Escala debuts all-in-one platform to simplify alts investments

Leading private wealth and advice firm Escala Partners has announced the launch of a new end-to-end investment platform designed to streamline clients’ access to alternatives investments.

The platform, developed in collaboration with Australian funds administrator and trustee One Investment Group, promises to streamline operations for staff and enhance the investment experience for the firm’s wealth clients.

Among the touted features of the platform include document processing, onboarding, subscriptions, performance reporting, tax management, investment calls and distributions processing, designed, Escala says, to “optimise operational workflows”.

Escala co-chief executive Torty Howard spruiked the platform’s “single, integrated system”, enabling its staff to “build, manage and maintain an entire alternative investment program while eliminating operational and administrative complexities”.

“This will enhance the workflows of our Chief Investment Officer (CIO) teams, wealth advisers and operational staff, providing clients with a holistic view of their wealth, encompassing both public and private investments,” she added.

On the client side, Ben James, Escala partner and head of advisory, welcomed the platform’s “seamless and transparent investment experience”, promising access to “high-quality alternative investments with greater ease, efficiency, and clarity”.

He added: “By reducing operational friction and enhancing customisation, we are empowering our clients to diversify their portfolios in a way that aligns with their long-term financial goals.”

The platform seeks, ultimately, to improve access to otherwise complex and for some investors an impenetrable world of alternatives investments.

Alternative investments cover a diversity of non-traditional asset classes (beyond equities, bonds or cash), including private credit/debt, private equity, real estate, hedge funds, venture capital, infrastructure, collectables, and cryptocurrencies.

Howard mapped out the particularly complicated alternatives investment lifecycle, an intricate process which spans pre-investment (education, research, sourcing and due diligence), investment (strategy customisation, onboarding and subscriptions) and post-investment (performance reporting, tax management and capital distributions) processes.

Despite the accessibility challenges, Escala notes strong growth in the alternatives space, noting increasing demand from family offices and high-net-worth investors seeking to “enhance diversification, hedge against inflation and achieve superior returns”.

Alternatives data resource Preqin values the total alternatives investment pool globally at $16.3 trillion, with continuing strong growth prospects.

“Demand remains robust for private equity and private credit, while uncorrelated strategies are gaining traction as investors seek greater diversification amid an increasingly challenging economic environment.”

The alternatives industry is now expected to grow to more than $24 trillion in assets in 2028, up from $15 trillion in 2022, according to US investment giant KKR.

Australia’s alternatives investment market alone is estimated to be worth around $100 billion.

James added that, due to their perceived low correlation to traditional asset classes, private markets have become “essential source of capital for innovation and economic activity worldwide”.

“As the number of publicly listed companies declines globally, the opportunity set in private markets continues to expand. Private investments are no longer just a niche allocation; they are becoming an integral part of sophisticated investment portfolios.”