WEBINAR SIGN-UP

Tax-Efficient Investment Strategies: QOZ Overview and Legislative Insights & Tax Aware Portfolio Optimization

CFP Continuing Education: 1 Hour

Tuesday, December 9, 2025

4:00 – 5:00 pm (ET)

Course Description:

Investors with tax considerations have access to specialized strategies that strive to optimize portfolio outcomes and manage tax liabilities. This webinar will explore two key approaches: Qualified Opportunity Zone (QOZ) investments and Tax-Aware Portfolio Optimization Strategies—each designed to align investment decisions with a client’s unique tax situation.

Join Keith McRedmond, Head of AI National Accounts, as he moderates an in-depth discussion featuring:

Nick Rosenthal, Co-Chief Executive Officer, Griffin Capital, will provide a legislative update and overview of Qualified Opportunity Zones, including how recent changes may impact investor strategy.
Brian Kelly, Global Head of Platforms, Millennium Management LLC, who will present on tax-aware portfolio optimization—an investment strategy that systematically integrates tax-efficiency into portfolio management and construction to maximize after-tax returns.

This session will cover:

Sources of capital gains eligible deferral or elimination
Strategic use of IRS tax codes in investment planning
Legislative changes to tax-efficient strategies in 2025
Portfolio construction techniques that prioritize after-tax wealth retention

Whether you’re advising clients with significant capital gains or seeking to deepen your understanding of tax-efficient investing, this webinar offers actionable insights to support financial planning, tax strategy, and portfolio diversification.

The topics discussed in this session should not be construed as tax advice. Certain exceptions may apply. Investors should always be encouraged to consult with their own tax advisors.

Our Speakers

Keith McRedmond

Head AI National Accounts, iCapital

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Nick Rosenthal

Co-Chief Executive Officer, Griffin Capital

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Brian Kelly

Global Head of Platforms, Millennium Management LLC

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For more information, contact:
[email protected] | 212.994.7344

IMPORTANT INFORMATION

The material herein has been provided to you for informational purposes only by Institutional Capital Network, Inc. (“iCapital Network”) or one of its affiliates (iCapital Network together with its affiliates, “iCapital”). This material is the property of iCapital and may not be shared without the written permission of iCapital. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital.

This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer or solicitation to buy or sell any security, financial product or instrument, or otherwise to participate in any particular trading strategy. This material does not intend to address the financial objectives, situation, or specific needs of any individual investor. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation.

iCapital Markets LLC operates a platform that makes available financial products to financial professionals. In operating this platform, iCapital Markets LLC generally earns revenue based on the volume of transactions that take place in these products and would benefit by an increase in sales for these products.

The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward-looking statements or to any other financial information contained herein.

Securities products and services are offered by iCapital Markets LLC, an SEC-registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. and Institutional Capital Network, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Annuities and insurance services are provided by iCapital Annuities and Insurance Services LLC, an affiliate of iCapital, Inc. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.

NEW YORK — Brookfield today announced its private wealth platform has partnered with iCapital¹ to launch a new interactive asset allocation tool for financial advisors and their clients. Powered by iCapital Architect, “Alts Allocator” utilizes three research-based high-net-worth investor profiles to illustrate how adding alternative investments to a traditional 60/40 portfolio can enhance diversification and improve potential investment outcomes.

The “Alts Allocator” model analysis is built upon three alts investor personalities: Traditionalist, Emerging Adopter, and Alts Champion, which were developed through proprietary data from Brookfield’s 2024 Alts Institute Alternative Investing Survey. Users can then opt to create custom portfolios from asset classes, including infrastructure, real estate, private equity, and private credit, and compare them to the benchmark of their choice.

This launch comes at a time when advisor interest in alternatives is surging. According to iCapital’s 2025 Global Advisor Survey, 96% of advisors plan to maintain or increase their allocation to alternatives this year. “Alts Allocator” is designed to meet this demand by helping advisors model the potential impact of alternatives in client portfolios with greater clarity and confidence.

John Sweeney, CEO of Brookfield’s private wealth business, said, “Equipping advisors with the resources they need to meaningfully engage clients around alternative investing is critical. Our Alts Institute research study revealed that investors increasingly view alternatives as an essential part of a portfolio strategy and believe that having an alternatives allocation may contribute to long-term outcomes compared to a traditional portfolio. ‘Alts Allocator’ gives advisors a powerful way to demonstrate the benefits of alternatives while meeting clients where they are.”

iCapital Architect—the portfolio construction tool powering “Alts Allocator”—is part of iCapital’s modular suite of solutions built to simplify the integration of alternative investments. Architect reflects iCapital’s commitment to delivering scalable, data-driven tools that elevate the advisor experience and foster meaningful client engagement. Through its collaboration with Brookfield, iCapital continues to help wealth managers navigate complexity, educate their clients, and support the integration of alternatives in client portfolios.

“Our collaboration with Brookfield is focused on helping address some of the real-world challenges advisors face in portfolio construction,” said Dan Vene, Co-Founder and Co-Head of iCapital Solutions at iCapital. “Powered by Architect, ‘Alts Allocator’ helps advisors evaluate the impact of allocating to alternatives in client portfolios—enabling them to assess asset performance with greater precision, make confident recommendations, and engage in more personalized, insight-driven conversations that build trust and drive better outcomes.”

The launch of “Alts Allocator” is part of a broader initiative by The Alts Institute to arm advisors with the tools and resources needed to take advantage of the opportunities in alternatives. The Alts Institute houses a readily accessible, action-oriented library of foundational alternatives content, marketplace insights and original research from Brookfield. It is designed to help advisors build client confidence in alternatives and deepen conversations around investing needs and motivations. To learn more about “Alts Allocator,” please explore the tool.

To learn more about how Architect delivers institutional-grade intelligence to wealth managers, visit the latest resources and insights here.

About Brookfield Asset Management:

Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager, headquartered in New York, with over $1 trillion of assets under management across renewable power and transition, infrastructure, private equity, real estate, and credit. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors. We draw on Brookfield’s heritage as an owner and operator to invest for value and generate strong returns for our clients, across economic cycles. For more information, please visit our website at www.bam.brookfield.com.

