Morgan Stanley has integrated Corastone, a transaction-processing platform backed by KKR & Co., into its wealth management technology stack, reported Bloomberg.
This platform will digitise investor onboarding and automate validation steps that previously relied on manual paperwork.
Corastone uses blockchain-based infrastructure to centralise documentation and standardise data exchange between distributors and fund administrators.
With the integration, Morgan Stanley aims to speed up subscriptions and redemptions for alternative asset funds sold to high-net-worth clients.
KKR, Apollo Global Management and Franklin Resources have agreed to have investment products distributed using the system.
According to the report, alternative managers expanding into the retail wealth channel have faced operational frictions, including incomplete or inaccurate investor documents and delays in settling transactions.
Morgan Stanley’s deployment of Corastone aims to reduce those bottlenecks by enabling quicker verification and settlement of investor transactions.
In an interview, KKR Americas global wealth solutions head Doug Krupa said: “KKR was looking for ways to expand access to its offerings and make it more efficient for clients to invest.
“The firm took a minority stake in Corastone and facilitated introductions to others in the financial industry looking to solve similar problems, including Morgan Stanley.
“There’s still a lot of clunkiness and complexity in transactions for semi-liquid funds. This is an important tool that can help us reduce that hassle factor.”
In a separate development, Morgan Stanley launched a dedicated research page covering private companies as interest in unlisted startups grows among investors.
The research portal will highlight the innovators and trends that are influencing traditional business , according to an internal memo seen by Bloomberg.
It will feature reports on private companies’ impact on public-market competitors, research into single names, venture-capital activities and multimedia content.
Last month, Morgan Stanley signed an agreement to acquire EquityZen, a platform specialising in private share transactions.
