Category Archives: WealthForge

Altigo Adds 46 New Sponsors to the Platform in 2022

Altigo Adds 46 New Sponsors to the Platform in 2022

November 9, 2022 | Altigo

Altigo continues to add well-known asset managers to its industry-leading electronic subscription platform for alternative investments. In fact, 2022 has seen the most sponsors sign with Altigo in a single year—46 to date—with more waiting in the wings in the remainder of Q4. In total, there are 113 sponsors active on Altigo representing nearly 300 offerings currently available on the platform.

This year’s bumper crop of sponsor signings has also further diversified the pool of offering options available on Altigo, pushing beyond real estate and expanding into energy, private equity, ’40 Act funds, debt funds, and limited partnerships.

Real estate investments are still in demand, however. In Q3 alone, several prominent DST sponsors on the platform each had more than 25% of their transaction volume come through Altigo. But that‘s just scratching the surface of Altigo’s best quarter of 2022, thanks to the platform’s growing roster of users.

Notable asset managers signed up with Altigo this year include Ashford Securities, Empire, ExchangeRight, MDS Energy Development, Megatel Capital Investment, Net Lease Capital Advisors, Peachtree, PREP Securities, Shopoff Realty Investments, StratCap, and Time Equities.

The 200+ transactional broker-dealer and RIA firms using the platform benefit from engaging with an ever-expanding pool of sponsors and are quickly discovering how Altigo makes investing in alts easy for all parties involved. And after hearing about Altigo from their distribution partners, sponsors are realizing the benefits of investments being completed quickly and correctly the first time, allowing them to close out offerings faster.

Altigo makes the entire investment process seamless, including ease of integration with transfer agents and custodians. And clients on the platform often recommend updates to Altigo’s product roadmap, resulting in new functionality that can benefit all participants involved in a transaction. With new features being rolled out every month, Altigo will continue to offer even more value to asset managers.

Visit the brand new Altigo website at www.altigo.com to learn more.

Inside the V(ALT), with WealthForge

Inside the V(ALT), with WealthForge

Bill Robbins (CEO, WealthForge) discusses Altigo’s recent milestone, lessons learned, and technology holdouts in this episode of  Inside the V(ALT).

This podcast is not intended for the general public; it is intended for viewers who are financial professionals that are either registered with FINRA broker dealers or are registered investment advisers. 

Clearing Up Misconceptions about Alts

Clearing Up Misconceptions about Alts

August 12, 2022 | John Rickman | WealthForge

Have you ever wondered why alternative investments are called “alternative” investments? Industry insiders know that “alts” are essentially anything other than stocks, bonds, or cash. They can include real estate, hedge funds, private equity, and even fine art and antiques.

Unfortunately, broadly referring to these types of investments as “alternative” creates a visceral reaction among some wealth managers and their clients that allocating to alternatives exposes them to the same risks associated with cryptocurrency, Richard Hillson of Hillson Consulting says. “That’s like saying I had a bad experience with a stock once, and I’ll never pick a stock again,” he adds.

The alternative investment space is vast and varied, but includes tried-and-true asset classes such as real estate that have predictable returns and less market volatility.

Do your clients have questions about alts? Check out the full video, presented by Alta Trust and Altigo.

Watch Video

Altigo Surpasses $2B in Transactions

Altigo Surpasses $2B in Transactions

July 26, 2022 | WealthForge

Only seven months after hitting the $1 billion mark, Altigo has crossed $2 billion in alternative investments completed on the platform, representing more than 8,600 alts subscriptions since its debut in mid-2019. Altigo’s growth and adoption continues with its adviser user base now topping 185 transactional broker-dealer and RIA firms, with over 200 alternative investment offerings currently “live” and accepting investments on Altigo.

Today, Altigo supports a range of alternative investment offerings from nearly 100 sponsors, including non-listed REITs, qualified opportunity zone funds, non-listed preferreds, interval funds, direct private placements, DSTs, private equity funds, and non-listed BDCs. Nine out of the top 10 DST sponsors, including Inland Private Capital, Capital Square 1031, Cantor Fitzgerald, ExchangeRight, and Passco have seen the speed and efficiency that Altigo provides and have contributed to its growth. 

“Cantor Fitzgerald was the very first sponsor to sign up with Altigo when it launched in 2019 as we shared a common vision for using technology to make it easier for advisors to do alts business and to improve the overall experience for the end investor,” said Jay Frank, President at Cantor Fitzgerald Asset Management. “We are thrilled with the progress that the entire industry has made by embracing Altigo as a solution that makes alts investments incredibly easy.”

Altigo’s success and high rate of both sponsor and advisor adoption is not only due to meaningful results such as reduced NIGO (not-in-good-order) paperwork error rates (to as low as 4%), but also to lightning-fast order entry. A key benefit that sets Altigo apart from other platforms is the team behind it and its commitment to client experience. IBN Financial Services, a broker-dealer recently partnered with the platform, spoke about the onboarding experience:

“These guys have been absolutely great,” said Rick Carlesco, CEO at IBN. “They went to our conference, they talked to our reps, they did individual training—they walked us through the entire process. Change from the old-fashioned way of submitting paperwork can be difficult but the continued training, communication and support from the team truly sets Altigo and the team apart.”

Wealth managers have seen Altigo streamline investment processing and compliance by providing access to all firm-approved alternative offerings in a single white-labeled portal. Altigo also includes custom firm forms and custodian partners’ letters of investment authorization within the workflow. The platform integrates with popular CRM and compliance and risk management tools as well.

“Before I started using Altigo, I had to painstakingly populate each subscription document and depending on the number of alternatives involved in the order, it could take hours to fill in all of the necessary forms,” said Chloe Guinan, Operations Associate at Claraphi. “With Altigo, I simply choose the asset that the client wishes to invest in, select the advisor, enter the client information one time, and the system pre-populates all of the necessary documents for me. Along with the subscription document, the required custodial documents are included in the bundle that can be sent to the client for electronic signature directly through Altigo’s system.”

Altigo will be rolling out even more features and functionality in the second half of the year, helping to expand its value to the market.

“We are pleased by the rate of adoption from wealth management firms and fund managers with our second billion dollars coming only seven months after our first,” said Mat Dellorso, Co-founder at Altigo. “It’s a testament to our team, the desire for portfolio diversifying investments in the market, and the need for transformative technology to make the process easier for all to do more business. This speed of adoption on Altigo enables us to expand across more and more firms in the alternative investment market, bringing greater efficiency to the industry.”

 

The Expanding Universe of Business Development Companies and their Real-World Investment Impacts

The Expanding Universe of Business Development Companies and their Real-World Investment Impacts

July 20, 2022 | John Rickman | WealthForge

A recent blog post from WealthForge:

Tax-advantaged, non-traded business development companies (BDCs) are alternative investment funds designed to boost the economy while generating a steady stream of income for both retail and accredited investors in the fund.
 
BACKGROUND AND OUTLOOK

BDCs are closed-end investment funds that help finance small, developing, and financially troubled U.S. firms. BDCs pool money from multiple investors and invest that money in business debt and equity. They are also required to provide subject matter expertise to the companies they invest in.

BDCs must invest at least 70% of their total assets in so-called “eligible portfolio companies,” which are valued at less than $250 million and typically lack conventional means of raising money or inviting analyst interest to boost their profiles.

