All posts by Margaret Armour

CNL Financial Group Partners with iCapital Network® to Enhance Access to Alternative Investments

CNL Financial Group Partners with iCapital Network® to Enhance Access to Alternative Investments

July 12, 2021 | CNL Financial Group

     

(Orlando, Fla.) July 12, 2021 — CNL Financial Group, a leading provider of alternative investments, and iCapital Network1, the leading global financial technology platform driving access and efficiency in alternative investing for the asset and wealth management industries, have formed a partnership in which iCapital will provide investment diligence and a customized technology platform to support CNL’s investments’ distribution and servicing capabilities. CNL Strategic Capital will be available on the platform.

iCapital’s technology will provide CNL with a seamless end-to-end alternative investing solution to support financial professionals and their clients by automating subscriptions, administration, document management and reporting. This will help financial professionals ease operational burdens, improve the user experience, and empower them to provide the highest level of service to their clients.

“CNL has a long history of helping financial professionals meet the needs of their clients, both through our innovative alternative investment offerings, but also with the tools and materials we provide,” said Chirag Bhavsar, co-CEO of CNL Financial Group. “This partnership with iCapital is the logical next step in continuing to support and empower financial professionals to provide their clients with the best investor experience possible.”

“Financial professionals are actively seeking alternative investments for client portfolios, especially amid the current market and economic environment,” said Dan Vene, Co-Founder and Managing Partner, Head of Client Solutions at iCapital Network. “Integration and automation are key when it comes to easing this investment process for financial professionals and their clients. We are thrilled to partner with CNL on a shared mission to accommodate this demand and allow financial professionals to seamlessly incorporate CNL’s products into their investment menu.”

About CNL Financial Group

CNL Financial Group (CNL) is a private investment management firm providing real estate and alternative investments. Since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $34 billion in assets. CNL is headquartered in Orlando, Florida. For more information, visit cnl.com.
1Institutional Capital Network, Inc., and its affiliates (together, “iCapital Network” or “iCapital”)

About iCapital Network

Founded in 2013 in NYC, iCapital Network is the leading global financial technology company powering the world’s alternative investment marketplace. It has transformed the way the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions. Wealth management firms use iCapital’s solutions to provide clients with quality funds at lower minimums and simplified digital workflows. Asset managers and banks leverage iCapital’s technology to streamline and scale their private investments operational infrastructure. Additionally, the iCapital ‘flagship’ platform offers financial advisors and their high-net-worth clients access to a curated menu of private equity, private credit, hedge funds, and other alternative investments to help meet their investing needs for return and diversification. iCapital’s research and diligence team offers robust analysis alongside the firm’s extensive suite of advisor education, compliance, portfolio management, and portfolio analytics tools and services. iCapital was recognized on the Forbes FinTech 50 list in 2018, 2019, 2020, and 2021, the Forbes America’s Best Startup Employers in 2021, and MMI/Barron’s Industry Awards as Solutions Provider of the Year in 2020. As of May 31, 2021, iCapital Network has approximately 450 employees and services $75 billion in global client assets across more than 750 funds. Headquartered in NYC, it also has offices in Zurich, London, Lisbon, and Hong Kong.

For additional information, please visit iCapital Network’s website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork

See disclosures here.

CoastalOne Launches Digital Alternative Investments Platform, Altigo, Powered by WealthForge

CoastalOne Launches Digital Alternative Investments Platform, Altigo, Powered by WealthForge

New platform designed to improve the alternative investment experience for Coastal’s registered representatives and their clients

June 29, 2021 | CoastalOne

WILMINGTON, DE (June 29, 2021) – CoastalOne, an independent broker-dealer (Coastal Equities) and registered investment advisor (Coastal Investment Advisors) based in Wilmington, Delaware, recently rolled out access to alternative investments for all of its 115 advisors and registered representatives, powered by Altigo, an electronic order entry and subscription processing platform from WealthForge.

