InvestCloud, a global leader in wealth technology, has officially announced the launch of a Private Markets Account™ (PMA) solution, which is designed to facilitate a landmark transformation in the wealth management industry.
According to certain reports, this the solution will achieve by charting an easier way and more convenient way to manage alternative investments (alts) alongside traditional investments for wealth management firms across the country.
More on the same would reveal how the new solution brings forth a new, fully dedicated sleeve within the managed account structure, a sleeve which is focused on holding and managing alts for consumers. You see, the solution effectively combines public and private assets in a single managed account platform to allow for centralized management and seamless integration of alternative investments into portfolios, while simultaneously enhancing financial goal achievement, expanded portfolio diversification, and operational efficiency.
Markedly enough, the stated centralized point for holding, valuing and rebalancing alternative investments will be supported by the largest alts platform, which packs together public and private assets and the PMA Network, a connected ecosystem of asset managers, wealth managers, distributors and model creators. All in all, by leveraging its industry-leading APL managed accounts platform, InvestCloud currently supports nearly 4 million models.
“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 of Product Development at Cerulli Associates.
Talk about the new PMA solution on a slightly deeper level, we begin from its promise to manage a variety of private markets securities, including private credit, private equity, real estate, operating companies, interval funds, non-traded REITs, and BDCs.
Next up, we must mention how this PMA offering arrives on the scene bearing an ability to enable a holistic approach to asset allocation across public and private investments, as well as enjoy a single view and report of all investments in one place. Not just that, it can also facilitate seamless rebalancing through management of value flow between public and private securities and the complexities, such as subscription frequencies, redemption frequencies, as well as liquidity gates.
Another detail worth a mention here is rooted in the way InvestCloud’s latest brainchild also makes it possible for you to discover and select strategist, home office or asset manager models, and products for inclusion into your PMA with greater integration and intelligence.
Among other things, we ought to mention that InvestCloud is the first SMA provider to enable a purpose-built sleeve within the largest separately managed account (SMA) platform throughout United States, holding more than $3 trillion of assets across 10 million accounts. On top of that, as private market assets are forecast to surpass $30 trillion globally by 2030, this new PMA will only aid the company’s case moving forward.
To understand the significance of such a development, we can also take into account one survey by Cerulli Associates, a survey where it was revealed that 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.
“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,” 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 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,”
