“In some situations we can get fee-sharing arrangements with the funds because we’re aggregating assets from a number of investors, so the total cost to the advisors may not be 50 to 100 basis points,” Furlong says.
Regarding fees charged by hedge funds, Furlong notes that fee pressures within the industry are compressing the traditional 2 percent management fee/20 percent performance fee format, and as a result the average fees across the Sliced platform are about 1.5 and 15 percent. “In some situations, we’re able to negotiate that lower,” he says.
Liquidity on the Sliced platform varies from five- to 10-year lockups for some private-equity funds, to hedge funds with either monthly or quarterly liquidity.
Furlong says more than 3,000 investors have signed up for the high-net-worth platform, with total assets in the “double-digit million-dollar” range.
On the RIA side, he says Sliced executives selected a few advisors they knew from their personal network who expressed interest in participating in the beta version of the advisor program that began a couple of months ago.
Now that the program is live, Furlong says they have a waiting list of advisors they expect to be onboarding soon. He notes the majority of the funds on the RIA platform are approved at the major custodians it works with––Schwab, Fidelity and TD Ameritrade.
Sliced’s partners in the RIA program include Krusen Capital, a New York City-based alternative investments advisory firm that has a number of feeder funds enabling investors to access brand-name hedge funds or private-equity funds.
Sliced also employs the services of Atrato Advisors, a New York-based alternative investments research firm that’s providing due diligence on the funds on the Sliced platform.