Alternative investment subscriptions continue to be manual and paper-laden. Errors are very common on paper documents – up to 60% of subscriptions are considered NIGO (not-in-good-order)1 and must be corrected before the investment can be completed.
For both sponsors and advisors, correcting NIGO documents is time-consuming and expensive, up to 4x the cost2 of a document submitted correctly the first time.
Automating the subscription process with Altigo can reduce cycle time—and business rules, data validations, and e-signatures can significantly decrease the number of NIGO errors and time spent correcting them.
1 Kevin McCormack-Lane (Assistant VP of Trading and Operations within the Alternative Investment Trading Area for LPL Financial), AltsEdge Broker-Dealer Series: The Long and Winding Road to Straight Through Processing [Webinar] (Feb. 2019), Institute for Portfolio Alternatives, https://www.ipa.com/events/altsedge-broker-dealer-series-the-long-and-winding-road-to-straight-through-processing/.
2Jeannine Mulliner, What a Difference a 0% NIGO Rate Makes (Aug. 12 2015), eSignLive, https://www.esignlive.com/blog/what-a-difference-a-0-nigo-rate-makes.
When entering client information in Altigo, advisors are only presented with relevant fields, eliminating the need to comb through complicated documents to determine what information needs to be entered. A pre-filled subscription package can then be sent for electronic signature by investor clients, streamlining the process and reducing errors.
Sponsors and advisors can track investments through a convenient transaction activity dashboard, which provides the ability to see subscription activity and status. The dashboard is customizable and filterable, allowing sponsors to quickly and easily track down individual investments and avoid a series of follow up phone calls and emails to determine status.
Our online workflow utilizes security measures including end-to-end encryption, two-factor authentication, internal and external auditing, and monitored role-based access. Our technology includes advanced firewalls, AES 256-bit encryption, SSAE 16 complaint hosting, data loss prevention, regular penetration testing, and other industry best practices.
In addition to technology solutions, WealthForge can serve as a managing broker-dealer and/or as a broker-dealer of record, depending on your business needs.
» Both services include issuer and offering diligence, transaction processing, escrow account administration, and electronic record transfer to the issuer.
» With WealthForge as your syndicate manager, we can help manage back-office administration, including subscription package processing and timely commission payments to syndicate members.