Commonwealth says the partnership will help it meet growing demand for alternative investments.
Commonwealth Financial Network announced Tuesday a partnership with the alternative investment platform iCapital to help meet the growing demand for such assets.
The fintech, which serves wealth managers, provides a white-label platform, enabling affiliated advisors to find nontraded alternative investments for high-net-worth client portfolios, Commonwealth said.
The firm cited a recent Cerulli Associates study that found the demand for alternative investments is increasing among HNW investors.
“The iCapital partnership allows Commonwealth to supplement our existing alternative investments product platform with a suite of products designed for high-net-worth investors,” Chad LaFauci, vice president for alternative investments, said in a statement.
“Investing in private alternatives has historically been a cumbersome process with a lot of paperwork,” he added. “The process is digitized with iCapital, making it easier and more streamlined. Our advisors now can reclaim time to focus on other priorities while having access to a more powerful way to attract and retain high-net-worth clients.”
The custom platform is a direct response to feedback from advisors seeking additional solutions to help them more effectively compete for and win HNW business, the firm said. The wide-ranging investment options are curated to help Commonwealth affiliates diversify HNW client portfolios with options generally reserved for institutional investors.
“What Commonwealth’s strategic partnership with iCapital gives us is critical because it’s a side-by-side comparison that would take me hours to create — hours that I don’t have to spare,” affiliated advisor Justin Bitner, wealth manager at Sterling Financial Group, said in the statement. “I also have talking points with clients that are right there for me in a consistent format.”
The service allows advisors to conduct research and education, perform due diligence, and facilitate subscriptions through one integrated platform, according to Commonwealth. While the current product set is geared toward HNW investors, the firm aims to expand it to accommodate additional wealth levels.
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