UBS has teamed with fintech firms Envestnet and iCapital Network to provide clients with access to a curated selection of UBS and iCapital alternative investment products that include hedge funds and real estate through Envestnet's platform, the companies said Tuesday.
As part of the initiative, Envestnet will launch the Alternatives Exchange, a new solution designed to provide the alternative products to clients, leveraging iCapital's turnkey technology. Access to the Alternatives Exchange will be made available in the current quarter directly through a single sign-on integration from the Envestnet Platform, the companies said in their joint announcement.
UBS created a dedicated group to service the initiative that will provide access to investment solutions and custody services. Advisors on Envestnet's platform will continue to be the main contact for their clients.
To seamlessly support the new initiative, Envestnet | PMC, Envestnet's portfolio consulting group, will provide oversight of the Alternatives Exchange. Envestnet's new Private Wealth Consulting service "anticipates leveraging this offering for advisors of high-net-worth clients, providing access to private investments and hedge fund strategies through UBS and iCapital," the firms said.
Through the collaboration, Envestnet's platform will provide access to iCapital's enhanced technology and processing capabilities. iCapital's technology includes its digital subscription process for alternative investments, with Anti-Money Laundering and Know Your Client features to assist advisors through essential compliance processes.
It was not immediately clear if cryptocurrency will play any role in the alternative investments initiative. The companies did not immediately respond to requests for comment. UBS said in April that it was in the early stages of planning to offer wealthy customers digital currency investments, joining a growing number of U.S firms, including Morgan Stanley, in seeking to give broader access to crypto in response to client demand.
