BNY to Launch Alts Bridge Platform Broadening Investor Access to Alternative Products

Rhea-AI Summary

BNY (NYSE: BK) has announced the launch of Alts Bridge, a comprehensive platform designed to simplify access to alternative and private market investments for wealth intermediaries, advisors, and investors. The platform will offer a curated suite of leading alternative asset managers and provide features across pre-, at-, and post-trade processes, including advisor education, automated document preparation, and integrated reporting.

Key highlights:

• Alts Bridge aims to address the growing demand for alternative investments in wealth management
• The platform will initially integrate with BNY Pershing X's Wove advisory platform and NetX360+
• It leverages BNY's expertise across investment management, advisory, and wealth technology
• Expected launch for U.S. RIAs and IBDs in fall 2024

Positive

• Launch of Alts Bridge platform to simplify access to alternative investments
• Integration with existing BNY Pershing X platforms
• Partnerships with 25+ leading alternative asset managers
• Potential to tap into growing alternative assets market, expected to reach $24.5trn by 2028
• Leverages BNY's $2.6 trillion wealth assets and relationships with 500+ alternative managers

Negative

• None.

Insights

Financial Technology Analyst

BNY's launch of Alts Bridge is a significant move in the wealth management technology space. This platform addresses a important gap in the market by simplifying access to alternative investments for wealth intermediaries. The integration with BNY Pershing's existing platforms and the use of AI for process optimization could lead to increased efficiency and reduced costs.

The platform's comprehensive features, spanning pre-trade to post-trade processes, position BNY to potentially capture a larger share of the rapidly growing alternative assets market. With global alternative AUM projected to reach $24.5 trillion by 2028, this initiative could drive substantial revenue growth for BNY in the coming years.

However, success will depend on adoption rates and the platform's ability to truly simplify the complex world of alternative investments for advisors and clients. Investors should monitor early adoption metrics and user feedback following the fall 2024 launch.

Investment Strategy Consultant

The Alts Bridge platform represents a strategic pivot for BNY, aligning with the growing demand for alternative investments in retail portfolios. By leveraging its $2.6 trillion in wealth assets and relationships with over 500 alternative managers, BNY is positioning itself as a key facilitator in democratizing access to private markets.

This move is timely, given the 8.4% forecasted annual growth rate in alternative assets. However, the execution risk is significant. The platform must overcome the operational complexities that have historically advisor allocations to alternatives.

If successful, Alts Bridge could become a major revenue driver for BNY, potentially increasing assets under custody and generating new fee streams. Investors should watch for partnerships with additional wealth platforms beyond BNY Pershing, which would indicate broader market acceptance and growth potential.

Wealth Management Analyst

The launch of Alts Bridge is a game-changer for the wealth management industry. By addressing the long-standing issue of operational complexity in alternative investments, BNY is tapping into a significant unmet need. The current gap between advisors' target allocations (10-15%) and actual allocations (low single digits) represents a massive growth opportunity.

The platform's comprehensive approach, including education, fund discovery and integrated reporting, could drive increased adoption of alternatives among RIAs and IBDs. This, in turn, may lead to higher fee revenue for BNY and potentially improved portfolio outcomes for end clients.

However, the success of Alts Bridge will hinge on its ability to truly simplify the alternative investment process and provide value to both advisors and asset managers. Investors should monitor user adoption rates and any impact on BNY's market share in the wealth management technology space post-launch.

Through Alts Bridge, BNY will deliver to wealth intermediaries, advisors, and investors a complete and integrated set of solutions across the alternative investment lifecycle

NEW YORK, Sept. 16, 2024 /PRNewswire/ -- The Bank of New York Mellon Corporation ("BNY") (NYSE: BK), a global financial services company, has today announced Alts Bridge^SM ("Alts Bridge"), a comprehensive data, software, and services solution built to meet the growing demand from wealth intermediaries looking to access alternative and private market investment products, through a simplified end-to-end investment experience.

