The volatile macroeconomic environment, demonstrated by surging inflation and energy costs, puts the case for diversification and robust investments into even stronger focus. The rise of non-traditional investing has also driven the need for new ways to access these asset classes, hence the rise of organizations such as iCapital Network.

Swiss banking group UBS, Envestnet, the wealth management systems firm, and fintech platform iCapital Network have announced that their Alternatives Exchange is now live. It provides private market investment opportunities to Envestnet's clients, tapping into continued demand for such assets that have expanded rapidly in recent years.

More than 35 funds from managers across geographies and strategies are available on the platform.

Users of Envestnet's Alternatives Exchange can get access to the AltsEdge™ Certificate Program, an educational initiative created by iCapital and the Chartered Alternative Investment Analyst Association to help advisors build their knowledge of the alternative investment space. 

The rise of such ventures in the past decade reflects how demand for assets such as private equity, private debt and infrastructure, private real estate and other non-traditional investment niche areas have gotten more mainstream. In part, this is because they offer a higher yield to compensate for the lower liquidity they offer – contrasting with listed equities and conventional bonds. An era of ultra-low interest rates – arguably now at an end – has pumped hundreds of billions of dollars into the sector. The question is whether this trend can continue indefinitely if or when rates rise much further.

The organizations cited research showing that HNW individuals are expected to boost their private equity investments by a compound annual growth rate of nearly 19 per cent, with global HNW investor commitments to private equity rising to $1.2 trillion by 2025.

"With the increased demand for alternative investments from HNW and ultra-high net worth investors accelerating, the Alternatives Exchange will help us broaden our distribution network and provide clients with curated products to meet their evolving needs," Jerry Pascucci, head of global alternative investment solutions, Global Wealth Management at UBS, said.

The volatile macroeconomic environment, demonstrated by surging inflation and energy costs, puts the case for diversification and robust investments into even stronger focus, Dana D'Auria, co-chief investment officer of Envestnet, said.

The Alternatives Exchange dispenses with the need for traditional manual and paper-based tasks that advisors have had to perform in the past. 

"Creating access to alternative investments for advisors and clients has to start with making the experience much easier. The addition of the AltsEdge™ advisor education program will offer those new to alternatives the requisite tools to help their clients successfully incorporate these investments into their portfolios,” Lawrence Calcano, chairman and CEO of iCapital, said.