Alternative investment transactions continue to be lengthy, manual, and paper-laden, leading to NIGO errors, security risks, and operational inefficiencies that drive up costs and discourage wealth managers and investors from considering alternative investments. Altigo is designed to improve the alternative investment experience for CoastalOne’s registered representatives and their clients by automating the paperwork process and integrating the subscription process into an advisory firm’s existing operational workflow.

“Electronic processing is a primary focus of the CoastalOne technology platform and we’re happy to partner with Altigo and WealthForge in establishing a seamless system for our financial professionals and their clients,” said Charles Reiling, President and CEO of CoastalOne.

“Bill Robbins, Mat Dellorso, Megan Bosch, and the rest of the WealthForge team have created a great offering and we’re pleased to offer it to our colleagues here at Coastal.”

Altigo provides an intuitive front-end for reps to quickly initiate a subscription through an online intelligent interview and then send to the investor for wet or electronic signature. It fits seamlessly into existing back-office review processes, with no integrations, IT resources, or change management required. On top of increasing productivity and transparency, Altigo accelerates the investment cycle time with investments completed in 2 days on average instead of 3 weeks, safeguards sensitive investor data and maintains data security standards backed by a SOC 2, Type II report, and helps improve client relationships by providing a
fast and easy way to invest in alternatives.

“We are looking forward to Altigo making life easier at the supervision level,” said Francis Skinner, Chief Legal and Compliance Officer of CoastalOne. “The security of straight-through processing and reduction of submissions that are not in good order will greatly reduce regulatory risk and should free up more time for our supervisors to supervise rather than quality control paperwork.”

The Altigo platform is now available to all Coastal financial professionals. Both commission and fee-based products, including real estate, private placements, hedge funds, BDC-type products, and Opportunity Zones, are able to be electronically processed on the platform.
Financial professionals interested in learning more can do so at www.Coastal-One.com.

About CoastalOne

CoastalOne is located in Wilmington, Delaware, including Coastal Equities, Inc. (CEI), a FINRA registered independent broker-dealer; Coastal Investment Advisors, Inc. (CIA), a SEC Registered Investment Advisor; and Coastal Insurance Services, a division comprised of several insurance agencies providing access to a number of fixed and variable personal lines and business insurance. The goal of CoastalOne is to become the firm of choice for independent financial professionals and their clients, and their mission is to build life-long client relationships from a foundation of personal service, trust, and collaboration. Learn more at www.Coastal-One.com.

About Altigo by WealthForge

Altigo is an electronic processing platform from WealthForge designed to improve the alternative investment experience for registered investment advisors, registered representatives, broker-dealers, asset managers, and their investors by increasing productivity and transparency, accelerating investment cycle time, maintaining data security, and improving client relationships. Altigo provides an intuitive front-end for advisors and fits seamlessly into existing back-office review processes, with no integrations, IT resources, or change management required. Learn more at www.WealthForge.com/Altigo.

Anastasia Amoroso Joins iCapital Network® as Chief Investment Strategist

Anastasia Amoroso Joins iCapital Network® as Chief Investment Strategist

Renowned global investment strategist provides expert insight on private market investing opportunities for advisors and their high-net-worth clients
 
Brings valuable insight about the complexities of alternative investments and reaffirms iCapital’s commitment to providing educational resources to the wealth management industry

June 28, 2021 | iCapital Network

NEW YORK — (BUSINESS WIRE) — iCapital Network1, the leading global financial technology platform driving access and efficiency in alternative investing for the asset and wealth management industries, today announced the appointment of Anastasia Amoroso as the firm’s Chief Investment Strategist.

In this role, Ms. Amoroso will present iCapital’s perspective on the evolving dynamics of the global investing marketplace, analyze public and private market investing opportunities; provide insight regarding various alternative investment strategies; and issue near- and longer-term outlooks particularly for hedge funds and private equity. She will report to Eileen Duff, Managing Partner and Head of Fund Management and Research, and work closely with Lawrence Calcano, Chairman and CEO and the entire senior team.

