February 9, 2017
Institutional investors control a significant amount of financial assets around the world despite attempts from automated investments apps to open up the market to casual, consumer-investors. The rapid adoption of innovative technology by the startup ecosystem allowed an extensive expansion for online investment platforms, automated investment tools, robo-advisors, and various wealth management solutions. As a result, institutional investors have been empowered with tools to enhance portfolio performance, drive deeper insights from the market and portfolio data, and nowadays, are reliant on computer power for accurate forecasting and market monitoring.
Some vivid examples of financial institutions that are part of the transition from man-powered investment management to fully automated or at least AI-powered investment management are Goldman Sachs, Charles Schwab and a variety of other companies we have reviewed previously. In this review, let’s focus on some interesting technology companies that are offering solutions powering institutional investments and trading.
Artivest is a new way to invest in private funds, including private equity, hedge funds and venture capital. Artivest delivers institutional-grade manager selection, featuring only funds that meet the highest standards.
Cerebellum Capital is a hedge fund management firm whose investment programs are continuously designed, executed and improved by a software system based on techniques from statistical machine learning. Cerebellum’s automated strategy discovery process optimizes for a proprietary mix of expected return maximization, risk/volatility reduction and portfolio independence from major markets.
Correlix (acquired by TS-Associates) offers its real-time Latency Intelligence monitoring software to capital markets firms to identify and manage latency impediments to trade opportunities and discover ways to efficiently optimize their transaction infrastructure.
DarcMatter is an online investment platform that provides transparent institutional-level access to private investment opportunities such as venture capital, private equity, hedge funds and commercial debt products.
DealMarket is a global online platform enabling Private Equity buyers, sellers, and advisors to maximize opportunities around the world – a one‐stop-shop for Private Equity professionals. DealMarket counts more than 15,000 users, over 3,000 deals and service providers listed on the platform.
Edgefolio is a platform that connects institutional investors and hedge funds. Hedge funds can market themselves to would-be investors while institutional investors can easily shop around to find the best deal for them.
FNEX is a transactional marketplace for alternative investments for investors and issuers. FNEX enables investors to make direct investments into private companies, hedge funds and a variety of other investment vehicles. FNEX sources these opportunities from investment banks, managed futures brokers and direct from fund managers.
ETFmatic provides institutional investor quality wealth management solutions direct to consumers, building and managing unique portfolios based on index investing strategies and exchange traded funds (ETFs).
EquityZen is a marketplace for private secondary investments in companies worth more than $50 million.
Finomial automates the hedge fund subscription process and provides investor analytics on compliance, marketing and investor relations. It transforms the buy-side investment process, investor analytics, and regulatory compliance by automating the current manual hedge fund subscription process between the investor, fund manager and administrator. Finomial delivers risk reduction, cost savings and efficiency, and provides hedge fund managers with powerful investor analytics to drive compliance, marketing and investor relations.
ForwardLane is a cloud-based investment advisory platform that enables investors to invest in particular hedge funds using machine intelligence software. Financial advisors can discover, research and invest in hedge fund products, including the creation of client-facing reporting.
Fundbase delivers to qualified investors an integrated platform to discover, execute and monitor complex investments such as hedge funds, private equity and other high-conviction investments.
GAIN Capital Group provides online trading services for foreign exchange to fund managers, commodity trading advisors and professional traders.
IEX is a fully-regulated U.S. stock exchange, trading equities and ETFs, dedicated to investor and issuer protection. On September 2, 2016, IEX launched as America’s newest stock exchange, trading all U.S. National Market System stocks, and regularly matches over 100 million shares daily with a notional value of over $5 billion. IEX plans to begin listing publicly-traded companies in 2017.
Invessence has built digital advisor platforms for investment advisors and broker-dealers.
Investivity is a boutique B2B investment manager combined with a portfolio management system. It provides wealth managers and asset managers with tools and solutions to help them remain successful.
