WealthForge has reimagined the managing broker-dealer and back-office provider role as a value-added resource instead of just a compliance obligation. Our cost-effective and efficient dealer manager services are comprehensive; from ensuring regulatory compliance, mitigating exposure to regulatory risk, reducing operational overhead, and most everything in between. Our mission is to advance your growth while taking as much hassle out of your back-office processes as you will allow. By doing what we do best, you can focus on what you do best.
As 2023 gets underway, we thought it would be a great idea to expand on the range of services we provide:
Ensuring that investors are appropriate candidates for an alternative offering and that their personally identifiable information is secure is top of mind for every asset manager—and therefore top of mind for WealthForge:
- Customer Identification Program: WealthForge collects and verifies investor client information (name, date of birth, Social Security number, address, phone number, and email address) via third-party identity verification vendors.
- Accreditation: WealthForge verifies investor accreditation status as defined in Rule 501 of Regulation D. We also ensure that each investor into a 506(c) offering administered by WealthForge is accredited under the rule. This is done either directly by us, or by contractually relying on participating selling members to conduct investor diligence and verify the accredited status of an investor through their own account maintenance practices.
- Suitability: The WealthForge syndicate administration contractually assures that selling members validate the offering’s suitability for the subscribers that are submitted to WealthForge for acceptance.
- Books and Records: WealthForge complies with the books and records requirements established by the SEC and as enforced by FINRA.
One of things we are well-known for as a managing broker-dealer in the alts space is our effectiveness as syndicate administrator for our sponsor clients. This includes:
- Supervising selling agreements
- Managing commission payments
- Ensuring proper diligence on any new and current selling member
- Creating and submitting regulatory filings, including the following:
WealthForge distributes filings to selling members who participate in an offering, and we’re always available to answer any questions submitted by selling members.
Escrow Account Services
WealthForge prefers to utilize a tri-party escrow account to facilitate the flow of funds, AML validation, and the payment of commissions; whether a contingency requiring an escrow account exists or not. This process allows for more straightforward PPM communication to selling members on how to place a deposit, it reduces the duration from deposit receipt to investment closure, greatly enhances our ability to meet our AML obligation for the benefit of our sponsors, and increases the velocity with which we settle commission obligations. And, it is provided at no cost to our sponsor partners.
We can take on the role of supervising wholesaling teams, by affiliating a sponsor’s wholesaler and national accounts personnel with WealthForge. This allows transaction-based compensation and commission payments to be set on any schedule that is best suited to our sponsor partners and their distribution staff.
Transfer Agent Integration
When a transfer agent is part of a sponsor’s offering strategy, WealthForge has partnered with Phoenix American. This partnership benefits sponsors that work with us by providing both efficiencies and potential cost savings through the integration delivered by our back office system. This validated digital integration reduces errors that would otherwise need to be corrected, saving asset managers time and money. This integration sends Phoenix American a digital record for each investor, eliminating the need for any manual data by the transfer agent.
Documents sent to the transfer agent will already have been approved by WealthForge and the sponsor, so this also greatly reduces the chance of experiencing errors with any of the documents. And because transfer agents typically charge a transaction fee for every subscription document they process, sponsors that use WealthForge as its managing broker-dealer—and Phoenix American as its transfer agent—can receive a sizable discount on every transaction charge.
Due Diligence Data Room Administration
We can help set up and monitor virtual storage rooms, where potential selling members can view and download information about a sponsor’s offerings.
WealthForge reviews all advertising for compliance with SEC and FINRA rules related to any offering or sponsor of an offering that we administer.
As one of the largest and most experienced managing broker-dealers in the alts industry, we've helped our clients raise more than $5 billion. If you're looking for a managing broker-dealer to administer the syndication efforts for your next project, contact us today: