InvestCloud claims industry first with private-markets account offering

InvestCloud is claiming leadership in the shift towards private markets investing with a new enhancement to its managed accounts platform.

The global wealth technology provider has unveiled its new private markets account, a new managed accounts capability designed to simplify the management of alternative investments alongside traditional assets.

The offering creates a dedicated sleeve for private market investments within InvestCloud's managed accounts platform, giving wealth managers a dedicated location to integrate public and private assets in a single managed account platform.

According to InvestCloud, the PMA enables centralized management, valuation, and rebalancing of alternative investments, enhancing portfolio diversification and operational efficiency for advisors and their clients.

“The Private Markets Account will enable the wealth management industry to benefit from the private markets through a combination of our leading technology, relevant models, and top-tier partnerships with key leaders in the industry,” Jeff Yabuki, chairman and CEO of InvestCloud, said in a statement.

The PMA is driven by InvestCloud’s APL managed accounts platform, which supports nearly 4 million models. It's also supported by the PMA Network, which the firm describes as "a connected ecosystem of asset managers, wealth managers, distributors and model creators."

InvestCloud’s managed accounts platform currently oversees more than $3 trillion in assets across 10 million accounts

According to the company, its new PMA solution allows wealth managers to oversee a broad range of alternative investments, including private credit, private equity, real estate, interval funds, and non-traded REITs, which have seen bumps this year as some high-profile names saw crises in investor confidence.

It also supports seamless rebalancing of portfolios by managing the complexities of subscription frequencies, redemption schedules, and liquidity gates across public and private investments.

InvestCloud’s entry into this space reflects growing interest in private markets, which Cerulli Associates estimates will represent 25 percent of alternative investment assets sourced from retail channels within three years. And as one forecast by Preqin has it, private market assets will grow to exceed $30 trillion by 2030.

“The Private Markets Account and PMA Network from InvestCloud is more than an industry first. It’s the next step in our commitment to enabling a smarter financial future for wealth management,” Yabuki said.