Key Takeaways
- • Savvy Wealth has launched a proprietary private markets program, built with Allocate, giving independent advisors on its platform access to curated alternative investment managers across multiple vintages and asset classes.
- • The initial focus is venture capital and growth equity managers, with future vintages expected to add private equity, income-oriented strategies, and infrastructure.
- • Qualified-purchaser clients can gain exposure to multiple underlying private market opportunities through a single commitment.
- • Allocate operates a $5.8 billion private markets technology platform and works with more than 400 advisory firms; the two companies will collaborate on manager selection and portfolio construction.
- • The program consolidates subscription processes, reporting, and tax documentation, integrating private holdings into clients' broader portfolios on Savvy's platform.
Summary
Savvy Wealth has launched a proprietary private markets program designed to give independent advisors on its platform access to curated alternative investment managers across multiple vintages and asset classes. The program is being built in partnership with Allocate, which operates a $5.8 billion private markets technology platform and works with more than 400 advisory firms. According to the announcement, the two companies will collaborate on manager selection and portfolio construction, while Savvy's investment team will oversee research and due diligence.
The program will initially focus on venture capital and growth equity managers, strategies that Savvy said are often difficult for individual investors to access because of high investment minimums and limited capacity. Qualified-purchaser clients of advisors on the platform will be able to gain exposure to multiple underlying private market opportunities through a single commitment. Future vintages are expected to expand beyond venture and growth equity to include private equity, income-oriented strategies, and infrastructure, with the structure intended to provide diversification across managers, strategies, vintages, and eventually multiple private market asset classes.
Savvy is also positioning the offering to reduce the administrative burden of private investing. The program will consolidate subscription processes, reporting, and tax documentation, and will integrate these investments with the rest of a client's portfolio on Savvy's AI-native, multi-custodial registered investment adviser platform.
Savvy framed the launch as a response to the growing share of corporate value creation occurring in private markets before companies reach public exchanges. The company noted that private businesses with more than $100 million in annual revenue now substantially outnumber publicly traded companies of comparable size in the U.S. Anshul Sharma, Chief Investment Officer of Savvy Wealth, said: "The best opportunities in private markets have historically been reserved for institutions and the ultra-wealthy. Clients read about private companies valued in the tens of billions that they've never had a chance to own, and they're asking their advisors about it. This program lets our advisors deliver that access, with rigorous manager selection and due diligence built in."
The program will initially focus on venture capital and growth equity managers, strategies that Savvy said are often difficult for individual investors to access because of high investment minimums and limited capacity. Qualified-purchaser clients of advisors on the platform will be able to gain exposure to multiple underlying private market opportunities through a single commitment. Future vintages are expected to expand beyond venture and growth equity to include private equity, income-oriented strategies, and infrastructure, with the structure intended to provide diversification across managers, strategies, vintages, and eventually multiple private market asset classes.
Savvy is also positioning the offering to reduce the administrative burden of private investing. The program will consolidate subscription processes, reporting, and tax documentation, and will integrate these investments with the rest of a client's portfolio on Savvy's AI-native, multi-custodial registered investment adviser platform.
Savvy framed the launch as a response to the growing share of corporate value creation occurring in private markets before companies reach public exchanges. The company noted that private businesses with more than $100 million in annual revenue now substantially outnumber publicly traded companies of comparable size in the U.S. Anshul Sharma, Chief Investment Officer of Savvy Wealth, said: "The best opportunities in private markets have historically been reserved for institutions and the ultra-wealthy. Clients read about private companies valued in the tens of billions that they've never had a chance to own, and they're asking their advisors about it. This program lets our advisors deliver that access, with rigorous manager selection and due diligence built in."
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