About iCapital:

iCapital is a global leader, shaping the future of global investing for financial advisors, wealth managers, asset managers, and other industry participants. iCapital offers a diverse and complete range of non-traditional investment products on iCapital Marketplace, Enterprise Solutions, and both Technology and Data Services, designed to help drive better outcomes² for all participants in the ecosystem.

With strategic investment from leading alternative asset managers, wealth managers, and service providers globally, iCapital provides unrivaled access, data connectivity, education, and research programs to advisors and their clients. Leveraging AI and machine learning for digital identity (KYC/AML), iCapital supports compliant and secure investment lifecycle processes.

iCapital’s end-to-end platform manages the lifecycle of non-traditional investment products, making it easier to learn about, buy, manage, and integrate alternative assets, structured investments, and annuities into portfolios, driving growth, scale, and efficiency. Our solution(s) can be customized and offers specific modules as needed.

iCapital has $999.7³ billion of assets serviced globally on its platform, including $272.1 billion in alternative platform assets, $214.9 billion in structured investments and annuities outstanding, and $512.7 billion in client assets reported on, and serves over 3,000 wealth management firms and 118,000 active financial professionals.

Headquartered in New York, iCapital operates globally with 16 offices, including major hubs in Zurich, London, Hong Kong, Singapore, Tokyo, and Toronto, and an industry-leading R&D center in Lisbon. iCapital is recognized for its innovation and leadership with accolades from Euromoney (World’s Best Technology Provider for Wealth Management), CNBC (World Top Fintech Companies), The Wealthiest Alts Investment Platform of the Year, and Forbes Fintech 50.

For more information, visit https://icapital.com | X (Twitter): @icapitalnetwork | LinkedIn: https://www.linkedin.com/company/icapital-network-inc

Brookfield Media Contact:
Rachel Wood
Tel: (212) 613-3490
Email: [email protected]

iCapital Media Contact:
The Neibart Group
Tel:(919) 602-2806
Email: [email protected]

iCapital, Inc., together with its affiliates "iCapital"
iCapital delivers better outcomes by streamlining financial operations, enhancing technology infrastructure, and empowering smarter decision-making through reporting and analytics.
As of August 31, 2025

IMPORTANT INFORMATION
This material has been provided to you for informational purposes only by iCapital, Inc. and/or one of its affiliates including Institutional Capital Network, Inc. (collectively, “iCapital”). This material is the property of iCapital and may not be shared without its written permission. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of iCapital. This is not intended as, and may not be relied on in any manner as, legal, tax or investment advice, a recommendation to employ a specific investment strategy, or as an offer to sell, a solicitation of an offer to purchase, or a recommendation of any interest in any fund or security. Security products and services are offered through iCapital Markets LLC (a registered broker/dealer, member FINRA and SIPC), Institutional CN (Europe) – Empresa de Investimento, S.A. (registered with CMVM), iCapital Hong Kong Limited (licensed by SFC) and iCapital SG Pte. Ltd (licensed by MAS), all affiliates of iCapital. Registrations and memberships in no way imply that FINRA, SIPC, CMVM, SFC or MAS have endorsed any of the entities, products or services discussed herein. Financial products made available by iCapital Markets LLC, Institutional CN (Europe) – Empresa de Investimento, S.A., iCapital Hong Kong Limited and iCapital SG Pte. Ltd. may be complex and/or speculative and are not suitable for all investors. iCapital Advisors, LLC is an investment adviser registered with the Securities and Exchange Commission and acts as an adviser to certain privately offered investment funds. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc.

The 2025 iCapital GCC Advisor Survey reveals a growing appetite for alternative investments among wealth managers in the Gulf region, as they navigate operational challenges to meet evolving client demands.

The iCapital Advisor Survey 2025 reveals a notable shift in investment practices across the Gulf Cooperation Council (GCC), where advisors are increasingly integrating alternative investments into client portfolios. Drawing on responses from 50 senior financial professionals in Kuwait, Qatar, Saudi Arabia, and United Arab Emirates, each managing at least $400 million in assets and primarily serving individual and family clients, the survey offers a focused view into a market both ambitious and nuanced in its approach to private market investing.

Client interest in alternatives has grown steadily over the past two years, with a particular emphasis on private equity, private credit, and real estate. Respondents cited return potential, inflation hedging, and portfolio diversification, particularly into emerging sectors such as clean energy and infrastructure, as the primary motivations driving this trend. Nearly all advisors reported being either “very” or “somewhat” knowledgeable about alternatives, and three-quarters expect clients to hold 11–15% of their portfolios in evergreen strategies over the next two years.

Client Interest in Alternatives Holds Strong—With Signs of Growth

Compared to two years ago, has client interest increased in alternative investments?

iCapital pie chart showing Client Interest in Alternatives Holding Strong—With Signs of Growth in the 2025 GCC Advisor Survey

Nearly half of GCC advisors (46%) report increased client interest in alternatives compared to two years ago, while another 46% say interest has held steady. Only 8% see a decline, reinforcing that alternatives remain a core focus. This stability—paired with growth signals—suggests alternatives are moving from opportunistic plays to a permanent fixture in client portfolios, challenging firms to rethink how they deliver access and education at scale.

Yet while the enthusiasm is clear, structural and operational constraints persist. The most significant challenges to integrating alternatives include limited access to institutional-grade products, compliance and regulatory hurdles, and a lack of accessible model portfolios tailored to alternatives. These concerns are compounded by frustrations with due diligence and the high capital commitment often required for private assets; factors that have led some advisors to scale back in areas like real estate.

Portfolio construction practices across the region are varied and hybrid in nature. Many firms combine in-house research with investment team-led model portfolios or third-party offerings, reflecting the need for adaptable tools and workflows. Advisors also highlighted risk management, macroeconomic factors, and the pursuit of stable income as playing key roles in shaping portfolio design.

Looking ahead, the survey highlighted that advisors in the GCC are calling out for greater operational efficiency and improved data infrastructure. Standardized performance reporting, enhanced risk analytics, and automated onboarding processes are seen as essential improvements. The need for better education, particularly around implementation and regulation, remains an ongoing theme.

