Pershing, BNY Mellon’s clearing and custody unit, has integrated with alternative investment platforms CAIS and iCapital Network through its enterprise-wide Application Program Interface (API) store. The move is aimed at making it much easier for Pershing’s advisors and end clients to access alternative investments.
The integration will automate document workflows between CAIS and iCapital and the Pershing platform.
Pershing already offers advisors access to 2,500 alternative investments, including non-traded REITs, hedge funds, private equity, private debt and managed futures, through its Alternative Investments Network, launched a decade ago. Registered investment advisor balances on that platform have doubled in the last three years. Pershing expects the new integrations will grow the network even more.
With the integration, advisors will only have to pre-populate required documents on the alternative platform where the product is offered. The documents will then be automatically uploaded to Pershing. They’ll also be able to use e-Signature and e-delivery to complete these forms.
“One of the major barriers to investing in alternatives is the manual steps involved in the process,” said Rob Cirrotti, managing director, global strategy and product management at Pershing, in a statement. “As advisors increasingly turn to alternative investments for diversification and uncorrelated returns, we are committed to streamlining the process by making it more digital and more seamless for them so they can drive greater efficiencies.”
The news comes as the Securities and Exchange Commission votes this week on whether to change the definition of “accredited investor” and “qualified institutional buyer.” The changes would open up the potential pool of investors in private investments and other alternatives.
Minimums to invest through CAIS and iCapital are as low as $25,000.