The power of Envestnet, now for alternatives
From access to trading to reporting, Envestnet is putting the full scale and capability of its platform behind alternatives.
Why alternative investments?
Despite their name, alternatives are becoming less of a niche and more of a core component of high-net-worth portfolios. With the number of publicly traded companies shrinking, investors are increasingly turning turning to investment structures such as interval funds, tender offer funds, evergreen funds and drawdown funds, as well as strategies such as private equity, private credit and even real estate. By incorporating alts, advisors seek to build portfolios that are more resilient, more diversified, and less dependent on the performance of any single asset class.
Open the door to alternatives with Envestnet UMAs
Envestnet's UMA platform simplifies adding and managing alternatives in client portfolios. It enables advisors to:Seamlessly integrate alternatives within UMAs.Automate trading, rebalancing, and redemption windows without adding operational complexity.Enhance the client experience with a single, consolidated view of portfolio performance across public and private assets.Meet growing demand for access to alternative investments.
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Alternative investment strategies
Interval funds
Gain structured access to private credit, real estate, and private equity through a registered investment company, with lower-minimums, periodic liquidity windows and simplified 1099 tax reporting.
Tender offer funds
Access a broad range of private market strategies – from equity and credit to real estate and infrastructure – through an evergreen vehicle with board-directed liquidity opportunities.
Always-On Private Markets
Gain ongoing exposure to private markets through open-ended vehicles with no fixed end date, reducing the capital call complexity and vintage year risk of traditional drawdown funds.
Operating companies
Gain exposure to private businesses seeking capital to grow, expand, or restructure, opening doors to return potential that public markets don’t typically offer.
Model portfolios
Access professionally managed model portfolios featuring alternative investments through Envestnet's customizable Strategist UMAs or turnkey Fund Strategist Portfolios (FSPs).
Non-traded REITs & BDCs
Access real estate and private credit strategies through non-exchange-traded vehicles, offering return potential with less exposure to the day-to-day volatility of public markets.
“At Envestnet, our vision is to unify a historically siloed alternatives universe, so that these asset classes no longer feel like ‘alternatives’. By automating burdensome workflows, and adding transparency and clarity to portfolio performance, we can level the playing field for advisors in accessing and integrating private markets.
The strength of private markets
The traditional 60/40 portfolio is evolving. More advisors and clients are recognizing that significant long-term growth and income opportunities may exist outside public markets.Advisors are adding alts to client portfolios to: Diversify beyond stocks and bondsBuffer against volatilitySeek private market growthPursue additional income potential
Expand into private markets with interval funds
Because private assets aren’t listed on exchanges like publicly traded securities, alternative vehicles are often needed to invest in them. Learn how interval funds open private market access to your clients while still providing some limited, periodic liquidity.
Manage alts with ease
At Envestnet, we’re democratizing access to alternatives by embedding private markets, structured products, and interval funds directly into everyday advisor workflows. Our goal is to minimize operational friction so advisors can access, trade, and report on alts just like traditional assets.
Premier partners. One unified platform.
Investments in private markets carry significant risks and should be considered illiquid. Private markets are generally less transparent than public markets and are subject to greater valuation uncertainty. Valuations may be determined based on subjective judgments and assumptions, which may prove to be inaccurate. During periods of market stress, investors may be forced to sell private market assets at unfavorable prices due to limited liquidity. Income distributions from private market investments are not guaranteed and may fluctuate or decrease over time. Distributions may be paid from sources other than current income generated by the investment, including the sale of assets, borrowings, or return of capital..
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Learn how to leverage the power of alternatives for your clients.
More about alternative investment strategies
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Blog
What are alternative investments?
Alternatives are gaining traction with HNW clients. Advisors who build fluency can better meet evolving expectations and differentiate their practice.
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Blog
Interval funds: An introductory guide for financial advisors
Interval funds bridge the gap between public and private markets.
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Blog
How to speak with clients about alternative investments
When your high-net-worth clients ask about incorporating alternative investments like private equity, hedge funds, and tangible assets, focus on their goals, not products.
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Blog
Ways to scale alternative investments at your firm
As advisor demand for alternatives grows, scale, education, and workflow integration are becoming the real differentiators.
Disclosures
The information, analysis, and opinions expressed herein are for general information only. Nothing contained in this website is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. Investing carries certain risks and there is no assurance that investing in accordance with the portfolios or strategies mentioned will provide positive performance over any period of time. Investors could lose money if they invest in accordance with the portfolios or strategies discussed herein. Past performance is not indicative of future results.
Alternative Investments may have complex terms and features that are not easily understood and are not suitable for all investors. You should conduct your own due diligence to ensure you understand the features of the product before investing. Envestnet and its affiliates do not provide research or product oversight on alternative investments. As with all investments, there is no assurance that alternative investment strategies will achieve their objectives or protect against losses.
An investment in these portfolios is subject to market risk and an investor may experience loss of principal. Investments that utilize a direct indexing strategy carry specific risks that investors should consider before investing in QP portfolios. In certain market conditions, passive direct indexing investment strategies may lose value or underperform active strategies. Direct indexing strategies have the risk of not closely tracking the performance of the underlying index they seek to replicate. While attempting to track an index, passive investments often do not consider a company’s profitability, financial health, or growth potential in their investment selection criteria.
Neither Envestnet, Envestnet | PMC™ nor its representatives render tax, accounting or legal advice. Any tax statements contained herein are not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Taxpayers should always seek advice based on their own particular circumstances from an independent tax advisor.
Limited trade window funds expose investors to liquidity risk. The ability to sell shares may be limited by various factors depending on the product’s structure and type. As a result, this type of product may not be suitable for investors with short-term investing goals or a need for frequent or immediate liquidity. Investors should refer to the fund's prospectus for specific information about redemptions, repurchase offers, fee structures, and the material risks associated with this type of product.
Investments in private markets carry significant risks and should be considered illiquid. Private markets are generally less transparent than public markets and are subject to greater valuation uncertainty. Valuations may be determined based on subjective judgments and assumptions, which may prove to be inaccurate. During periods of market stress, investors may be forced to sell private market assets at unfavorable prices due to limited liquidity. Income distributions from private market investments are not guaranteed and may fluctuate or decrease over time. Distributions may be paid from sources other than current income generated by the investment, including the sale of assets, borrowings, or return of capital.
Sources
1 Envestnet has entered into strategic partnerships with BlackRock, State Street, Fidelity, and the affiliated registered investment advisers of Franklin Templeton (each a “Premier Partner. For more information regarding these partnerships and related conflicts of interest, please see Envestnet’s Form ADV Part 2A.