BNY wants to give financial advisors and their wealthy clients access to a wide range of alternative assets with the launch of a new platform.
It has announced Alts Bridge, a simplified end-to-end alternatives investing experience which aims to meet growing demand for alternative and private market investment products. BNY says that most advisors are targeting a 10-15% average portfolio weighting for alts but actual allocations remain in the low single digits.
Global alternative assets under management are expected to reach $24.5trn in 2028, representing a forecast annualized growth rate of 8.4% from 2022 to 2028 according to Preqin.
A recent survey showed that 70% of global financial advisors plan to increase their clients’ allocations to private markets in 2024.
"We consistently hear from advisors that they want to allocate more to alternatives and private markets but are limited by operational complexity and significant additional resource requirements. We're incredibly proud to deliver the alternative investment experience that advisors and their clients expect and deserve," said David Moss, Head of Alts Bridge at BNY.
With deep integration to existing desktops, initially BNY Pershing X's Wove advisory platform and NetX360+, the solution leverages AI and analytics tools to reduce manual processing and error rates. There will be features at the pre- at- and post- trade processes including advisor education and simplified ordering.
Alt Bridge users will have access to a curated and comprehensive suite of alternative assets from asset managers including Franklin Templeton, Apollo, Atalaya, Aviva Investors, Blue Owl Capital, Carlyle, CIFC, Coller Capital, Crescent Capital, Eisler Capital, Generali, GoldenTree, Goldman Sachs, Hunter Point Capital, Invesco, KKR, Lexington Partners a Franklin Templeton Company, Lunate, Marathon Asset Management, Partners Group, Polen Capital, RCP Advisors, and Stormfield Capital.
"We're combining the breadth and depth of BNY's distribution team with our expertise across investment management, advisory, securities services, wealth technology, and wealth custody and clearing, enabling Alts Bridge to provide a comprehensive solution to find, access, and custody alternative and private market assets,” said Akash Shah, Chief Growth Officer and Head of Growth Ventures at BNY.
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