Alt Investments
AssetMark Readies New Alternative Assets Initiative
The wealth technology business is preparing to add new alternative investment capabilities, in what appears to be a continued drive by firms to open up these markets.
Last week, AssetMark, a US
wealthtech, announced that it is building new capabilities allied
to alternative assets. It is expecting to launch
offerings in the final three months of this year.
The firm said it will integrate private assets into AssetMark’s
managed solutions and discretionary programs.
“Private markets are no longer optional – they’re essential to
building modern, diversified portfolios,” Lou Maiuri, group CEO
and chairman of AssetMark, said. “We’re committed to helping
advisors access these opportunities in a way that’s intuitive,
scalable, and aligned with how they serve clients today.”
The firm is conducting due diligence on private credit, private
real estate, and private equity funds.
Such a move speaks to continued ferment over wealth
management’s embrace of private markets/alternatives. Part of
this is driven by a search for yield and diversification away
from listed equities and bonds. Widening access to alternative
assets – traditionally only for ultra-wealthy clients and large
institutions – has
raised eyebrows but appears to be a
relentless trend.
Allocation
A slice of AssetMark’s discretionary strategies will be allocated
to private markets. AssetMark’s unified managed accounts (UMAs)
and Adhesion Wealth platform will also give advisors the ability
to invest in semi-liquid private funds in a single custody
account alongside other public security allocations.
The move builds on AssetMark’s purchase – wrapped up in 2022 – of
Adhesion Wealth, which provides wealth management technology
solutions to RIAs, RIA enterprises, TAMP (turnkey asset
management program) and asset managers.
“We believe private markets can serve as a strategic core
allocation that offers diversification from public markets while
enhancing investor long-term goals,” said David McNatt, executive
vice president and chief wealth solutions and strategy officer at
AssetMark.