The survey suggests a region well-positioned for growth in alternative investing, but one that requires targeted support to overcome persistent operational friction. Firms that invest in flexible, scalable technology or partner with financial technology providers offering such solutions—and proactively address key advisor pain points—will be best equipped to serve a maturing, and increasingly sophisticated client base.

In certain jurisdictions, iCapital operates a platform that makes available financial products to financial professionals. In operating this platform, iCapital generally earns revenue based on the volume of transactions that take place in these products and would benefit by an increase in sales for these products.

Certain products and services can only be offered by the appropriate entities and only in jurisdictions where they may be lawfully offered. Security products and services are offered through iCapital Markets LLC (a registered broker/dealer, member FINRA and SIPC), Institutional CN (Europe) – Empresa de Investimento, S.A. (registered with CMVM), iCapital Hong Kong Limited (licensed by SFC) and iCapital SG Pte. Ltd (licensed by MAS), all affiliates of iCapital. Registrations and memberships in no way imply that FINRA, SIPC, CMVM, SFC or MAS have endorsed any of the entities, products or services discussed herein. Subject to certain exceptions, iCapital Canada acts as the investment fund manager and portfolio manager of the funds domiciled in Canada and is registered as a portfolio manager, exempt market dealer and investment fund manager where required in the applicable Provinces and Territories of Canada. Additional information is available upon request.

The Hassle Factor

While many RIAs acknowledge the benefits of adding alternatives to client portfolios, this is often overshadowed by the complexity of implementation and portfolio fit.

Time-consuming process
80% of time spent on 10-20% of a client’s portfolio.

Complex investment decisions
Fulfilling fiduciary responsibility through ongoing due diligence, monitoring and selecting the right investments.

Operational challenges
Managing disparate systems, manual workflows, and custom reporting.

hassel-factor - diligence, fiduciary obligation, product selection, monitoring, review

The Value-Creation Opportunity

Alternatives can reduce portfolio volatility while maintaining — or even increasing — return potential. By introducing strategies that are less correlated to traditional stocks and bonds, they can help smooth performance through market cycles. In doing so, you can offer your clients new ways to capture growth without being overly reliant on a single asset mix.

Alternatives have offered higher returns and lower volatility vs. a traditional 60/40 portfolio

To find out more about iCapital’s Alternatives Decoded interactive chartbook, which helps RIAs take a deeper dive into private market data, please visit: https://icapital.com/alternatives-decoded/

Breaking Down the Hassle Factor

Pre-Investment

From delivering materials to conducting eligibility checks and managing client communications, incorporating alternatives into a portfolios is layered and time consuming.

Key Pain points:

Portfolio fit and risk-reward analysis.
Delivering offering materials.
Eligibility checks and compliance tracking.
Managing communications with clients.

“Every part of the alternatives investing lifecycle can be a hassle. How do you confirm client eligibility? Ensure compliance oversight? Provide evidence to regulators? The iCapital platform is designed to track and document each step so advisors don’t have to.”

– Binoy Talati, Managing Director, Enterprise RIA

Investment Process:

Key Pain points:

Lengthy, manual subscription process up to 100 pages.
Occasionally digital, typical disconnected point solutions.
Lacking critical partner connectivity with major custodians or reporting platforms.

“The subscription process is a well-known pain point for RIAs. Our platform simplifies it by turning a signed document into a transparent, step-by-step workflow — whether it needs to go to an admin or legal review.

It also automates the handoff to custodians. Without a platform, RIAs typically need to generate a Letter of Agreement (LOA), get it signed separately, create an order ticket, and manually upload both to the custodian — what we call the ‘swivel chair‘ process.

With our system, once the order is approved, it’s sent directly to the custodian via API — no separate documents, no manual order tickets.”

– Binoy Talati

Investment Lifecycle:

Key Pain points:

Managing investments with long-dated time horizons.
Wide range of reporting and client communication obligations including capital calls, K1s, 1099s.
Balancing books with custodians.

“Post-investment reporting is critical. Our operating system has a range of tools and capabilities built in that work as one cohesive workflow. Once invested, it’s simple to generate client-end adviser and home office reporting. This covers capital calls, distribution notices, K1s and
statements, all done through our document center.

We also take the data associated with those investments and pipe it downstream into reporting platforms.”

– Binoy Talati

How iCapital Can Help

iCapital eliminates the hassle with cutting-edge technology, deep research expertise and a seamless operating system, allowing RIAs to focus on what matters most – delivering for your clients.

Key questions to address:

How do you balance liquidity, fees and risk?
What’s the right allocation to alternative investments?
What products should be offered to your clients?
How do the products fit into a portfolio?
How do you manage continuous review and portfolio optimization?

Investment solutions: iCapital helps RIAs focus on what matters most — your clients, not administrative headaches.

Model Portfolios – Growth, Balanced and Income models designed to assist with asset allocation.
Due Diligence – In-house research team for research, due diligence, thought leadership or custom in-depth solutions as required.
Architect Portfolio Analytics – Award-winning² portfolio construction tool that can help design portfolios and illustrate the impact of alts.

Operational solutions: iCapital simplifies every stage
of the alternatives investing process, reducing friction and freeing up advisor capacity.

Pre-Investment – Access to education, due diligence reports, offering materials and compliance tracking.
Investment Process – Digital fund profiles, robust product search engine, integrated digital workflows for subscription documents.
Investment Lifecycle – Saved client profiles, streamlined reporting, data reconciliation, document management, custodian and third party integrations.

For illustrative purposes only. Platform functionality subject to change.

