Interest in alternative investments such as private equity, real estate and crypto continues to surge, and Miami-based fintech startup Allocations is riding the wave. Its customers are asset managers looking to offer these alternative investment opportunities to their private wealth clients, who tend to be high-net-worth individuals that meet regulatory accreditation requirements applied to many alternative assets, Advani explained. The company is betting that retail investors will continue to show strong demand for alternative asset classes that have typically been dominated by institutions.
“Traditionally, retail investors, if they go to their bank, their minimum to invest [in alternative assets] is really high, like $5,000 to a million dollars, but on Allocations, you can have any minimum,” Advani said. He shared the example of an SPV into an African startup on the platform that represented $10,000 in total investment, which he believes to be the world’s smallest SPV.