Apollo and fintech-focused private-equity firm Motive Partners are leading an investment that values CAIS at more than $1 billion
The trio will join Aldridge Industries LLC, a private-investment firm run by Guggenheim Partners LLC veteran Todd Boehley, which invested $50 million in CAIS in November 2020.
Unlike private-money powerhouses like JPMorgan Chase & Company and Morgan Stanley,
Independent financial advisors typically work for smaller firms that lack significant technical budgets.
New York-based CAIS, which was founded in 2009 and formally known as Capital Integration Systems LLC, provides a tool that gives advisors access to a broader selection of investment strategies that are publicly traded. They are less liquid than stocks and bonds. Its offerings include hedge funds, private-equity funds, private credit and real estate, many of which are managed by Apollo and its peers. Apollo invested in CAIS because he wanted to learn from the company about strategies to reach independent investors.
For Apollo, which has become a $481 billion behemoth primarily by fulfilling institutions, the deal is the latest in a series of transactions aimed at reaching the universe of individual investors known as largely thriving. Have to reach In October, the firm aimed to raise more than $50 billion for its global wealth business over the next five years, one of the key growth initiatives set by new chief executive Mark Rowan.
“We think we know how to reach these retail high-net-worth customers, but anyone who says they have everything is not telling the truth,” Mr. Rowan said.
The CAIS chief executive said clients of independent advisors have 1% to 2% of their portfolio allocated to alternative assets, compared to 15% or more for private-money clients of large banks and institutional investors such as pension funds. for 30% to 40%. Matt Brown, who founded the company after working in Wealth Management.
In July, Apollo agreed to take up to 24.9% stake in Motive and become an investor in its fund in exchange for helping it grow its own technology. Last month Apollo agreed to buy the US wealth-delivery and asset-management businesses of Griffin Capital Co., an investment firm focused on distributing personal loan and real estate products to wealthy individuals. ICapital Networks Inc. , a technology platform that caters to large asset-management firms.
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