Designed to deeply integrate into intermediaries' existing desktops, beginning with BNY Pershing X's Wove advisory platform and NetX360+, with cutting-edge AI and analytics tools that are designed to reduce manual processing and error rates, Alts Bridge creates a powerful solution for investors, advisors, and the home office. The platform will provide access to a curated, comprehensive suite of leading alternative and private market asset managers from around the world, a selection including 26 North, AB CarVal, Alternatives by 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.

"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 of wealth assets[1] 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. "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."

The platform will offer features across the pre-, at- and post-trade processes, including an advisor education and fund discovery center, home office and asset manager tools, product overviews, automated document preparation, simplified order entry, and integrated reporting and investment management capabilities. 

"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. "We're addressing challenges that have persisted for decades and delivering cutting edge tools. For advisors, we are making alternatives easier. And for asset managers, Alts Bridge delivers scalable, efficient access to the growing wealth channel."

While 90% of advisors are targeting a 10-15% average portfolio weighting to alternative and private market investments, 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.[2]

"Having been at the forefront of developing private markets products for the wealth space, we welcome this initiative to simplify access for investors while ensuring they have the resources, they need to make informed, long-term investment decisions," said Robert Collins, Global Co-Head of Private Wealth at Partners Group.

"The shifting investable landscape between public and private securities is a secular trend for our industry.  Invesco is excited to work with Alts Bridge to help investors navigate this landscape with an industry-leading client experience, educational resources, and investment capabilities," said Clint Harris, Head of Wealth Management Platforms and Institutional Consultant Relations at Invesco.

The platform is expected to be available to U.S. Registered Investment Advisors (RIAs) and Independent Broker-Dealers (IBDs) in fall 2024. The initial platform will be available to clients of BNY Pershing. To learn more, please visit: https://www.bnymellon.com/us/en/solutions/wealth-technology/alts-bridge-alternative-investment-software.html

1	BNY Pershing AUC/A as of June 30, 2024
2	Preqin (2023) Future of Alternatives 2028 – Source

Media
Anneliese Diedrichs
anneliese.diedrichs@bny.com

Courtney Woolston
courtney.woolston@bny.com

About BNY

BNY is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe. For 240 years BNY has partnered alongside clients, putting its expertise and platforms to work to help them achieve their ambitions. Today BNY helps over 90% of Fortune 100 companies and nearly all the top 100 banks globally to access the money they need. BNY supports governments in funding local projects and works with over 90% of the top 100 pension plans to safeguard investments for millions of individuals, and so much more. As of June 30, 2024, BNY oversees $49.5 trillion in assets under custody and/or administration and $2.0 trillion in assets under management.

BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Headquartered in New York City, BNY employs over 50,000 people globally and has been named among Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators. Additional information is available on www.bny.com. Follow on LinkedIn or visit the BNY Newsroom for the latest company news.  

This Press Release is issued by BNY to members of the press and media and the information contained herein should not be construed as investment advice or a recommendation of any investment strategy or product. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized.

 

View original content:https://www.prnewswire.com/news-releases/bny-to-launch-alts-bridge-platform-broadening-investor-access-to-alternative-products-302248801.html

SOURCE BNY Mellon

FAQ

What is Alts Bridge and when will it be launched by BNY (BK)?

Alts Bridge is a comprehensive platform by BNY (BK) designed to simplify access to alternative and private market investments. It is expected to launch for U.S. RIAs and IBDs in fall 2024.

Which asset managers will be available on BNY's (BK) Alts Bridge platform?

Alts Bridge will offer access to 25+ leading alternative asset managers, including Apollo, Carlyle, Goldman Sachs, KKR, and Partners Group, among others.

What features will BNY's (BK) Alts Bridge platform offer?

Alts Bridge will offer features across pre-, at-, and post-trade processes, including advisor education, fund discovery, automated document preparation, simplified order entry, and integrated reporting.

How does BNY (BK) plan to address the demand for alternative investments with Alts Bridge?

Alts Bridge aims to address the growing demand by simplifying the investment process, providing education, and leveraging BNY's expertise across investment management, advisory, and wealth technology.