Created by Congress in 1980 as part of amendments to the Investment Company Act of 1940, BDCs can be publicly or privately traded. Those that file publicly may elect to come under the auspices of the Act, meaning, among other things, that they agree to Securities and Exchange Commission (SEC) regulation. Election also means BDCs must develop compliance programs and file regular reports with the SEC.

In April 2020, the SEC adopted rule amendments aimed at making it easier for BDCs to respond to market opportunities by streamlining BDC registration processes. The reforms also included disclosure and structured data requirements designed to help investors better analyze fund data.

As of July 2022, there are currently 49 publicly traded BDCs with combined assets of more than $121 billion, according to CEFdata.com which monitors listed and non-listed BDCs. The universe of non-traded BDCs is smaller with $95.6 billion in assets across 58 funds. Assets or gross assets are total investments including leverage and doesn’t take any discount into account.

2021 was a big year for publicly registered, non-traded BDCs, which raised more than $15.7 billion that year, according to The Stanger Market Pulse. This year looks to be even bigger, with the same category of BDCs having already raised more than $13.8 billion through May, according to Stanger.

SIZING UP BDCS AND THEIR INVESTMENTS

The universe of BDCs may be swiftly expanding, but the funds themselves — and the businesses they invest in — are down to earth, and certainly not as lofty in investing in the Amazons of the world, CEFdata.com’s John Cole Scott tells Altigo:

“These aren’t large corporate deals, they’re small- to middle-market investments. The average BDC loan size is around $11 million, with the average BDC portfolio containing roughly 100 such investments,” says Scott. Interest rates for about a third of BDC loans come in under 6.5%, with the rest averaging around 7.31%, he notes.

“BDC companies are both geographically and industry sub-sector diverse and are often operating in your own back yard. They really are impacting communities everywhere, not just in New York or California,” Scott adds.

BDC RISKS AND BENEFITS

A continuous offering over time, BDCs have the potential to provide both retail and accredited investors with a steady stream of distributions stemming from interest income, dividends, and/or capital gains when the investments are sold.

Without factoring for inflation or commissions and fees, BDC yields can range anywhere from 5-10% depending on market conditions. However, BDC fee structures are often far more steep than other types of alternative investments.

As with real estate investment trusts (REITs), if 90% or more of a BDC’s taxable income is annually distributed to investors, BDCs may enjoy pass-through tax treatment. This is only allowed if BDCs are registered and regulated as a registered investment company, and most are. BDCs are only taxed once at the stakeholder level, thus, as with REITs, investors must pay ordinary taxes on their investment earnings.

BDC’s low liquidity profile and sometimes lengthy investment commitments make them unsuitable for some investors, and because BDC target businesses are generally small businesses, these types of alternative investments are typically considered high-risk. Therefore, it’s good to collect as much information as you can on any individual fund before making any commitments.

STREAMLINING THE INVESTMENT PROCESS

As with other offering types, the investment process for BDCs is time consuming and paper laden. Subscription processing technology like Altigo can reduce investment time from weeks to minutes and virtually eliminate errors associated with paper subscription documents.

With over 200 alternative investment offerings currently available on Altigo, our platform supports a range of alternative investment products such as non-listed BDCs, non-listed REITs, qualified opportunity zone funds, non-listed preferreds, interval funds, direct private placements, DSTs, and private equity funds.

For more information about how Altigo can streamline the investment process for BDCs and other alternative investments, contact us for a brief demo.

Opportunity Zone Funds: Could Changes Be on the Horizon?

Opportunity Zone Funds: Could Changes Be on the Horizon?

June 28, 2022 | John Rickman | WealthForge

A recent blog post from WealthForge:

A key incentive of the federal opportunity zone program may have expired, but qualified opportunity zone funds continue to offer considerable long-term tax advantages for investing in private capital. In addition, legislative changes to opportunity zones currently under consideration in Congress may end up restoring the program’s 10-15% basis point boosts that expired at the end of last year.

WHAT’S NEXT FOR OPPORTUNITY ZONE FUNDS?

Opportunity zone funds reinvest unrealized capital gains into long-term projects in low-income communities, typically real estate located in a qualified opportunity zone (QOZ). There are more than 8,700 census tracts in U.S. urban, suburban, and rural areas that America’s governors and mayors have designated as economically distressed QOZs.

Current law allows QOZ investors to defer paying taxes on their investments until 2026. If a QOZ investment is held for 10 years, any appreciation on the investment essentially becomes tax-free.

Certain expired provisions of the law allowed QOZ investors to enjoy a 10% reduction in initially deferred capital gains. However, proposed updates to opportunity zones would:

Extend the federal program and its related deferrals for another two years (2028 and 2023, respectively)
Allow qualified opportunity zone funds to invest in other qualified opportunity zone funds
Notably, the bicameral, bi-partisan proposal would also increase the program’s reporting requirements — to promote more equitable distribution of QOZ investments — and sunset tracts no longer determined to be in distress.

Even if proposed updates to the opportunity zone program fail to proceed, QOZ funds remain a beneficial tax-advantaged option for long-term investing in private capital, while creating jobs and improving economic outcomes for people living in economically distressed communities.

Want to learn more about opportunity zone funds and other alternative investments available on Altigo? Download our complimentary e-guide or contact us.

 

2021: A Record Breaking Year for Altigo

Watch WealthForge’s Blue Vault Bowman Alts Week 2022 presentation, featuring Megan Bosch (Senior Director, Altigo Strategic Accounts).

 

Alternative Investment Sponsors may be contributing members of Blue Vault, which could create potential conflicts of interest.  Blue Vault subscribers and followers should consider this in their review and analysis.  Information is intended only for institutional, broker dealer or registered investment adviser use.  This information is prohibited for use by the general public.

Opportunity Zone Experts, USG Realty Capital, Select WealthForge for Managing Broker-Dealer Services and Technology Solutions to Streamline Investment Process

Opportunity Zone Experts, USG Realty Capital, Select WealthForge for Managing Broker-Dealer Services and Technology Solutions to Streamline Investment Process

May 6, 2022 | USG Realty Capital

USG Realty Capital, a leading investment sponsor specializing in opportunity zones, announced today that they have selected WealthForge, a registered broker-dealer and developer of Altigo, a subscription automation platform for investing in alternatives, as their managing broker-dealer and will utilize their technology solutions to streamline the investment process.

“WealthForge brings a level of expertise and turn-key solutions with their managing broker-dealer services and Altigo platform, which is unmatched in our industry,” said Greg Genovese, CEO and founder of USG Realty Capital. “As our platform continues to grow and add more products, bringing on WealthForge was the ideal next step in our evolution.”   

“We focus on increasing efficiencies and streamlining the investment process with our automated straight-through processing platform to increase adoption of alternatives,” said Michael Roman, managing director, managing broker-dealer services, of WealthForge. “We are excited to work with an industry leader like Greg Genovese and his stellar team at USG Realty Capital.”

Through USG’s unique proprietary investor-directed platform, accredited investors have the capability to choose as much diversification or project concentration as they please, all under a single-fund platform. This platform provides quantitatively aligned asset management with the fund’s investors, delivers proper oversight of the fund’s developers through co-partnership, and honors the spirit and intent of the opportunity zone initiative by ongoing third-party social impact reporting throughout the life of the project.

In March of this year, USG Realty Capital held a groundbreaking ceremony for KindCare at Bristol, part of its investor-directed, multi-asset opportunity zone fund offering. The 117-unit assisted living and memory care senior housing development, located in Bristol, Connecticut is being developed by Senior Living Development, an experienced commercial real estate development company specializing in the senior living space. This qualified opportunity zone project is scheduled for completion in 2023.

