Category Archives: WealthForge

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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WealthForge and Chalice Partner To Modernize Alternative Investing for RIAs

WealthForge and Chalice Partner To Modernize Alternative Investing for RIAs

June 26, 2020

SAN DIEGO, June 26, 2020 /PRNewswire-PRWeb/ — Chalice Network, an online member-based digital marketplace for independent, small and mid-sized businesses that provides exclusive access to business, technology and client-service solutions, is excited to announce their new partnership with WealthForge.

Focused on what matters, Chalice Network is a community dedicated to solving the unique challenges faced by independent financial advisors and business owners. With over 100 years of combined experience, Chalice leadership is dedicated to bringing real and immediate value to all members of the Chalice Network through the digital Marketplace. Keith Gregg, Founder and CEO of Chalice Network is thrilled to partner with WealthForge and says, “I have known Mat Dellorso and Bill Robbins at WealthForge from my old hometown of Richmond, VA for quite sometime now and they are thoughtful, smart, creative, and conscious of what makes for a streamlined and advisor friendly alternative investment platform. We are very excited to be working with Mat and his team to deliver what we believe is the most advisor friendly ALTS platform in the marketplace.”

WealthForge provides technology solutions developed by regulatory experts to streamline investments into alternative securities. The RIA Marketplace is an expansion of their electronic trade processing platform, Altigo, which hosts over 50 active offerings from 22 well-known sponsors, with more being added every month. RIA’s are able to access these opportunities through the digital Marketplace at no cost.

“A significant number of high net worth investors are unable to experience the benefits of alternative investments because advisors continue to hit barriers when it comes to discovery and allocation,” says Mat Dellorso, co-founder of WealthForge. “Our goal is to break down those barriers and create a frictionless path to ownership for alternative investments, expanding access and transparency in the process.”

Altigo provides an array of features to Chalice members at no additional cost such as:

• a showcase of alternative investments
• intuitive information collection workflow
• electronic signature options
• transaction activity dashboard

Alternative investments continue to be difficult to source and cumbersome to invest in, with a lengthy, paper-laden subscription process that results in NIGO errors, security risks, and costly operational inefficiencies. With Chalice and Altigo, there is finally an easy way for advisors to provide their clients with the benefits of alternative investments.

About Chalice Network™

Chalice is a Digital Marketplace PaaS (Platform as a Service) with a community of 53,000+ SMBs consisting of Financial Advisors, RIAs, IBDs, CPAs, Insurance Agents, Attorneys, and Allied Financial Services Professionals.
Chalice was purposely built to give SMBs economies of scale, operational efficiency and enhanced enterprise value through the largest digital community and SSO technology platform they own and operate.

About WealthForge

With nearly a decade of experience processing alternative investments, WealthForge has cemented itself as an industry innovator. Altigo is an electronic trade processing platform from WealthForge designed to improve the alternative investment experience for broker-dealers, registered investment advisors, investment sponsors, and their investors.

 

 

Altigo’s Success Continues with 4 New Broker-Dealer Partnerships

Altigo’s Success Continues with 4 New Broker-Dealer Partnerships

July 13, 2020 | WealthForge

Altigo, an electronic trade processing platform from WealthForge, has expanded its user-base with 4 new broker-dealer partnerships. Great Point Capital, Benchmark Investments, Colorado Financial Service Corporation, and Coastal Equities have now licensed Altigo, which allows broker-dealer firms to digitally manage their alternative investment business.

“Reps and advisors are driving the shift toward digital processing of alternative investments. They are the ones that feel the pain of the manual process the most. We’ve built Altigo with the individual wealth manager in mind as much as the larger firm,” says Bill Robbins, CEO of WealthForge. “It is our goal to make their jobs as easy as possible so that they may submit more investments and continue to drive growth in the industry.” 

