A build-once, deploy-many framework significantly reduces the time required for clients to complete new integrations.

In addition, the portal has been updated with a complete API set, including two new options designed to deliver real-time data access and convenient self-service:

• Streaming APIs to enable firms to dynamically update their platforms

• Asset movement via digital authorizations for payments and asset transfers from Pershing to third-party brokerage accounts

“We are committed to delivering the innovation and efficiency that digital-first wealth management firms need in today’s consumer-driven environment,” said Ram Nagappan, CIO, BNY Mellon’s Pershing. “Our robust set of APIs offer firms direct access into our full clearing and custody platform, with a suite of integrated solutions for managing real-time orders, workflow, activity, rules, approvals and reporting.”
For more information about INSITE 2022—including a full agenda of speakers, sessions and events please visit bnymellonINSITE.com. Join the conversation on social media by following @Pershing on LinkedIn and Twitter and the #realinsite hashtag.

ABOUT BNY MELLON’S PERSHING

BNY Mellon’s Pershing is a leading provider of clearing and custody services. We are uniquely positioned to help complex financial services firms transform their businesses, drive growth, maximize efficiency, and manage risk and regulation.

Wealth management and institutional firms outsource to us for trading and settlement services, investment solutions, bank and brokerage custody, middle and back office support, data insights, and business consulting.

Pershing brings together high-touch service, an open digital platform and the BNY Mellon enterprise to deliver a differentiated experience for every client.

Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company. With offices around the world, Pershing has over $2 trillion in assets and millions of investor accounts. Pershing affiliates include Albridge Solutions, Inc. and Lockwood Advisors, Inc., an investment adviser registered in the United States under the Investment Advisers Act of 1940. Additional information is available on pershing.com, or follow us on LinkedIn or Twitter @Pershing.

 

UMB: State of the Market: Non-Traded REITs and BDCs

AltsTech, AltsTech News, UMB Bank

UMB: State of the Market: Non-Traded REITs and BDCs

August 9, 2022 | UMB

In times of wild market volatility, alternative investments are alluring panaceas to vulnerable portfolios. Once reserved for institutional and high-net-worth investors, even some of the more exotic alternative investments are now mainstream. This report provides an overview of the current state of non-traded real estate investment trusts and non-traded business development companies, plus insights on upcoming trends in this product segment.

Uncorrelated asset vehicles such as non-traded real estate investment trusts (‘non-traded REITs’ or ‘NTRs’) and non-traded business development companies (‘non-traded BDCs’) have recently piqued the curiosity of asset managers, advisors and even retail investors.

These investment opportunities offer diversification, income, tax benefits and different risk return profiles. As the attraction of alternative investments such as NTRs and non-traded BDCs intensifies, asset managers are actively considering adding them to their product suites.

Access Full Report

Altigo Surpasses $2B in Transactions

AltsTech, AltsTech News, Cantor Fitzgerald, Capital Square, ExchangeRight, Inland, WealthForge

Altigo Surpasses $2B in Transactions

July 26, 2022 | WealthForge

Only seven months after hitting the $1 billion mark, Altigo has crossed $2 billion in alternative investments completed on the platform, representing more than 8,600 alts subscriptions since its debut in mid-2019. Altigo’s growth and adoption continues with its adviser user base now topping 185 transactional broker-dealer and RIA firms, with over 200 alternative investment offerings currently “live” and accepting investments on Altigo.

Today, Altigo supports a range of alternative investment offerings from nearly 100 sponsors, including non-listed REITs, qualified opportunity zone funds, non-listed preferreds, interval funds, direct private placements, DSTs, private equity funds, and non-listed BDCs. Nine out of the top 10 DST sponsors, including Inland Private Capital, Capital Square 1031, Cantor Fitzgerald, ExchangeRight, and Passco have seen the speed and efficiency that Altigo provides and have contributed to its growth. 

