Altruist Rolls Out Pre-IPO SPV Offerings for FAs, RIAs
Altruist, an artificial intelligence wealth tech platform, is bolstering its range into alternative investments by offering pre-initial public offering special purpose vehicles on its platform.
Through the pre-IPO investing opportunities, financial advisors will be allowed to let their clients subscribe to late-stage private company SPVs from its platform.
Additionally, advisors will be enabled to skim through various live and upcoming offerings and to enroll clients for prospective offerings before a deal is expected to launch.
A special purpose vehicle, or SPV, is an entity that buys shares of one private company and sells units to investors that are in the company.
This new offering takes minutes to register for weeks, avoiding the hurdles that might have been required for other traditional and alternative private investment procedures, the custodian stated.
“Access to new investment opportunities can be a real differentiator for advisors that are looking to grow their business and attract new clients,” said Jason Wenk, founder and CEO of Altruist.
The SPV offering builds on the secondary marketplace Altruist debuted in June, which includes investment strategies from JP Morgan Asset Management, Blackstone, KKR and Pantheon. That offering, designed to bring private equity, real estate and infrastructure to RIA clients, carried no custody fees for partner funds at launch
The news from Altruist comes after asset manager Vanguard announced its plans to acquire Altruist, which is expected to close later this year.
Financial terms of the transaction were not disclosed; however, The Wall Street Journal reported that the acquisition values Altruist at roughly $4 billion.
The acquisition enables Vanguard to gain access to independent advisers who use its funds while adding technology capabilities that could help advisory firms automate workflows. Meanwhile, Altruist will gain additional capital and access to Vanguard’s investment opportunities.