Key Takeaways
- • SIMON Markets LLC and +SUBSCRIBE have partnered to launch what they describe as the wealth industry's first digital, end-to-end alternative fund marketplace for financial professionals, according to a Business Wire release.
- • The marketplace will be available to more than 100,000 financial professionals at over 50 wealth management firms already using the SIMON platform.
- • The offering will cover private equity, private credit, real estate, venture capital, hedge funds, and registered alternative funds, with access to direct fund and feeder fund investments.
- • The marketplace is built on +SUBSCRIBE's electronic subscription document technology, which the company says is used by more than 5,000 institutional investors and 1,200 private funds.
- • SIMON is positioning the launch as a fix for manual, paper-based subscription processes that the companies say limit proper alternative allocation levels within client portfolios.
Summary
SIMON Markets LLC, a fintech company serving financial professionals, announced a partnership with +SUBSCRIBE, a provider of order management and electronic subscription document technology for alternative product transactions, to launch what the companies describe as the wealth industry's first marketplace allowing advisors to manage all alternative investments on a single end-to-end platform, according to a Business Wire release dated November 3, 2021.
The SIMON fund marketplace will deliver product analytics, education, and investment lifecycle management for private and registered funds from a range of leading asset managers, while +SUBSCRIBE's subscription technology will handle order management. The marketplace will be available to the more than 100,000 financial professionals at over 50 wealth management firms that use the SIMON platform. The companies say the offering targets large wealth managers that currently rely on manual, error-prone, paper-based fund subscription processes, which they argue hinder proper allocation levels and efficient trade management of alternatives.
SIMON CEO Jason Broder said the partnership would give wealth managers an alternative asset platform that brings simplicity and ease of use to the asset class, and that it would help advisors move beyond traditional 60/40 portfolios. Rafay Farooqui, founder and CEO of +SUBSCRIBE, said the platform would transform how financial professionals view alternatives as a portfolio component. SIMON's platform already serves advisors at large private banks, broker-dealers, and RIAs, offering structured investments, annuities, buffered ETFs, and digital assets. The marketplace expands that menu to include private equity, private credit, real estate, venture capital, hedge funds, and registered alternative funds.
Broder and Farooqui are both Goldman Sachs alumni. SIMON spun out of Goldman Sachs in 2018 with backing from Barclays, Credit Suisse, Goldman Sachs, HSBC, JPMorgan, Prudential, and Wells Fargo. In July 2021, SIMON announced a $100 million Series B strategic growth round led by WestCap. +SUBSCRIBE states its technology is used by more than 5,000 institutional investors, 1,200 private funds, and 300 service providers, including fund formation law firms, administrators, and custodians.
The SIMON fund marketplace will deliver product analytics, education, and investment lifecycle management for private and registered funds from a range of leading asset managers, while +SUBSCRIBE's subscription technology will handle order management. The marketplace will be available to the more than 100,000 financial professionals at over 50 wealth management firms that use the SIMON platform. The companies say the offering targets large wealth managers that currently rely on manual, error-prone, paper-based fund subscription processes, which they argue hinder proper allocation levels and efficient trade management of alternatives.
SIMON CEO Jason Broder said the partnership would give wealth managers an alternative asset platform that brings simplicity and ease of use to the asset class, and that it would help advisors move beyond traditional 60/40 portfolios. Rafay Farooqui, founder and CEO of +SUBSCRIBE, said the platform would transform how financial professionals view alternatives as a portfolio component. SIMON's platform already serves advisors at large private banks, broker-dealers, and RIAs, offering structured investments, annuities, buffered ETFs, and digital assets. The marketplace expands that menu to include private equity, private credit, real estate, venture capital, hedge funds, and registered alternative funds.
Broder and Farooqui are both Goldman Sachs alumni. SIMON spun out of Goldman Sachs in 2018 with backing from Barclays, Credit Suisse, Goldman Sachs, HSBC, JPMorgan, Prudential, and Wells Fargo. In July 2021, SIMON announced a $100 million Series B strategic growth round led by WestCap. +SUBSCRIBE states its technology is used by more than 5,000 institutional investors, 1,200 private funds, and 300 service providers, including fund formation law firms, administrators, and custodians.
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