Ms. Amoroso joins iCapital from J.P. Morgan, where she spent eight years, most recently as Head of Thematic Strategy in the firm’s Private Bank. In that position, Ms. Amoroso set investment strategy and developed tactical global macro recommendations and thematic investment ideas for highly sophisticated family offices and institutional wealth management clients. Throughout her career, she has built a reputation as an insightful analyst and thoughtful strategist spanning broad investing categories including alternatives. She appears frequently as a speaker at high profile industry events and in the financial media.

“Anastasia is a leading voice providing guidance for investors worldwide, bringing clarity and insight into the complexities of world financial markets, including invaluable guidance on navigating the private markets,” said Mr. Calcano. “Her addition to the team further reinforces iCapital’s expertise in alternative investments and our commitment to the ongoing education of advisors and their clients.”

“iCapital has a richly deserved reputation for transforming every aspect of the global alternatives investing space over the past few years. I’m thrilled to be joining the team at this exciting time in the company’s history,” said Ms. Amoroso.

Prior to J.P. Morgan, Ms. Amoroso spent seven years with Merrill Lynch, and she began her career as a research assistant at the Los Alamos National Laboratory.

Ms. Amoroso will be based out of iCapital’s New York headquarters.

About iCapital Network

Founded in 2013 in NYC, iCapital Network is the leading global financial technology company powering the world’s alternative investment marketplace. It has transformed the way the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions. Wealth management firms use iCapital’s solutions to provide clients with quality funds at lower minimums and simplified digital workflows. Asset managers and banks leverage iCapital’s technology to streamline and scale their private investments operational infrastructure. Additionally, the iCapital ‘flagship’ platform offers financial advisors and their high-net-worth clients access to a curated menu of private equity, private credit, hedge funds, and other alternative investments to help meet their investing needs for return and diversification. iCapital’s research and diligence team offers robust analysis alongside the firm’s extensive suite of advisor education, compliance, portfolio management, and portfolio analytics tools and services. iCapital was recognized on the Forbes FinTech 50 list in 2018, 2019, 2020 and 2021, the Forbes America’s Best Startup Employers in 2021, and MMI/Barron’s Industry Awards as Solutions Provider of the Year in 2020. As of May 31, 2021, iCapital Network has approximately 450 employees and services $75 billion in global client assets across more than 750 funds. Headquartered in NYC, it also has offices in Zurich, London, Lisbon, and Hong Kong.

For additional information, please visit iCapital Network’s website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork

For iCapital media inquiries, please contact:

Emma Murphy / Morgan Miller
+ 1 347-968-6800 / + 1 919-602-2806

(1) Institutional Capital Network, Inc., and its affiliates (together, “iCapital Network” or “iCapital”)

Fraud Risks for Alternative Fund Sponsors and How to Reduce Your Exposure

Fraud Risks for Alternative Fund Sponsors and How to Reduce Your Exposure

June 14, 2021 | James Sprow | Blue Vault 

The following is derived from the June 9, 2021 Blue Vault Webinar featuring:

• Amy Small – SVP, Director of Institutional Custody, UMB Bank

• Anthony Rogers – SVP, Director of Fraud Operations, UMB Bank

• Chelsea Cook – VP, Enterprise Fraud Program Specialist, UMB Bank

Introduction

Fraud is an intentional or deliberate act to deprive another of property or money by deception. UMB’s main goal:  Protect the assets of our customers at the bank. (Fraud prevention is not viewed solely as a compliance exercise.)

Click here to watch this webinar on-demand!

Four Pillars of Fraud Prevention Program

• Fraud Prevention – activities and controls designed to limit the ability of fraud to occur in the first place

• Fraud Detection- dedicated monitoring efforts, identifying suspicious and anomalous behavior

• Fraud Response – once a fraud event has occurred, response focuses on what happens next (investigation, root causes, etc.)

• Fraud Recovery – action engaged to locate and recover stolen funds on behalf of the customer and/or the bank if possible

Education and training – fraud awareness programs provide a strong fraud prevention lift by engaging employees and customers in recognizing and reducing fraud risk.

