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 the simplest terms, the software from the formerly San Francisco-based firm doesn't necessarily procure data head-on but is able to triangulate and get a solid bead by using public filings, reference data and news. "We separate data but connect it back to a root source," Hocking says. Eric Poirier, CEO of Addepar, describes it as a sort of flexible process that makes the best of a bad situation. "It's matching with a high correlation," he says. "The match isn't going to get it 100% right all the time." See: Takeaways from a New York Times article about Addepar.