“Cantor Fitzgerald was the very first sponsor to sign up with Altigo when it launched in 2019 as we shared a common vision for using technology to make it easier for advisors to do alts business and to improve the overall experience for the end investor,” said Jay Frank, President at Cantor Fitzgerald Asset Management. “We are thrilled with the progress that the entire industry has made by embracing Altigo as a solution that makes alts investments incredibly easy.”

Altigo’s success and high rate of both sponsor and advisor adoption is not only due to meaningful results such as reduced NIGO (not-in-good-order) paperwork error rates (to as low as 4%), but also to lightning-fast order entry. A key benefit that sets Altigo apart from other platforms is the team behind it and its commitment to client experience. IBN Financial Services, a broker-dealer recently partnered with the platform, spoke about the onboarding experience:

“These guys have been absolutely great,” said Rick Carlesco, CEO at IBN. “They went to our conference, they talked to our reps, they did individual training—they walked us through the entire process. Change from the old-fashioned way of submitting paperwork can be difficult but the continued training, communication and support from the team truly sets Altigo and the team apart.”

Wealth managers have seen Altigo streamline investment processing and compliance by providing access to all firm-approved alternative offerings in a single white-labeled portal. Altigo also includes custom firm forms and custodian partners’ letters of investment authorization within the workflow. The platform integrates with popular CRM and compliance and risk management tools as well.

“Before I started using Altigo, I had to painstakingly populate each subscription document and depending on the number of alternatives involved in the order, it could take hours to fill in all of the necessary forms,” said Chloe Guinan, Operations Associate at Claraphi. “With Altigo, I simply choose the asset that the client wishes to invest in, select the advisor, enter the client information one time, and the system pre-populates all of the necessary documents for me. Along with the subscription document, the required custodial documents are included in the bundle that can be sent to the client for electronic signature directly through Altigo’s system.”

Altigo will be rolling out even more features and functionality in the second half of the year, helping to expand its value to the market.

“We are pleased by the rate of adoption from wealth management firms and fund managers with our second billion dollars coming only seven months after our first,” said Mat Dellorso, Co-founder at Altigo. “It’s a testament to our team, the desire for portfolio diversifying investments in the market, and the need for transformative technology to make the process easier for all to do more business. This speed of adoption on Altigo enables us to expand across more and more firms in the alternative investment market, bringing greater efficiency to the industry.”

 

The Expanding Universe of Business Development Companies and their Real-World Investment Impacts

AltsTech, AltsTech News, REIT Industry Update, WealthForge

The Expanding Universe of Business Development Companies and their Real-World Investment Impacts

July 20, 2022 | John Rickman | WealthForge

A recent blog post from WealthForge:

Tax-advantaged, non-traded business development companies (BDCs) are alternative investment funds designed to boost the economy while generating a steady stream of income for both retail and accredited investors in the fund.
 
BACKGROUND AND OUTLOOK

BDCs are closed-end investment funds that help finance small, developing, and financially troubled U.S. firms. BDCs pool money from multiple investors and invest that money in business debt and equity. They are also required to provide subject matter expertise to the companies they invest in.

BDCs must invest at least 70% of their total assets in so-called “eligible portfolio companies,” which are valued at less than $250 million and typically lack conventional means of raising money or inviting analyst interest to boost their profiles.

Created by Congress in 1980 as part of amendments to the Investment Company Act of 1940, BDCs can be publicly or privately traded. Those that file publicly may elect to come under the auspices of the Act, meaning, among other things, that they agree to Securities and Exchange Commission (SEC) regulation. Election also means BDCs must develop compliance programs and file regular reports with the SEC.

In April 2020, the SEC adopted rule amendments aimed at making it easier for BDCs to respond to market opportunities by streamlining BDC registration processes. The reforms also included disclosure and structured data requirements designed to help investors better analyze fund data.

As of July 2022, there are currently 49 publicly traded BDCs with combined assets of more than $121 billion, according to CEFdata.com which monitors listed and non-listed BDCs. The universe of non-traded BDCs is smaller with $95.6 billion in assets across 58 funds. Assets or gross assets are total investments including leverage and doesn’t take any discount into account.