Investors Choice OZ Fund launched in June 2021. Since that time, the qualified opportunity zone fund has grown to four current projects and continues to add qualified, viable ground-up multifamily, senior living, storage, and manufactured housing projects to add to its platform. The focus is on infill projects with barriers to entry and equity targets ranging from $5 million to $10 million per project, on average. The fund intends to raise $50 million in new investment equity and can expand the offering to $100 million if needed.

About USG Realty Capital

USG Realty Capital is co-headquartered in Santa Barbara, California and Silverdale, Washington. USG Realty Capital is an alternative investment company launched by industry veteran Greg Genovese, who has successfully launched several opportunity zone funds since 2018. To learn more, please visit www.investorschoiceoz.com.

Tax-Incentivized refers to any type of investment that is either exempt from taxation, tax-deferred, or that offers other types of tax benefits. USG Realty Capital is a sponsor of investment opportunities that can provide such benefits via our opportunity zone funds and 1031 exchange offerings, among others. Securities offered through WealthForge Securities, LLC, the managing broker-dealer for the Investors Choice OZ Fund, LLC offering and member FINRA/SIPC. USG Realty Capital and WealthForge are not affiliated. Private Placements are speculative.

 

 

Altigo Adds CNB Custody to the Platform to Bring Automation to Purchasing Alts in Retirement Accounts

Altigo Adds CNB Custody to the Platform to Bring Automation to Purchasing Alts in Retirement Accounts

March 22, 2022 | Heather Acey | WealthForge

Altigo and CNB Custody announced that they have incorporated CNB’s forms and processes into the platform to streamline the process of buying alternatives for wealth advisors.

CNB forms are directly available within the Altigo workflow allowing advisors to complete all paperwork associated with an alternative investment in one complete electronic subscription package. CNB will also use the platform to access and review the paperwork, providing a status back to Altigo that can be viewed by advisor users on the transaction activity dashboard.

“As alternative investments continue to gain popularity, simplified processes for both advisors and investors are uncovering the need for industry participants to work together,” said Mat Dellorso, Co-Founder at WealthForge. “Forward thinking custodians like CNB Custody have recognized the value of using technology to make investing in alts faster and easier for everyone involved, allowing the market to continue to grow.”

“CNB Custody puts a strong emphasis on customer service and making processes as easy as possible for financial representatives and their clients,” said Michelle Thomas, Vice President at CNB Custody. “Having our forms available on the Altigo platform and being part of their workflow process is another way we can provide excellent service and make purchasing an alternative investment through CNB as simple and quick as possible.”

CNB Custody is among 15 other well-known custodians available on the Altigo platform.

ABOUT CNB CUSTODY

With more than 35 years of experience in custody of alternative investments, CNB Custody has built a reputation for providing exceptional service, record-keeping accuracy and competitive fees. CNB is an award-winning national bank with over $3.5 billion in assets under custody and is regulated by the OCC. A member of the Retirement Industry Trust Association, CNB can assist you with Roth, Traditional, and SEP IRAs along with non-qualified account custody.

ABOUT WEALTHFORGE

WealthForge provides technology solutions developed by experienced regulatory professionals to streamline investments into alternative securities. Altigo, the company’s electronic processing platform, was built to address common industry roadblocks, enable marketplace connections, and facilitate alternative investment transactions between reps, advisors, product sponsors, custodians and transfer agents. With over a decade of experience processing alternative investments and developing technology solutions, WealthForge has built a reputation as an innovator in market. To learn more, visit www.wealthforge.com.

Alta Trust Company and Altigo Team Up to Bring Electronic Alts Processing to Advisors

Alta Trust Company and Altigo Team Up to Bring Electronic Alts Processing to Advisors

February 22, 2022 | Heather Acey | WealthForge

Alta Trust Company and Altigo are proud to announce their collaboration to deliver high quality private offerings through Alta Trust using Altigo’s streamlined electronic subscription processing platform.
Alternative investments continue to be one of the highest demand areas for registered investment advisers (RIAs). But, the processing systems available for RIAs to bring on an investor to their fund are often slow, disjointed and challenging to navigate.

For years, Alta Trust has been focused on developing a streamlined process to guide advisers through the fund formation process so they can offer alternative investments to their clients,” said Adam Ponder, CEO of Alta Trust Company. “But we continued to seek improvements on making the subscription process easier for both RIAs and their clients. Altigo’s platform is the final piece of the puzzle, and the subscription process has become a highlight of our offering.”

With the alternative investment space growing quickly, advisers need to be equipped with the right partners and technology to meet the demand from high-net-worth investors. The collaboration between Altigo and Alta Trust brings both trusted partners and reliable technology to the table for RIAs.

“Our vision is to make alternative investments as easy to own as a mutual fund. Working with Alta Trust to bring our Altigo subscription automation technology along with their fund formation and fund administration services is a valuable benefit to our mutual advisor clients,” said Mat Dellorso, Co-Founder at WealthForge.

Now, when Alta Trust works with an adviser to create a fund, investors will benefit from Altigo’s simple, secure, electronic subscription process. Advisers can view the transaction activity dashboard in Altigo to manage the subscription process, showcase investment opportunities, and see the dollars move in real time.

ABOUT ALTIGO

WealthForge provides technology solutions developed by experienced regulatory professionals to streamline investments into alternative securities. Altigo, the company’s electronic order entry and subscription processing platform, was built to address common industry roadblocks, enable marketplace connections, and facilitate alternative investment transactions between reps, advisors, asset managers, custodians and transfer agents. With over a decade of experience processing alternative investments and developing technology solutions, WealthForge has built a reputation as an innovator in the market.

Learn more at wealthforge.com/altigo-for-rias

ABOUT ALTA TRUST COMPANY

Alta Trust Company is a South Dakota chartered trust company with over a decade of success in the industry. They provide innovative, turn-key solutions for establishing private funds. The company also offers collective investment trusts (CITs) and personal trust services.

Learn more at TrustAlta.com.

2021: A Record Breaking Year for Altigo

2021: A Record Breaking Year for Altigo

February 1, 2022 | Heather Acey | WealthForge

In 2021, a clear theme emerged to describe the Altigo platform and team: Exponential growth.

Today we take a look back at a mind-blowing year of growth and teamwork, all made possible by our clients and dedicated team of professionals that strive to make Altigo the leading straight through processing platform for alternative investments.

The Platform by the Numbers

In 2021 alone, Altigo experienced staggering growth with nearly $1.2 billion in alternative investment volume across 4,500+ unique transactions, representing a 400%+ increase in volume and 550% increase in transactions year over year. This tremendous adoption reflects a clear rallying cry in the industry that there’s a need to change the inefficient, manual processes associated with investing in alts—and Altigo is the technology being embraced by sponsors, broker-dealers and RIAs to streamline the process.

Altigo has been adopted by more than 100 asset managers, including Bluerock, Cantor Fitzgerald, Capital Square, Greenbacker, Inland Private Capital and Passco as well as 20+ broker-dealers such as Concorde Investment Services, Benchmark, Kingswood U.S. and Great Point Capital. This is in addition to more than 125 RIA firms on the platform.

