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BNY Mellon to Roll Out Alts Bridge, Enhance Alternative Offerings
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The Bank of New York Mellon Corp. (BK - Free Report) is set to launch Alts Bridge, an extensive data, software, and services solution. It will cater to rising demand from wealth intermediaries seeking simplified access to alternative and private market investment products via simplified end-to-end investment experience.
What Does BK’s Alts Bridge Offer?
The platform has been designed to integrate seamlessly into intermediaries' existing desktops, starting with BNY Pershing X’s Wove advisory platform and NetX360+, incorporating cutting-edge AI and analytics tools to mitigate manual processing and error rates.
It offers a powerful solution to investors, advisors and the home office by providing access to a curated, extensive suite of leading alternative and private asset managers worldwide.
These firms include 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.
The platform will provide features across pre-, at- and post-trade processes, alongside advisor education and fund discovery center, tools for home office and asset managers. It will also offer product overviews, automated document generation, simplified order entry, and integrated reporting and investment management capabilities.
The platform is anticipated to be available to U.S. registered investment advisors and independent broker-dealers in fall 2024. Initially, the platform will be accessible to BNY Pershing’s clients.
BNY Mellon’s Strategic Rationale Behind the Launch
This move aims to capitalize on the ongoing shift in the investable landscape between public and private securities among investors to diversify their portfolios and earn uncorrelated returns.
While 90% of advisors aim to allocate a 10-15% average weight of their portfolios in alternative and private market investments, actual allocations remain in low single digits. Per a Preqin 2023 report, global alternative assets under management are projected to reach $24.5 trillion in 2028, signifying a forecast annualized growth rate of 8.4% from 2022 to 2028.
David Moss, Head of Alts Bridge at BNY Mellon, said, “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.”
This move combines the breadth and depth of BK’s distribution team with its proficiency in investment management, advisory, securities services, wealth technology, and wealth custody and clearing. This enables Alts Bridge to offer a comprehensive solution to find, access, and take custody of alternative and private market assets.
The initiative aligns with BNY Mellon’s revenue growth strategy, which includes launching services and digitizing operations to enhance client experience. This June, the bank announced a bundled offering through Pershing, enabling advisors to gain accessibility to a wide range of capabilities across BNY Mellon’s leading platforms. Similarly, BK launched customized tax solutions, along with expanding its direct indexing suite, BNY Mellon Precision Direct Indexing.
BK’s Zacks Rank & Price Performance
Year to date, shares of BNY Mellon have surged 35.5% compared with the industry’s 15.3% growth.
BlackRock Inc. (BLK - Free Report) has entered into a strategic alliance with Partners Group to introduce a multi-private markets model solution, boosting retail investors’ accessibility to alternative investments.
This BLK solution will offer access to private equity, private credit, and real assets in a combined portfolio currently unavailable in the U.S. wealth market.
This will enable advisors to offer a diversified alternative portfolio, combining the simplicity, efficiency, and practice management benefits typically found in traditional public markets models.
SEI Investments Co. (SEIC - Free Report) announced the integration of investment vehicles from KKR & Co. Inc. (KKR - Free Report) into its platform. This will enhance users’ accessibility to private markets. The platform is used by registered investment advisors, broker-dealers and other clients.
SEI Investments’ e-subscription technology offers better access to alternative investments, improved processing efficiency and an enhanced advisor and client experience. Further, the integration of investment vehicles from KKR to the platform will enhance product offerings.
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BNY Mellon to Roll Out Alts Bridge, Enhance Alternative Offerings
The Bank of New York Mellon Corp. (BK - Free Report) is set to launch Alts Bridge, an extensive data, software, and services solution. It will cater to rising demand from wealth intermediaries seeking simplified access to alternative and private market investment products via simplified end-to-end investment experience.
What Does BK’s Alts Bridge Offer?
The platform has been designed to integrate seamlessly into intermediaries' existing desktops, starting with BNY Pershing X’s Wove advisory platform and NetX360+, incorporating cutting-edge AI and analytics tools to mitigate manual processing and error rates.
It offers a powerful solution to investors, advisors and the home office by providing access to a curated, extensive suite of leading alternative and private asset managers worldwide.
These firms include 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.
The platform will provide features across pre-, at- and post-trade processes, alongside advisor education and fund discovery center, tools for home office and asset managers. It will also offer product overviews, automated document generation, simplified order entry, and integrated reporting and investment management capabilities.
The platform is anticipated to be available to U.S. registered investment advisors and independent broker-dealers in fall 2024. Initially, the platform will be accessible to BNY Pershing’s clients.
BNY Mellon’s Strategic Rationale Behind the Launch
This move aims to capitalize on the ongoing shift in the investable landscape between public and private securities among investors to diversify their portfolios and earn uncorrelated returns.
While 90% of advisors aim to allocate a 10-15% average weight of their portfolios in alternative and private market investments, actual allocations remain in low single digits. Per a Preqin 2023 report, global alternative assets under management are projected to reach $24.5 trillion in 2028, signifying a forecast annualized growth rate of 8.4% from 2022 to 2028.
David Moss, Head of Alts Bridge at BNY Mellon, said, “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.”
This move combines the breadth and depth of BK’s distribution team with its proficiency in investment management, advisory, securities services, wealth technology, and wealth custody and clearing. This enables Alts Bridge to offer a comprehensive solution to find, access, and take custody of alternative and private market assets.
The initiative aligns with BNY Mellon’s revenue growth strategy, which includes launching services and digitizing operations to enhance client experience. This June, the bank announced a bundled offering through Pershing, enabling advisors to gain accessibility to a wide range of capabilities across BNY Mellon’s leading platforms. Similarly, BK launched customized tax solutions, along with expanding its direct indexing suite, BNY Mellon Precision Direct Indexing.
BK’s Zacks Rank & Price Performance
Year to date, shares of BNY Mellon have surged 35.5% compared with the industry’s 15.3% growth.
Image Source: Zacks Investment Research
Currently, BK carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Restructuring Efforts by Other Finance Firms
BlackRock Inc. (BLK - Free Report) has entered into a strategic alliance with Partners Group to introduce a multi-private markets model solution, boosting retail investors’ accessibility to alternative investments.
This BLK solution will offer access to private equity, private credit, and real assets in a combined portfolio currently unavailable in the U.S. wealth market.
This will enable advisors to offer a diversified alternative portfolio, combining the simplicity, efficiency, and practice management benefits typically found in traditional public markets models.
SEI Investments Co. (SEIC - Free Report) announced the integration of investment vehicles from KKR & Co. Inc. (KKR - Free Report) into its platform. This will enhance users’ accessibility to private markets. The platform is used by registered investment advisors, broker-dealers and other clients.
SEI Investments’ e-subscription technology offers better access to alternative investments, improved processing efficiency and an enhanced advisor and client experience. Further, the integration of investment vehicles from KKR to the platform will enhance product offerings.