Print this article

CoInvestor Claims To Shake Up Alternative Investments Access

Tom Burroughes

7 June 2018

A regular theme in the alternative investment space is how to make the various asset classes more accessible as even high net worth individuals can struggle to get a seat at the table.

Putting clients’ money into private equity, venture capital, hedge funds, commodities and property – to name a few – can be tricky for financial advisors without tools at their disposal. All too often, therefore, the line of least resistance is taken and money does not enter the arena.

But if the investor is willing to accept the lower liquidity that some alternative asset classes contain so as to earn the premium and diversification benefits, missing out seems a costly mistake. And one that the UK-based firm , said it was breaking new ground by widening access to private equity. It gives access to major European private equity managers with a minimum stake of €150,000 ($184,911). In October 2017 OppenheimerFunds and The Carlyle Group formed a joint venture to offer high net worth investors and advisors private credit opportunities.

In the UK, meanwhile, regulators’ tight focus on investment suitability means availability of alternative assets, even if advisors have access and knowledge about them, can be difficult. Even so, with tax-efficient structures such as Enterprise Investment Schemes, some degree of access is open to mass-affluent and HNW investors at certain levels. Technology is helping to smooth this process.

What advisors want
“This increase in demand has created a business need amongst advisors, fund managers and investors, for a much more efficient environment in terms of allocation,” Owen continued.

Owen said his firm aims to be “the leading” software-as-a-service for the management for alternative investments, offering cloud-based software to advisors.

And Owen eschews the rather clichéd embrace of “disruption” so often parroted by today’s providers of technology. What he offers is not disruption but a set of solutions, he said.

“Our solutions are not disruptive but instead designed to support and integrate to existing operations and systems. We understand the need for businesses to maintain tight control over their security and client data when operating in a highly regulated environment,” Owen said.