The Mountain View, Calif. software firm bought AltX to help back-end operations catch up with front-end display. RIABiz highlights how the acquisition will deepen Addepar's capabilities in data and analytics for alternatives (HF, PE, VC, and RE). AltX's technology has made get strides in helping to normalize both structured and unstructured data for individual investments and uses machine learning to correspond it to a rich content database. This database consists of performance, holdings and key reference data for more than 17,000 funds. Alternatives comprise $120m of the estimated $600m of AUM on Addepar.
In its first eight years, Addepar Inc. killed one of two major pain points for RIAs who invest in alternative investments for clients. See: The wary love affair between RIAs and Addepar and where it's headed. Now, a just-closed deal of a small San Francisco firm AltX may be just the Novocaine Addepar was looking for to salve the second RIA agony. What the Mountain View, Calif.-based company excels at is making it possible for RIAs to display, in a "pixel-perfect" way, the performance of various illiquid investments. Previously, it was considered fairly impossible to show hedge funds with conventional stocks and bonds in the same reports. See: Addepar secures Morgan Stanley account by winning a test of wills and setting a small army on Manhattan.
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