Types of Fraud Risks

Identity Theft

ID Fraud has two main forms:

    • Fraudulent Applications – This involves attempts to use fraudulent identity information to obtain a new account

    • Account Takeover – This involves attempts to fraudulently gain access to existing accounts

Mitigation

• Data – Comparing info on application to various valid data sources

• Risk models – use of tools that score transaction or application, also score risky devices

• ‘Negative lists’ – Credit bureau or other industry alerts of known fraud

• Multi-factor authentication – at least two of the following:

› Something you know (knowledge factor) – password

› Something you have (possession factor) – phone or key fob

› Something you are (inherence factor) – voice or fingerprint

Card Fraud

• Counterfeit – fake cards with real account information stolen from victims

• Lost / Stolen – criminals know the clock is ticking until lost/stolen card is reported missing

• Non-Receipt – interception of a card before victim even has possession

• Card Not Present – criminals steal basic card information and use it to buy goods and services at e-commerce, phone and mail-order merchants

• Fraud Prevention Tips:

› Online banking tools to monitor account

› Text alerts

› Review statements

› Notify bank asap of card fraud or stolen/lost card

› Safe storage and use of cards

› Addressing Card Fraud – Strategy Development

              • Fraud strategy development is a fluid process with a general process:

› Identify fraud trends through reporting, fraud claims, overall analysis

› Analysis performed on the identified trends

› Mitigation strategies developed and tested

› Monitor effectiveness

› Make adjustments

Check Fraud

• In 2018, check fraud accounted for 47% or $1.3 billion of industry deposit account fraud losses

• Counterfeits, forgeries, and check alterations remain the most common check fraud types

• Scam deposit fraud also remains popular year over year

• Fraud Prevention Tips:

› Online banking tools to monitor account, text alerts

› Review statements

› Notify bank asap

› Positive Pay

› Paper Draft Block

› Dual control for reconciling

› Awareness on phishing and social engineering

Wire Fraud

• Wire fraud is the use of international wire networks to perpetrate fraud

• Sending a wire is like sending cash – there is no way to recall a wire once it has been sent, and chances of recovery are very low

• According to the SWIFT wire network, banks using SWIFT sent over 35 million transactions per day in 2020

ACH Fraud

• ACH Fraud is the use of Automated Clearing House network to perpetrate fraud

• All that is needed is the ABA routing number and an account number

• According to NACHA over $23 billion in ACH payments were made in 2018

• 24 hour window to return a business ACH/60 days for a personal account

• Fraud Prevention Tips:

› Use online banking tools to monitor an account

› Review statements

› ACH filters

› Awareness on phishing and social engineering

What is Social Engineering?

Social engineering is an in-person or online attack used to trick individuals into breaking normal security measures or routines.

It is our nature to trust and want to help. Cybercriminals use psychology and human nature to try to get you to bypass important security controls.

The attacker will attempt to:

• Deceive by presenting themselves as someone that can and should be trusted

• Communicate in person or through an online private message that appears harmless or even useful

• Prey on your emotions to encourage you to help them get through security protocols

What is Phishing?

Phishing scams are the most common types of social engineering attacks

These scams direct you to a fake website or install malware to allow cybercriminals to steal and use your credentials.  Once they have any authority you do, they can set up fraudulent wire transfers to steal customer funds or move secure files outside the controlled network.

They seek to obtain confidential information:

• System credentials

• Account information

• Social Security Numbers (SSN)

They use:

• Shortened URLs

• Sites that appear legitimate

They attempt to:

• URL link redirect you to a page to try to harvest your credentials

• Ask you to break routine and transfer funds outside normal protocol

• Introduce an executable malware file (.exe) through an email attachment that will do damage deceptively behind your workstation

Best Practices to Detect Phishing

•  Always look at the sender’s email address.  Think it’s from someone you know? An added letter or number in the address is a sign that it could be a compromised email account

•  Hover over the link with your mouse.  This will help make sure it is a valid link with destination name in the address.

• Never reply to an email unless you know for certain it’s valid.  Don’t try to find a reason to validate why someone is emailing you – it’s ok to be suspicious!

• Is the email general and not personalized?  Does it contain words like “Hello” instead of your name?  Watch for tone, poor spelling, and generic sign offs like “Regards” or “Thanks” with no name

What is Business Email Compromise?

