JUST IN: AltExchange Wins Wealthmanagement.com’s 2023 Wealthies Awards

Solving the Complexities of Alternative Investments

90% of advisors are planning on increasing allocations to alternative investments over the next two years, according to new research by CAIS and Mercer.

But as portfolio allocation to alternatives increases, so does complexity and fragmentation. Below are the most common complexities advisors and investors of alts experience, and how to solve them.

Common pain points of alternative investments

While there are many benefits to investing in alternatives, such as portfolio diversification and a way to protect your portfolio from inflation, there are also plenty of pain points, including:

  • Unstructured investment data
  • Fragmentation
  • Scattered documents
  • Multiple portals
  • Complicated tax processes
  • Limited performance visibility
  • Inability to provide clients updated reporting
  • Inability to bill on alternatives
Source: Unsplash

In addition, advisors and investors have historically faced other obstacles including limited access, lack of education surrounding alts, and complicated due diligence processes.

Solving pain points of managing alts

The good news is that updated regulations and new technologies are working together to solve all of these issues, in addition to the common pain points ones above.

Accessing alternative investments is simpler than ever, with regulations lifting to allow non-accredited investors the ability to invest in alts. In addition, accessing quality alternatives for you or your clients is easier than ever, with platforms like Juniper Square, Carta, AppFolio, iCapital, CrowdStreet, and plenty more offering online investment opportunities.

Two happy advisors scaling their business with technology, outsourcing alternative investments.
Source: Unsplash

But what about managing alternative investments? Technology is tacking that as well.

AltExchange eliminates the common pain points of alternative investments, including fragmentation, unstructured data, scattered documents, limited performance visibility, inability to track and bill on alternatives, and more. With AltExchange, advisors can easily offer, track, report, and bill on alternative investments.

AltExchange's AdvisorVue client dashboard showing alternative investment performance details.
AltExchange’s AdvisorVue client dashboard.

If you’re an advisor offering or planning to offer alternative investments and are looking for a scalable, streamlined solution, please get in touch.

Schedule time with our team