2021 was a big year for publicly registered, non-traded BDCs, which raised more than $15.7 billion that year, according to The Stanger Market Pulse. This year looks to be even bigger, with the same category of BDCs having already raised more than $13.8 billion through May, according to Stanger.

SIZING UP BDCS AND THEIR INVESTMENTS

The universe of BDCs may be swiftly expanding, but the funds themselves — and the businesses they invest in — are down to earth, and certainly not as lofty in investing in the Amazons of the world, CEFdata.com’s John Cole Scott tells Altigo:

“These aren’t large corporate deals, they’re small- to middle-market investments. The average BDC loan size is around $11 million, with the average BDC portfolio containing roughly 100 such investments,” says Scott. Interest rates for about a third of BDC loans come in under 6.5%, with the rest averaging around 7.31%, he notes.

“BDC companies are both geographically and industry sub-sector diverse and are often operating in your own back yard. They really are impacting communities everywhere, not just in New York or California,” Scott adds.

BDC RISKS AND BENEFITS

A continuous offering over time, BDCs have the potential to provide both retail and accredited investors with a steady stream of distributions stemming from interest income, dividends, and/or capital gains when the investments are sold.

Without factoring for inflation or commissions and fees, BDC yields can range anywhere from 5-10% depending on market conditions. However, BDC fee structures are often far more steep than other types of alternative investments.

As with real estate investment trusts (REITs), if 90% or more of a BDC’s taxable income is annually distributed to investors, BDCs may enjoy pass-through tax treatment. This is only allowed if BDCs are registered and regulated as a registered investment company, and most are. BDCs are only taxed once at the stakeholder level, thus, as with REITs, investors must pay ordinary taxes on their investment earnings.

BDC’s low liquidity profile and sometimes lengthy investment commitments make them unsuitable for some investors, and because BDC target businesses are generally small businesses, these types of alternative investments are typically considered high-risk. Therefore, it’s good to collect as much information as you can on any individual fund before making any commitments.

STREAMLINING THE INVESTMENT PROCESS

As with other offering types, the investment process for BDCs is time consuming and paper laden. Subscription processing technology like Altigo can reduce investment time from weeks to minutes and virtually eliminate errors associated with paper subscription documents.

With over 200 alternative investment offerings currently available on Altigo, our platform supports a range of alternative investment products such as non-listed BDCs, non-listed REITs, qualified opportunity zone funds, non-listed preferreds, interval funds, direct private placements, DSTs, and private equity funds.

For more information about how Altigo can streamline the investment process for BDCs and other alternative investments, contact us for a brief demo.

UMB: Seven questions to help build distribution strategies for interval and tender-offer funds

AltsTech, AltsTech News, UMB Bank

UMB: Seven questions to help build distribution strategies for interval and tender-offer funds

July 19, 2022 | James Curry | UMB

“We wish we’d talked to you six months ago” is a comment I hear often from private fund managers as they work out distribution strategies for their first registered product. Too often, managers have to backtrack when their sales, operations and investment teams aren’t on the same page. Here are seven questions drawn from practical experience to align your team—and avoid wasted time and effort.

The first six questions help define and refine a distribution strategy. The seventh is a critical one about product economics.

1. Who are your initial investors and target market?
There’s a big difference between retail investors (and their advisors) and large institutional RIAs and family offices.

Say you’ve been encouraged by retail-market RIAs to make your strategy available to their clients. It’s important to understand what they are expecting—because it may well mean your presence on mutual-fund platforms that present interval and tender-offer funds together with standard open-ended funds.

Institutional RIAs and family offices, by contrast, are unlikely to require that platform presence.

2. What platform does the RIA prefer?
There are two defined and separate distribution paths for interval and tender offer funds depending on your funds structure. Do the advisors interested in your product work primarily—or only—with funds available on a specific platform? Your fund’s valuation structure and other factors will determine which distribution path you choose and ultimately how your funds are approved and made available to the various RIAs, broker-dealers and wire houses.