A business email compromise (BEC) is a phishing scam that targets businesses and financial institutions to commit wire fraud.

How does it happen?

• A fraudster identifies himself as a high-level executive (CFO, CEO, CTO, etc.), lawyer, vendor, customer, or other type of representative

• He or she claims to be handling confidential or time-sensitive matters and initiate an urgent wire transfer to an account that they control

• If you don’t follow normal security controls to confirm the request using customer data on file funds lost through BEC can be permanently lost, leading to a loss of business, reputational damage, corrective action, etc.

Per the FBI, BEC is now the biggest cause of cybercrime financial losses for US organizations: $1.7 billion in reported losses in 2019

BEC is the fraud sweet spot – social engineering mixed with phishing that results in a big payoff

• Payment instruction changes

• Urgent wire requests

• Urgent requests from senior leaders or CEOs

Fraud Mitigation Tools / Solutions

•  Risk based & proactive monitoring – anticipating trends, early detection on emerging trends

• Pattern recognition – neural networks and machine learning (How does the fraudster’s behavior differ from legit transactions?)

• ‘Time is Money’ – fraud needs to be stopped in relevant time

• Industry solutions – many vendors & associations, from sophisticated AI machines to “snake oil”

• Collaboration among banks and other parties – consortium data, forums & conferences

• Law enforcement engagement

• Investment in technology, people and training

 

Click here to watch this webinar on-demand!

About UMB:

UMB Financial Corporation (Nasdaq: UMBF) is a financial services company headquartered in Kansas City, Missouri. UMB offers commercial banking, which includes comprehensive deposit, lending and investment services, personal banking, which includes wealth management and financial planning services, and institutional banking, which includes asset servicing, corporate trust solutions, investment banking, and healthcare services. UMB operates branches throughout Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas, and serves business and institutional clients nationwide. For more information, visit UMB.com, UMB Blog, UMB Facebook and UMB LinkedIn, or follow us on Twitter at @UMBBank. For information about UMB’s operations, approach and relief measures during the COVID-19 pandemic, please visit https://more.umb.com/covid-info/.

The top 5 challenges of investor onboarding and the need for digitization

The top 5 challenges of investor onboarding and the need for digitization

May 19, 2021 | Jonathan Marr, Sr. | SS&C

Investor onboarding in today’s environment is crucial; organizations are choosing to digitize their investor onboarding experience to create a solid, long-term, mutually profitable relationship with investors.

Today, if an investor wants to invest in a fund, they have to manually complete a subscription document. These documents are usually 50-80 pages long, full of legal language, with complex forms embedded within them. Investors are then left to decipher the forms to complete them correctly. 

SS&C’s analysis finds that only about 20%of subscription documents are completed successfully on the first pass using traditional manual methods. This low success rate can be traced to five key challenges or obstacles that are inherent in the process:

The common challenges to increasing the life cycle of investor onboarding are:

• Document complexity—Increases time to complete and chances of mistakes.
• Data completeness—Slows down process, requires back and forth.
• AML collection—Slows down process, increases back and forth requests.
• Signature collection—Entity investors with multiple authorized signatories can delay processing.
• Process transparency—Monitor investor progress without manual follow-ups.

Read Full Blog Post

Inland Investments Selects AIX Platform to Power End-to-End Digital Processing of Alternative Investment Offerings

Inland Investments Selects AIX Platform to Power End-to-End Digital Processing of Alternative Investment Offerings

Alternative investments platform provides seamless point-and-click experience for Inland Investments’ wealth management partners

May 10, 2021

Philadelphia, PA, May 10, 2021 – Alternative Investment Exchange (AIX), the platform making it easy to buy, own, and sell alternative investments, announced that Inland Real Estate Investment Corporation (“Inland Investments”) has selected the AIX platform as one of its electronic platform providers to onboard new funds and streamline its alternative investment processes. Powered by the AIX platform, Inland Investments’ new investing portal offers a more seamless experience to its independent broker-dealer and advisor partners.

