Enabling Alternative Investments To Be Held in a Fully Dedicated Sleeve Within the Managed Account Structure Represents Seismic Shift in Wealth Management

Leading Technology, Relevant Models and Strategic Partnerships Combine to Open Access to Broader Set of Portfolio Diversification Opportunities for Consumers

InvestCloud, a global leader in wealth technology, today unveiled the Private Markets Account™ (PMA), driving a transformation in the wealth management industry through an innovative managed accounts offering that enables easy and convenient management of alternative investments (alts) alongside traditional investments for wealth management firms across the country.

The PMA^™ marks a seismic shift in wealth management through a new, fully dedicated sleeve within the managed account structure geared to holding and managing alts for consumers. This breakthrough combines public and private assets in a single managed account platform, allowing for centralized management and seamless integration of alternative investments into portfolios, while enhancing financial goal achievement, expanded portfolio diversification and operational efficiency.

This centralized point for holding, valuing and rebalancing alternative investments will be enabled by the largest platform combining public and private assets and the PMA Network, a connected ecosystem of asset managers, wealth managers, distributors and model creators. Through its industry-leading APL managed accounts platform, InvestCloud currently supports nearly 4 million models.

“The PMA will enable the wealth management industry to benefit from the private markets through a combination of our leading technology, relevant models and top-tier partnerships with key leaders in the industry,” said Jeff Yabuki, Chairman and CEO of InvestCloud. “We are focused on creating a network of connected capabilities to meet growing client demand for private market investments that allows our clients to prosper in this exciting and transformational time.”

The PMA combines industry-leading scale with original innovation to provide high-value capabilities to wealth managers to solve a long-standing industry challenge, reinforcing InvestCloud’s position as a trusted partner to the global wealth industry. With PMA, wealth managers and financial advisors can:

• Manage a variety of private markets securities including private credit, private equity, real estate, operating companies, interval funds, non-traded REITs and BDCs.
• Enable a holistic approach to asset allocation across public and private investments and have a single view and report of all investments in one place.
• Support seamless rebalancing by managing the value flow between public and private securities and the complexities such as subscription frequencies, redemption frequencies and liquidity gates.
• Discover and select strategist, home office or asset manager models and products for inclusion into their PMA with greater integration and intelligence.

InvestCloud is the first SMA provider to enable a purpose-built sleeve within the largest separately managed account (SMA) platform in the United States, holding more than $3 trillion of assets across 10 million accounts. As private market assets are forecast to surpass $30 trillion globally by 2030, this new offering positions InvestCloud at the forefront of this dynamic shift in wealth management.

According to a recent survey by Cerulli Associates, alternative investment managers report sourcing approximately 13% of assets under management (AUM) from retail channels and expect this to grow to nearly 25% of industry alternative assets in three years.

“Managers are continuing to increase their focus on retail segments and build out a range of exposures – from intermittent liquidity products that target clients down market to offerings aimed at ultra-high-net-worth investors – and they are leveraging alternative investment platforms to scale doing so,” said Daniil Shapiro, Director, Product Development, Cerulli Associates.

“The Private Markets Account and PMA Network from InvestCloud is more than an industry first. It’s the next step in our commitment to enabling a smarter financial future for wealth management,” said Yabuki.

About InvestCloud

InvestCloud, a global leader in wealth technology, aspires to enable a smarter financial future. Driving the digital transformation of the wealth management industry, the company serves a broad array of clients globally, including Wealth and Asset Managers, Wirehouses, Banks, RIAs, and Insurers. In terms of scale, the company’s clients represent more than 40 percent of the $132 trillion of total assets globally. As a leader in delivering personalization and scale across advisory programs, including unified managed accounts (UMA) and separately managed accounts (SMA), the company is committed to the success of its clients. By equipping and enabling advisors and their clients with connected technology, enhanced intelligence, and inspired experiences, InvestCloud delivers leading digital wealth management and financial planning solutions, complemented by a dynamic data warehouse, which scale across the complete wealth continuum. In 2024, InvestCloud was named a CNBC World’s Top Fintech Company, a proof point of the company’s commitment to innovation and client success. Headquartered in the United States, InvestCloud serves clients around the world.

The Cerulli Report, “U.S. Alternative Investments 2024: Projecting Retail Alternative Investments Growth.”

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