News
San Ramon, CA. 09.23.2024
Alts Custodian is joining ADISA network
About ADISA (https://www.adisa.org)
The Alternative & Direct Investment Securities Association (ADISA) is the largest forum for professionals involved in the alternative and direct investment industry. Initially, it served as a hub where sponsors of private real estate investment vehicles could connect with broker-dealers and other institutional distributors of investment products.
Over the years, the range of investment products represented through ADISA has broadened significantly. Today, it includes sectors such as infrastructure, energy, and commodities, as well as more complex pooled investment vehicles like structured investment products and hedge funds.
One of the key attractions for sponsors and managers of non-publicly traded and illiquid investment opportunities is ADISA's focus on providing access to specialized distribution channels, which cater specifically to private placements and alternative investment products.
Alternative Investment Custodians at ADISA
Historically, alternative asset custodians within ADISA have played a pivotal role in servicing individual investors seeking exposure to private and illiquid alternatives, particularly in real estate. Sponsors of multi-tenant residential and commercial properties often looked to raise capital from high-net-worth investors, many of whom accessed these opportunities through alternative asset and self-directed custodians, allowing them to allocate portions of their portfolios to alternative investments.
After the 2008 recession, interest in real estate as an investment class surged. With expectations of significant appreciation in property values, thousands of individual investors began allocating their tax-advantaged investments, such as IRAs, into real estate. During this period, many investment sponsors shifted their focus toward the individual investor market.
The investment landscape has since experienced several waves of transformation throughout the 2010s and 2020s, further elevating the role of alternative asset custodians. These custodians have facilitated private capital inflows from individual (non-institutional) investors into various asset classes, including:
Residential real estate and syndicates (2009-2014)
Precious metals (2011-2016)
Crowdfunding platforms (2012-2018)
Crypto assets (2016-2022)
Registered Investment Advisors at ADISA
Since the mid-2010s, the alternative investment distribution model has gradually shifted from commission-based broker-dealer frameworks to fiduciary models. With growing interest in alternatives from individual investors and their financial advisors, sponsors of non-publicly traded investment opportunities have increasingly focused on working with private capital.
In response to the financial recession and heightened market uncertainty, registered investment advisors (RIAs) have placed greater emphasis on portfolio diversification. Alternative investments have become an essential component of managed portfolios, offering investors exposure to non-traditional asset classes that can hedge against volatility in public markets.
This year, the ADISA conference is expected to see a record number of participants from the financial advisor space, reflecting the increasing role of RIAs in the distribution of alternative investments.
Alternative Investment Custodian Inc (Alts Custodian)
Alternative Investment Custodian Inc (Alts Custodian) plays a pivotal role in assisting financial advisors in smoothly integrating private asset investment strategies into their clients' portfolios. As the demand for portfolio diversification grows, particularly among high-net-worth individuals, advisors are increasingly turning to alternative investments to provide exposure to non-publicly traded assets like real estate, private equity, and other illiquid investments.
Alts Custodian has fully integrated its processes into leading multi-custodial platforms, enabling financial advisors and Registered Investment Advisors (RIAs) to efficiently place client funds into alternative assets. This streamlined integration simplifies the administrative and compliance hurdles traditionally associated with alternative investments, allowing advisors to focus more on strategy and client outcomes.
By leveraging Alts Custodian's platform, advisors can offer their clients broader investment opportunities beyond public markets, enhancing portfolio resilience through diversification. This approach not only helps mitigate market volatility but also allows clients to access sectors that have historically been reserved for institutional investors.
Moreover, with increasing uncertainty in public markets and growing regulatory scrutiny on fiduciary standards, the ability to integrate alternative investments in a compliant and seamless manner is critical. Alts Custodian helps bridge this gap, ensuring that advisors can deliver sophisticated, diversified investment strategies while meeting regulatory obligations.