Top 10 Altigo Enhancements in 2021

  1. Customizable Data Collection: All proprietary forms and documents including firm-specific, custodian or subscription docs can be incorporated into the Altigo workflow, allowing for a streamlined, single-signing process for the investor.
  2. Sponsor Offering Documents: Sponsors on the platform can upload and manage documents such as PPMs and make them available for advisor review and download.
  3. CRM Integration: Altigo’s API integration with Redtail allows reps and advisors to pre-populate fields in Altigo’s digital investment process with investor information stored in the CRM, reducing subscription time to as little as 5 minutes.
  4. Advisor Training Integration: An integration with AI Insight by iCapital allows broker-dealer and registered investment advisor firms to increase their operational control over their alternative investment business, support compliance requirements, and create education opportunities for reps and advisors—all through a streamlined digital user experience.
  5. DocuSign Knowledge-based Authentication (KBA): DocuSign’s KBA function has been added for custodians that require the signer to prove their identity when e-signing documents. It can also be added for broker-dealers for an added layer of security.
  6. Principal/Firm Review Workflow: Support has been added for subscriptions to be routed to a Firm Admin for review and processing before the subscriptions are routed to a dealer manager or sponsor for review/action.
  7. Subscription Document Preview: Ability to preview the subscription package (including firm or custodian documents) prior to submitting a subscription so the advisor or rep can view all documents and walk through a preview of the investor’s signing experience before hitting “send”.
  8. Chat Feature: New chat functionality to provide real-time support for user questions or issues.
  9. Support for New Offering Types: Preferred equity, Public Debt Fund, Reg A and Venture Capital Fund offerings are now supported by Altigo, with more being added this year.
  10. SOC II, Type II: Last but certainly not least, Altigo is SOC 2, Type II audited, reinforcing the platform’s commitment to data security.

Here are a few comments from our clients:

“Altigo is so good, so intuitive, so efficient that we have quintupled our production year over year in alternatives. Altigo has become indispensable to us and the ace up our sleeve when we’re competing with other firms out there,” said Doug Blake, Managing Director of Investment Solutions at Kingswood U.S. 

We surpassed $265M in subscriptions processed electronically on Altigo in 2021. As one of their first clients, we are excited to continue to see enhancements added to the platform that make it even more valuable to our business,” said Jay Frank, Chief Operating Officer and Head of Distribution at Cantor Fitzgerald.

“Our reps have really enjoyed and embraced using Altigo. It has allowed our reps to save time on paperwork and focus on investors. Altigo also allows us to be a better partner by getting paperwork right the first time. Quite candidly, we wouldn’t be where we are today if we didn’t have excellent tech tools like Altigo. We’ve been thrilled with how that’s been working for us,” said Drew Jackson, CEO at Concorde Investment Services.

“Altigo’s transaction activity dashboard is incredibly convenient. Our offerings close quickly and it’s really easy to see exactly where each investment is in the process allowing us to say organized and focus more on the next offering,” said Josh Hoffman, President at Bluerock.

“Our broker-dealer and RIA partners have told us that with Altigo, it’s just easier to do business with us. Plus, clients ultimately benefit from faster investment processing all while knowing their information is protected by the highest security standards possible. We saw $186M come through Altigo last year and are looking forward to seeing that number at least double in 2022,” said James Brunger, Executive Vice President, National Sales at Capital Square.

“If you’re an RIA looking for a comprehensive technology solution to make your firm’s alts business as operationally simple as financial planning or portfolio management are, I strongly recommend Altigo,” said David Clark, President at Clark Wealth Strategies.

Altigo Team Growth

Employee headcount at WealthForge nearly doubled last year, with new talent added across the board including Product/Operations, Compliance, Client Success and Sales. The Technology team that powers Altigo was among the greatest expansion, growing by 60%.

“We win as a team,” said Bill Robbins, CEO at WealthForge. “I continue to be amazed at how much we accomplished in 2021. We have a lot of talented people working together every day towards our vision of making alts as easy to own as a mutual fund.”

We can’t wait to see what’s ahead in 2022. We will continue to deliver platform enhancements and broaden our ecosystem of partners and industry collaborators to create the best experience for our clients—and meet an important need in the alts industry.

*Testimonials reflect these clients’ historical experiences with Altigo technology and may not be representative of the experiences of all clients or with other services. Testimonials are not a guarantee of future performance or success.

Automation and Alts: How Firms Use Automation to Gain a Competitive Advantage

Automation and Alts: How Firms Use Automation to Gain a Competitive Advantage

September 28, 2021 | James Sprow

A Blue Vault ALTSTECH Series Webinar September 9, 2021

Panelists:

Bill Robbins, CEO of WealthForge
Drew Jackson, President and CEO of Concorde Investment Services
James Brunger, Executive VP National Sales from Capital Square

These industry experts discussed the importance of using automation to scale their alternative investment business and how it helps them create a competitive advantage in the space.

Bill Robbins started out by introducing WealthForge’s straight-through processing platform for alternative investments called Altigo. Today they have over 80 broker dealer and RIA firms signed up and using the platform.

Drew Jackson at Concorde enjoys working directly with advisors and helping them maximize their business and grow deeper relationships with their clients. He believes that a continued focus on practice management and process improvements are keys to long term success in the industry. Concorde serves approximately 130 financial professionals specializing in alternative investments, in particular DSTs and real estate investments.

James Brunger of Capital Square, a national sponsor of tax-advantaged investments, in particular DSTs and 1031 Exchanges. They have about 115 total programs, including Opportunity Zones and a REIT focusing on multifamily assets in the Southeast US.

Stacy Chitty hosted the Webinar and started out by asking what straight-thru processing means to each of the panelists.

Bill Robbins gave a definition of straight-through processing that is a digital experience that automates what today are manual tasks, connecting each participant in the Altigo system to the data that they need rather than the paperwork that they need to do their jobs. It connects each participant to the data rather than the paperwork. It can facilitate not just the buying of alternative investments but also holding and selling those investments. It’s going to provide transparency at each step of the process by connecting each participant to the data and it’s going to foster innovation.

Drew Jackson says it really comes down to visibility, making it easier to process these transactions. There are a lot of additional facets of alternative investments that clients need to understand and doing it in a way that is automated saves so much time for advisors and clients. It takes what used to be an extremely manually-intensive process and makes it a lot faster, helping us with the resources that our advisors are using.

James Brunger says that fundamentally alternative investments are very complex. For Capital Square, Altigo takes a critical component and makes it as easy as possible to give the advisor more time to explore the investment itself, getting to know what they are investing in. It boils down to taking one of the most complex investments any investor is going to make and simplifies the process to allow more time to do the diligence and less time to do the paperwork involved.

Stacy asked what the growth in the DST market has revealed about the limitations of the industry. James Brunger answered that straight-through processing is the only way that the DST market can grow the anticipated three-fold growth rate. Without automation the industry cannot achieve the scalability necessary to handle the growth. They cannot possibly staff the foreseeable growth in the DST industry.

Drew Jackson sees the DST industry doing $8.5 billion this year. They must have the tools and systems to do this volume of business, they can’t possibly staff for that level of investments. Getting their sponsors on to systems that can do things as efficiently as possible makes it possible to do their volume of business.

Drew said they had a sense that 2021 would be a very strong year given the outcome of the election. They wanted to be able to scale up, so they are rolling out the Altigo system and they have a virtual assistant system to help the representatives work on client solutions rather than the paperwork. The more time they can be client-facing rather than spending time on paperwork, the better.