WealthForge has designed Altigo to not only make the alternative investment process easier, but also more flexible. Because it is a secure cloud-based system, Altigo can be accessed from anywhere with an internet connection without sacrificing the encryption of PII, as is the case with scanning and emailing documents. This opens up opportunities for financial services professionals to continue servicing their high-net worth clients from outside of the office, rather than needing to be present for an incoming fax or overnight mail. 

“Electronic processing for alternative investments is more important now than ever. As the digital transformation of our industry accelerates, Altigo will set the standard for what solutions can accomplish,” says Charles Reiling III, President and CEO at Coastal Equities.

While Altigo began with alternative product sponsors in mind, the platform has matured to include a robust feature set designed specifically for wealth management 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.

“Any rep that has conducted an alternative investment knows how much of a hassle it can be, with piles of paperwork and weeks of waiting,” says Douglas Blake, Managing Director of Alternative Investments at Benchmark Investments. “Altigo has made the process faster, easier, and more secure, even when working from home.”

Altigo Debuts Marketplace for RIAs to Digitally Source & Allocate to Alts

Altigo Debuts Marketplace for RIAs to Digitally Source & Allocate to Alts

June 25, 2020

WealthForge announced today the release of Altigo Marketplace, which reinvents the way registered investment advisors conduct the discovery of and allocation to alternative investments by modernizing the industry’s outdated, cumbersome paper-based processes. The RIA Marketplace is an expansion of Altigo’s electronic trade processing platform, which hosts over 50 active offerings from 22 well-known sponsors, with more being added every month. RIA’s are able to access these opportunities through Marketplace at no cost.

“I had accepted the manual process as a necessary evil to take advantage of the benefits of alternative investments. But Altigo eliminates the frustration—both for me and my clients—when investing in alternatives,” says Carl E. Sera, Wealth Manager and Managing Principal at Sera Capital Management. “It is essential that the industry adopt this type of technology to keep up with investors’ expectations.”

Altigo offers advisors a showcase of investments, allowing them to identify the best opportunity for their client. Once an advisor has identified a suitable investment, Altigo streamlines the subscription process with an online intelligent interview, electronic signature options, and a transaction activity dashboard for tracking of investments in progress. These features create productivity and cost savings that can equate to a full-time employee. In a recent survey of Altigo users, over 95% of respondents said they would recommend the platform.

“We envision a world where alternative investments are as easy to own as a mutual fund. Altigo Marketplace combines a tech-enabled transaction process with a showcase of quality offerings in order to make it easier for RIAs to do more alternative investment business, diversify client portfolios, and grow their AUM by attracting higher net worth clients,” says Mat Dellorso, Co-founder of WealthForge.

The Altigo platform currently hosts a range of alternative investment products, such as Private Placement Funds, Non-Traded REITs, Qualified Opportunity Zone Funds, and 80 percent of all live 1031 Exchange DST products. For products that are not already on Altigo, WealthForge offers a supplemental service of mapping subscription documents so that advisors can conduct all of their alts business through the platform. Since Altigo was first announced nearly a year ago, the company reports transactions in excess of $100 million submitted through the platform.

RIAs can sign up for Altigo Marketplace by visiting www.wealthforge.com/marketplace-access.

WealthForge Expands Altigo Sales Team with 2 New Hires

WealthForge Expands Altigo Sales Team with 2 New Hires

June 17, 2020 | Ryan Gunn | WealthForge

Richmond, VA — WealthForge, a financial technology service provider that offers solutions for alternative investment trade processing automation, has hired Skip Carleton as Enterprise Account Executive and Jack Armstrong as Sales Development Representative. In their new roles, Carleton and Armstrong will assist Senior Director Megan Bosch in addressing independent broker-dealer demand for Altigo, WealthForge’s straight through processing platform.

Skip Carleton has over 10 years of experience in sales and client relationship management in the financial industry. Previously, he served as Regional Sales Director at FTSE Russell, Head of Client Relations at BMI Research, Senior Relationship Manager with S&P Global Market Intelligence, and Equity Analyst at Dorsey, Wright & Associates.

