More than $5 billion. That’s the stake HB Wealth has placed in the private markets, and it’s doubling down on technology to manage it. The $30 billion AUM wealth manager has deepened its relationship with Arch, a specialist in private markets operations, signaling a decisive shift away from fragmented, time-intensive manual processes.
This isn’t just about better reporting; it’s about scale. HB Wealth’s deployment of Arch covers over 10,000 holdings, automating document collection and delivering real-time performance visibility across private equity, debt, and real estate. For an industry where administrative burdens like K-1s and capital calls can choke growth, this move suggests a new standard is emerging for independent advisors navigating complex alternative investments.
The Siren Song of Spreadsheets, Silenced
Before Arch, the private markets landscape at HB Wealth was — to put it mildly — a mess. The firm reportedly explored building its own solution, even dabbling with spreadsheets and internal tools. This is a familiar story; many firms in this space start with rudimentary systems and graduate to bespoke solutions, only to find the complexity outpaces their internal development capacity. The decision to go all-in with Arch indicates that even custom-built tools couldn’t keep pace with the relentless growth of their private markets allocation.
“Private markets have long been a central component of our investment strategy. Before implementing Arch, managing the fragmented information associated with these holdings was extremely time-intensive, and as our portfolios continue to grow, that challenge has increased accordingly. Arch has been critical in helping us streamline this process and manage the complexity efficiently at scale.”
Sean Hendler, HB Wealth’s director of performance reporting, hits the nail on the head. The sheer volume of data and disparate document types associated with private investments can be overwhelming. For a firm managing over $5 billion in this illiquid asset class, efficiency isn’t a luxury; it’s a prerequisite for survival and growth.
Arch: The Engine for Ambition?
Arch’s co-founder and CEO, Ryan Eisenman, paints a picture of technology acting as a direct accelerator for HB Wealth’s ambitious expansion. He emphasizes providing a solution that “scales as fast as their ambition, driving margin expansion and high-touch client services as they grow.” This is the promise of operational platforms in wealth management today: not just reducing costs, but enabling advisors to serve more clients better, and potentially unlock higher margins.
The independent advisor channel, in particular, has leaned into private markets to offer differentiation, diversification, and potentially higher returns. However, managing these assets — from due diligence and capital calls to reporting and tax documentation — demands significant operational muscle. Arch aims to provide that muscle, offering a suite of tools that tackles K-1s, 1099s, capital calls, and even research for evaluating new opportunities.
This partnership isn’t just about a single firm adopting a tool. It represents a broader trend: wealth managers with substantial private markets exposure are realizing that legacy systems and manual processes are no longer tenable. They need dedicated, scalable platforms to manage the inherent complexity. Arch’s success here hinges on its ability to deliver on this promise consistently, as more firms eye the lucrative, albeit operationally demanding, private markets.
Why This Matters for Independent Advisors
For independent advisors, the message from HB Wealth’s strategic move is clear: if you’re serious about private markets, you need to get serious about operations. The days of cobbling together solutions or relying on the hope that spreadsheets won’t break are rapidly fading. Arch’s comprehensive offering, from document automation to reporting and even investment research, presents a compelling case for firms looking to build or expand their private markets capabilities without an astronomical in-house tech spend.
The real value here is twofold. First, it’s about freeing up advisor time. Hendler’s comment about “extremely time-intensive” processes highlights a critical pain point. Automating these tasks allows advisors to focus on what they do best: client relationships and investment strategy. Second, it’s about client experience. Real-time, accurate reporting on alternative investments is no longer a nice-to-have; it’s an expectation. Firms that can deliver this consistently will have a significant competitive advantage.
HB Wealth’s expanded partnership with Arch isn’t just a vendor upgrade; it’s an operational strategy designed to support significant growth. It’s a data-driven decision to invest in the infrastructure required to manage complex assets at scale, ensuring that operational efficiency doesn’t become the bottleneck to their private markets ambitions.
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Frequently Asked Questions
What does Arch do for wealth managers? Arch provides a private markets operations platform that automates document collection, reporting, capital call management, and investment research for wealth managers, helping them streamline operations and scale their private markets business.
Is Arch a new company? Arch was co-founded by Ryan Eisenman and is actively developing solutions for the private markets space, partnering with firms like HB Wealth to enhance operational efficiency.
Will more wealth managers adopt platforms like Arch? Given the increasing allocation of assets to private markets and the operational complexities involved, it’s highly likely that more wealth managers will seek out and adopt specialized platforms like Arch to manage these investments efficiently.