Bill Robbins sees the rapid growth in the DST market as a perfect microcosm that can only be possible as an industry if they are able to automate the systems. It could go from a $5 billion market to a $15 billion market and beyond. But it can’t be done the old fashioned way. The big opportunity is across the alternatives market. His firm is working to provide the tools that will facilitate that growth.

Stacy asked how automation has provided a competitive advantage. What has been the catalyst for adoption of that automation.

James Brunger says you can only automate so much of the commercial real estate investment process. The automation has given them a competitive advantage because they know how quickly they can raise the capital to go back to the acquisitions team and be sure that you are going to be efficient in deploying capital. Instead of hiring operations people, you can staff up the acquisitions side. As a sponsor they can focus on the acquisitions.

Because Capital Square has been one of the early adopters of Altigo, the reps that have signed on are getting rapid execution and money is going to work faster for both the reps and the investors. It allows them to move on to the next program faster.

Drew says Concorde takes a lot of pride in being a good partner with their sponsor firms and the folks they work with. Systems that can get things done faster with fewer NIGOs helps them because the business coming from Concorde is clean and done right. We want to be a good partner with the firms they work with and doing things the right way helps them get some allocations that others may not be able to get.

James Brunger says it’s human nature to want to do more business with partners that make your life easier. That’s especially true right now. The firms that have the most efficient processes and the fewest NIGOs, we’re going to lean on those firms that make life easier for everybody.

Stacy said maybe we’ve been a dinosaur industry for so long, there’s now a tremendous opportunity and we’re finally catching up and seeing a tremendous opportunity ahead of us.

Bill Robbins says, as a provider of automation technology, they also see advantages in information security. Recently three large IBD firms had 200 reps that had their email accounts compromised and those firms were fined $750,000 related to bad actors hacking those accounts. Across 10,000 they had

some of their private information exposed. All of these reps are emailing a treasure trove of private information around. Using email to send all those documents is a bad policy and automation provides another benefit to make all of that information secure.

The panel went on to discuss the key characteristics necessary for a straight-through processing system to provide advisors. They want to be able to consolidate a number of DST investments for the client. They want to be sure that clients are properly reviewing the documentation and understanding the investments they are making. It’s very important to know that clients are qualified to be making these types of investments.

These systems also help in advisor recruiting. They want to see systems that make them more productive and their lives easier. Technology does evolve, so Concorde looks at the enhancements that are coming. They want to work with systems that are improving, as thought leaders and forward thinking. They ask their partners “what’s next” so they can stay at the tip of the spear.

James Brunger answered Stacy’s question, “What’s in it for the sponsor?” James said the more they can get firms to adopt these systems , it really gives them the opportunity to focus their resources to quickly get to scale. It speeds up the processing and allows them to focus more on compliance. As the processing speeds up, they can be sure that the business is done correctly. From the investor perspective they get to focus on what they own.

As an industry, James would like to see all sponsors on Altigo because the easier we make the process the better for all of us and the sooner we can grow the alternatives industry.

As the industry scales up, we can handle the growth if we use our resources correctly and Altigo is absolutely essential to facilitate that growth.

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.

Phoenix American and WealthForge Announce Partnership to Deliver Straight-Through Processing for Alternative Investments

Phoenix American and WealthForge Announce Partnership to Deliver Straight-Through Processing for Alternative Investments

May 13, 2021 | Phoenix American

Phoenix American, a leading transfer agent and fund administration provider for alternative investments and WealthForge, a registered broker-dealer and developer of a subscription automation platform built to streamline investing in alternatives, have announced an integration partnership to provide a seamless, fully digital purchase process for client funds. The partnership will enable financial advisors to access and subscribe to alternative investment products digitally using WealthForge’s Altigo platform resulting in a complete and active investment record in the Phoenix American transfer agent system, STAR-XMS, with no manual intervention.

Streamlining the Investment Process for Alternative Investments

The partnership for straight-through processing is a key step in advancing the investor and advisor experience of the alternative investment industry. Digitizing and streamlining the investment process accomplishes three important goals: accelerating the purchase of alternative investment products, minimizing the entry and processing errors inherent in paper subscription documents, and enhancing the overall security of making an investment.

Innovation Helping to Scale the Industry

STAR-XMS’s integration with the Altigo platform, achieving end-to-end data connectivity with no paper documents, will represent a competitive advantage for client fund sponsors. Advisors will enjoy simple, transparent and efficient access to alternative investment products. Fully automated straight-through processing will help to scale the alternatives industry by eliminating the factors that discourage wealth managers and investors from considering alternative investments.

“Our goal is to make alternative investments as easy to own as a mutual fund,” said Bill Robbins, CEO at WealthForge. “Integrations with key participants in the investment process like Phoenix American are important steps toward creating a seamless experience and providing additional value to our users.”

Phoenix American, an innovator in the alternatives industry, welcomes the added efficiency of the WealthForge integration. The company’s STAR-XMS transfer agent and administration system centralizes and streamlines back-office functions and data collection to support sales efforts. The integration of STAR-XMS with the Altigo platform, eliminating the need for manual entry of subscription information, further enhances the Phoenix American back-office process.

“Phoenix American supports technological advancements that reduce costs for sponsors, increase efficiency and improve investor and rep adoption of alternative investments,” said Andrew Constantin, Senior Vice President, Operations for Phoenix American. “WealthForge is a great partner for us in reducing operational frictions for alternative investments. The Altigo platform is a technological advancement that simplifies investing and pushes the industry forward.”

About Phoenix American:

Phoenix American provides full-service fund administration, fund accounting, transfer agent and investor services as well as sales and marketing reporting to fund sponsors in the alternative investment industry. The Phoenix American Aviation ABS group provides managing agent and accounting services for asset-backed securitizations specializing in the commercial aviation leasing industry. The company was founded in 1972, has six offices worldwide and is headquartered in San Rafael, CA.

Contact:
David Fisher
309854@email4pr.com 
(310) 621-7822

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.

Altigo Signs Tenth Broker-Dealer Partnership

Altigo Signs Tenth Broker-Dealer Partnership

March 10, 2021

Altigo, an electronic order entry and subscription processing platform for alternative investments, has now hit double digits in its expansion of broker-dealer partnerships. Firms including Benchmark Investments, Coastal Equities, Great Point Capital, Lightpath Securities, and more recently Emerson Equity, Kingswood, and Aurora Securities have chosen Altigo to digitally manage their alternative investments business.

Firms using the platform have seen how Altigo’s intuitive workflow facilitates order entry by integrating home office and custodial forms and providing access to all firm-approved offerings in one online portal, increasing both rep productivity and compliance control.

“I cannot emphasize enough how much Altigo has simplified the purchase application process. If a client is investing in 4 different products, the first purchase agreement can be completed in 10 minutes instead of 30, with subsequent ones in even less time,” said Frank Piscitelli, a registered representative at Archer Investors with Lightpath Securities. “The auto-populating features significantly reduce NIGOs. The time saved provides more time to reach out to present and future clients.”

70% of subscriptions are submitted for acceptance by the sponsor the same day, and every step of the process is trackable in real time. Additionally, reps and compliance officers have peace of mind knowing that Altigo has completed a SOC 2, Type II audit, demonstrating the platform’s commitment to data security

Several firms initially signed up for a pilot program to determine the effectiveness of using Altigo to process their alternative investment business. The program has been a resounding success, concluding with a decision to move forward with a firm-wide rollout to all registered reps. 