Let iCapital eliminate the hassle so your team can focus on what truly matters: delivering value for clients and growing your practice. Contact Us

1. Bloomberg Index Services Limited, Cliffwater Direct Lending Index, FTSE Russell, Hedge Fund Research (HFR), MSCI, NCREIF, Preqin, iCapital Investment Strategy, with data based on availability as of Oct. 31, 2024. Note: Data as of June 2024 and is subject to change based on potential updates to source(s) database. Return and volatility is annualized and is based on quarterly data. Buyout proxied by Preqin Private Equity Buyout Index. Growth proxied by Preqin Growth Equity Index. Venture proxied by Preqin Venture Capital Index. Secondaries proxied by Preqin Secondaries Index. Direct Lending proxied by Cliffwater Direct Lending Index. Distressed proxied by Preqin Distressed Private Debt Index. Real Estate proxied by NCREIF NFI-ODCE Index. Infrastructure proxied by Preqin Infrastructure Index. Private Timber proxied by NCREIF Timberland Property Index. Private Farmland proxied by NCREIF Farmland Property Index. Macro HFs proxied by HFRI Macro Total Index. Multi Strat HFs proxied by HFRI RV: Multi-Strategy Index. Event Driven HFs proxied by HFRI Event-Driven Total Index. Equity Hedge HFs proxied by HFRI Equity Hedge Total Index. Global 60/40 proxied by 60% MSCI ACWI Net Total Return USD Index and 40% Bloomberg Global Aggregate Index. Cash proxied by the FTSE 3 Month US T Bill Index. Annualized risk and returns above are based on indices that are meant to estimate the asset class performance, hypothetically creating a return if one had access to all active funds. Not all the above indices are practically investable. See disclosure section for further index definitions, disclosures, and source attributions. For illustrative purposes only. Past performance is not indicative of future results. Future results are not guaranteed.

2. Awards, rankings and/or recognition by una liated rating services and/or publications should not be construed by a client or prospective client as a guarantee that he or she will experience a certain level of results if Institutional Capital Network Inc. (“iCapital”) is engaged, nor should it be construed as a current or past endorsement of iCapital by any of its clients.

IMPORTANT INFORMATION

This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer or solicitation to buy or sell any security, situation, or specific financial situation, financial product or instrument, or otherwise to participate in any particular trading strategy. This material does not intend to address the financial objectives, situation, or specific needs of any individual investor. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation.

ALTERNATIVE INVESTMENTS ARE CONSIDERED COMPLEX PRODUCTS AND MAY NOT BE SUITABLE FOR ALL INVESTORS.

Prospective investors should be aware that an investment in an alternative investment is speculative and involves a high degree of risk. Alternative Investments often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; may not be required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; and often charge high fees. There is no guarantee that an alternative investment will implement its investment strategy and/or achieve its objectives, generate profits, or avoid loss. An investment should only be considered by sophisticated investors who can afford to lose all or a substantial amount of their investment.

STRUCTURED INVESTMENTS ARE CONSIDERED COMPLEX PRODUCTS AND MAY NOT BE SUITABLE FOR ALL INVESTORS.

Please note that there is no public secondary market for structured investments. Although the issuer may from time to time make a market in certain structured investments, the issuer does not have any obligation to do so and market making may be discontinued at any time. Accordingly, an investor must be prepared to hold such investments until maturity. Any or all payments are subject to the creditworthiness of the issuer. Before investing in any product, an investor should review the prospectus or other offering documents, which contain important information, including the product’s investment objectives or goals, its strategies for achieving those goals, the principal risks of investing in the product, the product’s fees and expenses, and its past performance.

ANNUITIES ARE CONSIDERED COMPLEX PRODUCTS AND MAY NOT BE SUITABLE FOR ALL INVESTORS.

The information is not intended as investment advice and is not a recommendation about managing or investing retirement savings. Actual annuity contracts may differ materially from the general overview provided. Prior to making any decision with respect to an annuity contract, purchasers must review, as applicable, the offering document, the disclosure document, and the buyer’s guide which contain detailed and additional information about the annuity. Any annuity contract is subject in its entirety is to the terms and conditions imposed by the carrier under the contract. Withdrawals or surrenders may be subject to surrender charges, and/or market value adjustments, which can reduce the owner’s contract value or the actual withdrawal amount received. Withdrawals and distributions of taxable amounts are subject to ordinary income tax and, if made prior to age 59½, may be subject to an additional 10% federal income tax penalty. Annuities are not FDIC-insured. All references to guarantees arising under an annuity contract are subject to the financial strength and claims-paying ability of the carrier. iCapital Markets LLC operates a platform that makes available financial products to financial professionals. In operating this platform, iCapital Markets LLC generally earns revenue based on the volume of transactions that take place in these products and would benefit by an increase in sales for these products.

Preqin Private Equity Buyout Index — A benchmark measuring the performance of global private growth equity funds, as tracked by Preqin.
Preqin Growth Equity Index — A benchmark measuring the performance of global private growth equity funds, as tracked by Preqin.
Preqin Venture Capital Index — A benchmark measuring the performance of global private venture capital funds, as tracked by Preqin.
Preqin Secondaries Index — A benchmark measuring the performance of global secondaries funds, as tracked by Preqin.
Cliffwater Direct Lending Index (CDLI) — An index reflecting the performance of U.S. middle market corporate loans, constructed from actual loan portfolios of business development companies (BDCs).
Preqin Distressed Private Debt Index — A benchmark measuring the performance of distressed private debt funds, as tracked by Preqin.
NCREIF Fund Index — Open End Diversified Core Equity (NFI-ODCE) — An index of open-end, diversified, core equity real estate funds investing in U.S. properties, reported by NCREIF.
Preqin Infrastructure Index — A benchmark measuring the performance of global infrastructure funds, as tracked by Preqin.
NCREIF Timberland Property Index — Measures investment performance of a pool of private timberland properties in the U.S., reported by NCREIF.
NCREIF Farmland Property Index — Measures investment performance of a pool of private farmland properties in the U.S., reported by NCREIF.
HFRI Macro (Total) Index — A composite index representing hedge funds with macro strategies, published by Hedge Fund Research (HFRI).
HFRI Relative Value (Multi-Strategy) Index — A composite index tracking hedge funds employing multiple relative value strategies, published by HFRI.
HFRI Event-Driven (Total) Index — A composite index representing hedge funds employing event-driven strategies, published by HFRI.
HFRI Equity Hedge (Total) Index — A composite index representing hedge funds employing equity hedge strategies, published by HFRI.
MSCI ACWI Net Total Return USD Index / Bloomberg Global Aggregate Index (60/40 Blend) — A blended benchmark with 60% allocated to the MSCI All Country World Index (ACWI) Net Total Return USD Index (global equities) and 40% allocated to the Bloomberg Global Aggregate Bond Index (global investment grade fixed income).
FTSE 3-Month U.S. Treasury Bill Index — An index representing the performance of U.S. dollar-denominated three-month Treasury bills, published by FTSE Russell.

