In June of this year, Fidelity Investments introduced personalized model portfolios with alternative investments to allow eligible wealth management companies to access private markets. However, the administration of private markets is still very manual and ineffective and, as the extent of investments increases, more technology and automation will be necessary, according to Andrew Tarver, president of the PMA network at the provider of wealth technology InvestCloud.
In February of this year, InvestCloud said that he had trained a founding partnership with the Alternative Apollo Global Management manager to activate the private market account network, PMA Network, which combines public and private assets in a single platform for financial advisers and their customers. The PMA network uses the InvestCloud managed accounts managed, APL, to connect wealth managers to a range of alternative asset managers, putting private market products available for inclusion in portfolios, including private credit, investment capital, real estate, operating companies, interval funds, FPR and non-negotiated BDC.
Fidelity noted in a recent survey that almost half of 46% of advisers said they were very interested in a model portfolio that offers traditional and alternative investments.
Amanda Robinson, Fidelity
Amanda Robinson, responsible for the distribution of solutions managed by wealth councils at Fidelity Investments, said in a press release: “Heritage managers are looking for opportunities to develop beyond traditional asset courses to diversify portfolios, but can see the implementation of alternative investments as a complex process.
Tarver told markets market that the wealth advisers to allocate to private markets always involves a lot of manual intervention, reconciliation, paperwork and wet signatures.
“Innovation in industry in the past 12 months has been for the end customer to sign a piece of paper, rather than five,” he added.
For example, once the allowance has been made, the professions must be reserved, sent to the administrator of the fund and guardian and managed during their life cycle, which could include regular buyouts for semi-liquid products.
“There is a lot of human intervention that will quickly explode if there are hundreds of thousands of trades every month,” said Tarver.
In addition, Tarver said that between 8% and 10% of transactions on private markets failed, so that technology is necessary to cause this to zero between entries, buyouts and transfers. Consequently, industry needs rules, standardization and governance in a digital format so that everyone uses the same data for transactions, products and customers.
“We believe that there will be millions of private market transactions each month in accounts managed within 24 months, so failure rates must be zero,” he added. “Creating differentiated financial results thanks to connected and intelligent technology is a new paradigm – it’s not just a faster horse.”
Tarver compared the transformation as moving from manual card cars in stores, where the cards were manually slipped into a machine with paper copies sent to banks, digital card readers where buyers just need to enter their pin number for data to be transmitted automatically.
Andrew Tarver, InvestCloud
“When a digital message is standardized on all the nodes of the network, you delete errors, increase the volume and reduce costs,” added Tarver. “We have to go from card fingerprints to card reader.”
InvestCloud has built the APL platform which, according to her, is the largest account platform managed in the United States with more than 3 dollars of assets in nearly 10 million accounts, and therefore uses nearly 4 million models, a change of 10% allowance in private markets only on APL is equivalent to $ 300 billion in entries. Tarver has said that PLP can be made available to the entire market to create standards and increase efficiency through the value chain.
The fourth annual study of State Street on private markets recently revealed that Institutions are increasingly recognizing the value of generative artificial intelligence and large languages to improve their operations on private markets.
“While in last year’s survey, only 58% of those questioned said they saw the value of the technology, 83% now provide cases so that the technology generates data analyzable from information on the unstructured private markets of their operations,” added State Street. “Consequently, the technological expenses planned are over the overwhelming majority, 69% of respondents.”
Performance analysis is the place where most have said that technology is “the most useful”, both in the wallet and for individual assets. State Street said that a third of respondents, 34%, agreed that technological development allowing more frequent, timely and high quality data is an essential factor in making private markets accessible to a wide range of individual investors.
Chris Rowland, rue State
Chris Rowland, manager of childcare products, digital services and funds at State Street, said in a press release: “We believe that the liquidity of the portfolio begins with the liquidity of the data. This year’s results show that institutions are hypothesized to the real implementation of AI-based solutions in their private market operations, and those at the forefront of this innovation benefit from a significant advantage. “
Partnerships
The collaboration of InvestCloud with Apollo allows customers of wealth management to integrate portfolios of private fundraising market models and multi-management models in their accounts managed via its APL platform.
Jeff Yabuki, president and chief executive officer of InvestCloud, said in a press release: “By combining the deep expertise of the private market in Apollo with our largest technology, we considerably accelerate the integration of private markets into the landscape of wealth management.”
Stephanie Drescher, partner and chief of the customer and responsible for product development at Apollo Global Management, said in a press release that the convergence of private and public markets shapes the future of wealth management. She added: “Apollo and other general partners of the PMA network can obtain unprecedented access to the distribution channels, creating new possibilities for the entire ecosystem.”
Martin Kelly, financial director of Apollo Global Management, said at the financial conference Morgan Stanley US in June of this year that the fund manager continued to add people to his team, in particular in creation, credit and world wealth.
Kelly said Global Wealth is the largest investment area in the company. He added: “It is a complicated ecosystem to have the right products, good relations with distributors and good technology to serve end customers.”
The opportunity for private credit is a market of 40 billions of dollars and mainly investment rating, according to Kelly, but adoption is at an early stage, with insurance companies and the most advanced.
Martin Kelly, Apollo
“Other institutional investors, in general, are at the very beginning and it is obviously an opportunity for wealth,” added Kelly. “” The convergence of the public, deprived in the quality private credit in placement, is at the very beginning and it talks about partnerships that we create, like others in our industry, with traditional companies. »»
In addition to Fidelity, BlackRock aims to increase wealth and detail investments in private markets. On July 1, 2025, BlackRock completed its acquisition from Private Credit Manager HPS Investment Partners. Blackrock said in a statement that private credit reshapes financial markets and that structural trends supporting its growth have accelerated the convergence of public and private contracts and positioning asset managers to match long -term capital with long -term investors, including insurance companies, pensions, wealth funds, wealth managers and individuals for retirement.
Tarver said that BlackRock is a client as a asset manager, with InvestCloud integrated into Aladdin, the BlackRock technological platform.
“InvestCloud’s work is to connect wealth managers with asset managers,” added Tarver. “The more asset managers want to connect to wealth, the more InvestCloud is relevant.”
He predicts that there will be several networks to connect to private markets with certain asset managers adopting a closed model with their own infrastructure, and others forming partnerships with managed account platforms.
“We want to associate with some of these major brands in the custody and the space of administration of the funds,” said Tarver. “We also want to associate ourselves with companies that would be considered competitors in the managed account space to say” let’s do it together “and not double costs.”
Tarver expects that private wealth benefits are starting to flow to the fourth quarter of this year and a certain number of flagship funds to live in 2026.
“I think you will see a lot of volume, and we really prepare for these great flagship funds to be launched,” said Tarver.
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