CAIS Builds Capital Markets Division

CAIS is one of several firms, such as iCapital (US) and Moonfare (Germany) that have opened access to private markets and alternative investments, challenging a territory traditionally dominated by investment banks.     

CAIS,
a US-headquartered alternative investment platform, has
built a new division to cover capital markets.

The division, called CAIS Capital Markets, will centralize
existing structured investments solutions, hedging and
monetization, and managed solutions referral services, with CAIS
Capital’s structured investments trade execution capabilities.

The business arm offers advisors access to structured notes as
well as hedging and monetization strategies – both delivered
by bank issuers – to help diversify and manage risk in
concentrated equity positions. (Concentration risk is a
significant challenge, as shown by the sharp falls in
“Magnificent Seven” Big Techs that have dominated
capital-weighted indices such as the S&P 500.)

Focus
Financial Partners, the network of wealth management firms,
has expanded its relationship with CAIS to use its capital
markets offerings.

“Advisors are increasingly taking advantage of defined-outcome
strategies to capitalize on market opportunities, manage risk,
and seek to achieve the financial objectives for their end
clients,” Marc Premselaar, partner and head of capital markets at
CAIS, said. 

“In today’s market environment, we’re seeing a preference for
increased diversification and downside protection. Many advisors
are taking a more intentional approach to constructing portfolios
– and that includes reevaluating their public allocations.”

CAIS said it has seen more users of structured investments in
recent years – with significant year-over-year volume growth.

Headquartered in New York, and with offices in London, UK, and
Austin, Texas, CAIS serves more than 2,000 wealth management
firms, collectively overseeing about $6 trillion in end-client
assets. It was founded in 2009. It is one of several firms, such
as iCapital (US) and Moonfare (Germany) that have opened access
to private market, alternative investments, challenging a
territory traditionally dominated by investment banks.