WEBINAR SIGN-UP

Ares & Unlocking Private Infrastructure Investing

12:00 PM CST | November 19, 2025 | Live Virtual Session

You’re invited to join iCapital and Ares for a CE-eligible webinar exploring the evolving landscape of infrastructure investing. Tyler McConnell, Managing Director at Ares, will share his perspective on how infrastructure is shaping opportunities for advisors and their clients in today’s investment environment. Infrastructure is increasingly viewed as a resilient and essential asset class, offering long-term value and portfolio diversification aligned with advisor and client needs.

This webinar qualifies for 1 CFP and 1 CIMA CE credit.

What You’ll Learn

The current landscape and outlook for infrastructure investing
How infrastructure fits into client portfolios across market cycles
Insights from Ares on sourcing, structuring, and managing infrastructure assets

Speakers

Tyler McConnell

Managing Director in the Ares Global Client Solutions Group, where he focuses on real assets relationship management in the Americas. Prior to joining Ares in 2019, Mr. McConnell was a Director at BlackRock, where he focused on product development, business development and investor relations for the firm’s Real Assets platform. Mr. McConnell holds a B.A., magna cum laude, from Dickinson College in International Business and Management.

Nathan Mazzapica

Managing Director, overseeing the Southwest territory at iCapital. In this role, he partners with RIAs, Family Offices, Independent Broker Dealers, and Ultra High Net Worth Investors to deliver innovative investment solutions and strategic guidance.

Prior to iCapital, Nathan served at Axcelus Financial (formerly Lombard International), the global leader in Private Placement Life Insurance and Variable Annuities. Before that, he was a Managing Director at Republic Capital Group, one of the nation’s premier investment banking firms focused on the RIA space. His career in financial services began at Salient Partners, a $17 billion RIA based in Houston, Texas.

Outside of work, Nathan enjoys quality time with his wife Megan and their son Judah. He is also an active volunteer at Houston’s First Baptist Church, where he finds fulfillment in serving his community.

FOR INVESTMENT PROFESSIONAL USE ONLY

This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer or solicitation to buy or sell any security, financial product or instrument, or otherwise to participate in any particular trading strategy. This material does not intend to address the financial objectives, situation, or specific needs of any individual investor. You should consult your personal accounting, tax, and legal advisors to understand the implications of any investment specific to your personal financial situation.

ALTERNATIVE INVESTMENTS ARE CONSIDERED COMPLEX PRODUCTS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. Prospective investors should be aware that an investment in an alternative investment is speculative and involves a high degree of risk. Alternative investments often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; may not be required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; and often charge high fees. There is no guarantee that an alternative investment will implement its investment strategy and/or achieve its objectives, generate profits, or avoid loss. An investment should only be considered by sophisticated investors who can afford to lose all or a substantial amount of their investment.

The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market, or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third-party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward-looking statements or to any other financial information contained herein.

Securities products and services are offered by iCapital Markets, an SEC-registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. and Institutional Capital Network, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Annuities and insurance services are provided by iCapital Annuities and Insurance Services LLC, an affiliate of iCapital, Inc. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc. Additional information is available upon request.

NEW YORK — iCapital¹ , the global fintech company shaping the future of investing, announced a strategic investment in and partnership with LYNK Markets, a leading fintech platform empowering private market distribution in LATAM. This partnership delivers a scalable cross-border investment solution through Private ETNs—registered securities that expand access to alternative investments across the Latin American wealth channel.

“Latin America is undergoing a transformative shift as alternative investments transition from being the domain of institutional investors to becoming increasingly embraced by mainstream market participants. iCapital is helping wealth advisors and their clients gain access to the right alternatives for their needs,” said Lawrence Calcano, Chairman and CEO of iCapital. “Through our partnership with LYNK Markets, Private Alternative Investment Fund Notes offer a scalable, structured solution that provides advisors with simplified access to alternatives—enhancing asset allocation and portfolio flexibility. For asset managers, these Private ETNs reduce barriers to entry, accelerate fund launches, and streamline distribution—driving greater transparency and efficiency across the alternative investment ecosystem.”

Through this partnership, asset managers can efficiently embrace alternative fund strategies, simplifying investment processes, due diligence, reporting, and settlement via major international settlement platforms. Each Private ETN carries a unique ISIN for global distribution, accelerating time to market, strengthening offshore channels, and reducing operational complexity while preserving client confidentiality. Wealth managers benefit from broader exposure to alternatives with lower investment thresholds, simplified onboarding, real-time insights, and built-in regulatory confidence via iCapital Marketplace. This new solution is set to be integrated by January 2026.

“Partnering with iCapital brings together two fintech leaders committed to redefining private market investing,” said Mario Rivero, CEO of LYNK Markets. “By combining LYNK Markets’ technology-enabled Private ETNs solutions with iCapital’s advanced distribution and platform capabilities, we’re equipping financial advisors with a new tool to simplify alternative allocations and expand cross-border access for their clients.”

Terms of the agreement were not disclosed.

About iCapital:
iCapital is a global leader, shaping the future of global investing for financial advisors, wealth managers, asset managers, and other industry participants. iCapital offers a diverse and complete range of non-traditional investment products on iCapital Marketplace, Enterprise Solutions, and both Technology and Data Services, designed to help drive better outcomes² for all participants in the ecosystem.

Headquartered in New York, iCapital operates globally with 16 offices, including major hubs in Zurich, London, Hong Kong, Singapore, Tokyo, and Toronto, and an industry-leading R&D center in Lisbon. iCapital is recognized for its innovation and leadership, with accolades from Euromoney (World’s Best Technology Provider for Wealth Management), CNBC (World Top Fintech Companies), The Wealthies Alts Investment Platform of the Year, and Forbes Fintech 50.

