Addepar, the wealth management, analytics and alternatives aggregation platform provider, has launched Addepar Data Exchange. This new managed data environment is meant to enable wealth management firms to unify, govern and activate their data to power investment workflows, analytics and artificial intelligence and to do so at scale.
ADX provides wealth firms with the ability to securely ingest and synchronize investment data across multi-system environments, or in some cases, data that was previously siloed, and create a consistent, permissioned data layer.
“It’s about bringing a [wealth management] firm’s data to life,” said Addepar CTO Bob Pisani, noting that ADX is specifically used to better enable integrations with third-party providers and clients and then allow data to be distributed for use by various personas across a firm.
“They have internal data or portfolio data, data spread across different parts of their tech stack, and that historically could be a challenge to get out of where it was, and it often ended up disjointed and fragmented,” he said.
With ADX, firms can activate data across the organization for applications such as proposal generation, reconciliation, asset allocation modeling and market data integration, among others.
The ADX rollout builds on Addepar’s investment in re-architecting its data infrastructure to support scale, performance and AI-driven workflows across more than $9 trillion in assets on its platform, according to Pisani.
A key aspect of this infrastructure is Addepar’s partnerships with the AI powerhouse Databricks and Amazon Web Services. The two have provided the foundation that has powered Addepar’s internal AI, and that foundation is now being extended to clients through ADX.
In a nutshell, AWS provides secure hosting for a firm’s data lakehouse, and sitting on top of that, Databrick’s AI tooling and technology (which does many different things, for example, from the extraction, transformation and loading of data to scaling up and down the numbers of servers or clusters being used to tools for building and training large language models, among other things).
Bringing things back specifically to Addepar, as part of its own platform, ADX expands capabilities with Addison, the company’s own AI experience, which was officially launched in March. Addison enables advisors and firms to use natural language to quickly analyze portfolio information, including performance drivers, exposures and liquidity, and more, and grew out of research aimed at creating a proprietary large language model that could be trained securely on Addepar’s many years of data.
“We’re really excited—and it’s not just about the data in and data out—the most exciting thing we are seeing is the ability to build things because we are seeing clients building things they couldn’t do before on ADX and you get the best of both worlds, the rapid innovation and access from [our own] AI but also what Databricks adds and seeing what clients can build and helping them move much faster,” said Pisani.
More than 1,400 firms in 60 countries now use Addepar, according to the company.