Jack Armstrong has worked in utility-scale renewable energy development and most recently as a sales development representative for Namely, an HR and payroll SaaS company. Jack also spent a year teaching history at a boarding school in England following his graduation from University of Virginia.

Read Full Press Release

COVID-19 Impact Mitigation for 3 Popular Real Estate Investment Types

COVID-19 Impact Mitigation for 3 Popular Real Estate Investment Types

April 15, 2020 | Kyle Engelken | WealthForge

During the tumultuous economic period caused by the coronavirus pandemic, there are a myriad of indicators of public market performance. The Dow Jones Industrial Average1 had its largest single day drop in history, and the Federal Reserve has cut interest rates to 0%. But it can be harder to determine the effects on markets that are not reflected in the stock market.

While commercial real estate has historically been a slower reacting market, if COVID-19 continues to have an impact on the broader economy, it will eventually show in real estate markets. Formerly reliable tenants may suddenly not be able to afford rent. Quarantines and social distancing will create slower revenue and growth in commercial real estate and may cause defaults on commercial loans. New construction projects may be delayed due to supply chain disruptions and labor shortages. Some places, such as major cities in California, have put moratoriums on commercial evictions, which may prevent property managers from being able to collect money or re-lease space, and may create an inability for owners to pay their mortgages or provide dividends to their investors.

According to Cohen & Steers, a real assets investment management firm, hotels, hospitality, senior housing, retail, and offices will be most affected. Meanwhile, single and multi-family housing, cell towers and data centers, industrial, self-storage, and medical will likely be less affected.

Read Full Article

Four Springs Capital Trust Launches Altigo to Automate Alternative Investment Subscription Process

Four Springs Capital Trust Launches Altigo to Automate Alternative Investment Subscription Process

May 13, 2020

Four Springs Capital Trust announced today that it has entered into a strategic relationship with leading alternative investment and technology company WealthForge to utilize WealthForge’s Altigo platform. Alitgo is an end-to-end subscription automation technology solution that replaces the traditional manual, paper-based subscription process for alternative investments.

Altigo allows advisors and brokers to digitally subscribe clients to alternative investments, which creates a frictionless, technology-enabled user experience for advisors – dramatically reducing errors and cost for sponsors while expediting transactions for all parties involved. Because Altigo is a cloud-based system, the platform can be accessed from anywhere with an internet connection, opening up opportunities for financial advisors to continue servicing their high-net wort clients from outside of the office, rather than needing to be present for incoming documentation or overnight mail. Broker-dealers and RIAs that work with WealthForge’s sponsor partners are able to access their offerings on Altigo at no cost.

“We created Altigo to make the alternative investment process easier and more flexible for financial advisors, investment sponsors and high-net worth investors,” said Bill Robbins, Chief Executive Officer of WealthForge. “Investment sponsors like Four Springs Capital Trust understand the benefits of making the subscription process easier and more accurate for their financial advisor partners and investors.”

“We see tremendous benefit in migrating from paper-based transactions to a technology-based subscription process,” said William Dioguardi, Chief Executive Officer of Four Springs Capital Trust. “Altigo offers us the ability to provide outstanding customer service to our alternative investment clients through a streamlined business process.”

About Four Springs Capital Trust

Four Springs Capital Trust is a private, internally managed real estate investment trust focused on acquiring a diversified portfolio of industrial, medical, retail and office properties net leased to investment grade and other creditworthy tenants under long-term leases. The company’s Four Springs TEN31 Xchange platform is a sponsor of DST offerings featuring single tenant net-leased real estate and provides customized turnkey tax deferred exchange solutions for real estate investors.

About WealthForge

WealthForge provides technology solutions developed by regulatory experts to streamline investments into alternative securities. WealthForge was founded upon the idea that alternative capital markets are opaque, inefficient, and rife with barriers—and that needed to change.

