HUB24 takes stake in alternatives firm
Platform HUB24 has taken a minority stake in Reach Alternative Investments to offer a broader range of alternative products to financial advisers.
The firm announced a strategic alliance between the two businesses, with HUB24 taking a minority equity holding.
As part of this, HUB24 will collaborate with the team at Reach Alternatives and potentially other industry providers to co-design innovative products and solutions to offer a broader range of alternative investment solutions for advisers and their clients.
Reach Alternatives is described as a “modern investment portal to access global private equity funds”. It provides access for wholesale clients but says it wants to scale the business by integrating with financial advisers to allow them to assist their clients to understand alternatives.
Earlier this month, a report from Praemium, in collaboration with Investment Trends, revealed that 146,000 high-net-worth (HNW) individuals are currently investing in private markets, with 32 per cent planning to increase their investments in the next year. Additionally, another 32,000 investors are expected to enter the market within the next 12 months.
HUB24’s director of strategic development, Jason Entwistle, said HUB24’s investment is aligned with its strategy to collaborate with industry providers to develop innovative products that enable advisers to deliver solutions for emerging client needs.
“We’re delighted to be partnering with the team at Reach Alternatives who facilitate access to high-quality private market investments in Australia. Accessing institutional grade alternative investments has traditionally been difficult for advisers and their clients.
“Our investment demonstrates our ongoing commitment to delivering innovative products and solutions that enable advisers to empower better financial futures for more Australians.”
Reach Alternatives chief executive, Sam Phillips, said: “This strategic investment validates our business and enhances our ability to scale and bring high-quality private market investments to a broader audience. Together, we are focused on delivering solutions that remove the barriers to private markets while offering HNW investors access to some of the most proven asset managers globally.”
Earlier this year, it was announced alternatives firm Longreach Alternatives had launched Longreach Capital Advisors (LCA), a specialised distribution and advisory unit created to provide Australian investors with access to alternative investment strategies and solutions.
LCA was established in response to the increasing demand by institutional and sophisticated investors in Australia and APAC for diversified exposure to alternative investment solutions, the firm said.
The firm also partnered with wealth manager LGT Crestone and alternatives specialist PG3 AG to launch the PG3 Longreach Alternative Strategies Fund with exclusive access for clients of LGT Crestone. The fund offers access to a select group of idiosyncratic and traditionally hard-to-reach asset classes with low correlation to both traditional and private market investments.
AUTHOR
Laura Dew
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