Morgan Stanley (MS) is adopting technology backed by KKR (KKR) that helps process transactions from alternative asset managers seeking to expand their access to high-net-worth individuals, according to a media report.
The bank’s wealth platform added Corastone, software that provides the plumbing to process fund transactions, Bloomberg News reported, citing a statement it has seen. KKR, Franklin Resources (BEN), and Apollo Global Management (APO) have also agreed to have investment products distributed through the platform.
Corastone is designed to speed up the administrative process of bringing new investors into fund products, a system that had previously been manual, Bloomberg said.
The documents needed to invest in alternative asset funds, which often offer the ability to cash out on a monthly or quarterly basis, are often incomplete or inaccurate, impeding the process.
Doug Krupa, head of global wealth solutions in the Americas at KKR (KKR), told Bloomberg, “There’s still a lot of clunkiness and complexity in transactions for semi-liquid funds. This is an important tool that can help us reduce that hassle factor.”
KKR (KKR) turned to Corastone when it was looking for ways to expand access to its funds and make it more efficient for clients to invest, Krupa said. As a result, the alternative asset manager took a minority stake in the firm and made introductions to others in the financial industry with similar problems, including Morgan Stanley (MS), he said.