Alts Electronic Business: A Discussion About Today’s Solutions

Alts Electronic Business: A Discussion About Today’s Solutions

May 8, 2020 | Ryan Gunn | WealthForge

On Tuesday, May 5th, WealthForge CEO, Bill Robbins, spoke on a panel at Blue Vault’s Bowman Alts Week virtual conference entitled “Alts Electronic Business: A Discussion about Today’s Solutions.” He was joined by Sonny Cabral of DTCC, Michael Page of Riskalyze, Gordon Sommer of iCapital, and moderator Richard Thoeny of Docupace.

Blue Vault attendees can view a webcast of the panel here.

The panel began, topically, with how the COVID-19 pandemic has changed the alternative investment industry and created an environment where digital processing is a necessity. While the change from paper processing to automation is, as Bill remarked, inevitable, the pandemic has accelerated the pace of that change. In a digital age, investor clients expect their financial resources to be available regardless of what is happening in the world around us. Trust is built on client service and responsiveness. Paper processes do not transition well to the world of remote work, so the industry has been forced to address roadblocks that have existed for years.

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COVID-19 is Creating a Rush on 1031 Exchange Equity

COVID-19 is Creating a Rush on 1031 Exchange Equity

May 8, 2020 | Bill Robbins | WealthForge

The coronavirus pandemic has had rippling effects on the economy over the past several months, including sending stocks into a bear market and causing the Federal Reserve to drop interest rates to 0%. One part of the economy that tends to be slower to react is commercial real estate. However, 1031 Exchange sponsors are starting to feel the effects and so are their investors. The economic turmoil is expected to create a rush of market participants trying to place investments into a closing window of available product.

PRODUCT SHORTAGES

1031 exchange sponsors operate by acquiring real estate properties in a variety of market segments, including multi-family, student housing, office buildings, medical facilities, self-storage, and more, with a combination of equity and debt financing. Some of these sectors have been hit harder than others. Retail and hospitality have fallen off as people are staying home. Student housing has faced uncertainty as colleges and universities have closed for the spring semester and are now planning for the Fall. Other segments such as medical facilities have continued to perform well throughout the pandemic.

As a result of the uncertainty in the market, the qualifying process for securing loans has recently become more strenuous as banks are tightening their purse strings. CMBS financing has come screeching to a halt, with new availability not expected to open up until the third quarter of 2020. Without debt financing, sponsors’ ability to acquire new properties is severely diminished. As a result, new acquisitions are slowing, and the ones that are coming about are smaller and composed of mostly equity financing.

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5 New Sponsors Choose Altigo to Automate Investments Into Their Alternative Offerings

5 New Sponsors Choose Altigo to Automate Investments Into Their Alternative Offerings

April 10, 2020 | Ryan Gunn | WealthForge

Altigo, a straight through processing platform from WealthForge, allows advisors and brokers to digitally subscribe clients to alternative investments. WealthForge is now adding offerings from five new sponsors including Legendary Capital, Nelson Partners, SmartStop, and Sovereign Partners. This is in addition to top DST sponsors Cantor Fitzgerald and Capital Square 1031 as well as several others. Broker-dealers and RIAs that work with any of WealthForge’s sponsor partners are able to access their offerings on Altigo at no cost.

“With the addition of these new sponsors, we have significantly increased the amount of product on our shelves, and the response from their distribution partner firms that we work with has been very encouraging. We are not only providing them with the products their clients want, but we’re also improving and expediting the investment process, saving them hours of work,” says Bill Robbins, CEO at WealthForge.

Altigo was first announced about a year ago, and over $100 million in transactions have been submitted through the platform. Altigo currently supports a range of alternative investment products, such as 1031 Exchange DSTs, Non-Traded REITs, Qualified Opportunity Zone Funds, and BDCs. Any product that utilizes subscription document-based order entry can benefit from Altigo’s straight through processing technology.

