Why We Built an Alternative Investment Management Platform

By: Zak Boca

It’s no secret that alternative investments have become increasingly mainstream. But investing in alternatives hasn’t been easy for investors and advisors alike. That’s why we built an alternative investment management platform.

The roadblocks of alternative investments

As an investor of alternatives myself, I’ve experienced all of the issues associated with managing a growing portfolio of alternative investments, including:

Trouble managing capital calls, difficulty collecting and keeping track of important tax documents, making data and performance-driven investment decisions (here’s how painful it is to track performance manually), inability to truly understand my portfolio performance, and a barrier between my alts portfolio and my financial advisor.

These frustrating roadblocks led me to a point where it was so difficult to continue allocating to alternatives, I decided to stop. Unlike a family office, I didn’t have the proper resources to assist with managing my alts. And there was no platform available to investors like myself to properly track and manage my alternatives.

So I decided to build one myself. 

While there were (and still are) plenty of challenges in building an alternative investment management platform, we figured out a way to do it.

How our alternative investment platform works 

AltExchange integrates with numerous investment portals to aggregate alternatives, breaking down unstructured data into structured, easy-to-understand consumer data for both investors and advisors.   

Here’s a breakdown of how AltExchange works:

  1. Data integration 

Our process starts with obtaining data through AltXLink, which is essentially the ‘Plaid’ for alternative investments.

AltXLink gives you the ability to easily search for and add your existing investments in the AltExchange platform. We’re feverishly building integrations into fund administrative portals, online funding portals, and crypto exchanges. 

  1. Structuring unstructured data

From there, we download all documents and transactions from integrated investment portals to extract data from the documents we need to build transactions. 

We call this process ‘structuring unstructured data.’ It’s very complex in nature, but crucial to building an alternative investment platform.

  1. Portfolio performance tracking and reporting

Every single day, AltExchange updates your account with any new important documents, such as a capital call, a purchase of additional cryptocurrency, investment in Crowdstreet, and so forth. 

We’ll automatically create transactions and consolidate documents as they occur, in real-time. 

Essentially, investors using our platform can now track and manage their alts without lifting a finger.  

Why invest in alternatives?

Alternative investments improve my risk-adjusted return in my portfolio, provide portfolio diversification, and hedge against inflation, which is currently at its highest rate since 1982, with no signs of slowing down anytime soon.

While I began to question whether the extra time managing my alternatives portfolio was worth it, with AltExchange, the process is now seamless and enjoyable.

We are proud and excited to release a first-of-its-kind platform onto the marketplace built by alternative investors, for alternative investors. Get started managing your alternative portfolio today. 

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