Buy vs Build?

Our core growth strategy capitalizes on several long-term industry trends that continue to be valid and strong. One of them being enterprise users’ propensity to buy and adapt newly available digital technology rather than build in-house from scratch.

 

The enterprise market is huge and varied consisting of asset management firms, banks with wealth management divisions, foundations, endowments and other institutions of varied levels of sophistication. All of them are driven by a desire to build deeper client relationships, help clients navigate through making asset allocation decisions and becoming a relevant added value partner. These participants recognize that the new generation of customers who do value financial advice are cost conscious and appreciate the role technology plays. They also seek to attract younger investors who stand to inherit assets through wealth transfers as baby boomers age. Such firms are however often quite undifferentiated, making it hard to achieve efficiency and scale. Tightening regulation, enhanced fiduciary standards that put investor interest ahead of an advisor, the search for transparency in pricing and the digital revolution are all drivers of change in this space. Enterprise customers seek to build a customized, private-labeled technology platform to support their financial advisors with digital investment solutions and services; one that ActiveAllocator provides.

 

Author: Sameer_Jain

Partner. Sameer Jain is founder of FinTech ActiveAllocator.com, the world’s first portal that seamlessly integrates traditional, illiquid and alternative investments within portfolios. Prior to this he was Chief Economist & Managing Director at AR Capital. Before that he headed Investment Content & Strategy at UBS Alternative Investments. At UBS, he served as a non-voting member of the Wealth Management Research investment committee, and as a capital allocator was responsible for all illiquid investing including fund manager selection and due diligence across the platform. Prior to UBS he headed product development & investment research at Citigroup Alternative Investments that managed over $75 billion of alternative investments across hedge funds, managed futures, private equity, credit structures, infrastructure and real estate. Here he led a team that developed proprietary models for portfolio strategy and asset allocation with alternative investments, provided investment support and research to pension plans, sovereign wealth funds, endowments as well as internal clients including Citi Private Bank. Before this he was with Cambridge Alternative Investments and SunGard (System Access) where he travelled to over 80 countries for work across Europe, Asia, Middle-East and Africa. He has written over 30 academic and practitioner articles on alternative investments with thousands of downloads at SSRN, presented at over a hundred industry conferences and has coauthored a book, Active Equity Management. Mr. Jain has multiple degrees in engineering, management, public administration and policy and is a graduate of Massachusetts Institute of Technology and Harvard University. He is a recipient of the Alfred Sloan Fellowship and subsequently was a Fellow of Public Policy and Management at the Harvard Kennedy School of Government for a year. He holds Series 7 and 66 securities licenses.

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