Mass Affluent Momentum


Oct 30, 2023


Cindy Grazer


Oct 30, 2023


Cindy Grazer


The days of “set it and forget it” retirement savings are over. Instead, the appeal of alts came rushing in with the NYC floods, largely triggered by a bleak new reality for the traditional 60/40 portfolio mix.

While in 2020 this classic split comprised of the S&P 500 and 10-year Treasury notes still promised returns of 15%+, Nobel Prize-winning economist Robert Shiller’s valuation metric shows that stocks are now more expensive than they have been in decades, which in the past has produced average annual returns of only 2.7% over the subsequent decade.

Luckily, you don’t need to throw in the towel on buying a house, traveling the world, or any other spend-related life goal quite yet. Enter alts. Until now, alternative asset investment opportunities have been reserved for institutions or the ultra high net worth, with only 1% of individual investors’ $178t in global wealth invested in alts. As traditional players are feeling the strain of having over-indexed on PE in recent years, the floodgates have opened to the mass affluent.

The channel of choice? Brokerages such as Schwab and Fidelity who manage nearly $10t in IRAs. The two are reportedly partnering with KKR to help them tap into IRAs - the world’s largest pool of liquid capital - for their newest infrastructure investment opportunities.

Like everyone saving for retirement - you had better get going, and get ya retirement saving running shoes on like this smart little chicken!

newsletter image 10/30

Portfolio News

Plaid says consumer centric innovation will power money movement - The year 2023 has been one of the biggest yet for innovation across the payments landscape. New, emerging rails including the FedNow® Service and RTP® (Real-Time Payments) have changed the game for both consumers and businesses when it comes to the choice, flexibility and security of how money moves. Read more

Solana Labs plans to grow ecosystem through new incubator program - Solana Labs has launched an incubator program to help scale startups interested in building on its network. This incubator program is designed to support teams interested in building on the Solana network by providing engineering and go-to-market support. Read more

Mass Affluent Momentum

Your ‘set it and forget It’ 401(k) made you rich. No more - Longer-term Treasury yields have hit their highest levels in 16 years, causing their value to plummet, and stocks are expensive. Investors now need to lower their expectations and play defense. Read more

Private equity wants a piece of your retirement savings - Amid the roster of banks and brokerages helping KKR & Co. raise money for some of its newest infrastructure investments, two names stand out: Fidelity and Charles Schwab Corp. The brokerages offer access to individual retirement accounts, which have far more leeway to invest in alternative assets. Read more

Industry News

Never mind the 1%, mini-millionaires are where wealth is growing fastest - Many people in the upper middle class are now millionaires thanks to college, savings, bull markets and timing. Read more

Meet Morgan Stanley's new power trio and the challenges they face - Gorman has been steadfast in his resolve to have a bloodless succession, a rarity on Wall Street, and the leadership changes are promising. Analysts have commended the move, and the bank's stock price has risen since the Wednesday evening announcement. It was up 0.9% at market close Thursday. Read more

The EU’s upcoming AI law could be “a zero or one regulation” - After four years of intense negotiations, the EU is expected to finalise its rules for AI companies by the end of this year. The new regulation, the first of its kind in the world, is likely to put extra requirements, such as reporting on data and algorithms, on companies that use AI classified as “high risk”. Read more

US companies shy away from debt markets as Treasury rout drives up costs - Turmoil in government bond markets has forced US companies to delay borrowing plans, making this the slowest October for debt issuance in more than a decade. Read more

Arbitrum Orbit prepped for mainnet launch - Ethereum scaling solution Arbitrum Orbit is officially mainnet ready, developer Offchain Labs says. This means that builders can create their own chains which will settle onto one of Arbitrum’s layer-2 chains, including Arbitrum One, Arbitrum Nova, and testnets Arbitrum Goerli or Arbitrum Sepolia. Read more

There’s a reason why UK stocks need UK owners - The withdrawal of the home crowd puts UK companies at the mercy of opportunistic hedge funds when they need to raise cash. The shift in ownership has also coincided with a drop in London capital raising - annually worth 2% of the FTSE 100 market capitalization from 1990 to 2005, but only worth 0.9% from 2006 to 2022. Read more

OpenAI is starting a new team to reduce risk from future AI - The team will also come up with a policy to help determine how it can can reduce risks that may come with the development of so-called “frontier models” — the next generation of AI technology that is more capable than that what’s generally in use today. Read more

Jamie Dimon to sell JPMorgan stock for first time - JPMorgan chief executive Jamie Dimon will sell 1mn shares in the bank next year, the first time he has reduced his stake in the group since joining nearly two decades ago. Read more

Stablecoin market caps stay steady amid bitcoin upswing - The stablecoin market cap stayed relatively steady at $124b during bitcoin’s sudden upswing, failing to break the sector’s levels from early September, perhaps indicating that new liquidity is still yet to find its way into crypto. Read more

20 UK VC firms commit to plan to direct pension funds cash to startups - Nine of Britain’s biggest pension funds signed up, committing to allocate at least 5% of their assets into British startups and VC firms by 2030. This could unlock up to £50bn in assets from private defined contribution (DC) pension schemes by 2030. Read more

Select Financings

Aleph raises $16.7m in new funding - New York based financial data repository company raised $16.7m in new funding led by Bain Capital Ventures. Read more

Employment Hero raises $167m in Series F funding - Syndey based HR and payroll platform raised $167m in Series F funding led by TCV. Read more

Finerio Connect raises $6.5m in new funding - Mexico City based open finance startup Finerio Connect raised $6.5m in new funding led by Third Prime. Read more

Hiive raises $4.2m in new funding - Canada based marketplace for startup shares raised $4.2m led by Uncorrelated Ventures. Read more

Laka raises €7.6m in new funding - France based e-bike insurer company raised €7.6m in new funding led by Shift4Good. Read more

Lunr raises $6m in new funding - Minneapolis based fintech inventory financing platform for retail brands raised $6m in new funding, co-led by Mairs and Power Venture Capital. Read more

MediaTool raises $7.4m in new funding - Sweden based media budget management company raised $7.4m in new funding led by Fairpoint Capital and eEquity. Read more

Node raises $2.75m in Series Seed funding - San Francisco based e-commerce data management startup raised $2.75m in Series Seed funding led by NeoTribe Ventures. Read more

Nomad raises $20m in growth funding - Dubai based home buying platform raised $20m in growth funding led by Acrew Capital. Read more

Prism raises $5m in Seed funding - New York based cash flow underwriting company raised $5m in Seed funding led by Obvious Ventures. Read more

SynFutures raises $22m in Series B funding - Singapore based crypto derivatives exchange raised $22m in Series B funding led by Pantera Capital. Read more

Tenary raises $12m in Series A funding - San Francisco based cloud spend management platform raised $12m in Series A funding led by Jump Capital. Read more

Upland raises $7m in new funding - Palo Alto based metaverse property company raised $7m in new funding led by Network Ventures. Read more


FinTech Collective Newsletter

Curated News with Context

Delivered every Monday, the weekly newsletter, produced by our team, provides a tightly edited rundown of global fintech news, along with a bit of our original analysis.