Introduction

Alternative investments, encompassing assets such as real estate, private equity, hedge funds, and digital assets, offer compelling opportunities for portfolio diversification and enhanced returns. However, Registered Investment Advisers face significant challenges in integrating these investments into their clients' portfolios.

This white-paper explores these pain points and demonstrates how Atlas, a custodian-backed investment platform, provides comprehensive solutions to streamline access and management of alternative investments for RIAs.

Pain Points in Alternative Investments for RIAs

While there are plenty of potential hurdles to jump as an RIA investing in Alts, the primary challenges typically fall into the following camps:

1. Limited Access to Unique Deals

RIAs often struggle to find and access high-quality alternative investment opportunities. Many platforms offer a one-size-fits-all approach, leading to a lack of differentiation and competitive edge. The most popular investment platforms are focused on pushing out as many deals as possible – not sourcing opportunities that align with your firm.

This lack of personalization also means you are likely getting access to the exact same investment opportunities as your competitors. This hinders RIAs from providing exclusive investment options to their clients. The alternative investment market is complex and often fragmented, making it difficult for advisors to access unique deals (Deloitte, 2021).

Atlas offers a custom marketplace that acts as an investment matchmaker, connecting RIAs with opportunities that align specifically with the goals of their firm. By allowing RIAs to build bespoke deal menus, Atlas ensures that advisors have access to unique, high-potential investments that differentiate their services from competitors.

2. Burdensome Compliance

Compliance with regulatory requirements is a significant pain point for RIAs managing alternative investments. The need to conduct thorough due diligence, AML/KYC checks, and ongoing monitoring can be time-consuming and resource-intensive.

Powered by a qualified trust company and custodian, Atlas takes the compliance burden off the RIA’s plate. The platform handles pre-vetted deals, AML/KYC, investment due diligence, and data privacy. This ensures that all investments meet regulatory standards, freeing up RIAs to focus on client relationships and portfolio management.

3. Integration Issues with Existing Systems

Integrating alternative investment data with existing TAMPs (Turnkey Asset Management Platforms), CRM (Client Relationship Management) software, and Portfolio Accounting Systems can be challenging.. Disparate systems often lead to inefficiencies, data silos, and errors, complicating the management of client portfolios.

Atlas is designed to work seamlessly with the most used TAMPs and CRM tools, allowing all client, asset, and account data to be centralized in one place. This integration ensures a cohesive workflow, reducing manual data entry and improving overall efficiency.

4. Complexities in Managing Diverse Assets

Managing a diverse range of alternative assets involves tracking performance, administering different account types, and handling documentation and distributions. These tasks can become overwhelming, especially without a centralized system. The complexity of managing diverse assets is well-documented, with reports highlighting the operational challenges faced by RIAs in handling multiple asset classes (McKinsey & Company, 2020).

Atlas provides a comprehensive dashboard where RIAs can manage and track the performance of investments. The platform supports a variety of account types, including trust accounts, IRAs, and 401(k)s, and allows for the collection of e-signatures, storage of investment documents, and direct distribution of investment returns to clients. This centralization simplifies the administration of diverse assets and enhances operational efficiency.

How Atlas Transforms the Experience for RIAs

These solutions, custom designed by Atlas’ team of Alternative Investing experts and RIAs, have the power to transform the experience of Alternative Investing for your firm and clients.

♦ Differentiation and Competitive Edge

Atlas enables RIAs to stand out by offering clients access to exclusive and high-potential alternative investments. This differentiation is crucial in attracting and retaining clients, as it demonstrates the RIA’s ability to provide unique and tailored investment opportunities.

♦ Enhanced Compliance and Security

By handling critical compliance functions, Atlas significantly reduces the risk and administrative burden on RIAs. The platform’s robust security measures ensure that client data and investments are protected, fostering trust and confidence among clients.

♦ Streamlined Operations and Efficiency

The seamless integration of Atlas with existing systems enhances operational efficiency. RIAs can manage all aspects of their clients' portfolios from a single platform, reducing errors and improving data accuracy. This streamlined approach allows advisors to focus more on strategic decision-making and client engagement. 

♦ Improved Client Satisfaction and Retention

Offering a curated selection of alternative investments, coupled with efficient management and robust compliance, enhances client satisfaction. Clients appreciate the diversity and quality of investment options, along with the transparency and security provided by Atlas. Satisfied clients are more likely to stay with their RIA and refer others, driving growth for the advisory firm.

♦ Scalability and Growth

Atlas’s comprehensive platform supports the scalability of RIA operations. As the firm grows and acquires more clients, the platform’s robust features and integrations ensure that managing a larger volume of assets remains efficient. This scalability is essential for RIAs looking to expand their business and increase their Assets Under Management (AUM).

Conclusion

The complexities and challenges associated with managing alternative investments can be daunting for RIAs. However, Atlas offers transformative solutions that address these pain points effectively.

By providing access to unique deals, handling compliance, integrating well with RIA reporting tools, and simplifying the management of diverse assets, Atlas empowers RIAs to focus more on delivering value to their clients.

References:
Deloitte. (2021). "The Future of Alternative Investments." Retrieved from Deloitte.
McKinsey & Company. (2020). "Managing Complexity in Financial Services." Retrieved from McKinsey.