Alternative asset classes are exploding globally in popularity, with all kinds of investors — from institutions to intermediaries and retail — embracing alternative investment strategies. Due to their potential ability to stem volatility, increase income, and add uncorrelated asset classes to meet investors’ financial needs better. In its most recent report, the research firm Preqin projects that the Global Alternatives AUM will hit $23.21tn by 2026, up from an estimated $13.32tn at the end of 2021 (11.7% CAGR).
The evidence of this is clear to see. For example, many high-potential, growth-stage companies remain under private ownership, private equity firms take publicly traded corporations private, and much of the commercial real estate business is in privately held vehicles. The implications for leaders, and strategy, are therefore sizeable.
As our society, economy and financial infrastructure become increasingly globalized, investors from … [+]
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As demand for alternative asset classes grows, the light shines ever more brightly on the existing infrastructure within the alternative investment space. Unfortunately, in many cases, it reveals a system that’s still wedded to the old way of working: with a cumbersome over-reliance on inefficient, paper-based, and other manual systems.
These significant operational issues plague the world’s most well-known and prominent alternative investment fund managers and investors. Fortunately, these antiquated processes are rapidly being disrupted by FinTech firms leveraging new digitalized and scalable technologies that significantly reduce costs and time to market and create meaningful operational efficiencies for investment managers, advisors and investors.
These operational issues plague the world’s best and biggest alternative investment fund managers and investors. Fortunately, these antiquated processes are rapidly being disrupted by FinTech firms leveraging new technologies.
Innovation Gathers Pace
Among the firms leading the charge are iCapital, CAIS, Moonfare, and RealBlocks. Together, these four platforms have raised over $1.2 billion in venture funding and service more than $165 billion of client assets. While all of these platforms exist within the burgeoning alternative investments landscape, they have each been able to carve out a piece of the ever-growing pie.
iCapital and CAIS have established themselves among Independent Broker Dealers, RIAs, and wirehouses as leading distribution and education platforms. Both firms have invested heavily in educating the market on the benefits of investing in alternative investments. CAIS IQ is an educational tool designed to equip financial advisors with the information needed to inform their clients on alternative investments. iCapital also offers its own program, AltsEdge (in partnership with CAIA), which is geared towards delivering similar outcomes for financial advisors. “The best results occur when …….