Alt Investments
US-Headquartered CAIS Builds Capital Markets Division
CAIS is is one of several firms, such as iCapital (US) and Moonfare (Germany) that have opened access to private market and alternative investments, challenging a territory traditionally dominated by investment banks.
CAIS, the
US-headquartered alternative investment platform, has built a new
division to cover capital markets.
The division, called CAIS Capital Markets, will centralise
existing structured investments solutions, hedging and
monetisation, and managed solutions referral services, with CAIS
Capital’s structured investments trade execution
capabilities.
The business arm offers advisors access to structured notes as
well as hedging and monetisation strategies – both delivered by
bank issuers – to help diversify and manage risk in
concentrated equity positions. (Concentration risk is a
significant challenge, as shown by the sharp falls in
“Magnificent Seven” Big Techs that have dominated
capital-weighted indices such as the S&P 500.)
Focus
Financial Partners, the network of wealth management firms,
has expanded its relationship with CAIS to use its capital
markets offerings.
“Advisors are increasingly taking advantage of defined-outcome
strategies to capitalise on market opportunities, manage risk,
and seek to achieve the financial objectives for their end
clients,” Marc Premselaar, partner and head of capital markets at
CAIS, said.
“In today’s market environment, we’re seeing a preference for
increased diversification and downside protection. Many advisors
are taking a more intentional approach to constructing portfolios
– and that includes reevaluating their public
allocations."
CAIS said it has seen more users of structured investments in
recent years – with significant year-over-year volume growth.
Headquartered in New York, and with offices in London, UK, and
Austin, Texas, CAIS serves more than 2,000 wealth management
firms, collectively overseeing about $6 trillion in end-client
assets. Founded in 2009, it is one of several firms, such as
iCapital (US) and Moonfare (Germany) that have opened access to
private market, alternative investments, challenging a territory
traditionally dominated by investment banks.
