This led Yu to give Addepar a closer look. “We wanted a technology provider that was a good partner when we’re small and would remain the right fit as we grew,” says Yu. Identifying a platform positioned to grow alongside the firm was critical.
He brought a checklist of desired attributes to the table: direct API connections to support a client base with multiple custodians; a modern interface; customisation options, especially around asset allocation; client report generation; and — perhaps most critically — scalability.
Upon assessing Addepar’s technology, he found it checked all the boxes.
An implementation process with substantive support
While Partner and Chief Operating Officer Jonathan Shelley was not yet part of 3 Capital Partners when Addepar was implemented in 2021, he notes that colleagues were positive about the onboarding and implementation experience. “There was a dedicated implementation team to help. It wasn't once the contract was signed, Addepar hands it over to you to figure out how it's done,” he says.
Likewise, Yu notes that Addepar presented a clear process for the 3 Capital Partners team to follow. “The client success team basically set a timeline, step-by-step, of what needs to be done,” he says. Shelley adds, “It seemed like the whole process of onboarding was very well thought out.”
Find a solution that can grow with you, then take that first step. Don't wait.
Addepar five years on: a partner to power daily operations
It’s been nearly five years since that implementation process, and today 3 Capital Partners finds Addepar serving an integral role in its day-to-day operations.
Addepar’s ability to aggregate data across multiple custodians is a critical feature. With 70 accounts across seven custodians, bringing that information together quickly into one place is an essential part of the firm’s daily work. “We can see our clients’ portfolios from a bird's eye perspective and are able to make the high-level decisions that we need to make because we do manage it on a discretionary basis,” says Shelley.
Analytics is also a crucial component. Addepar allows users to put in specific metrics that matter most to their decision-making processes. Given the firm’s unique investment philosophy, this flexibility is key.
Finally, Shelley highlights that Addepar’s reporting tools have transformed the firm’s operations and enabled it to scale more effectively. “Before, when we had fewer clients, there were two people spending three to four days a month doing the client reporting,” he says. “Right now, it's about 15 to 20 hours a month in total and this frees them up to focus on other areas that benefit our clients.”
Technology as a catalyst for growth — for all stakeholders
Bringing on a technology partner that’s poised to scale has done more than save 3 Capital Partners’ time. Those hours translate into far greater efficiency and an ability to focus on delivering better client outcomes without increasing headcount.
The analysts that used to spend days on reporting have reallocated time to tasks that better serve clients, with one exploring private equity fund investments and the other hedge funds and private credit. A third analyst looks at portfolio management functions and system optimisation within Addepar.
This shift in the analysts’ work also translates into career-building skills. Yu notes that the right technology can be a talent retention tool. “Once you can be more efficient, your junior talent can actually spend more time growing and learning, and then they will stay,” he says.
Another way Addepar has transformed the team’s way of working is in democratising access to data. Before, client questions needed to be directed through an advisor to the investment or investment operations team. Now, everyone can access all relevant data and information.
This also means the firm hires differently. Yu says, “Before we had to think, ‘Oh, is this person going to be in the front office or back office?’ Now, it’s less of a concern because Addepar is there.” There’s no longer a need to silo talent into discrete roles. Instead, 3 Capital Partners can recruit smart, driven people with the flexibility to work across all functions.
While moving from Excel to a new technology platform required a commitment to identifying the right provider and time to manage implementation, Yu sees the rewards as well worth the effort. And he encourages other firms to make the move, too. His advice? “Find a solution that can grow with you, then take that first step. Don't wait.”