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What does a custodian do for alternative investment managers?

AltsTech, AltsTech News, UMB Bank

What does a custodian do for alternative investment managers?

June 29, 2022 | Amy Small | UMB

Legacy mutual fund managers are likely accustomed to hearing about custody requirements driven by regulation. But what does a custodian do for alternative asset managers who are not experienced in hiring a qualified custodian?

The primary duty of a third-party custodian is loss prevention by safeguarding assets. All registered funds, even those with alternative strategies, are required by law to use a custodian, who “sit between” the investment manager and the assets themselves, for everyone’s protection.

Many unregistered alternative funds—such as hedge funds and limited partnerships—also use a custodian, often at the request of one or more large investors who want the strong controls provided by third-party oversight such as compliance with anti-money laundering (AML) requirements. Or, because the ancillary services provided by a custodian support efficiency in their cash management and investor onboarding efforts.

The word “custodian” can be a bit confusing, especially in the context of alternative asset classes. The role I’m addressing here is different from the services a manager’s prime broker may provide. Private fund custody, in this case, refers to third-party oversight and processing services sometimes known as “bank custody” or “institutional custody.”

That said, like prime brokers, private fund custodians can provide a suite of services that complement the primary function. For prime brokers, sales and trading is the primary function, complemented by ancillary services such as financing.

For institutional custodians, risk reduction is the primary function, complemented by services such as:

• Servicing and settling trades

• Managing overnight cash

• Providing real-time reporting on cash availability

• Enabling straight-through processing on cash movements

• Tax Reporting

• Managing proxy and corporate actions

• Handling foreign exchange (FX) needs

• Segregating collateral

• Registering and opening foreign accounts

Not surprisingly, these private fund custody services relate to either or both securities themselves or the cash transacted for them. That intersection of securities and cash is precisely a custodian’s domain—and where it applies rigorous controls to avoid mistakes and fraud.

Investor-related services 

But private fund custody services can extend even further to areas relating closely to the investor base of an alternative fund. These investor-related services can end up making a huge difference in managers’ operational efficiency. One such area is online reporting, via an investor portal that allows investors self-service access to account information.

Another investor-related area—one which we’ve seen significant interest—is help completing alternative investment subscription documents on a manager’s behalf. This can include completing the core offering documents as well as AML and know-your-customer (KYC) requirements for each investor.

Financing arrangements and more

Although prime brokers are more associated with financing than custodians, managers should know the role private fund custodians can play in supporting their financing strategy. At UMB, for example, we work strategically with both our customers and their existing lenders to create tri-party collateral agreements.

Bank custodians like UMB may also be able to support alternative managers even further throughout the investment lifecycle with traditional banking and escrow services, investor servicing and fund administration.

Ultimately, our work as custodian is to keep all parties secure and provide the client service that helps managers run their businesses as efficiently as possible.

UMB’s is among the nation’s leading institutional custodians. Our team offers a complete range of domestic and global custody services with a high-touch service model. Visit umb.com to learn how we  can support your firm’s institutional custody needs, or contact us to be connected with a custody team member.

 

UMB: Five key banking-as-a-service terms you should know

AltsTech, AltsTech News, UMB Bank

UMB: Five key banking-as-a-service terms you should know

July 11, 2022 | David Robinson | UMB

Although Banking-as-a-Service (BaaS) is new, banks have been making their services available behind the scenes for decades. What’s changed in recent years is the explosion of fintech firms seeking to partner with banks to access the payment rails historically limited to regulated financial institutions.

A greater number of participants has led to the need for more standardized language about BaaS.

In the past, it was easy enough for a bank to communicate with a brokerage firm about setting up deposit accounts for its customers so they could benefit from FDIC insurance coverage. Any questions about how that worked, and who was responsible for what, would naturally get worked out as a matter of course.

Now, by contrast, multiple fintechs may be talking with multiple banks about multiple services…and all using slightly different terminology. That can slow down the solution-building process, especially when the solution involves several entities.

