Interest in alternative investments such as private equity, real estate and crypto continues to surge, and Miami-based fintech startup Allocations is riding the wave. Less than three years after its founding, the company, which provides APIs to help private fund managers streamline processes, has crossed $1 billion in assets under administration on its platform, its CEO and founder Kingsley Advani told TechCrunch in an interview.

It has also raised $5 million in funding from investors including Flex Capital, Genesis Accel, Digital Horizon, Whatif Ventures, Garage Syndicate, W5 Group, Edoardo Ermotti, Peter Ko and others, all of whom are Allocations customers, at a valuation of $150 million. The latest round brings its total funding raised to $12 million, according to the company.

As for performance metrics, Advani noted that the company had reached a $6.25 million revenue run rate in July this year, which is up from $4.6 million last June according to a prior TechCrunch article.

Allocations founder and CEO Kingsley Advani. Image Credits: Allocations

Advani started Allocations in 2019 as a response to challenges he faced in trying to set up his own investment funds and realizing that none of the tools available to him at the time could help him spin up funds quickly enough to stay competitive in the increasingly fast-paced private markets. Allocations' core products help fund managers create special purpose vehicles (SPVs), which allow them to raise capital from a single investment from pooled sources. At a time when it is especially in vogue for venture investors to leave their firms to start their own solo funds, Allocations' value prop looks increasingly appealing.

Its customers are asset managers looking to offer these alternative investment opportunities to their private wealth clients, who tend to be high-net-worth individuals that meet regulatory accreditation requirements applied to many alternative assets, Advani explained. The company is betting that retail investors will continue to show strong demand for alternative asset classes that have typically been dominated by institutions.