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Orpheus Capital Introduces Next-Generation AMC Solution, Revolutionizing Banking Sector

In the ever-evolving landscape of the banking industry, an exciting opportunity is emerging for financial institutions to broaden their investment horizons through Actively Managed Certificates (AMCs). While the traditional route of establishing an AMC offering can be both time-consuming and financially draining, third-party solutions now present an attractive and cost-effective alternative for banks to provide exceptional services to their clients.

Small and mid-sized banks, in particular, often find themselves constrained when considering the provision of Actively Managed Certificates to their financial intermediary clients. Typically, they may need to collaborate with larger market players to execute their strategies. However, if these banks could manage the entire value chain internally, this would unlock a multitude of benefits, including expanding their brokerage services, increasing fee revenues, and enhancing their custody business.

AMCs, which can be issued through special-purpose entities, offer remarkable flexibility for tailoring investment strategies. This presents an exciting and potentially lucrative prospect for banks aiming to develop their unique AMC offerings. In many cases, clients who purchase these products via third-party platforms may choose to deposit them in accounts held at the bank. This results in an influx of net new money and heightened customer loyalty simultaneously.

One of the standout advantages of AMCs is their high level of modularity. Banks can create them for various ticket sizes, including very small ones, across a wide range of asset classes, even including digital and alternative assets. This versatility enables banks to engage in asset management and servicing with an expanded network of partners, transforming their investment concepts into marketable products that diversify their portfolios.

The Dilemma: Do It Yourself or Collaborate?

To harness these advantages, banks face a pivotal decision: whether to construct their own AMC offerings or partner with an external entity to establish an AMC platform. While constructing an in-house solution has its merits, initiating an AMC platform is a resource-intensive and complex endeavour, often taking months or even years to complete.

Key tasks for banks include updating IT systems, managing AMC rebalancing in their trading portfolios, assessing risks, and developing new applications for AMC asset managers. This typically necessitates the recruitment of a specialized team comprising 20 to 25 individuals, substantial legal fees ranging from one to two million US dollars, and a setup period spanning one to two years. Infrastructure costs further compound the expenses.

For these reasons, many banks venture into the AMC space primarily for substantial investments exceeding 200 million dollars. This leaves untapped a vast universe of smaller yet enticing opportunities that could attract new clients and expand assets under management. In such cases, third-party platforms, like the innovative solution provided by Orpheus in collaboration with partners, offer a swift, cost-efficient entry into this domain, requiring minimal integration efforts.

Next-Generation AMC with Orpheus

“At Orpheus Capital, we introduce a ‘plug-and-play’ securitization service that empowers banks to establish their AMC platforms with significantly reduced costs and effort compared to traditional approaches,” says Andrew Wolfson, CEO and Founder of Orpheus Capital.

Leveraging next-generation AMCs and the advanced digital platform offered by Orpheus’ partners, banks can implement new product lines in a matter of weeks, or even days, as opposed to the customary years. This streamlined process significantly enhances cost-effectiveness. Furthermore, next-generation AMCs are not subject to common restrictions that affect traditional structured product issuers, such as credit risk.

Through Orpheus Capital, banks can seamlessly adopt a white-labeled AMC offering without integration hassles. AMCs are set up as standard clients, allowing asset managers to utilize familiar banking tools. Banks can serve as both custodians and brokers, maintaining critical components of the value chain in-house and thereby fostering stronger customer loyalty. Additionally, as Orpheus Capital clients, they gain access to a suite of other Orpheus Capital solutions, facilitating efficient entry into private market assets as securities with Swiss ISIN, thus expanding their investment horizons.

For more information about Orpheus Capital and its revolutionary AMC solutions, please visit