CAIS Lands Major Private Equity Client On Platform

Tom Burroughes

14 December 2022

CAIS, a US-based alternative investment platform, has announced that a range of Warburg Pincus funds will now be available on its platform.

The announcement is a big result for CAIS because Warburg Pincus, a private equity firm, oversees almost $85 billion of assets under management.

Several tech-driven businesses around the world, such as Moonfare and iCapital, have risen in recent years to widen access to alternative assets beyond the traditional gatekeepers of banks and select institutions. In the past, relatively illiquid investments have tended to be closed to those other than large institutions and ultra-high net worth clients. As more businesses stay private for longer, or don’t even float on the stock market at all, there is a need to capture returns from the private markets' space.

CAIS said Warburg Pincus’s funds will be accessible to 7,400-plus independent advisory firms and teams overseeing more than $3 trillion in network assets. Like most products and strategies onboarded to CAIS, these private equity funds will undergo third-party due diligence conducted by Mercer.

Warburg Pincus will, as part of the arrangement, also receive access to CAIS IQ, CAIS’ tech-enabled education offering.

“This partnership helps us introduce our fund strategies to a wider audience of financial advisors and their clients,” Chip Kaye, CEO of Warburg Pincus, said.

“Having already served the independent wealth management ecosystem for more than a decade, CAIS provides the reach, knowledge, and technology stack required to bridge the gap between alternative asset managers and fiduciary professionals representing the best interests of retail investors.”

CAIS and Mercer said a recent survey they conducted found that nearly nine in 10 financial advisors want to increase their allocations to alternative asset classes over the next two years. The study also found that 89 per cent of alternative asset managers and other financial professionals surveyed have identified the private wealth channel as a greater priority for their firm compared with two years ago.

Since its inception in 2009, CAIS said it has facilitated more than $20 billion in transaction volume. It has offices in New York, Los Angeles, Austin, and San Francisco.

Among recent developments, in October CAIS said it was chosen by aggregator business Wealth Enhancement Group to provide a solution for its advisors.

Family Wealth Report has interviewed Matt Brown, founder and CEO at CAIS, about the firm's strategy and business model.