As a sponsor of alternative public and private real estate securities, Inland Investments provides opportunities for individuals to invest in a variety of real estate investment solutions. Inland Investments and its affiliates are involved in almost every aspect of commercial real estate and have been proponents of innovation in the alternatives industry. Since inception, it has sponsored 784 real estate investment programs serving more than 490,000 investors across all major commercial real estate sectors.

“Inland Investments remains committed to advancing the client experience for our diverse product offerings. The industry is improving investment processing efficiencies and minimizing tedious paperwork, high NIGO rates, and compliance delays,” explained Phil Graham, EVP Strategic Relations at Inland Securities Corporation, dealer manager for Inland Investments. “We believe AIX and Inland Investments share the same objective – to provide an exceptional end-to-end digital investment experience.”

The AIX platform is an easy-to-use alternative investments system that enables an entirely digital investing experience. By removing the tediousness tied to stacks of paperwork, manual data entry, and reconciliation (and hours wasted on re-keying data), the historical objections across the alternative investing ecosystem have been solved. In addition to addressing inefficiency, AIX helps to de-risk the alternative investing process by incorporating real-time validation of requirements such as AI Insight training status, concentration limits, and state suitability.

“Inland Investments’ deep expertise in alternative investment operations and the flexibility of AIX’s technology platform make it possible to elevate the wealth manager’s investing experience to new levels,” said Brad West, COO of AIX. “We are excited to partner with Inland Investments to offer intuitive, streamlined subscription solutions for its diverse product offerings, which include real estate investment trusts, 1031 exchanges, opportunity zones, and private placements.”

About AIX

Alternative Investment Exchange (AIX) is an end-to-end digital platform purpose-built to improve the processes related to buying, owning, and selling alternative investments. AIX’s technology reduces friction, mitigates risk, and creates value across all alternative investing stakeholder groups – wealth managers, asset managers, custodians, transfer agents, and fund administrators. By evolving beyond documents to make data the connective tissue between alternative investment players, AIX makes it easier to conduct business and accelerate industry growth. For more information, please visit aixplatform.com or LinkedIn: linkedin.com/company/aix-alternative-investment-exchange.

Media Contact:
Mark Tordik
Broadpath
+1 215-644-6503
mtordik@broadpathpr.com

 

Altigo Rolls Out Product Focus Group Effort to Optimize Platform for Users

Altigo Rolls Out Product Focus Group Effort to Optimize Platform for Users

May 6, 2021

WealthForge announced today that Altigo, their electronic order entry and subscription processing platform for alternative investments, is rolling out a series of focus groups designed to capture user feedback to help prioritize feature set development and optimize the platform. A select group of RIA, BD and sponsor users will be invited to participate and help shape the future of the product.

The first session with RIA users kicked off last week with Box Financial, CAVRIA Advisors, Durbin Bennett Wealth Advisors, Insight Investment Advisers, MJP Wealth Advisors and Sera Capital among the initial participants. The Altigo product team outlined upcoming enhancements on the roadmap and gathered real-time feedback around what matters most to RIA users. Features including expanded sort, filter and comparison tools, 3rd party due diligence reports and other integrations, and non-subscription workflows like redemptions, PPM distribution and tracking, and change of address were discussed. The recurring theme emerging from the session is that time savings is key and any features that can abbreviate the investment process are highly beneficial.

“I’m already seeing substantial time and cost savings using the features currently available on the Altigo platform,” said Josh Wright, President at Insight Investment Advisers. “I’m thrilled to be part of this ongoing focus group to help make Altigo even more valuable to advisors and the alts community as a whole.”

The Altigo product team will continue focus group sessions with broker-dealer and sponsor clients in the coming weeks. “It’s vital that we incorporate feedback from all users of the platform to build a best-in-class solution,” said Mat Dellorso, Co-founder at WealthForge. “Our goal is to develop the industry standard platform for investing in alternatives. Our growing community of users is key to deciding what that standard should be.”

If you would like to be considered to participate on the Altigo product focus group, please contact your client success manager or email us at clientsuccess@altigo.io.