It’s been three years since we sat down with Maria Rutledge, Beneficient’s Chief Technology Officer (CTO), to talk about how Ben’s technology has enabled the company’s business success. Much has changed and been accomplished, she noted, in both the company’s approach and in the investing space where technology is disrupting many of the traditional processes. What hasn’t changed is Ben’s mission to democratize the global alternative asset industry by attempting to address the needs of traditionally underserved investors, mid- to-high net worth individuals, small-to-mid sized institutions and General Partners seeking early exit options, anchor commitments and other value-added services for their funds.
In addition, the company has just launched a new technology capability called MAPS that uses machine- automated algorithmic capabilities to upgrade the company’s ability to price and process alternative assets.
As CTO, Maria has led Ben’s IT group as the company continues to enhance one of the industry’s first fully regulated, technology-enabled platforms, Ben AltAccess, providing early exit solutions and related trust and custody services to holders of alternative assets. AltAccess is Ben’s primary application driving customer engagement and providing access to Ben’s unique suite of products and services.
“AltAccess and our technologies were built for our own use as we have grown our business, balance sheet and customer base , but there’s so many distribution channels where investors can and will use the platform as a Software as a Service (SaaS) – they can white label the entire platform experience or they can have API integrations depending on their own business needs and tech requirements,” Maria said.
Maria has been with Ben for six years and, with the help of her team, is responsible for all of Ben’s proprietary systems, digital solutions, customized data management/artificial intelligent solutions, along with the entire robust application stack as Ben seeks to meet growing demand for early exit solutions and other services in the alternatives market.
Here is what Maria had to say about Ben, AltAccess, the new MAPS system, cybersecurity and the Ben team.
How has Ben’s approach to technology and its services changed in the last three years since we last checked in with you?
It is interesting how Ben has evolved in the last three years. Besides successfully listing on Nasdaq over a year ago, we have moved from strictly an early exit solutions provider for underserved owners of alternative investments to a far more diversified service provider. We work with the full spectrum of clients that include individuals, institutions and General Partners. In Ben AltAccess, we have built a digital platform for alternative assets that offers regulated services such as AltLiquidity, AltCustody and data and analytics on alternative investments through AltData.
For General Partners, we offer services that attempt to address two of the greatest concerns that GPs face in ongoing fund-raising needs and LP exit options. Our GP solutions include the GP Primary Commitment Program which facilitates anchor capital commitments for GPs and offers optional participation in our Preferred Liquidity Program.
Ben recently announced a new system called “MAPS.” What is that and how is it being integrated into AltAccess to improve your ability to price and process assets?
MAPS is the Machine Automated Pricing System we just introduced that will employ the enhanced capabilities of machine-automated tools to price and process assets faster and with greater efficiency. With MAPS, the time to close early exit transactions and primary capital commitments can be potentially reduced to 15 days or fewer. That’s a significant upgrade that will be integrated into AltAccess. MAPS is anticipated to significantly enhance the company’s operational capacity, which would enable us to scale the dollar amount of early exit and primary capital solutions.
It’s a very exciting development that will be rolled out to Ben’s GP solutions to provide flexible and customized options as GPs manage the challenges of capital raising, early exit solutions, and analytics while maintaining positive relationships with their LPs. After that initial deployment, we will integrate MAPS into our services for other target markets including mid-to-high net worth individuals and small-to-midsized institutions. This expansion is expected to further diversify and enhance Ben’s product offerings.
What is the potential for tools like MAPS to enhance the experience of individuals and institutions that need exit options for their illiquid investments?
What’s great about the Ben approach is that we are constantly exploring new technologies, not just in the IT group but in our Risk/Underwriting group where we have been developing cutting-edge data gathering and pricing capabilities to deliver early exit solutions in record time. Our “true north” as an organization is keeping our customers’ needs at the core of everything we do. We are attempting to remove barriers that have delayed or prevented access to products and services that larger institutions have benefited from for years.
One of the more notable tools is, of course, artificial intelligence (AI). We are not alone in watching AI closely for how it will enhance the client experience. We believe AI can give customers access to data at their fingertips that can enable them to make better, more informed decisions about their alternative investments.
All of this contributes to the democratization of the financial services business. Instead of institutional players making decisions about big pools of assets, individuals can access systems and technology that provide exit options for their assets and access to a sophisticated custody and management platform.
It reminds me of the move from the checkbook to the ATM and now to other pay services on your phone. It was a matter of transforming a product that was already there, making it easier and more convenient to use. That’s what AltAccess is designed to do for mid-to-high net worth individuals and small to mid- sized institutional investors.
What is the potential for AltAccess to become a white-labeled product for other financial service providers to use?
We plan to offer AltAccess as a SaaS business that has the potential to deliver an innovative, white-labeled and API solution for both business and individual customers. For firms that Ben partners with, AltAccess will be customizable and could be seamlessly integrated into their platforms and technology as a cyber-secure platform with the partner’s own brand, look and feel. Potential partners range in size from GPs to private wealth partners with offerings that include closed end, fund of funds, feeder and evergreen funds.
For Ben, offering AltAccess in this manner would generate SaaS subscriptions and managed service fees. This approach could provide Ben a stable and growing revenue stream that is driven by what we see as an increasing demand for early exit solutions, advanced data analytics and personalized service offerings. We are excited to be able to offer this in the near future to companies who we know need these kinds of capabilities.
How has Ben handled the ever-present threat of cyberattacks?
We never take security for granted and have worked very hard to earn the highest levels of security ratings the industry recognizes. We have a clean SOC 2, Type II report with no exceptions which says a lot about how important we think this area is to the company and the customers we serve. For us, it’s a constant process. We have achieved both SOC 2 and SOC 3 certification effective this year – those are important milestones for us.
Established companies can treat security as a “check-the-box” activity that is just something regulations require you to do. In this environment of hacking and cyberattacks aimed at pools of money, that “check-the-box” approach is a very dangerous approach for a financial services company to take.
What are you most proud of at Ben?
I am proud of our team and the amazing technology platform we have built that is integrated throughout the company. That means that IT must work closely with business teams across all departments, and we have such a great pool of talent here that it honestly feels like an Ivy League school.
You have been a leader in the movement of women in both technology and financial services. What have you been telling young women about the opportunity and the challenge?
I have been a strong advocate about having more women in financial services and more women in technology. On a personal level, I have daughters who are very interested in what Ben is doing and it’s been fun to see how they perceive it. For their generation, technology is a given. Everything we are doing to democratize alternative assets and automate systems will be table stakes in their futures. I can’t wait to see how they make it work.
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At Ben, we have crafted a suite of reliable, ongoing early exit solutions for investors in alternative assets. Our process seeks to give investors access to hard-earned investment capital, with early exit solutions provided from our own balance sheet. Contact us today to schedule a consultation with our expert team.
