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Phoenix American and Forge Trust partner to deliver affordable custodian services for alt investment fund sponsors

Phoenix American, a transfer agent and fund administrator for alternative investment sponsors, and Forge Trust, a provider of custody services for alternative investments, have announced a partnership to make it easier for IRA account holders to invest in alternative assets. 

Forge Trust provides custody services with preferred pricing and a streamlined integrated experience to clients of Phoenix American. The partnership will enable Phoenix American client sponsors/issuers to offer their investors access to custody services for their qualified investment funds at rates that greatly reduce the typical effect custody costs have on net investment returns. Investors will also benefit from Forge Trust’s advanced integrated investor platform and streamlined data exchange between Phoenix American and Forge Trust providing continually updated investor information. 

The partnership between Phoenix American and Forge Trust addresses a key challenge in the alternative investment industry. IRA investors in alternative funds account for a large portion of a typical capital raise for sponsors. These investors are typically required to establish a dedicated custodian account with a provider that has an existing relationship with the sponsor. The paper-intensive process of establishing the new account, then initiating a transfer of qualified funds from another custodian, and then making the investment is often time-consuming and frustrating. In addition, annual fees charged by alternative investment custodians can dig deeply into investment returns. These can be significant obstacles for IRA investors. The combination of reduced custody rates and a facilitated integration between the two companies improves the overall investor experience and can effectively enhance investment returns. 

“This partnership not only saves real money for IRA investors, it streamlines the process of making the investment,” says Patrick Hughes, President of Forge Trust. “Our easy-to-navigate, transparent and secure platform guides investors through the process. White glove customer service provides any additional support they may need to complete the investment.”

The partnership between Phoenix American and Forge Trust will also feature a technical integration to modernise the investor’s day-to-day experience. Automated position files from Phoenix American will ensure that investor accounts at Forge Trust are always up to date with the latest changes. Phoenix American and Forge Trust will work together to support the customer service needs of client investors. 

“Part of our mission at Phoenix American is to help our clients make their products as accessible to investors as mutual funds,” says Andrew Constantin, Senior Vice President, Operations at Phoenix American. “Our partnership with Forge Trust helps move the industry in that direction and helps continue bringing alternative investments into the mainstream.”

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