For more information, visit https://icapital.com | Twitter (X): @icapitalnetwork | LinkedIn: https://www.linkedin.com/company/icapital-network-inc

About LYNK Markets:
LYNK Markets is a leading fintech issuer and administrator of Exchange Traded Notes (ETNs), committed to enhancing global investor access through innovative technology and strategic partnerships.
For more information, visit https://lynkcm.com/

For media inquiries, please contact:
iCapital
[email protected]
+41 43 547 19 61

iCapital, Inc., together with its affiliates "iCapital"
iCapital delivers better outcomes by streamlining financial operations, enhancing technology infrastructure, and empowering smarter decision-making through reporting and analytics.
As of August 31, 2025

Discover how to adjust client portfolios faster using alternative investments like private credit, real assets, and secondaries — with practical models and implementation tips inside.

Key Takeaways

Today’s market is shaped by structural volatility
Understand where a traditional 60/40 portfolio may break down
Explore tactical roles for private market strategies
View sample allocations + digital implementation tools
Learn how portfolio construction tools like Architect can help scale your pivot

Who should read this:

Anyone looking to use alternatives and tech to stay nimble in 2025

Financial Advisors

LPs

Wealth Managers

Preview what’s in the guide:

Portfolio Analysis: Sample 60/40 Portfolio vs. Sample 60/40 with Alternatives

20-year analysis: December 2004 – December 2024

Traditional 60/40 Portfolio

Expanded Portfolio with Alternatives

icapital pie chart showing Portfolio Analysis Sample of a 60/40 Portfolio

60% Equities

40% Fixed Income

icapital pie chart showing Portfolio Analysis Sample of 60/40 with Alternatives

50% Equities

25% Fixed Income

15% Private Equity

5% Private Credit

5% Hedge Fund

	Annualized Return	Annualized Volatility	Max Drawdown	Sharpe Ratio
Traditional 60/40 Portfolio	6.8%	10.1%	28.7%	0.52
Expanded Portfolio with Alternatives	Download the full guide to see the full expanded portfolio with alternatives

Source: iCapital. Portfolio analysis is based on iCapital propriety models with data based on availability as of April 30, 2025. Equity performance is represented by the SPDR S&P 500 ETF Trust SPY (domestic) and iShares MSCI EAFE ETF EFA (all). Fixed Income performance is represented by the iShares Core U.S. Aggregate AGG. Private Equity performance is represented by the Generic Private Equity Fund GPEF. Private Credit performance is represented by the Generic Private Credit Fund GPCF. Hedge Fund performance is represented by Generic Multi-Strategy Hedge Fund- GMSHF. Please see “Index Definitions” in the “Important Information” section of this presentation for additional information. For illustrative purposes only. Portfolio analysis does not reflect an actual trading program and no investor actually achieved the performance shown. Past performance is not indicative of future results. Future results are not guaranteed.

Ready to learn how alternatives can help advisors stay nimble

Get the full report and discover how to pivoting portfolios during volatile markets

iCapital The 2025 Advisor’s Guide to Pivoting Portfolios in Volatile Markets downloadable PDF

IMPORTANT INFORMATION

iCapital and its affiliates provide various services through a number of affiliated entities – please refer to Certain iCapital Entities for a full list of entities. iCapital entities are collectively referred to as “iCapital”, and they all are affiliated with iCapital, Inc. and Institutional Capital Network, Inc. Among these affiliates, iCapital Markets LLC (“iCapital Markets”), an SEC-registered broker-dealer, member FINRA and SIPC, offers securities products and services. The registrations and memberships listed in Certain iCapital Entities in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services provided by iCapital. Additional information is available upon request.

This website is for informational purposes only. This website is the property of iCapital and may not be shared, reproduced in any form, or referred to in any other publication, without express written permission of iCapital.

This website and any information included on it are not intended, and may not be relied on in any manner, as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security. Financial products, including investment funds and structured investments, are complex and may be speculative and are not suitable for all investors. You should consult your personal accounting, tax and legal advisors to understand the implications of any investment specific to your personal financial situation. This website and the information contained on it is not intended to, and does not, address the financial objectives, situation or specific needs of any specific investor.

Investment Outlook

Direct lending yields have been trending lower because of declining reference rates and intense competition for new loan originations, which is resulting in pricing compression. There are a few reasons behind this. First, when growth in direct lending assets began to scale in the 2015 timeframe, the target market was smaller, mid-market borrowers.¹ Today, direct lending funds are larger and more capital needs to be deployed. One result is larger loans made to larger companies which generally see lower pricing. Larger companies are also seeing the benefits of direct lending and a diversification in their funding mix. Second, over the past two years bank lending has shown signs of improvement for both refinancing and new issuance. U.S. leveraged loan activity has averaged about $300 billion per quarter in 2024 through the third quarter of 2025 relative to average activity of $120 billion over the prior three years.² This sharp recovery has been led by refinancing at tighter spreads, leading to some of the spread compression for new direct loan originations. The outlook should be put into context: direct lending still offers a premium to comparable credit opportunities even if it’s not as strong as it once was. Over the past year, direct lending has provided about 260 basis points (bps) of excess yield to leveraged loans compared to 400 to 500 over the last ten years (Exhibit 1). While yields will fluctuate, excess relative yields should remain—which is what is happening in the direct lending market.³ Should direct lending managers be able to maintain this excess relative yield, capital flows and investor share shift to the market should remain.

Lastly, direct lending managers have historically been focused on financing private equity buyouts. Buyout activity has been a source of origination for direct lenders, and smaller or closely-held companies that make up a big part of buyout activity haven’t had full access to traditional capital markets. As the buyout deal environment improves, more deals should flow to direct loan originators and could be a catalyst for spread expansion.

