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2 min read

Forging Digital Efficiencies with Phoenix American

Since its beginnings in mid-2021, the partnership between WealthForge and alternatives transfer agent/fund administrator Phoenix American has greatly benefited client sponsors. The efficiencies of this digital technology solution saves asset managers time, money, and frustration. This partnership is just one example of how WealthForge and Phoenix American are innovating for the alternative investment industry.

This one-of-a-kind partnership features the integration of WealthForge as managing broker-dealer and our Altigo straight-through processing technology, and Phoenix American as fund administrator and their STAR-XMS transfer agent system. It enables WealthForge to process all subscription documents digitally, then send Phoenix American a data file to be uploaded to the shareholder registry of record.

This solution eliminates the manual process of data transcription from paper subscription documents to the shareholder record-keeping system typically required of the transfer agent. As investment data sent to Phoenix American is already digital and approved by WealthForge and the fund sponsor, the chance of entry errors with any of the documents is all but eliminated. This process also speeds up the time it takes to get the investment admitted into the fund.

A sponsor that uses WealthForge as its managing broker-dealer, and Phoenix American as its transfer agent, realizes cost efficiency on every new investment as transcription from paper to digital is eliminated. For example, a hypothetical $100 million offering with an average investment of $75,000 would have well over 1,000 investors. The reduced new investment charges on such an offering employing the WealthForge-Phoenix American partnership results in significant savings for the sponsor.

Additionally, the possibility of Phoenix American receiving a NIGO (not-in-good-order) new investment is almost completely eliminated. This is due to WealthForge sending a data file containing already approved investor information instead of original documents. Typically, a large percentage of subscription documents sent directly to a transfer agent will have multiple errors that need to be corrected before the investor can be admitted into the fund. NIGO-free new investments save a sponsor the cost of curing those investments, improving the investment experience for investors and their representatives, and substantially expediting the investment process.

“We continually look for ways to remove the operational frictions from the alts space,” said Zane Doyle, Chief Strategy Officer for Phoenix American. “Our partnership with WealthForge is a testament to our mutual desire to change a cumbersome and costly investment process to something modern and aligned with how sponsors want to work with their investors today. Simply put, this integration creates a better, faster, cheaper fundraising solution for alternative investment sponsors.”

About Phoenix American

Phoenix American provides fund administration services, fund accounting, transfer agent services and full back-office outsourcing to private equity and venture capital fund sponsors. The company is an affiliate of Phoenix American Incorporated along with Phoenix American SalesFocus Solutions. Phoenix American has five offices worldwide, was founded in 1972 and is headquartered in San Rafael, CA.

About WealthForge

Founded in 2009, WealthForge is one of the largest and most experienced managing broker-dealers of alternative investment products. It has cemented itself as an industry innovator and reimagined the managing broker-dealer role as a value-added service instead of just a necessary compliance hurdle. 

Learn more about the benefits of outsourcing broker-dealer services and how doing so can save you time and money.

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