Fidelity and CAIS form Strategic Alliance to Provide Access to Alternative Investment Funds

October 28, 2013

Fidelity Custodial Clients Benefit from Integrated Solution and Unique Fund Menu

CAIS, and Fidelity have formed a strategic alliance to provide Fidelity’s custodial clients access, education, oversight and execution to a robust menu of alternative investment funds including hedge funds and private equity funds.

Fidelity Investments is committed to building the most comprehensive, integrated alternative investment offering for its clients, which include registered investment advisors, broker-dealers, multi-family offices and other financial intermediaries. To that end, Fidelity has selected CAIS as the operating platform that will offer hedge funds and private equity funds to the approximately 3,500 wealth management firms that custody at Fidelity.

“CAIS is very pleased to be selected as the hedge fund and private equity gateway to Fidelity’s network of wealth management firms,” said Matt Brown, co-founder and CEO of CAIS. “CAIS will provide wealth management professionals the needed solution to meet client demand,” Mr. Brown continued.

Fidelity custodial clients will benefit from the elimination of annual custody-related fees for all fund orders executed through CAIS and held at Fidelity. Additionally, wealth management firms will benefit from an integrated Fidelity-CAIS technology experience with electronic trade execution, streamlined workflow and above-the-line reporting.

“The Fidelity – CAIS alliance offers meaningful benefits to CAIS clients,” said Rafay Farooqui, CAIS Co-Founder and President. “The combination of cost savings and improved product access aligns with advisors’ mission to provide the most competitive offerings to their clients.”

Benefits for Wealth Management Firms that Utilize CAIS

  • Access to a centralized and diverse menu of top-tier hedge funds and private equity funds
  • Lower investment minimums (standard $100,000 per qualified beneficiary)
  • Independent, third-party due diligence and monitoring on all funds provided by Mercer
  • Portfolio construction and performance analytics tools
  • Electronic trade execution
  • Fund support and education

Benefits for Hedge Funds and Private Equity Funds that List on CAIS

  • Efficient access to the fragmented independent wealth management channel
  • Distribution and marketing support
  • Mercer due diligence review and ongoing monitoring
  • Subscription / redemption management
  • Ongoing client communications

The strategic alliance further strengthens CAIS’s standing as the leading independent marketplace for the global wealth management industry. Earlier this year, the company announced the launch of its capital markets product offering, which includes access to IPO and follow-on offerings as well as structured products. Fidelity and CAIS will introduce the benefits of the strategic alliance with a nationwide road show and CAIS will also be a key sponsor of Fidelity’s upcoming 2014 Alternative Investment Forums.

About CAIS

CAIS is the leading alternative investment platform for financial advisors who seek improved access to and education about alternative investment funds and products. CAIS provides financial advisors with a broad selection of alternative investment strategies including, hedge funds, private equity, private credit, real estate and structured notes, allowing them to capitalize on opportunities and/or withstand ever-changing markets. Additionally, CAIS provides an industry-leading learning system, CAIS IQ, that helps advisors learn faster, remember longer and improve client outcomes.

All funds listed on CAIS undergo Mercer’s independent due diligence and ongoing monitoring. Mercer diligence reports and fund ratings are available to advisors on the CAIS password-protected platform. CAIS streamlines the end-to-end transaction process through digital subscriptions and integrated reporting with Fidelity, Schwab and Pershing, making investing in alternatives simple.

Founded in 2009, CAIS, a fintech leader, is empowering wealth management by leveling the playing field for financial advisors everywhere.

Securities offered through CAIS Capital LLC, member FINRA, SIPC.

Press Contact
Tony Fassi
Jones-Dilworth, Inc.
(512) 826-3428
[email protected]