Ategenos Capital, an outsourced funding advisory agency launched final month by a number of former executives at Brinker Capital, has introduced on on its first exterior investor, with Envestnet taking a minority stake within the agency.
Together with the funding, Ategenos additionally launched its suite of discretionary funding administration choices, to be distributed on the Envestnet platform initially.
Brendan McConnell, chief working officer, mentioned the agency is not going to be unique to Envestnet, and can look to distribute on different marketplaces as properly. The executives detailed the funding choices for the primary time since Ategenos’ registration with the Securities and Change Fee was permitted in an unique interview with WealthManagement.com.
Ategenos was launched in Might by a number of former executives at Brinker Capital, the turnkey asset administration platform acquired by Orion in 2020, together with McConnell and Brinker co-founders John Coyne and Jason Moore. The executives have been clear that Ategenos is not going to be a TAMP, however quite, distribute its methods on third-party platforms.
The funding administration is led by co-chief funding officers Jeff Raupp and Amy Magnotta, who labored collectively at Brinker for 15 years managing discretionary portfolios.
“Jeff and I’ve intensive expertise working multi-asset class discretionary portfolios, so we’re bringing that right here to Ategenos,” Magnotta mentioned. “We’re in a position to, on the discretionary facet, actually construct portfolios which can be broadly diversified, which can be dynamic, so for us meaning we’re going to be lively from an asset allocation perspective. However we’re additionally going to ship for shoppers the outcomes they count on.”
The choices will begin with a minimal funding of $10,000 for Ategenos Portfolios, a set of mannequin portfolios utilizing third-party ETFs and mutual funds. Ategenos Entry Portfolios, which could have a $500,000 minimal funding, could have the identical funding philosophy and course of as Ategenos Portfolios, however extra flexibility in what shoppers can spend money on. These portfolios will probably be structured as unified managed accounts and can embody individually managed accounts in addition to ETFs.
Each choices will cowl an array of asset courses, together with U.S. equities, worldwide equities, fastened earnings and options. Magnotta mentioned the agency will probably be opportunistic on its use of options, and they’ll use solely liquid alts, similar to relative worth fastened earnings, lengthy/brief fairness, infrastructure and pure sources.
Raupp mentioned the portfolios will embody a mix of lively and passive exposures, they usually’ll goal to get beta publicity within the least expensive method potential.
Ategenos will cost a ten foundation level administration payment for these two choices, and traders can even pay the inner bills, which might vary from 25 to 45 foundation factors.
The agency has additionally launched a non-public wealth providing for accounts with $1 million or extra in belongings, an initiative led by Todd Cole, head of personal wealth. Underneath this providing, Ategenos will construct custom-made UMA portfolios for high-net-worth shoppers and supply a devoted portfolio supervisor for ongoing advisor help. These UMAs will probably be made up of SMAs primarily, however they could additionally make the most of ETFs and mutual funds. They’ll additionally be capable to use much less liquid options.
“You’ll be able to customise the portfolios primarily based on that exact consumer’s want—in the event that they’re income-seeking or extra long-term progress looking for—no matter their particular targets could also be,” Cole mentioned.
“Considered one of issues that’s thrilling about working with Envestnet is entry to the assorted exchanges they’ve, together with the Options Change,” Cole mentioned. “So there’s going to be the chance to make use of non-public fairness, hedge funds, structured notes, issues of that nature, which we’re beginning to see increasingly within the high-net-worth area.”
Ategenos will present the portfolio development inside this providing, but additionally gross sales help and ongoing relationship administration.
“What we’re making an attempt to do is absolutely act as an extension of their follow in some ways and be a useful resource that they’ll actually lean on within the space of funding administration experience, portfolio positioning, being an additional voice that they’ll then carry to their consumer,” Cole added.
Ategenos will assist advisors on the entrance finish when working with potential shoppers, similar to diagnosing shoppers’ current holdings, discovering methods to enhance upon tax effectivity and asset allocation. They can even assist by means of the consumer onboarding course of. Then, on the again finish, the advisor’s devoted portfolio supervisor is obtainable to take part in consumer conferences, if want be, to debate the markets or the efficiency of the portfolios.
“Increasingly more you’re beginning to see advisors outsource,” Cole mentioned. “They’re desirous to spend extra time on the monetary planning, relationship constructing side of their enterprise, much less time on the portfolio administration. They’re seeing the worth within the partnership due to the economies of scale that they’ll carry to their follow.”
Ategenos can even leverage Envestnet’s outsourced consulting expertise platform for HNW advisors, which permits the supervisor to get visibility into these shoppers and supply them with ongoing administration and help.
“It permits for asset managers who want to supply this high-net-worth outsourced consulting service to essentially be built-in into the particular consumer account off the Envestnet platform,” McConnell mentioned. “That permits us as a supervisor to log right into a supervisor portal, sit alongside the advisor in constructing the portfolio and the proposal course of and be totally built-in into that course of, together with the then-ongoing administration of the accounts.”
The agency has direct indexing instruments obtainable as a part of the portfolio, and they’ll use that technique throughout the non-public wealth providing if it is sensible for a selected consumer state of affairs.
The pricing for the non-public wealth providing will probably be negotiated on a firm-by-firm foundation.
Along with the funding administration capabilities, Ategenos additionally helps worldwide monetary establishments in establishing operations within the U.S., by way of its International Managed Account Program, and offers OCIO providers to RIAs and asset administration corporations.
