Phoenix American and Alternative Investment Exchange (AIX) Announce Their Partnership to Deliver Straight-Through Processing for Alternative Investments
September 14, 2020
San Rafael, CA and Philadelphia, PA, September 14, 2020 – Phoenix American, a leading transfer agent and fund administration provider for alternative investments and Alternative Investment Exchange (AIX), a digital platform built to improve processes for investing in alternatives, have announced an integration partnership to provide a seamless, fully digital purchase process for client funds. The partnership will enable investors to purchase alternative investment products digitally using the AIX platform resulting in a complete and active investment record in the Phoenix American transfer agent system, STAR-XMS, with no manual intervention.
“We’re working hard to improve the way business is done and grow the overall industry. Partnering with Phoenix American is a critical step toward that goal,” said AIX COO, Brad West.
The partnership between Phoenix American and AIX is a key step in advancing the entire alternative investment industry. A significant amount of attention is paid in the alternatives industry to the problem of investment subscriptions that arrive at the transfer agent ‘not in good order’ (NIGO). Minimizing NIGOs by developing a purchase process that eliminates manual data input has been a long-term goal. While both firms believe that reducing NIGOs is essential, they agree that it will not by itself scale the alternatives industry. Full automation of the purchase process will.
“Phoenix American has long been a supporter of technological advancements that reduce costs for sponsors and improve investor and rep adoption of alternative investments,” said Andrew Constantin, Senior Vice President, Operations for Phoenix American. “Our mission is to identify ways to reduce operational frictions while remaining agnostic. Leveraging the AIX platform is an important step for Phoenix American as we continue to embrace advancements in technology that push the industry forward.”
Seamlessly moving data between the firms’ systems, without manual intervention, will fundamentally change the way business is done. With Phoenix American on the AIX Platform, true front-to-back connectivity of pure data involving no paper will occur for the first time. Authentically connecting sponsors, advisors and wealth managers to create a mutual-fund-like experience enhances compliance, provides true efficiency and addresses the operational friction that has rate-limited growth in the alternatives industry. This authentic data connectivity is where both Phoenix American and AIX see the potential to grow the alternatives industry and create transformational change.
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