“Altigo has demonstrated its ability to make our processes more efficient, making it so much easier to review and approve investments,” said John Neppel, Principal at Great Point Capital. “Implementation of the platform went smoothly and we were thrilled with the speed that new firm-approved offerings were set up. We are eager to roll the platform out to our entire rep base to fully realize Altigo’s potential for our firm.”

Altigo’s growth is poised to continue throughout 2021 with even more features being added. Redtail integration has recently been added, which helps speed up the data entry process for reps and advisors by populating data directly from their CRM. AI Insight integration is also slated for release later this month which will help ensure rep training is complete if it is required by the firm before the package is sent for signature. The remainder of the year will see integrations with additional CRM platforms, custodians, clearing firms, transfer agents and fund admins as well as more product discovery and comparison features in Altigo Marketplace.

Altigo Integrates with Redtail CRM to Further Streamline Alternative Investment Processing

Altigo Integrates with Redtail CRM to Further Streamline Alternative Investment Processing

March 8, 2021

WealthForge announced today that Altigo, their electronic processing platform for alternative investments, now integrates with Redtail, a customer relationship management solution widely used in the financial services industry. The API integration will allow reps and advisors to pre-populate fields in Altigo’s digital order entry process with investor information stored in Redtail, reducing subscription time to as little as 5 minutes. 

“Our goal with Altigo is to make the investment process as seamless as possible. In order to do that we are taking every opportunity we can to remove manual data entry, which is time-consuming and can be prone to errors,” says Bill Robbins, CEO of WealthForge. “By integrating with CRM platforms like Redtail, we’re enabling financial representatives to make alternative investment transactions with unprecedented ease, freeing up more time for them to spend with their clients.”

When users of Redtail initiate a subscription through Altigo, they will be presented with the option to select a client from their CRM in addition to the usual options of drafting a subscription from scratch or copying information from a previously completed investment. The integration further enhances Altigo’s revolutionary process improvements. The platform reduces NIGO (not-in-good-order) error rates from 30-60 percent down to less than 5 percent and boasts investment cycle-times of 2 days, compared to approximately 3 weeks on average using paper processes. 

For more information about Altigo, visit our product page or contact us with any questions.

About WealthForge

WealthForge provides technology solutions developed by experienced regulatory professionals to streamline investments into alternative securities. The company’s electronic investment processing platform, Altigo was built to address common industry roadblocks, enable marketplace connections, and facilitate alternative investment transactions between reps, advisors, product sponsors, custodians and transfer agents. With over a decade of experience processing alternative investments and developing technology solutions, WealthForge has built a reputation as an innovator in the market. 

Altigo Successfully Completes Independent SOC 2 Type II Audit, Reinforcing Commitment to Data Security

Altigo Successfully Completes Independent SOC 2 Type II Audit, Reinforcing Commitment to Data Security

January 19, 2021 | WealthForge

WealthForge announced today that its electronic investment processing platform, Altigo, has successfully completed an independent SOC 2 Type II audit. As part of the alternative investment subscription process, Altigo captures and transmits sensitive investor data on a daily basis. Because protecting investor data is vitally important, WealthForge instituted a robust cybersecurity program and engaged a licensed CPA firm to review existing data security policies and controls. WealthForge’s auditors reviewed its controls around security, availability, and confidentiality and issued a SOC 2 Type II report in mid-January 2021.

“Data security is a top priority at WealthForge,” says Bill Robbins, CEO of WealthForge. “We wanted to take the extra step with this third-party audit to demonstrate our commitment to protecting the sensitive information that Altigo is designed to capture, providing our clients with an added level of trust in us as a partner.”

An organization that has obtained a SOC 2 Type II report has shown that its system is designed to safeguard the confidential data of its customers. Designed for more advanced technology providers, including SaaS companies, SOC 2 is an audit procedure developed by the American Institute of CPAs to review a service provider’s controls around the security, availability, processing integrity, confidentiality, or privacy of user’s data. This audit conducted by licensed CPAs results in a final report that evaluates an organization’s stated data security policies and controls against its actual practices. There are two types of reports, Type I and Type II. A Type I report is an attestation of controls at a specific point in time, whereas the more rigorous Type II report is an attestation of controls over a period of time. 

Altigo users can rest assured that Altigo’s practices around customer data have been thoroughly audited by an independent third party, and that any findings have been addressed. Altigo will undergo a SOC 2 audit on an annual basis going forward.  

About WealthForge

WealthForge provides technology solutions developed by experienced regulatory professionals to streamline investments into alternative securities. The company’s electronic investment processing platform, Altigo was built to address common industry roadblocks, enable marketplace connections, and facilitate alternative investment transactions between wealth managers and sponsors. With over a decade of experience processing alternative investments and developing technology solutions, WealthForge has built a reputation as an innovator in market. To learn more, visit www.wealthforge.com.

Altigo Year in Review

Altigo Year in Review

December 21, 2020 | Heather Acey | WealthForge

With the arrival of the pandemic, 2020 brought a substantial shift in the way business is conducted. Firms that allocate to alts had figure out a new way to get paper-based subscription documents to clients for signature, then routed from there to the other parties involved.This ushered in a sweeping change in the alts industry—electronic processing for alternative investments went from a nice to have, to a necessity.

Our alternative investment platform, Altigo, has enabled sponsors, reps and advisors to continue to conduct their alts business electronically in today’s remote work environment. Being well-positioned to meet the growing need for paperless solutions in alternative investments, Altigo experienced tremendous growth throughout the year. First announced in mid-2019, $200 million in transactions representing 600 subscriptions have been submitted through the platform. Altigo currently supports nearly 100 offerings spanning a range of alternative investment products—such as 1031 Exchange DSTs, Non-Traded REITs, Qualified Opportunity Zone Funds, and BDCs— with 40 new offerings added to the platform just last quarter.

The alternative investment offerings available on Altigo represent 50 well-known sponsors including Inland, Bluerock, Cantor Fitzgerald, Capital Square, Greenbacker, and more. While Altigo began with alternative product sponsors in mind, the platform matured over the past year to include a robust feature set designed specifically for BD firms. Most notably, broker-dealers can now provide reps with access to all firm-approved offerings in one place, which facilitates increased rep productivity and compliance control. This ease of use has attracted seven new broker-dealers to the platform this year, including Coastal Equities, Colorado Financial Services, Emerson Equity, Great Point Capital and Lightpath Capital.

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Altigo Automates Custodian Documents for Alternative Investments

Altigo Automates Custodian Documents for Alternative Investments

November 11, 2020 

WealthForge announced today that Altigo, their electronic processing platform for alternative investments, has added automation for custodian forms. Users of Altigo will be able to select from custodians including Pershing, RBC Wealth Management, Equity Trust Company, Mainstar Trust, Millennium Trust, NuView Trust, Vantage, and CNB Custody, with support for more custodians coming soon. With custodian document support, Altigo saves users from having to compile documents from several sources, use more than one tech system, or inconvenience their clients with multiple mailings and follow-up requests.

“Custodians are a key participant in the alternative investment ecosystem. But paper documents and medallion wetsignature guarantees present a bottleneck in achieving more efficient processing of alternative investments,” says Bill Robbins, CEO of WealthForge. “We are working with forward-thinking custodians to automate the process, taking the industry another step past simple subscription automation and toward full straight-through processing.”

