SMARTX ADVISORY SOLUTIONS
Demand for semi-liquid alternatives is accelerating as we move through mid-2025. In a year marked by heightened volatility across asset classes, strategies like private credit, real estate, and private equity secondaries are capturing more attention. But increased interest brings added complexity, and legacy infrastructure isn’t built for it.
Advisors and asset managers are moving quickly. On the SMArtX platform, usage of semi-liquid alts within models and UMAs has surged. Since launching support for interval funds in SMAs and UMAs in 2024, we’ve seen firms adopt these tools in several ways: housing standalone funds in protected sleeves, building proprietary models composed entirely or partially of interval funds, and leveraging third-party interval fund models available on the SMArtX Manager Marketplace.
This momentum is just the beginning. As adoption grows, so will the complexity, and the friction, depending on the solution. Addressing the complexity requires modern, scalable technology designed to manage liquidity constraints, delayed settlements, and compliance requirements at scale.
Operational Friction: Where It Happens
Client firms often raise concerns about integrating semi-liquid strategies into scalable, day-to-day operations.
What happens when a portfolio rebalance overlooks a fund’s liquidity schedule? Could it result in failed trades, allocation drift, or execution delays that disrupt client goals?
How can scalable portfolios accommodate varying liquidity needs across different client types? How do firms blend semi-liquid and daily-traded assets without limiting flexibility or increasing risk?
As firms grow, how can they manage liquidity across accounts while staying compliant with fund-specific rules? And if systems aren’t built for these challenges, how can teams avoid inefficient manual workarounds?
These questions reflect real operational pain points that impact advisors, investment teams, and clients alike.
Tech-Enabled Solutions in Practice
Client firms are actively incorporating semi-liquid alternatives into portfolios using SMArtX technology built to address the unique operational challenges these assets present.
Key capabilities include:
Redemption-Aware Trading
Trade tools that automatically account for redemption schedules reduce failed or delayed transactions and align execution with fund terms.
Multi-Asset Coordination
Integrated support for blending semi-liquid funds with mutual funds, ETFs, and SMAs enables holistic portfolio construction and model management.
Real-Time Oversight
Visibility into liquidity constraints and trade status improves control and helps surface exceptions early in the process.
These solutions demonstrate that with the right infrastructure, firms can confidently scale their use of semi-liquid strategies.
Looking Ahead
As these products continue to gain ground, the broader wealth management infrastructure must evolve to support them. Scalable adoption depends on whether platforms can:
- Seamlessly integrate liquidity terms into portfolio construction and trading
- Enforce operational guardrails from trade initiation through settlement
- Coordinate effectively across fund sponsors, custodians, and trading systems
Preparing for the future, liquid, semi-liquid, and illiquid assets will increasingly coexist with greater interoperability, efficiency, and transparency. Successfully supporting the complexity of semi-liquid alternatives depends on technology partners delivering scalable, effective solutions. While your firm may feel prepared, a thorough evaluation of your technology infrastructure is essential to ensure you’re equipped to handle what’s next.
Learn more at www.smartxadvisory.com and LinkedIn.
