CAIS Announces $225 Million Financing Round Led by Apollo and Motive Partners, Exceeds $1 Billion Valuation

New Capital, Including Investment from Franklin Templeton, to Accelerate the Digitization of Alternative Investments Access, Education, and Execution

Executives of Apollo and Motive Partners Join Fintech Pioneer CAIS Board of Directors

CAIS, the leading alternative investment platform, today announced a $225 million round of funding led by Apollo (NYSE: APO) and Motive Partners ("Motive"), with additional investment from Franklin Templeton (NYSE: BEN), which values CAIS at more than $1 billion. This new investment follows a previous investment by Eldridge and accelerates CAIS’s mission to modernize how financial advisors access alternative investments. Blythe Masters, Founding Partner of Motive, and Andrew Gosden, Managing Director in Financial Services & Strategy at Apollo, will join CAIS’s board of directors.

“We are honored to have Apollo, Motive, and Franklin Templeton as our new shareholders and partners,” said Matt Brown, Founder and CEO of CAIS. “This investment advances the critical role CAIS plays in revolutionizing how the alternative investment and wealth management communities engage, learn, and transact.”

Alternative assets are expected to make up to 24% of the global investable market by 2025, according to the Chartered Alternative Investment Analyst Association, up from 12% in 2018. CAIS has doubled its headcount in the last year to meet demand, as transaction volume has increased by 65 percent year-over-year with the number of platform users increasing by 60 percent. Building on that momentum, CAIS will use the proceeds of this financing round to fuel further advancements in technology, enhance the customer experience, invest in the digitization of product operations and processes, and explore strategic opportunities.

“We are excited to invest in CAIS, one of the fintech leaders transforming alternative investment access for wealth management. At Apollo, we want more individuals to access alternative strategies and companies like CAIS help to bridge the gap between asset managers and advisors through their growing platform. We believe this latest funding round will support the Company’s continued growth and success,” said Marc Rowan, Co-Founder and CEO of Apollo.

“CAIS has built a unique marketplace for alternatives through a commitment to excellent service and education. This investment will turbo-charge the technology transformation of the business towards a modular, flexible cloud-based architecture, which will modernize the way investors gain access to this asset class, allowing managers, investors, and their advisors to focus less on process and more on value-added interactions,” said Blythe Masters, Founding Partner at Motive.

CAIS serves the independent wealth management community, which has been historically under-allocated to alternatives when compared with large national broker-dealers or institutional investors, whether due to complexity, higher minimums, and fees, need for education, or other barriers to entry. As the first truly open marketplace for alternative investments, where financial advisors and asset managers can engage and transact at scale, CAIS seeks to remove these barriers, enabling advisors to enhance outcomes for their investors and providing managers with centralized access to a highly fragmented wealth management community.

“We believe that individual investors should have access to the same alternative investment solutions as large institutions, and CAIS is doing just that through its innovative and user-friendly platform,” said Jenny Johnson, President and CEO of Franklin Templeton. “CAIS shares our goal of making it easier for advisors and individual investors to diversify into alternatives to meet their investment objectives.”

Financial Technology Partners served as financial advisor to CAIS on the transaction.

About CAIS

CAIS is the leading alternative investment platform for financial advisors who seek improved access to, and education about, alternative investment funds and products. CAIS provides financial advisors with a broad selection of alternative investment strategies, including hedge funds, private equity, private credit, real estate, digital assets, and structured notes, allowing them to capitalize on opportunities and/or withstand ever-changing markets. CAIS also provides an industry-leading learning system, CAIS IQ, to help advisors learn faster, remember longer, and improve client outcomes.

All funds listed on CAIS undergo Mercer’s independent due diligence and ongoing monitoring. Mercer diligence reports and fund ratings are available to advisors on the CAIS password-protected platform. CAIS streamlines the end-to-end transaction process through digital subscriptions and integrated reporting with Fidelity, Schwab, and Pershing, which make investing in alternatives simple.

Founded in 2009, CAIS, a fintech leader, is empowering over 4,400+ unique advisor firms/teams who oversee more than $2T+ in network assets. Since inception, CAIS has facilitated over $13.8B+ in transaction volume as the first truly open marketplace where financial advisors and asset managers engage and transact directly on a massive scale. CAIS has offices in New York, Los Angeles, Austin, and San Francisco.

Securities offered through CAIS Capital LLC, member FINRA, SIPC.

About Apollo

Apollo is a global, high-growth alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of September 30, 2021, Apollo had approximately $481 billion of assets under management. To learn more, please visit www.apollo.com.

About Motive Partners

Motive Partners is a specialist private equity firm with offices in New York City and London, focusing on growth equity and buyout investments in software and information services companies based in North America and Europe and serving five primary subsectors: Banking & Payments, Capital Markets, Data & Analytics, Investment Management and Insurance. Motive Partners brings differentiated expertise, connectivity and capabilities to create long-term value in financial technology companies. More information on Motive Partners can be found at www.motivepartners.com.

About Franklin Templeton

Franklin Resources, Inc. (NYSE:BEN) is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 165 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the Company brings extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 70 years of investment experience and over $1.5 trillion in assets under management as of November 30, 2021. For more information, please visit franklinresources.com.

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