The AltExchange team had the pleasure of attending the ADISA 2024 Annual Conference & Trade Show in Las Vegas last week. We had an amazing time learning from and meeting all the fantastic RIAs, financial advisors, and fintech attendees.
In case you missed it, here are three highlights from this year’s ADISA Conference that wealth professionals need to know about.
1. Automated reporting is more valuable than ever before
The alternative investment landscape is currently in a state of regulatory flux, with rules surrounding compliance changing constantly. For wealth managers and financial advisors, this uncertainty introduces significant challenges, especially when it comes to staying compliant and up-to-date with reporting requirements. As new regulations are implemented and old ones evolve, keeping a manual pulse on all these shifts can be daunting.
According to a 2023 study by Deloitte, compliance costs for wealth managers can consume up to 10% of their revenue, and automated solutions can cut this figure by up to 40% climate of regulatory uncertainty, having an automated system that provides accurate, up-to-date reporting is invaluable.
Automated reporting systems, like those offered by AltExchange, are becoming indispensable in this environment. By providing real-time updates and ensuring that all reporting complies with the latest regulations, wealth managers can avoid costly compliance mistakes and spend more time focusing on client growth.
2. Fragmentation in Alts Tech is A Major Challenge
While the alts industry is tight-knit, the technological infrastructure supporting it has become increasingly fragmented. Many wealth managers and firms are forced to use multiple, disconnected systems to track various alternative investments, leading to inefficiencies and data silos. This fragmentation was a key topic at ADISA 2024, with many industry professionals expressing frustration over the lack of streamlined solutions.
Managing private investments already requires significant expertise, but when the technology used to track and report on these investments is fragmented, it creates bottlenecks and errors, especially as portfolios grow more complex.
AltExchange seeks to address this challenge by offering an integrated platform designed specifically for alternative investment management. By automating reporting and consolidating data from various investment vehicles, AltExchange simplifies the process for wealth managers, allowing them to deliver accurate, comprehensive reporting with ease. The efficiency gained from an all-in-one platform not only reduces costs but also helps advisors stay ahead in an increasingly competitive market.
3. AUM in Alts Continues to Grow with No Signs of Slowing
One of the standout themes at ADISA 2024 was the continued growth of alternative assets under management (AUM). Despite global economic uncertainty and market volatility, investor demand for alternative investments—ranging from private equity to real estate and hedge funds—continues to surge.
Preqin’s latest report indicates that global AUM in alternatives is projected to reach $23 trillion by 2026, up from $13.3 trillion in 2021 . This sease is driven by the search for higher returns, portfolio diversification, and lower correlation to traditional asset classes.
For wealth managers and financial advisors, this growth represents both an opportunity and a challenge. The opportunity lies in capturing new business and guiding clients through more complex portfolios. However, the challenge comes in managing and reporting on these increasingly diversified and intricate investments, especially as clients demand more transparency and insights. Here, automation plays a critical role in scaling operations to meet this rising demand while ensuring comprehensive and timely reporting.
Final Takeaways…
As regulatory uncertainties loom and compliance challenges persist, the importance of automated and up-to-date reporting solutions cannot be overstated. With AUM in alternative assets continuing to grow, wealth managers face increasing pressure to efficiently manage complex portfolios. The fragmentation of technology within the alts space only adds to these challenges, but platforms like AltExchange are rising to the occasion, offering seamless, integrated solutions that simplify reporting and management.
As the industry continues to evolve, embracing automation will be key for advisors to stay compliant, competitive, and ahead of the curve. We built AltExchange to help advisors better serve clients by meeting the growing demand for alts with one simple management and reporting solution to provide a holistic, transparent view of clients’ alts portfolios.
We hope you enjoyed this round-up of ADISA 2024. If we didn’t get to meet you there, we’d love to set up a time to talk alts for your firm.