Recent Market Trends

The debate over the next few years will likely revolve around inflows and deployment. Capital has poured into direct lending funds—assets of $900 billion amount to double the level seen just five years ago (Exhibit 2). But finding attractive opportunities to put this capital to work is the challenge. As mentioned, buyout and M&A activity, which are often a source of new direct loan originations, have been less than robust over the last few years. And competition from both new direct lending funds and bank lending makes sourcing more difficult. Offsetting some of this impact is that the average size of a direct loan has increased in recent years to $80 million in 2023 from $60 to $65 million over the prior five years.⁴ This change is likely due to the growth in market cap of underlying companies.

All this amounts to a decent amount of capital available for deployment. Direct lending dry powder increased by 4% YoY in 2024 to $230 billion, or 26% of AUM, suggesting capital is being deployed at a moderate pace (Exhibit 2). But there are signs that lenders are struggling to keep up their investments with the capital inflows. For example, some non-traded BDCs (business development companies), which are common vehicles for direct lending allocations, have been unable to deploy their targeted amount of fund leverage.

As the deployment topic progresses, credit quality and market expansion are two other forces at work. Manager selection is always important but more so if lenders try to achieve return consistency by compromising on the quality of new originations. To this point, yield compression is perhaps a signal that the market is functioning correctly in that direct lenders are not chasing low quality, higher yielding originations.

More broadly, the market is eying opportunities beyond direct lending. As a measure of scale, private direct loans now account for 62% of all commercial and industrial loans, up from 25% in 2014.⁵ Managers who conclude the traditional middle-market sponsor-backed opportunities are limited are starting to expand to asset-based lending, infrastructure debt, private credit secondaries and other areas. We expect this market expansion theme to continue over the next several years.

Industry Focus: Software

The software industry accounts for about 20% of outstanding loans for private direct lenders.⁶ Software is also the largest sector in the leveraged finance market, double the size of the next largest industry (Exhibit 3). Leveraged loan issuance as a whole is concentrated with three sectors accounting for about 45% of all loans (Exhibit 3).

Software is an attractive sector for lenders (and buyout sponsors) due to the high margin, high cash flow-yield nature of a software business model. The industry is also higher growth and generally has recurring revenue contracts to a diversified customer base. In other words, while direct lending has high concentration in the software industry, software itself is embedded in many other end-industries.

It’s also worth noting the relatively steady contribution that software (tech in general) has made to the broader economy. Over the last thirty years, technology (software and hardware) has contributed about one-third of a point to annual GDP in the U.S (Exhibit 4). For private equity sponsors and lenders alike, this amounts to a steady growth industry with high cash flow yield which is comforting in the context of credit quality.

Performance Snapshot

Direct lending, proxied by the Cliffwater Direct Lending Index, returned 4.5% through the first half of 2025 with some softening seen.⁷ Overall, we expect some moderation of new issue yield and payouts which could weigh on performance compared to the asset class’s longer term historic performance.

Relative to other fixed income alternatives, quality direct lending managers should be able to generate excess yield relative to public fixed income due to an illiquidity premium and originations to smaller companies. This should position the asset class as a compelling complement to a portfolio.

INDEX DEFINITIONS

Bloomberg U.S. Corporate High Yield Index: Measures the U.S. Dollar-denominated, high yield, fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody's, Fitch and S&P is Ba1/BB+/BB+ or below.

Cliffwater Direct Lending Index (CDLI): An asset-weighted index of over 11,000 directly originated middle market loans totaling $264B. It seeks to measure the unlevered, gross of fee performance of U.S. middle market corporate loans, as represented by the asset-weighted performance of the underlying assets of Business Development Companies (BDCs), including both exchange-traded and unlisted BDCs, subject to certain eligibility requirements.

Cliffwater Public BDC Index (CWBDC): Measures the performance of lending-oriented, exchange-traded Business Development Companies, subject to certain eligibility criteria regarding portfolio composition, market capitalization, and dividend history. The CWBDC is a capitalization-weighted index that is calculated on a daily basis using publicly available closing share prices and reported dividend payouts. The CWBDC Total Return Index includes two components: 1) Income Return and 2) Price Return.

Morningstar LSTA U.S. Leveraged Loan Index: An Index designed to deliver comprehensive, precise coverage of the US leveraged loan market. Underpinned by PitchBook and LCD data, the index serves as the market standard for the US leveraged loan asset class and tracks the performance of more than 1,400 USD denominated loans.

Secured Overnight Financing Rate (SOFR) Three-Month: The SOFR is a broad measure of the cost of borrowing cash overnight collateralized by Treasury securities. SOFR futures offer the leading source of price discovery and liquidity on SOFR. Three-Month SOFR futures are cash settled and based on a business-day compounded SOFR per annum during contract Reference Quarter.

END NOTES

Preqin and iCapital Alternatives Decoded, Private credit total assets under management, August 2025.
PitchBook, Credit Markets Quarterly Wrap, October 1, 2025.
Yields refer to direct lending yields based on the Cliffwater Direct Lending Index, relative yields refer to direct lending yield relative to leveraged loan yield based on the Morningstar LSTA U.S. Leveraged Loan 100 Index.
PitchBook, Board of Governors of the Federal Reserve System. Private Credit: Characteristics and Risks. February 23, 2024.
Preqin and iCapital Alternatives Decoded for direct lending Assets Under Management data as of August 2025, Board of Governors of the Federal Reserve System (US) retrieved from FRED for Commercial and Industrial Loan data with data through December 2024.
Based on loan exposure for the 10 largest non-traded BDCs, data from SEC filings and company reports, as of June 2025.
Cliffwater Direct Lending Index, with data based on availability as of August 2025.

IMPORTANT INFORMATION

The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward-looking statements or to any other financial information contained herein.

Financial advisors often face a common issue: finding an effective way to deliver alternative investment offerings. Model portfolios can serve as a straightforward solution to this problem, minimizing operational disruptions.

As investors increasingly seek the diversification benefits of alternative investments, financial advisors must be equipped with streamlined, outcome-oriented tools to gain meaningful exposure to alternative investments. Rather than selecting individual funds with varying goals and risk profiles, many advisors are turning to integrated, professionally constructed solutions that deliver scale and efficiency.

