How Private Banks Can Launch a Platform for Bankable Alternative Investments in Three Easy Steps

How Private Banks Can Launch a Platform for Bankable Alternative Investments in Three Easy Steps

Offering alternative investments is an effective way for private banks to diversify client portfolios and enhance value. By following three straightforward steps, private banks can establish a platform for bankable alternative investments. This guide will outline the process, leveraging FundFront’s expertise to ensure a seamless and compliant integration.

Step 1: Select the Managers and Funds You Want to Offer

Identifying High-Quality Managers and Funds

The first step in creating a successful alternative investment platform is to select the right managers and funds. Whether private banks choose to work with established managers, emerging managers, or a mix of both, the focus should be on identifying high-quality, reputable managers with a proven track record of strong performance. This involves conducting thorough due diligence on potential managers and their investment strategies. Key factors to consider include:

• Performance History: Analyze historical returns and risk-adjusted performance metrics.
• Investment Strategy: Ensure the strategies align with the bank’s investment philosophy and client needs.
• Manager Reputation: Evaluate the managers’ credibility and experience in the industry.

Diversification and Risk Management

To offer a well-rounded platform, it is important to include a diverse range of alternative investment strategies. This helps mitigate risk and caters to different client preferences. Types of alternative investments to consider include:

• Hedge Funds: For more liquid offerings.
• Private Equity: For long-term capital growth.
• Real Assets: Including real estate and commodities for inflation protection.
• Private Credit: Providing income generation and diversification benefits with tailored risk-return profiles.

Client Alignment

Understanding your client base and their investment goals is paramount. Tailor the selection of funds to match the risk tolerance, investment horizon, and return expectations of your clients. Engage with clients to gather insights and preferences, ensuring the selected funds meet their needs.

Step 2: Collaborate with FundFront to Make Products Bankable

The FundFront Advantage

Once the managers and funds have been selected, the next step is to make these products bankable. FundFront specializes in transforming alternative investment products into bankable assets, ensuring they meet the regulatory and operational standards required for inclusion in a private bank’s platform.

Streamlined Onboarding Process

FundFront works closely with the selected managers to facilitate a smooth onboarding process. This includes:

• Regulatory Compliance: Ensuring all products comply with local and international regulatory requirements.
• Operational Setup: Establishing the necessary operational infrastructure to support the products.
• Due Diligence and Documentation: Conducting thorough due diligence and compiling all necessary documentation for bankable status.

Technology Integration with HUBS

FundFront uses sophisticated technology to integrate bankable products into the front-end platforms and databases we maintain, called HUBS. This integration ensures that performance reporting and data feed seamlessly into the advisory systems, providing all pertinent information to advisors and investors. Our technology supports:

• Automated Data Feeds: Ensuring accurate and real-time data availability.
• Performance Reporting: Providing detailed performance metrics to advisors and clients.
• Compliance and Documentation Management: Keeping all necessary documents and compliance records up-to-date.

Enhancing Transparency and Accessibility

One of the key benefits of making products bankable is enhanced transparency and accessibility. FundFront ensures that all products come with comprehensive documentation, regular performance reports, and clear fee structures. This transparency builds trust with clients and advisors, making it easier to promote and manage these investments.

Step 3: Utilize FundFront’s White-Labeled Investment Platform for Direct Client Access

Introducing the White-Labeled Investment Platform

The final step involves leveraging FundFront’s white-labeled investment platform, branded for each private bank we work with. This platform is designed to provide advisors and their clients with direct access to a wide range of alternative investment products. Key features of the platform include:

• User-Friendly Interface: Intuitive and easy-to-navigate, making it simple for advisors and clients to explore investment options.
• Comprehensive Product Information: Detailed profiles for each investment product, including performance data, risk metrics, and investment strategies.
• Seamless Integration: The platform integrates with existing advisory systems, allowing clients to access alternative investments directly through their current accounts.

Advisor and Client Engagement

The platform empowers advisors by providing them with the tools and information needed to effectively engage with clients about alternative investments. This includes:

• Customized Portfolios: Advisors can create tailored portfolios based on individual client needs and preferences.
• Performance Tracking: Real-time performance tracking and reporting, helping advisors keep clients informed and engaged.
• Educational Resources: Access to a wealth of educational materials and research to help clients understand the benefits and risks of alternative investments.

Enhancing Client Experience

By offering a dedicated platform for alternative investments, private banks can significantly enhance the client experience. Clients benefit from:

• Direct Access: Easy access to a diverse range of alternative investments through their existing accounts.
• Transparency: Clear and detailed information about each investment product, fostering informed decision-making.
• Efficiency: Streamlined processes for subscribing to and managing alternative investments, reducing administrative burdens.

Conclusion: Transforming Private Banking with Alternative Investments

Incorporating alternative investments into a private bank’s offerings is a powerful way to enhance portfolio diversification and meet the evolving needs of clients. By following these three easy steps—selecting the right managers and funds, collaborating with FundFront to make products bankable, and utilizing FundFront’s white-labeled investment platform—private banks can seamlessly integrate these high-value products into their investment platforms. This approach not only simplifies the process but also ensures compliance, transparency, and accessibility, ultimately driving client satisfaction and business growth.

For private banks seeking to expand their alternative investment offerings, FundFront provides the expertise and solutions needed to succeed. Contact FundFront today to learn more about how we can help you create a robust platform for bankable alternative investments.