A Notre Dame graduate majoring in American Studies, Ray Denis had no plans to go into finance. Yet in 2006, when a friend introduced him to a rotational analyst program at Bear Stearns, his path was set on Wall Street. Following the 2008 financial crisis and the firm’s sale to JP Morgan, Ray navigated various high-level banking and lending roles in New York City. Over his tenure with JP Morgan, Deutsche Bank, and Bank of America, he gained substantial experience with specialised lending products such as art loans, real estate finance, and similar services tailored to private wealth clients.
Liquidity needs of UHNWI and families
On Wall Street, Ray specialised in serving ultra-high-net-worth individuals (UHNWIs) who frequently needed liquidity for various reasons, such as paying taxes or purchasing real estate. Some also sought funds to seize investment opportunities or to manage cash flow gaps. Many of his clients had diverse assets that extended beyond traditional investment accounts, with their portfolios often including real estate, yachts, and private equity holdings.
It was also common for many clients to hold assets with different custodians and maintain various banking relationships. For such clients, quick access to liquidity whenever they wanted, not only when the need arose, was a priority. However, securing this liquidity through traditional means, especially when dealing with assets not readily convertible into cash, took a lot of work.
From Wall Street to software
After nearly two decades in private wealth management, Ray had an epiphany: While Wall Street wealth managers can take their long-standing clients and their assets with them when they start their own firms, they cannot take the bank itself or its products. This gap in the wealth management model inspired the creation of Sandbox Wealth, an open architecture platform for cash management and credit solutions tailored for families and advisors.
As a versatile resource for family offices, Sandbox integrates banking, lending, and data analytics. The platform connects with their financial institutions and incorporates alternative assets, such as privately owned businesses, fine art, and real estate. By structuring and standardising their data, it acts as a facilitator, optimising the flow of information between family offices and potential lenders. That ultimately makes it easy for lenders to assess and approve loans, offering clients efficient access to capital when needed.
“Since we’re not a bank and we’re not a lender, we provide an independent view of what the best loan structure is for the client.” – Ray Denis, Founder of Sandbox Wealth.
Data-driven liquidity: Real-world application
One of the benefits of the platform is that it accelerates the underwriting process by providing a comprehensive financial record. This transparency allows lenders to make informed decisions. For example, a multifamily office in Florida managing approximately $500 million in structured notes held in offshore trusts sought to leverage these funds for a business acquisition.
However, they faced limitations with their current custodian. Traditional financing options were restricted, as the client was not prepared to transfer assets to another institution. In this case, the Sandbox Wealth platform’s capability to act as an intermediary provided a solution by facilitating necessary data sharing between the family office, custodian, and lender.
“We’re pure banking, lending, and analytics. Our clients don’t have to worry about where they custody their assets to access our products.”– Ray Denis, Founder of Sandbox Wealth.
Security and Compliance
Understanding the sensitive nature of the information shared on the platform, the team made data security a top priority from the outset. Long before onboarding clients, they took proactive measures to secure their operations, achieving SOC 2 security certification—a stringent standard for data protection and privacy.
Their commitment to maintaining a strong security posture involved everything from implementing firewall protections to conducting employee background checks. And one of the company’s first hires was a dedicated regulatory compliance advisor to further ensure compliance with financial regulations.
To sum it up
Founded in 2023, Sandbox Wealth is still in its early stages but is poised for a formal launch in the coming year. As the platform matures, it plans to onboard more custodians and lenders, further expanding the range of financing solutions available to family offices. The ultimate goal is to simplify liquidity management for family offices, allowing them to leverage their assets without needing to reposition them or disrupt existing financial relationships.
About Sandbox Wealth Sandbox provides cash management and credit solutions paired with enterprise-grade analytics that enable our members to make prudent decisions regarding liquidity within the full context of their finances. Our members have access to comprehensive balance sheet and cash flow reporting that sit alongside the ability to execute payments domestically and cross-border.