Besides speed to market, there’s another reason for banks and their clients to establish and use clear terminology: risk management. Getting payments right within the guardrails of the regulatory environment is essential. Connected parties may jointly touch many thousands of transactions on a daily basis. To effectively communicate about varied roles and responsibilities particularly related to risk and regulation, it’s imperative to have communication clarity.

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More Banks are Moving Asset and Liability Management Systems to Cloud

AltsTech, AltsTech News, SS&C

More Banks are Moving Asset and Liability Management Systems to Cloud

July 6, 2022 | SS&C

A recent SS&C Algorithmics survey (conducted by Alchemer) shows 45% of respondents are looking to migrate, or have already migrated, their Asset Liability Management (ALM) systems to the cloud. This is a major global shift from ALM being almost always in-house and shows that both banks and regulators are increasingly accepting cloud for ALM risk technology.

When asked what their biggest challenges were in making the transition, most respondents cited infrastructure costs, knowledge transfer between IT and business, the siloed legacy risk modeling or data sources, and a one-size-fits-all approach. These challenges can be addressed by choosing a provider that uses a solution as a service model that incorporates the software, expertise and infrastructure required to support each client’s needs.

Key factors respondents gave for making the move to the cloud were the modernization of architecture, improving return of investment (ROI) and scalability. ALM can have significant calculation demands, with banks needing to project millions of products in the balance sheet over both time and risk scenarios. It is important to have a solution that leverages cloud technology—something a simple lift and shift approach cannot do.

To support the transition to the cloud, SS&C Algorithmics ALM and Liquidity Risk on the Cloud enable banks to use the entire range of functions of the award-winning solution as a service model. Banks benefit from all the advantages of the modern and flexible SS&C Algorithmics software as a solution (SaaS) without having to take care of the required infrastructure, operation and support, as these services are provided by SS&C.

Functional and technical support is provided by SS&C experts to ensure the smooth operation of the solution including a seamless migration between versions. Leveraging the expertise of Algorithmics’ team helps mitigate implementation challenges identified in the survey, including knowledge transfer (55% of respondents) and talent retention (42% of respondents).

The SS&C Algorithmics SaaS option provides all the necessary components for the secure, highly performant and scalable operation of the financial risk management system. This includes the provision of environments, 24/7 monitoring and disaster recovery.

Functionally, SS&C clients benefit from the full SS&C Algorithmics ALM and Liquidity Risk solution including browser-based interfaces for configuration of modeling, behavioral assumptions and planning, ad-hoc run orchestration and interactive reporting.

The SS&C Algorithmics ALM and Liquidity Risk solution is provided via the SS&C Private Cloud. Where banks have existing enterprise-wide cloud initiatives, the solution is also available on other major cloud platforms including Microsoft Azure, Amazon Web Services and Google Cloud Platform.

For more information, contact us.

CAIS and BNY Mellon’s Pershing Unveil New Features to Streamline Alternative Investing for Financial Advisors

AltsTech, AltsTech Announcements, AltsTech News, BNY Mellon | Pershing, CAIS

CAIS and BNY Mellon’s Pershing Unveil New Features to Streamline Alternative Investing for Financial Advisors

June 30, 2022 | CAIS

New integrations including SSO, enhanced Document APIs, and automated Order Entry will help to tackle challenges and improve advisor experiences

CAIS, the leading alternative investment platform, and BNY Mellon’s Pershing (“Pershing”), a leading provider of clearing and custody services, today announced a series of updates to the CAIS platform that will seek to enhance alternative investment product access and order processes, as broker-dealers and financial advisors allocate to new asset classes on behalf of their clients.

“Outdated manual processes have been one of the major barriers to alternative investment fund allocation for the independent wealth management community,” said Matt Brown, Founder and CEO, CAIS. “As access to alternatives goes mainstream, our collaboration with Pershing highlights CAIS’s ongoing commitment to supporting advisors as they transact, and report on, the full spectrum of alternative investments.”

