Axios Pro: Fintech Deals

September 13, 2022

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1 big thing: Alt investing for all

Illustration of hands placing coins into an arrangement creating a one hundred dollar bill

Illustration: Annelise Capossela/Axios

Titan, a managed investment portfolio app for retail investors, is adding alternative assets to its platform through partnerships with two of the biggest names in real estate and private equity, the company tells Ryan.

Why it matters: The app enables retail investors to access asset classes that previously were only available to high-wealth, accredited investors or people with private wealth managers.

  • On the flip side, Titan is connecting its private equity and real estate partners with retail AUM that they wouldn’t be able to serve at scale.

How it works: The Titan app already gave retail investors wealth management services and the ability to access a managed portfolio of stocks and cryptocurrency assets.

  • The latest update will allow users to further diversify their portfolios by adding private credit and institutional real estate offerings to its menu of potential investments.
  • "Every retail investor is trading just stocks and bonds, but when you're in a bear market, you need other asset classes to diversify and give you stability and income," Titan founder and co-CEO Joe Percoco says.
  • While institutional real estate and private credit typically require ultra-high minimums just to invest, Titan clients can invest in those asset classes with as little as $2,000.

Between the lines: To open up those asset classes, Titan partnered with Carlyle on the private credit side and Apollo on the real estate portion.

  • "If you put yourself in the shoes of Carlyle .... There are these elite asset managers on Wall Street managing hundreds of billions of dollars. And they see the $25 trillion of assets that retail has, but don't know how to service them," Percoco says.
  • "So we've built a platform where managers like Carlyle can finally launch and list their products and connect to a retail investor," he adds.

By the numbers: Titan has more than 55,000 clients using its app and over $750 million in assets under management.

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