As alternative investments become a larger part of wealth management portfolios, the technology used to access and manage those investments is attracting significant investment of its own. CAIS announced a $170 million Series D financing in late July that values the alternative investment platform at more than $2 billion and brings its total capital raised to nearly $600 million. The round was led by Vista Equity Partners and included investments from AllianceBernstein, Blue Owl Capital, Carlyle, Fortress Investment Group, Golub Capital, Lord Abbett and Royal Bank of Canada. CAIS also reported a three-year organic revenue compound annual growth rate of 37%.
The investment illustrates how the alternatives technology challenge is evolving. Platforms such as CAIS have helped independent advisors gain access to private equity, private debt, real estate, infrastructure and other alternative strategies, often with lower minimum investments and streamlined operational processes. But as alternatives become more prevalent in client portfolios, access is only part of the equation. Advisors also need technology and data to conduct due diligence, monitor investments, integrate alternative holdings into portfolio reporting and compare products across sponsors and structures.
That evolution creates an increasingly important distinction between access to alternatives and intelligence about alternatives. Distribution platforms can make products easier to purchase, while research and data providers can help advisors evaluate what they are purchasing and monitor investments over time. For Blue Vault, that distinction is particularly relevant: as the number of alternative products available to wealth advisors expands, standardized independent data on nontraded REITs, nontraded BDCs, interval funds, tender offer funds and other investments can become more—not less—important to the due diligence process.