Lucena Quantitative Analytics provides decision support technology for investment professionals including hedge funds and wealth advisors. Lucena delivers quantitative analysis and statistical machine learning solutions that enable their customers to exploit market opportunities and to reduce risk in their portfolios.
MarketFactory provides intelligent low-latency technology to trade on all major FX marketplaces through a single API. Customers maximize liquidity and market-making choices while minimizing effort. Market-Factory’s pre-trade risk management solutions ensure an order will not enter the market that would break a limit.
Mercatus is a cloud-based software company that is digitally transforming the way global energy producers invest. Mercatus gives producers a competitive advantage by powering them to move faster, gain insight and increase compliance of their advanced energy portfolios.
OpenFin is a powerful HTML5 engine that enables seamless desktop deployment, native experience and application interoperability. The world’s largest financial institutions and trading platforms use OpenFin’s patented technology to deploy applications both in-house and to over 250 buy-side and 40 sell-side customers.
PeerIQ provides a credit risk analytics platform that helps institutional investors analyze, access and manage consumer credit risk. It aggregates P2P lending marketplace players and provides high-end analytical analysis of the player’s loan portfolio.
Quantifeed is an investment-based technology platform that allows users to explore, customize, invest and manage portfolios of stocks, bonds, funds and other asset classes. Quantifeed’s automated investment platform allows banks, brokers and wealth planners to offer their customers a digital investing experience under their own brand.
Quantopian is a crowdsourced hedge fund that provides the world’s first browser-based algorithmic trading platform.
RealtyShares describes itself as the Lending Club for real estate. They have created a marketplace for real estate investing through which individual and institutional investors can purchase shares in pre-vetted residential and commercial real estate properties for as little as $5,000 from the convenience of a laptop or tablet. These investments are offered through real estate borrowers/sponsors looking for access to more efficient capital than what banks and other private capital sources are able to provide.
RGM Advisors is a quantitative trading firm that applies scientific methods and computing power to trading in equities and futures.
RidgeWorth Investments is a global investment management firm with approximately $40.2 billion in AUM as of December 31, 2016. RidgeWorth and its investment managers provide a wide variety of fixed income and equity disciplines to a client base that includes institutional, individual and high-net-worth investors.
RueOne Investments is an alternative asset manager offering institutional and qualified investors à la carte access to direct investment opportunities on a deal-by-deal basis. The firm’s investor-friendly approach provides greater fee transparency, an alignment of incentives through a principal investment in every deal, and the ability for investors to take control of their investments by investing directly in carefully curated deals rather than in funds. RueOne offers a diverse range of individual investment opportunities such as a single private equity or mezzanine debt obligation – not funds. RueOne is not a placement agent or a broker-dealer, and because they share in the economics with partner asset managers, investors will never pay more to invest with RueOne.
StratiFi’s white-labeled technology platform helps advisors with strategy selection, client management, reporting, and everything in between.
The Xander Group Inc. is an institutional investment firm focused on long-term, value investing. Xander invests primarily in companies which operate in the infrastructure, hospitality, entertainment, retail and real estate sectors, and currently manages equity capital in excess of US$ 2 billion.
Venovate Marketplace is an online platform that matches investment advisors, qualified purchasers, accredited investors, institutions and investing companies with a curated selection of alternative assets. Venovate facilitates the discovery, evaluation, and purchase of private company stock and other alternative assets.
WealthInitiative is a unique secured platform allowing wealth management institutions to share the network of deals on behalf of their HNW clients in the field of real estate, art and passion investments and business deals. The platform is used internally where wealth management institutions exploit synergies among their own clients, matching sellers and buyers. The platform could also be used externally where deals are shared with the other selected wealth management institutions, family offices and members of the platform’s circle.
Note: The list of companies powering institutional investments in various forms is not exhaustive, and more companies can be found here. If you noticed a mistake or would like to be listed in further articles, please contact us at email@example.com.