Subscribe with Rafay Farooqui | E351

Modernizing the alts experience.

In today's episode of Fintech Impact, Jason Pereira delve into the world of alternative investments and digital transformation with Rafay Farooqui, the Chairman Founder and CEO of Subscribe. Subscribe is a platform designed to address challenges in establishing enterprise solutions for subscription document technology and management of alternative products. The discussion covers the historical context and inspiration behind the creation of Subscribe, its contribution to digital transformation in private markets, and the innovative strategies employed to streamline operations within this industry.

Episode Highlights:

  • 00:10: Jason introduces the podcast, Fintech Impact, and Rafay, the CEO of Subscribe, which addresses challenges in alternative investments.

  • 00:40: Rafay explains how Subscribe serves as a central hub for managing pre-trade and post-trade data and workflows in the alternative investment industry.

  • 01:23: Discussion on the origins of Subscribe, with Rafay's background at Goldman Sachs informing his insight into digital transformation.

  • 02:19: Rafay describes the phases of digital transformation in the industry, emphasizing the need for democratization, infrastructure build, and lifecycle.

  • 03:15: Explains the concept of democratization and the foundation of Subscribe to focus on infrastructure in the private markets.

  • 04:47: Jason leads into trivia about fractionalization of shares, explaining historical context linked to silver coins.

  • 05:49: Jason initiates a discussion on the current experiences and challenges within the alternative space, including the manual processes involved.

  • 06:39: Rafay discusses the key challenges in digitizing the private markets, inspiring Subscribe's creation and digital infrastructure focus.

  • 08:19: They identify three main stakeholders: buyers, sellers, and service providers, and uncover the repeatable, collaborative process essential in transactions.

  • 10:26: Jason and Rafay discuss the complexity of standardizing investment information and the innovative capture of data via Subscribe passports.

  • 12:02: Rafay highlights the content and scope of the Subscribe passport and its significance in completing investment documentation.

  • 12:47: Discussion on the advisor and institutional firm experiences facilitated by Subscribe, highlighting functionality and scalability.

  • 14:14: Mention of the end client experience, where they have a simplified interaction through a DocuSign signature.

  • 15:03: Jason discusses the transformative productivity gains seen by firms using Subscribe, resulting in significant resource and time savings.

  • 15:58: Rafay discusses a comprehensive end-to-end solution addressing pre-trade, trade, and post-trade concerns in alternative investments.

  • 18:18: Jason and Rafay converse on future improvements for Subscribe, discussing ongoing challenges and growth opportunities.

  • 20:51: Insight into Rafay's extensive experience in the private market, highlighting the importance of understanding and defining problems accurately.

  • 23:23: Rafay explains the strategized and iterative development approach of Subscribe to ensure standardization and wide applicability.

  • 25:02: Rafay explains his wish for faster adaptation in technology development cycles within large firms to bridge adoption gaps.

  • 27:00: The discussion touches on risk management and career preservation issues hindering progress in technological adoption.

  • 27:37: Rafay shares his drive to achieve a one-click Amazon-like model for private markets, describing it as a major challenge.

  • 28:29: Rafay expresses his passion for transforming the private market industry and his continued excitement about Subscribe's potential.

  • 28:58: Discussion wraps up with Jason emphasizing the value of Subscribe for US RIAs and broker dealers facing challenges with alternative investments.

Key Points:

  • Subscribe provides an end-to-end enterprise solution to manage alternative investments, addressing pre-trade, trade, and post-trade processes.

  • The platform facilitates significant productivity gains by automating complex, traditionally manual processes.

  • Standardization of investment information through Subscribe passports enhances scalability and reduces time expenditures.

  • Successful digital transformation demands an open architecture that accommodates the industry's diverse stakeholders and functions.

  • Technological solutions must embed innovative thinking, but also draw on experienced sector understanding to address complex issues effectively.

Tweetable Quotes:

  • "In a world where we all summon taxis, watch movies, order groceries using a button, an amazon.com for the massive private markets industry doesn't exist."- Rafay

  • "We're building the amazon.com of private markets because it's the everything store: any fund, any investor, everywhere in the world."- Rafay

  • "The undeniable fact that an amazon.com equivalent doesn’t exist for such a large industry should wake everyone up in the morning to build it."- Rafay

Resources Mentioned:

Fintech ImpactJason PereiraFintech