Episode 15
December 19th 2024
Show Summary
Erin Hulse interviews AltExchange - simplifies alternative investment reporting and data management for investors and advisors, and Fi-Tek Wealth - providers of integrated wealth management technology for family offices and financial institutions.
About the Moderator
Erin Hulse, Founder & CEO, Deviate Consulting
Erin is the founder of Deviate Consulting, a software consulting firm specializing in family offices. With a background in alternative investments and private wealth, Erin has held roles including investment accountant, hedge fund operations manager, software implementation manager, and business development director. Her current focus is on accounting and software consulting for single and multi-family offices.
About AltExchange
Represented by Kareem Hamady, CEO & Co-Founder, AltExchange
AltExchange provides innovative solutions for alternative investment reporting. Designed for investors, advisors, and fund managers, it simplifies the complexities of managing alternative investments by offering automated data aggregation, streamlined reporting, and enhanced transparency. On October 30, 2024 iCapital, a global fintech platform specializing in alternative investments, has announced a definitive agreement to acquire AltExchange to enhance its data management capabilities.
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About Kareem Hamady
Kareem is Co-Founder of AltExchange, a technology platform designed for High Net Worth (HNW) investors and Wealth Advisors (RIAs) to manage Alternative Investments. Formerly a Product Manager at Bloomberg and finance professional with Private Equity, Investment Banking and Consulting experience.
About Fi-Tek Wealth
Represented by Alan Perl, Director of Client Service and Business Development
Fi-Tek Wealth Solutions's proprietary technology platform, Rockit® Command, was purpose-built by the Rockefellers to manage one of the world's most complex multi-generational family offices. The integrated wealth solution consolidates technology-enabled services (operations and administration) for all wealth segments (HNW, UHNW, Family Offices, Trusts, RIA's and Funds) and further streamlines existing offerings (operations, fund administration, Cash/Tax/GAAP accounting, alternative asset servicing, performance and consolidated financial reporting).
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About Alan Perl
Alan is the Director of Client Service and Business Development at Fi-Tek Wealth Solutions and heads business development, client services, implementations, and client training on the Rockit®Command platform. He has over 20 years of financial services and technology deployment expertise in Trust, Large Institutions and Family Offices. Alan joined Fi-Tek Wealth Solutions’ predecessor firm, Rockit Solutions, in 2007 and throughout his tenure has held multiple front office roles within the firm.
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Detailed Show Summary
Introduction (00:00 - 01:36)
Fi-Tek Wealth Solutions (RockIT) – Alan Pearl
Company Overview (03:32 - 05:27)
- RockIT Command was originally built in-house by the Rockefeller family office in 1999 to manage complex multi-generational wealth structures.
- In 2006, RockIT expanded to external family offices.
- Acquired by Fi-Tek in 2016, integrating with other wealth management platforms.
Core Offerings & Technology (06:12 - 10:21)
- A U.S.-based tax general ledger system designed for high-net-worth individuals, family offices, and RIAs.
- Provides financial accounting, tax compliance, performance tracking, partnership accounting, and fund administration.
- Integration with Fi-Tek’s HedgeTech and Global Wealth platforms, allowing family offices to manage investments, alternatives, and performance reporting.
Modular Approach & Co-Sourcing Model (10:36 - 12:32)
- RockIT offers modular solutions, allowing clients to choose only the features they need.
- Supports co-sourcing, enabling clients to handle operations in-house or outsource administrative tasks.
- Provides integration with third-party platforms via APIs and FTP deliveries.
Implementation & Onboarding (13:29 - 15:57)
- Implementation timeline: 3-6 months, sometimes up to a year for complex cases.
- Key factors affecting implementation:
- Data quality & history
- Client’s engagement & available resources
- Number of alternative investments requiring historical recreation
Future Roadmap (26:46 - 28:27)
- Client portal revamp: Improved UX and open APIs for third-party integrations.
- New web and mobile apps for performance and alternative investment tracking.
- Advisor Dashboard: An interface integrating multiple Fi-Tek solutions for a seamless view of client wealth.
AltExchange (Now Part of iCapital) – Kareem Hamadi
Company Overview (29:58 - 30:42)
- Founded in 2021 as an AI-driven alternative investment reporting platform.
- Recently acquired by iCapital, following iCapital’s acquisition of Mirador.
- Focuses on aggregating, standardizing, and integrating alternative investment data for family offices and RIAs.
Data Aggregation & AI-Powered Processing (30:56 - 39:07)
- Uses AI and machine learning to extract and standardize financial data from PDFs, CSVs, and other formats.
- Fully automated document classification and data extraction, improving reporting accuracy.
- Interoperability-first approach, providing structured data to portfolio management systems, data lakes, and CRM tools.
Implementation & Integration (47:50 - 51:11)
- Implementation timeline: Varies based on data access (from under a month to several months).
- Offers full-service implementation:
- Manages third-party outreach for data access
- Handles onboarding, reconciliation, and automation
- Provides long-term maintenance of investment data
Acquisition & Future Roadmap (41:59 - 45:11)
- iCapital acquisition strengthens AltExchange’s infrastructure, expanding its data solutions team to 300+ professionals.
- 2025 focus:
- Enhanced cash flow pacing, benchmarking, and lending capabilities.
- Expansion of direct integrations with fund administrators and RIAs.
- Development of a "Distributed Ledger Technology" (DLT) for real-time investment data connectivity.
- Entity & Security Master Project: Establishing a standardized entity structure across investment platforms.