Manual processing and error rates can be extremely costly for investors. Looking to cut down on the price they need to pay to remedy these mistakes while giving them more alternative investment options, global financial services company, the Bank of New York Mellon Corporation (BNY), has launched Alts Bridge.Alts Bridge is a comprehensive data, software, and services solution built to meet the growing demand from wealth intermediaries looking to access alternative and private market investment products, through a simplified end-to-end investment experience. The new service will be integrated with BNY Perishing X’s Wove advisory platform and NetX360+.
The platform will offer features across the pre-, at- and post-trade processes. This includes an advisor education and fund discovery centre, home office and asset manager tools. It will also cover product overviews, automated document preparation, simplified order entry, and integrated reporting and investment management capabilities.
While 90 per cent of advisors are targeting a 10-15 per cent average portfolio weighting to alternative and private market investments, actual allocations remain in the low single digits. Global alternative assets under management are expected to reach $24.5trillion in 2028, representing a forecast annualised growth rate of 8.4 per cent from 2022 to 2028.
“Powered by BNY’s data and technology, Alts Bridge will connect clients across the wealth ecosystem and alternative markets in a unique and more seamless way. As a firm that supports more than $2.6trillion of wealth assets and has relationships with more than 500 leading alternative managers, we believe we are uniquely positioned to unlock this market,” said Akash Shah, chief growth officer and head of growth ventures at BNY.
“We’re combining the breadth and depth of BNY’s distribution team with our expertise across investment management, advisory, securities services, wealth technology, and wealth custody and clearing, enabling Alts Bridge to provide a comprehensive solution to find, access, and custody alternative and private market assets.”
Doing more with what investors have
“We consistently hear from advisors that they want to allocate more to alternatives and private markets but are limited by operational complexity and significant additional resource requirements. We’re incredibly proud to deliver the alternative investment experience that advisors and their clients expect and deserve,” said David Moss, head of Alts Bridge at BNY.
“We’re addressing challenges that have persisted for decades and delivering cutting edge tools. For advisors, we are making alternatives easier. And for asset managers, Alts Bridge delivers scalable, efficient access to the growing wealth channel.”
Connecting with asset managers
The platform will provide access to a curated, comprehensive suite of alternative and private market asset managers from around the world, a selection including:
- 26 North
- AB CarVal
- Alternatives by Franklin Templeton
- Apollo
- Atalaya
- Aviva Investors
- Blue Owl Capital
- Carlyle
- CIFC
- Coller Capital
- Crescent Capital
- Eisler Capital
- Generali
- GoldenTree
- Goldman Sachs
- Hunter Point Capital
- Invesco
- KKR
- Lexington Partners a Franklin Templeton Company
- Lunate
- Marathon Asset Management
- Partners Group
- Polen Capital
- RCP Advisors
- Stormfield Capital
Robert Collins, global co-head of private wealth at Partners Group said: “Having been at the forefront of developing private markets products for the wealth space, we welcome this initiative to simplify access for investors. All the while we will ensure they have the resources they need to make informed, long-term investment decisions.”
Clint Harris, head of wealth management platforms and institutional consultant relations at Invesco added: “The shifting investable landscape between public and private securities is a secular trend for our industry. Invesco is excited to work with Alts Bridge to help investors navigate this landscape.”
The platform is expected to be available to US registered investment advisors and independent broker-dealers in fall 2024.