The expanded partnership between CAIS and Pershing offers a new level of integration that seeks to make investing in alternatives faster, more secure, and convenient for advisors. Among its new features is the automation of submitting order forms, enabled by API connectivity between CAIS and Pershing’s NetX360® investment platform. Eliminating the need for manual order entry is intended to lower the risk of transfer errors or lost forms, increase data security, and reduce the number of steps required by advisors, investors, and fund providers.

“We are pleased to expand on this partnership with CAIS that will enhance the alternative investing capabilities being offered to advisors,” said Justin Fay, Director, Global Strategy and Product Management, BNY Mellon’s Pershing. “As investor demand for alternatives continues to grow, our priority is to make all aspects of the process more efficient and less time consuming.”

The updates build on CAIS and Pershing’s existing partnership, which automated manual transaction and documentation processes to reduce human error potential and improve advisors’ ability to browse, research, and allocate to alternative investments. CAIS has also introduced Single Sign-On (SSO) for broker-dealers and RIAs working with Pershing. The authentication scheme should allow users to securely access independent software applications using a single set of credentials. CAIS anticipates that the result will be improved time management, lower IT costs inside advisory and brokerage firms, and mitigation of risks tied to enterprise fragmentation.

CAIS offers broker-dealers and financial advisors a choice between a complete end-to-end platform solution or a customized, modular service for specific advisor-sourced funds and strategies. Financial advisors and independent broker-dealers who use CAIS via Netx360® also have access to CAIS IQ, a proprietary learning system that helps users learn faster and retain information longer. Private funds available through CAIS undergo independent investment and operational due diligence performed by Mercer.

This announcement follows CAIS securing over $325 million in growth capital from Apollo, Motive Partners, Franklin Templeton, Reverence Capital Partners, Stone Point Ventures, and Hamilton Lane, which values the Company at more than $1.1 billion.

About CAIS

CAIS is the leading alternative investment platform for financial advisors who seek improved access to, and education about, alternative investment funds and products. CAIS provides financial advisors with a broad selection of alternative investment strategies, including hedge funds, private equity, private credit, real estate, digital assets, and structured notes, allowing them to capitalize on opportunities and/or withstand ever-changing markets. CAIS also offers custom solutions for advisors seeking to create custom fund vehicles around ideas they source.

CAIS also provides an industry-leading learning system, CAIS IQ, to help advisors learn faster, remember longer, and improve client outcomes.

All funds listed on CAIS undergo Mercer’s independent due diligence and ongoing monitoring. Mercer diligence reports and fund ratings are available to advisors on the CAIS password-protected platform. CAIS streamlines the end-to-end transaction process through digital subscriptions and integrated reporting with Fidelity, Schwab, and Pershing, which make investing in alternatives simple.

Founded in 2009, CAIS, a fintech leader, is empowering over 5,300+ unique advisor firms/teams who oversee more than $2.5+ trillion in network assets. Since its inception, CAIS has facilitated over $17+ billion in transaction volume as the first truly open marketplace where financial advisors and asset managers engage and transact directly on a massive scale. CAIS has offices in New York, Los Angeles, Austin, and San Francisco. For more information about CAIS, please visit www.caisgroup.com.

Securities offered through CAIS Capital LLC, member FINRA, SIPC.

About BNY Mellon’s Pershing

BNY Mellon’s Pershing is a leading provider of clearing and custody services. We are uniquely positioned to help complex financial services firms transform their businesses, drive growth, maximize efficiency, and manage risk and regulation.

Wealth management and institutional firms outsource to us for trading and settlement services, investment solutions, bank and brokerage custody, middle and back office support, data insights, and business consulting.

Pershing brings together high-touch service, an open digital platform and the BNY Mellon enterprise to deliver a differentiated experience for every client.

Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company. With offices around the world, Pershing has over $2 trillion in assets and millions of investor accounts. Pershing affiliates include Albridge Solutions, Inc. and Lockwood Advisors, Inc., an investment adviser registered in the United States under the Investment Advisers Act of 1940. Additional information is available on pershing.com, or follow us on LinkedIn or Twitter @Pershing.

Media Contact

For CAIS
Nadia Damouni
pro-CAISPR@Prosek.com

UMB: What does a custodian do for alternative investment managers?

AltsTech, AltsTech News, UMB Bank

UMB: What does a custodian do for alternative investment managers?

June 29, 2022 | Amy Small | UMB

Legacy mutual fund managers are likely accustomed to hearing about custody requirements driven by regulation. But what does a custodian do for alternative asset managers who are not experienced in hiring a qualified custodian?

The primary duty of a third-party custodian is loss prevention by safeguarding assets. All registered funds, even those with alternative strategies, are required by law to use a custodian, who “sit between” the investment manager and the assets themselves, for everyone’s protection.

Many unregistered alternative funds—such as hedge funds and limited partnerships—also use a custodian, often at the request of one or more large investors who want the strong controls provided by third-party oversight such as compliance with anti-money laundering (AML) requirements. Or, because the ancillary services provided by a custodian support efficiency in their cash management and investor onboarding efforts.

The word “custodian” can be a bit confusing, especially in the context of alternative asset classes. The role I’m addressing here is different from the services a manager’s prime broker may provide. Private fund custody, in this case, refers to third-party oversight and processing services sometimes known as “bank custody” or “institutional custody.”

That said, like prime brokers, private fund custodians can provide a suite of services that complement the primary function. For prime brokers, sales and trading is the primary function, complemented by ancillary services such as financing.

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CAIS Receives Strategic Investment from Hamilton Lane

AltsTech, AltsTech Announcements, CAIS

CAIS Receives Strategic Investment from Hamilton Lane

June 28, 2022 | CAIS

Latest capital infusion underscores heightened demand for alternative investments access amid growing economic uncertainty

CAIS, the leading alternative investment platform, today announced a strategic investment from Hamilton Lane (NASDAQ: HLNE), a leading private markets investment management firm with more than $901 billion in assets under management and supervision. Hamilton Lane is the latest in a series of CAIS investors that have participated in the most recent financing, including Apollo, Motive Partners, Franklin Templeton, Reverence Capital Partners and Stone Point Ventures, which has resulted in the Company’s enterprise valuation exceeding $1.1 billion. Terms of the investment were not disclosed.

“We are thrilled to welcome another strong partner that shares our mission to level the playing field for RIAs, independent broker dealers, aggregators, and custodians looking to allocate to alternative investments,” said Matt Brown, Founder and CEO of CAIS. “Hamilton Lane brings tremendous value to CAIS as a strategic partner that is well-versed across private markets investing and data-driven innovation.”

The new capital will further CAIS’s mission to modernize how the independent advisor community can access and learn about alternative investments, while also connecting asset managers with the multi-trillion-dollar private wealth channel. Specifically, CAIS will continue to develop technology, expand its global team, enhance the advisor experience through personalized learning, and automate back-end processes for financial advisors and fund managers alike. It is Hamilton Lane’s intention to onboard some of its evergreen and closed-end products to the CAIS platform over time.

“We are seeing significant macroeconomic tailwinds that highlight the urgency for improved access to alternative investments, especially for the independent wealth and non-institutional channels,” said Erik Hirsch, Vice Chairman and Head of Strategic Initiatives at Hamilton Lane. “We are big believers that technology can serve as a powerful tool in solving for some of the traditional accessibility challenges, and look forward to supporting CAIS in that shared goal.”

The announcement follows CAIS’s release of results from an independent survey of financial professionals conducted at the 2022 Morningstar Conference, which validate the industry challenges it is addressing. Most notably, the survey found that more than 80% believed retail investors should have access to alternative investments, 76% argued that the traditional 60/40 portfolio is ineffective or less effective in today’s economic climate, and 69% cited a lack of educational resources as a hurdle to navigating private markets.