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Remote Work and Alternative Investments…

Remote Work and Alternative Investments: How Altigo Enables Financial Professionals to Service Their HNW Clients

March 24, 2020 | Ryan Gunn | WealthForge

In reaction to the recent COVID-19 pandemic, much of America is changing the way they work. Many financial services professionals are turning to remote work. Portfolio management, financial planning, and CRM software may already be part of your practice, and if you weren’t already, you are probably becoming well acquainted with video conferencing.

However, financial professionals that work with high net worth investors that invest in alternative investments may find the transition to work-from-home more difficult than they expected. Many alternative investments still largely rely on paper documents that must be mailed or faxed between investors and advisors. Unless you have been giving out your home address or have a fax machine in your house, subscribing clients to alternative investments is going to be a hassle without making a trip to the office or having an ill-advised in-person meeting.

Luckily, recent changes to regulation and technology now allow some alternative investments to be accessed and subscribed to digitally. Altigo, WealthForge’s straight through processing platform, is designed to streamline the alternative investment process, replacing paper subscription documents with an online information collection workflow, and eliminating mailing through the use of electronic signature. These changes create an opportunity for brokers and advisors to provide their high net worth clients with alternative investments without leaving the comfort and safety of their home.

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An Influential Fintech Line-Up to Advance New “AltsTech Forum”

An Influential Fintech Line-Up to Advance New “AltsTech Forum”

December 4, 2019 | Blue Vault staff writer

Technology is quickly changing the landscape for wealth advisors who use alternative investments. To truly understand what best-in-class technology has to offer the alternatives investing space, Blue Vault is extremely pleased to add an AltsTech Forum to next year’s sixth annual Blue Vault Bowman Alts Summit.

With an all-star line-up of technology providers already committed to attend* and more on the way, agendas are currently being developed that will break down and prioritize the discussion to the real heart of the issue, which is to create building blocks to advance solutions for wealth advisors needing help with more efficient ways to process alts investments.

Blue Vault is very pleased to have Angie Fisher of CIM Group lead a team of technology specialists to create the value-packed AltsTech Forum agenda.  Securities attorney Kirk Montgomery, KAM, and technology experts Amber Wallner of Black Creek Group and Jeff LaFayette of Bluerock are collaborating with Fisher to tap into the fundamental issues needing to be addressed.

What can you expect? The industry’s most advanced technology professionals have committed to attend and participate by giving presentations and demonstrations about how their tech platforms are delivering real results, making efficiency a top priority.  There will be panel discussions to address the various issues, as well as challenges, currently needing solutions.  The providers will also be exhibiting to further showcase their solutions and answer questions for attendees.    
 
The AltsTech Forum will be running simultaneously but separately with the traditional product presentation sessions.  Creating dialogue with industry peers and advancing the discussion to find solutions is the purpose of the Forum. 
 
“We think this dual track creates a much richer environment for the attendees,” said Stacy Chitty, Blue Vault managing partner. “While product presentations are being delivered in one room, tech solutions will be advanced in the other.  We’re excited about the participation commitments we’ve received so far.  While technology has lagged in the alts space in the past, technology cannot be ignored or lag anymore.”
 
Stay-tuned as we continue to roll out the details of the AltsTech Forum. Follow the latest event happenings via the hashtag #AltsSummit2020.

*As of December 4, the following professional services providers have committed to attend and exhibit at the Summit: AIX, Artivest, Boing Dynamics, BNY Mellon/Pershing, Centersky, Docupace, Envision Financial Systems, iCapital, Riskalyze, SS&C /ALPS, and WealthForge.

In case you missed it, Blue Vault recently hosted a webinar titled, “How is Technology advancing Alternative Investments?” Moderated by Angie Fisher of CIM Group, panelists included Mike Huisman of Envision Financial Systems, Inc., Michael Page of Riskalyze, and Kevin Zwick of WealthForge. To visit that one-hour webinar, click here.