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Arman Salavitabar, CFA

Arman Salavitabar, CFA

Founding Partner, FundFront

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How Wealth Advisors Can Streamline Alternative Investments for Greater Competitiveness

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How Wealth Advisors Can Streamline Alternative Investments for Greater Competitiveness

Introduction

The alternative investment landscape is complex, often making it difficult for wealth advisors to efficiently manage and distribute these products to their clients. FundFront addresses this issue by collaborating with alternative investment managers to streamline the entire process, bridging the gap between managers and advisors, and enhancing the competitiveness of wealth advisors in their offerings. Through the development of HUBS, a centralized database of bankable alternative investment products, FundFront is revolutionizing the way wealth advisory firms interact with and distribute these investments.

The Need for Accessible Alternative Investments

Broadening Investment Horizons

Alternative investments have gained traction due to their potential for high returns and diversification benefits. These investments include private equity, hedge funds, real estate, commodities, and more. Despite their advantages, accessing these opportunities has traditionally been cumbersome and complex, often requiring complex processes and documentation.

Challenges Faced by Wealth Advisors

Wealth advisors and their clients face numerous hurdles when considering alternative investments. These include:

  • Complex Subscription Processes: Manual and time-consuming processes for subscribing to alternative investment funds.
  • Lack of Centralized Information: Difficulty in discovering and researching a wide range of alternative investment products.
  • Operational Inefficiencies: Managing multiple fund subscriptions and maintaining compliance with regulatory requirements.

FundFront’s HUBS: A Game-Changer for Wealth Advisors

What is HUBS?

HUBS is FundFront’s centralized database of bankable alternative investment products. It serves as a comprehensive repository that wealth advisors and private banks can access through an API or their own white-label HUB. This platform simplifies the discovery, research, and direct distribution of alternative investment products, providing a seamless experience for both advisors and their clients.

Key Features of HUBS

  1. Centralized Database: HUBS aggregates a diverse range of bankable alternative investment products, making it easier for advisors to find suitable opportunities for their clients.
  2. API Integration: The platform can be integrated with existing advisory systems, allowing for a seamless flow of information and streamlined operations.
  3. White-Label Solutions: Firms can customize their own HUB, maintaining their brand identity while leveraging FundFront’s technology.
  4. Product Discovery and Research: Advisors can explore and evaluate various investment products through a user-friendly interface.
  5. Direct Distribution: HUBS enables direct investment into alternative funds from client bank and brokerage accounts, removing traditional barriers.

How HUBS Works

Integration and Customization

Wealth advisory firms can integrate HUBS into their existing systems through API connectivity. This integration allows for efficient data access and management of alternative investment products. Alternatively, firms can opt for a white-label HUB, which can be tailored to their specific needs and branding requirements.

Product Listing and Selection

Advisors have the flexibility to choose from products already listed on HUBS or to select their own preferred funds. FundFront handles the rest, ensuring that the chosen products are seamlessly integrated into the HUBS platform and made bankable. This includes managing all operational and administrative tasks, such as subscription processing, compliance checks, and reporting.

Streamlined Operations

By utilizing HUBS, wealth advisory firms can significantly reduce the administrative burden associated with alternative investments. The platform automates many of the manual processes, allowing advisors to focus on providing strategic advice and growing their clients’ portfolios.

Benefits for Wealth Advisors and Their Clients

Enhanced Accessibility

HUBS bridges the gap between alternative investment managers and accredited investors. This streamlining of access allows a broader range of investors to benefit from alternative investment opportunities.

Increased Efficiency

The integration of HUBS into existing advisory systems streamlines operations, reduces manual processes, and enhances overall efficiency. Advisors can manage multiple fund subscriptions through a single platform, saving time and resources.

Comprehensive Research Tools

HUBS provides robust research tools that enable advisors to conduct in-depth analysis of various investment products. This empowers them to make informed decisions and offer tailored investment strategies to their clients.

Enhanced Client Experience

Clients benefit from a smoother investment experience, with easy access to a wide range of alternative products directly through their existing bank or brokerage accounts. The seamless integration ensures that clients can invest in alternative funds without the need for complex processes or large capital requirements.

The Future of Alternative Investments

FundFront’s HUBS platform represents a significant advancement in the accessibility and distribution of alternative investments. By centralizing and streamlining the process, HUBS not only benefits wealth advisors and their clients but also supports the growth of the alternative investment industry as a whole.

Expanding the Market

As more wealth advisory firms adopt HUBS, the market for alternative investments is expected to grow. The platform’s ability to make these products more accessible and manageable will attract a wider range of investors, further democratizing the investment landscape.

Continuous Innovation

FundFront is committed to continuous innovation, ensuring that HUBS remains a leader in the alternative investment industry. Future developments may include enhanced data analytics, expanded product offerings, and increased integration capabilities, all aimed at providing an even better experience for advisors and their clients.

Conclusion

FundFront’s HUBS platform is transforming the way alternative investments are accessed and distributed. By collaborating with alternative investment managers and leveraging first-class technology, FundFront is making these products available directly from client bank and brokerage accounts. The centralized database of bankable alternative investment products, combined with seamless integration and robust research tools, provides wealth advisors with a powerful solution for enhancing their clients’ portfolios. As the industry continues to evolve, HUBS will play a crucial role in expanding access to alternative investments and driving growth for wealth advisory firms.

For firms facing challenges in accessing and distributing alternative investments, FundFront offers bespoke solutions to meet their needs. Contact us to learn how we can help you leverage HUBS and unlock new opportunities for your clients.

Written by:

Arman Salavitabar

Arman Salavitabar

Founding Partner, FundFront

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