About CAIS

CAIS is the leading alternative investment platform for financial advisors who seek improved access to, and education about, alternative investment funds and products. CAIS provides financial advisors with a broad selection of alternative investment strategies, including hedge funds, private equity, private credit, real estate, digital assets, and structured notes, allowing them to capitalize on opportunities and/or withstand ever-changing markets. CAIS also offers custom solutions for advisors seeking to create custom fund vehicles around ideas they source.

CAIS also provides an industry-leading learning system, CAIS IQ, to help advisors learn faster, remember longer, and improve client outcomes.

All funds listed on CAIS undergo Mercer’s independent due diligence and ongoing monitoring. Mercer diligence reports and fund ratings are available to advisors on the CAIS password-protected platform. CAIS streamlines the end-to-end transaction process through digital subscriptions and integrated reporting with Fidelity, Schwab, and Pershing, which make investing in alternatives simple.

Founded in 2009, CAIS, a fintech leader, is empowering over 5,300+ unique advisor firms/teams who oversee more than $2.5+ trillion in network assets. Since its inception, CAIS has facilitated over $17+ billion in transaction volume as the first truly open marketplace where financial advisors and asset managers engage and transact directly on a massive scale. CAIS has offices in New York, Los Angeles, Austin, and San Francisco. For more information about CAIS, please visit www.caisgroup.com.

Securities offered through CAIS Capital LLC, member FINRA, SIPC.

About Hamilton Lane

Hamilton Lane (NASDAQ: HLNE) is a leading private markets investment management firm providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for 30 years, the firm currently employs approximately 530 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has over $901 billion in assets under management and supervision, composed of more than $106 billion in discretionary assets and nearly $795 billion in advisory assets, as of March 31, 2022. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies. For more information, please visit www.hamiltonlane.com or follow Hamilton Lane on LinkedIn: https://www.linkedin.com/company/hamilton-lane.

Contacts

For CAIS
Nadia Damouni
pro-CAISPR@Prosek.com

For Hamilton Lane
Kate McGann
kmcgann@hamiltonlane.com

Opportunity Zone Funds: Could Changes Be on the Horizon?

AltsTech, AltsTech News, WealthForge

Opportunity Zone Funds: Could Changes Be on the Horizon?

June 28, 2022 | John Rickman | WealthForge

A recent blog post from WealthForge:

A key incentive of the federal opportunity zone program may have expired, but qualified opportunity zone funds continue to offer considerable long-term tax advantages for investing in private capital. In addition, legislative changes to opportunity zones currently under consideration in Congress may end up restoring the program’s 10-15% basis point boosts that expired at the end of last year.

WHAT’S NEXT FOR OPPORTUNITY ZONE FUNDS?

Opportunity zone funds reinvest unrealized capital gains into long-term projects in low-income communities, typically real estate located in a qualified opportunity zone (QOZ). There are more than 8,700 census tracts in U.S. urban, suburban, and rural areas that America’s governors and mayors have designated as economically distressed QOZs.

Current law allows QOZ investors to defer paying taxes on their investments until 2026. If a QOZ investment is held for 10 years, any appreciation on the investment essentially becomes tax-free.

Certain expired provisions of the law allowed QOZ investors to enjoy a 10% reduction in initially deferred capital gains. However, proposed updates to opportunity zones would:

Extend the federal program and its related deferrals for another two years (2028 and 2023, respectively)
Allow qualified opportunity zone funds to invest in other qualified opportunity zone funds
Notably, the bicameral, bi-partisan proposal would also increase the program’s reporting requirements — to promote more equitable distribution of QOZ investments — and sunset tracts no longer determined to be in distress.

Even if proposed updates to the opportunity zone program fail to proceed, QOZ funds remain a beneficial tax-advantaged option for long-term investing in private capital, while creating jobs and improving economic outcomes for people living in economically distressed communities.

Want to learn more about opportunity zone funds and other alternative investments available on Altigo? Download our complimentary e-guide or contact us.