With Altigo, reps and advisors can select the investment, client, and custodian during the online order entry process, which will automatically pull in required forms such as letters of authorization or direction of investment in addition to the standard subscription agreement and home office-required documents. These forms will be pre-populated with information collected during order entry and compiled into a single subscription package that is automatically sent to clients for electronic signature and to the custodian, sponsor, and financial services firm for completion.

Custodians understand the need for automation and are working with their advisor clients and technology providers like WealthForge to innovate:

“A collaborative approach to solving the clunky, irritating and paper-intensive process is essential in eliminating the primary constraint causing unnecessary friction throughout the alternative investment industry. By synchronizing a united effort, we are on the verge of the long awaited disruptive digital transformation that will continue to fuel the rise of private market investor adoption,” says J.P. Dahdah, Founder & CEO of Vantage.

“Custodians play an integral role when it comes to automation. We have to work together to standardize the operational process and accept digital transactions and electronic signatures for alternative investments,” says Michelle Thomas, VP of Marketing and Business Development at CNB.

“Mandating physical copies of investment documents isn’t feasible in today’s work-from home environment, and won’t be the norm going forward. It’s our job to not only make advisors and reps jobs easier by holding the types of investments they use, but also by helping to create a more seamless process,” says Jean Meyer, President at Mainstar Trust.

With the addition of custodian support to Altigo, WealthForge continues its quest to provide the most flexible and intuitive solution for conducting alternative investments. With features like the transaction activity dashboard, electronic signature and the ability to pull investor data from an integrated CRM or previously completed investment into a new subscription, Altigo is designed to enable remote work and create productivity improvements and operational efficiencies that increase transaction speed and client satisfaction.

Inland Investments Adds Altigo to Support Electronic Processing of Alternative Investment Products

Inland Investments Adds Altigo to Support Electronic Processing of Alternative Investment Products

October 13, 2020

Richmond, VA — WealthForge announced today that they have signed an agreement with Inland Real Estate Investment Corporation (“Inland Investments”), one of the nation’s largest sponsors of alternative public and private real estate securities and a part of The Inland Real Estate Group of Companies, Inc. (“Inland”), to utilize Altigo, WealthForge’s electronic processing technology. In 2019, Inland entities collectively raised more than $1.2 billion of capital through their wholesale distribution company, Inland Securities Corporation.

Inland Private Capital Corporation (“IPC”), a subsidiary of Inland Investments and the industry leading securitized 1031 exchange sponsor offering multiple-owner, tax-focused, private placement investments as well as Qualified Opportunity Zone investments throughout the U.S., will leverage Altigo to support its initiative to digitally process its alternative investment product offerings.

“Creating a more investor-centric experience through the use of electronic investment processing is where the industry is headed—and quickly. We’re committed to being at the forefront of this innovation for both our distribution partners and our investors,” says Keith Lampi, president and chief operating officer of IPC.

With the addition of Inland Investments’ programs, Altigo now represents more than 80% of the entire securitized 1031 market by volume based on 2019 raise amounts of sponsors on the platform. This number speaks to an overall trend of increasing adoption of Altigo since its release a little over a year ago. During that time $150 million has been transacted through the platform and agreements have been signed with several other sponsors and independent broker-dealer firms, expanding both its product availability and user-base.

“The alternative investments market can’t reach its full potential until there is wide adoption of technology across the industry. It takes leaders like Inland Investments to break down barriers and show what is possible in terms of efficiency and scalability. We are excited to be working with such an innovative group,” says Bill Robbins, CEO of WealthForge.

Altigo enables broker-dealer and RIA firms to digitally access and assist their clients in subscribing to alternative investment products from sponsors like Inland Investments via an intuitive online platform. Features like the transaction-activity dashboard, electronic signature and the ability to pull investor data from an integrated CRM or previously completed investment into a new subscription are designed to create productivity improvements and operational efficiencies, speeding up the process and saving money for both wealth managers and sponsors alike.

 

About Inland Real Estate Investment Corporation and The Inland Real Estate Group of Companies, Inc.

Inland Real Estate Investment Corporation is a sponsor of real estate securities and a part of The Inland Real Estate Group of Companies, Inc. The Inland Real Estate Group of Companies, Inc., headquartered in Oak Brook, Illinois, is one of the nation’s largest commercial real estate and finance groups, engaged for more than 50 years in the diverse facets of real estate such as property management, leasing, marketing, acquisition, real estate brokerage, development, redevelopment, construction, real estate financing and other related services. The Inland Real Estate Group of Companies, Inc. is comprised of independent legal entities, some of which may be affiliates, share some common ownership or have been sponsored and managed by such entities or subsidiaries thereof. The Inland name and logo are registered trademarks being used under license. For more information, visit www.inland-investments.com.

 

About Inland Private Capital Corporation

Inland Private Capital Corporation (IPC), headquartered in Oak Brook, IL, is a privately held, industry-leading alternative investment management firm, with an investment focus spanning across a broad range of asset types. As of June 30, 2020, the firm had sponsored 259 private placement real estate offerings, with investments and developments in the multifamily, self-storage, hospitality, healthcare, student housing, retail, corporate office, senior living, and industrial sectors. Many of IPC’s offerings have been designed for investors seeking replacement property to complete an IRS Section 1031 exchange. IPC is recognized as the largest provider of securitized 1031 exchange opportunities in the country, with assets under management (AUM) of more than $8 billion, which includes a diverse national footprint of properties, spanning 43 states across various sectors.

 

About WealthForge

WealthForge provides technology solutions developed by experienced regulatory professionals to streamline investments into alternative securities. The company’s electronic investment processing platform, Altigo was built to address common industry roadblocks, enable marketplace connections, and facilitate alternative investment transactions between wealth managers and sponsors. With over a decade of experience processing alternative investments and developing technology solutions, WealthForge has built a reputation as an innovator in market. To learn more, visit www.wealthforge.com.

How Will the Newly Expanded Accredited Investor Definition Affect Wealth Managers?

How Will the Newly Expanded Accredited Investor Definition Affect Wealth Managers?

September 8, 2020 | Mat Dellorso | WealthForge

On August 26th, 2020, the SEC amended the definition of accredited investor, an identifier of individuals and entities that are eligible to invest in certain restricted alternative investments such as private real estate funds and other investments under Regulation D. The previous rules, which defined accredited investors based on net worth and/or income, had not been updated since they were instated in 1983. Since then, numerous technological and regulatory changes have taken place, altering the investment landscape in the process and necessitating a fresh look at the rule.

The updated definition contains numerous expansions, such as the inclusion of entities like Native American tribes, limited liability companies, and family offices with at least $5 million in assets under management. But for the purposes of financial advisors and registered representatives wondering how the new rule will affect them and their current and potential investor clients, here are some key takeaways:

• Individuals who hold a Series 7, Series 65, or Series 82 license are now considered accredited, regardless of net worth.
• Individuals who are “knowledgeable employees” of a fund can be considered accredited investors for the purposes of investing in that fund.
• The requirements for married or “joint” investors has been expanded to include “spousal equivalents,” which applies to those who are in a co-habitating relationship outside of marriage.

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Altigo Streamlines Alts Investing

Altigo Streamlines Alts Investing

September 21, 2020 | James Sprow | Blue Vault

Blue Vault recently spoke with Bill Robbins, CEO at WealthForge, about how their vision for the Altigo platform is to make investing in and owning alternative investments as easy as owning a mutual fund.

