Bank of New York Mellon Corp. is launching an alternative investment platform for wealth brokers and financial advisors. Called Alts Bridge, the platform will provide users with access to a list of alternative asset managers ranging from KKR, Apollo and Blue Owl Capital to alternatives from Franklin Templeton, Coller Capital and Partners Group.
BNY cited the fact that, as a group, financial advisers still need to meet their targets of 10% to 15% of portfolio allocation to alternative investments. In past surveys, councillors noted the high levels of administration and paperwork involved as some of the main obstacles for greater adoption. With global alternative assets under management expected to reach $24.5 trillion by 2028, the financial services industry has seen a proliferation of alternative investment platforms in recent years, including both operated independently and those launched by established financial services institutions.
“Powered by BNY's data and technology, Alts Bridge will connect clients across the wealth ecosystem and alternative markets in a unique and more seamless way. As a firm that supports more than $2.6 trillion in wealth assets and has relationships with more than 500 leading alternative managers, we believe we are uniquely positioned to unlock this market,” said Akash Shah, Chief Growth Officer and head of growth ventures at BNY in a statement. asset clearing, enabling Alts Bridge to provide a comprehensive solution for finding, accessing and preserving alternative private market assets.”
Alts Bridge is designed to assist brokers and wealth advisors before, during and after trading. It will include an advisor education center, product overviews, asset management tools, automated document preparation, simplified order entry and integrated reporting capabilities.
The alternative investment platform will be integrated with BNY Pershing X multi-custody wealth management platform, Wovewhich includes capabilities ranging from advanced data reporting, inter-custodian trading and rebalancing into a one-stop investor portal and consolidated APIs. Alts Bridge will also integrate with the firm's NetX360+, a technology platform for wealth management professionals that features AI and analytics tools designed to reduce manual processing and errors.
BNY plans to open the platform to US-based RIAs and independent broker-dealers later this fall. Initially, it will be available to BNY Pershing clients.