Altidar

Altidar: Deep Dive Analysis for Alternative Investment Management

Altidar positions itself as a comprehensive wealthtech solution focused on streamlining the complexities of alternative investment management for Registered Investment Advisors (RIAs). In an environment where high-net-worth clients increasingly demand exposure to private equity, hedge funds, real estate, and other non-traditional asset classes, Altidar aims to provide the necessary infrastructure for efficient management, reporting, and due diligence. This deep dive analyzes Altidar’s capabilities, integration potential, and suitability for various institutional clients.

Core Capabilities and Institutional Application

Altidar’s core strength lies in its alternative investment data aggregation. It addresses a significant pain point for RIAs managing alternatives: the disparate nature of data sources. Manually collecting data from fund managers, custodians, and other sources is time-consuming and prone to errors. Altidar centralizes this information, providing a unified view of alternative asset performance and holdings.

Beyond data aggregation, Altidar offers several key features:

• Due Diligence and Risk Assessment: This functionality enables RIAs to conduct thorough risk assessments on potential alternative investments. While the specific data sources and analytical methodologies employed by Altidar are crucial considerations, the platform aims to automate and standardize the due diligence process, reducing reliance on manual research and spreadsheets.
• Portfolio Construction and Optimization: Altidar provides tools to optimize portfolio allocations considering both traditional and alternative assets. The sophistication of these tools is paramount; it must account for the illiquidity, valuation challenges, and unique risk profiles associated with alternatives. Integration with existing portfolio management systems is key.
• Performance Reporting and Analytics: A critical component of any alternative investment platform is the ability to generate accurate and transparent performance reports for clients. Altidar automates this process, providing RIAs with customizable reports that showcase the performance of alternative investments within the broader portfolio context.
• Automated Document Management: Handling subscription agreements, K-1s, and other legal documents associated with alternative investments can be a logistical nightmare. Altidar aims to streamline this process with automated document management capabilities.

The operational leverage Altidar offers stems from its ability to automate workflows associated with alternative asset management. This frees up advisors and operational staff to focus on higher-value activities, such as client relationship management and strategic portfolio planning. By reducing manual data entry, minimizing errors, and providing a centralized platform for managing alternative investments, Altidar can significantly improve efficiency and scalability.

Integration & Data Flow Analysis

Altidar’s success hinges on its ability to integrate seamlessly with existing wealth management systems. A key consideration is its compatibility with portfolio management software (e.g., Black Diamond, Orion), CRM systems (e.g., Salesforce, Dynamics 365), and custodial platforms. The availability of robust APIs and data integration tools is essential.

Data flow is also a crucial factor. Altidar must be able to:

• Ingest data from various sources: This includes direct feeds from fund managers, custodians, and data providers. The ability to handle different data formats (e.g., CSV, XML, API) is critical.
• Normalize and cleanse data: Alternative investment data is often unstructured and inconsistent. Altidar must be able to cleanse and normalize this data to ensure accuracy and consistency.
• Export data to other systems: RIAs need to be able to export data from Altidar to other systems for reporting, analysis, and regulatory compliance purposes.

Without seamless integration and robust data flow capabilities, Altidar risks becoming a siloed solution, negating many of its potential benefits.

The Verdict

Altidar is definitively built for:

• Large RIAs (>$1B AUM) with a significant allocation to alternative investments: These firms are most likely to benefit from the platform's data aggregation, due diligence, and reporting capabilities. The cost of the platform is more easily justified by the efficiency gains and reduced operational risk.
• RIAs seeking to scale their alternative investment business: Altidar can provide the infrastructure needed to efficiently manage a growing portfolio of alternative assets.

RIAs who should avoid Altidar (at least initially):

• Smaller RIAs with limited exposure to alternative investments: The cost and complexity of the platform may outweigh the benefits for firms with a small number of clients invested in alternatives.
• RIAs with highly customized or complex alternative investment strategies: Altidar's standardized tools may not be suitable for firms that require a high degree of flexibility and customization. They may be better served building their own in-house solution.

Alternatives such as CAIS and iCapital also address this space. However, Altidar’s value proposition centers on its comprehensive data aggregation and reporting capabilities, differentiating it from platforms that primarily focus on providing access to alternative investments.

Golden Door Asset’s recommendation is to thoroughly evaluate Altidar's integration capabilities and pricing model before committing to the platform. A pilot program with a subset of alternative investments is advisable to assess its suitability for your specific needs. The potential for increased efficiency and improved client reporting is significant, but only if the platform is properly integrated into your existing technology ecosystem.