WealthForge was founded in 2009 and combines innovative tech-enabled processing with traditional services of a managing broker-dealer. For the last several years they have been developing Altigo (Alternative Investments in Good Order), a technology platform that provides straight-through processing for alternative investments. The platform changes the way alternative investments are transacted, from paper-based processing to electronic processing. They have an experienced team of 35 compliance and technology experts working to create a frictionless path to ownership for alternative investments.

WealthForge’s intends for Altigo to connect all of the players in the alternative investments ecosystem. By connecting sponsors and funds with the broker-dealer and registered investment advisor firms that distribute them, as well as service providers, such as transfer agents and custodians, the industry can achieve a level of efficiency and scalability that was previously impossible with paper. 

WealthForge started developing the Altigo program about three years ago.  The first production version of Altigo was launched in May of 2019.  They continue to provide enhancements regularly with new features and behind-the-scenes updates.

What progress has been made in linking all of the constituents in the alternative investment ecosystem? 

WealthForge has been successful in gaining adoption of Altigo among sponsor, broker-dealer, and RIA firms. Initially they had to overcome the chicken or egg paradox: whether product or distribution would be the primary driver of adoption. Altigo launched as a tool licensed by sponsors, who could provide the platform to their distribution partners free of charge. In 2020, WealthForge debuted additional BD and RIA versions of the platform which aggregated all of a firm’s alternative investment business into a single dashboard. Currently, Altigo supports offerings from over 25 well-known sponsors and is used by over 100 RIA and BD firms across the various versions of the platform.

WealthForge already works with transfer agents and custodians , and are in the process of developing partnerships and integrations with numerous other transfer agents, custodians, CRM platforms and other service providers.

How does Altigo eliminate the NIGO (“not in good order”) problem?

Not in good order errors, or NIGOs, are a significant problem for alternative investments. Industry-wide the NIGO rate among alts is somewhere between 40 and 60% on average.  When paperwork that has been submitted  incorrectly has to go all the way back to the client, it creates frustration for the client and it is a waste of time and money for the wealth manager, who potentially has to spend hours redoing the paperwork and mailing it again, adding days or weeks to the process. One sponsor WealthForge works with estimated they had a 90% NIGO rate using paper-processes.  With Altigo they are now seeing NIGO rates in the low single digits, 3 to 5%. 

What kind of training is involved in getting a broker or advisor up to speed on Altigo? 

Altigo has been designed to be as intuitive as possible. It is cloud-based, so it can be used anywhere, even outside the office. Once a user has been provided with login credentials, they can begin transacting. One advisor client refers to Altigo as the “Easy Button” for alternative investments. There is no need for dedicated IT resources, internal training, or complex change management, as the platform was built to fit seamlessly into current back-office processes. WealthForge offers new users a 15-to-20-minute demo if they need help getting started, as well as ongoing customer support.

What is the pricing model for Altigo? Who bears the cost?

Sponsors can license Altigo to make their offerings available on the platform. They are also able to provide an instance of Altigo with only their offerings at no cost to their distribution partners. Broker-dealers who wish to manage all of their alternative investments across multiple sponsors from a single dashboard can license a premium version of Altigo. This version of Altigo also supports document mapping of firm required forms and other features not available to free users. RIA’s can access Altigo Marketplace, which is free for the advisor. Sponsors who opt-in pay a marketplace fee for net-new distribution that comes through the platform.  

How do you ensure that reps are only able to sell products their firm has authorized them to?

One of the major benefits of Altigo over paper-based processing, from a compliance perspective, is the ability to use role-based access. When you have a manual, paper-based system it is really difficult to provide operational control to assure suitability and supervision. In Altigo, firms can designate which offerings are available to which reps, ensuring not only that the rep can’t sell the offering, but also that they don’t even see it in their dashboard. Additionally, WealthForge has entered into a partnership with AI Insight that integrates with Altigo to provide real-time permissions to reps and advisors who have completed the education and testing requirements via a real-time API integration between the platforms. 

Does Altigo send out statements to investors? Is an investor going to get multiple statements depending on the types of investments they hold?

Altigo does not send out statements to investors.  To get to a consolidated statement, as an industry we are going to need to engage the fundamental infrastructure of the DTCC to automate the process of reporting between funds, transfer agents and custodians.  WealthForge’s vision for Altigo is to create an easy on-ramp into DTCC’s AIP platform which is a key step forward in the pursuit of our vision to make owning alts as easy as a mutual fund.  

Does Altigo deal with redemptions or tender offers? 

Altigo currently does not support redemptions or tender offers. But just like the initial subscription, those paper-based transactions are highly inefficient and WealthForge is working to transition them to digital processes through Altigo at some point in the future.

How has COVID-19 affected WealthForge operations, and the acceptance of their technology? 

Operationally, WealthForge hasn’t missed a beat, with the advantage of being a technology company.  Industry adoption of technology like Altigo has changed dramatically. Wealth managers cannot reasonably ask a client to drive to the office to review and sign a 100-page subscription package. Some firms they have signed up used to consider this type of technology a luxury, but now it is a necessity. Clients no longer have to touch a single piece of paper. The industry was already headed in the direction of more automated processing, but the pandemic has accelerated the pace, and is forcing firms to make changes that will have lasting effects into the future.

To learn more about Altigo, visit wealthforge.com/altigo.

Advisors are Failing Their Best Investors When it Comes to Alternative Investments

Advisors are Failing Their Best Investors When it Comes to Alternative Investments

August 20, 2020 | Ryan Gunn | WealthForge

High net worth investors come with different investing preferences and a broader set of investment options than the average client. For example, high net worth investors are accredited, and therefore have access to alternative investments such as private placements, 1031 exchange DSTs, Qualified Opportunity Zone Funds, and more. Many advisory firms are ill-equipped to handle significant alternative investment business while providing the modern investment experience that clients have come to expect in their financial lives.

The vast majority of alternative investments are still being made through pen-and-paper processes with long, complex subscription documents and lengthy cycle-times involving several mailings and signings. For the investor, that means in-person meetings, flipping through dozens of pages to find the appropriate initial and signature locations, mailing documents, and worst of all, waiting.

Alternative investments can take upwards of 3 weeks on average to process, and that’s if they are submitted correctly the first time, which about half of them aren’t. When there is an error, the whole process often has to start again. Some investments, like 1031 exchanges, fill up quickly, and, in the time it takes an investment to complete, investors can lose out on available equity.

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There is a Gap Between Investor Interest in and RIA Allocations to Real Estate Investments

There is a Gap Between Investor Interest in and RIA Allocations to Real Estate Investments

August 25, 2020 | Ryan Gunn | WealthForge

When investors think of investments outside of stocks and bonds, often the first thing that comes to mind is real estate. Real estate is the largest segment of alternative investments, making up nearly a third of the market. But research suggests that, despite high interest, registered investment advisors’ clients are under-allocated to real estate—especially private real estate investments.

In a 2018 survey by MLG Capital, 93% of RIAs reported that clients ask them about real estate at least quarterly. However, in that same survey, only 27% of advisors said that they proactively allocate discretionary client funds to private real estate. Investors that are invested in real estate are mostly allocated to publicly traded REITs—a $2 trillion market—which are highly correlated to the stock market, negating one of the sought after benefits of real estate investing.

“Our research uncovered a major overarching theme. Investors ask their RIAs about private real estate constantly. RIAs believe their clients should be invested in private real estate and they believe it has a low correlation to the public market. However, few are investing in it at present, primarily because they don’t know where to find information and/or have not seen the data”, said MLG Capital CEO & Principal Timothy J. Wallen.

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