In 2024, iCapital launched a suite of alternatives-only model portfolios designed to meet this demand. These strategies function much like traditional mutual fund and ETF models that have gained traction in the private wealth space. By combining curated access to top-tier managers with strategic asset allocation and ongoing monitoring, these portfolios are positioned to help expand the adoption of alternatives across the wealth management channels.

Through iCapital’s platform, advisors gain access to model portfolios that simplify implementation, offer built-in diversification, and provide ongoing insights and support. These tools address common challenges and span the full alternative investment lifecycle—from discovery to rebalancing. Whether seeking long-term capital appreciation, income, or tailored client solutions, model portfolios help bridge the gap between traditional portfolios and more modern, diversified allocations.

Five Benefits of Leveraging Model Portfolios for Alternatives

1. Simplicity

Model portfolios offer a convenient, transparent way to access alternative strategies managed by leading investment firms. The strategies are selected and overseen by iCapital’s in-house research team, helping advisors sift through the vast array of alternative investments with an outcome-based approach. Instead of navigating dozens of individual offerings and building custom allocations from scratch, advisors can focus more time on deepening client relationships and growing their practice.

2. Portfolio Construction

These portfolios are built using a disciplined, academically grounded selection process. Asset class and fund-level diversification constraints are applied to help mitigate concentration risk, with each position chosen to add meaningfully to the overall profile. Advisors can also use iCapital Architect, a portfolio analysis tool that visualizes the potential benefits of including alternatives—offering insight into performance, risk, and client-aligned outcomes.

3. Reporting, Monitoring, and Rebalancing

Ongoing oversight is provided by a dedicated research team that delivers monthly performance updates, quarterly market commentary, and annual rebalancing. This reduces the time advisors spend on data aggregation and analysis, enabling them to focus on higher-impact activities while still maintaining transparency and discipline in portfolio management.

4. Operational Efficiency

Technology plays a critical role. iCapital’s proprietary multi-investment workflow (MIW) tool streamlines the investment process by consolidating documentation, pre-populating investor information, and enabling one-click execution across all portfolio components. This ensures trades are processed securely and efficiently, making it easier to scale alternatives across a broader client base.

5. Cost

There are no additional platform fees for advisors or clients using these model portfolios. Investors pay only the fees of the underlying component funds—just as they would if investing in them individually.¹ This cost-neutral structure helps drive adoption by eliminating barriers to entry while preserving value.

As the demand for alternative investments continues to grow, financial advisors are increasingly incorporating them as core components of their client portfolios. With robust tools, research support, and platform integration, advisors now have the means to bring alternatives to a wider audience—helping clients pursue goals of growth, income, and enhanced diversification.

To learn more about iCapital’s model portfolio offerings and how they can support your alternatives practice, visit iCapital.com/model-portfolios.

iCapital Markets LLC and/or its affiliates may receive additional compensation for distribution services for sales of alternative investments included in the iCapital Model Portfolios.

IMPORTANT INFORMATION

The iCapital model portfolios are made available for institutional use only by, iCapital Advisors, LLC (“iCapital Advisors”), an SEC-registered investment adviser that advises certain private investment funds available on the iCapital Platform (“Access Funds”) and provides other advisory services, and iCapital Markets LLC (“iCapital Markets”), a registered broker dealer that distributes the financial products included within the model portfolios. iCapital Advisors, iCapital Markets, Institutional Capital Network, Inc., and iCapital, Inc. are affiliates and are collectively referred to as, together with their affiliates, “iCapital.” The iCapital model portfolios themselves are not funds.

The iCapital model portfolios are provided for informational and educational purposes only and are subject to change. The iCapital model portfolios are not to be construed as a recommendation or an offer or solicitation to buy or sell any security, financial product or instrument, or otherwise to participate in any particular trading strategy. The information is not intended as, and shall not constitute, investment, tax, accounting, or legal advice and is not a recommendation about managing or investing your client’s portfolio or retirement savings; the user should consult his or her personal investment, accounting, tax and legal advisors to understand the implications of any investment specific to any personal
financial situation.

The iCapital model portfolios do not constitute research, are not personalized investment advice. Any alternative investment used in the model portfolio shall be selected by iCapital Advisors, LLC in its sole discretion and is subject to change without notice. The iCapital model portfolios may not be appropriate for all investors, as appropriate investment strategies depend upon the client’s investment objectives. The iCapital model portfolios are not intended to meet the investment objectives or needs of specific individuals or accounts, and it is not intended for individual investor distribution. iCapital is not responsible for determining the appropriateness or suitability of the iCapital model portfolios, or any of the financial products included therein, for any client of a financial professional. Financial professionals and users of the iCapital Platform have the sole responsibility for making their own independent judgement on how to use the iCapital model portfolios and whether an investment is suitable for, or in the best interests of, a client. iCapital is not an adviser to any person who receives information on any of the iCapital model portfolios, and does not have investment discretion over, or place trade orders for, any portfolios or accounts derived from the iCapital model portfolios.

The information and analysis are hypothetical and summary in nature. Certain performance displayed uses hypothetical or simulated performance results that have many inherent limitations, and no representation is being made that any investment account will or is likely to achieve returns similar to those presented. Such hypothetical or simulated performance was not actually achieved by any financial professional or investment portfolio and may not be achieved in the future, and certain performance presented may represent hypothetical performance returns extrapolated for prior periods during which a given asset did not exist or was not investable. Numerous factors, such as the use of assumptions and historical market returns and data, make calculations and analysis uncertain, and there are frequently sharp differences between hypothetical performance results and the actual results achieved by any particular investment program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight or may otherwise reflect a hindsight bias. In addition, hypothetical investments do not involve actual financial risk or the effect that material economic and market factors would have had on actual investment decisions, and no hypothetical investment record can completely account for the impact of actual financial risk in actual investments, such as the ability to withstand losses or adhere to a particular investment program in spite of losses, which can adversely affect actual investment results. There are numerous other factors related to the markets in general or to the implementation of any specific investment program in particular which cannot be fully accounted for in the preparation of hypothetical performance results – all of which can adversely affect actual investment results, and none of which are accounted for in the performance displayed or their resulting data. Performance used or displayed for the purposes of analysis does not account for factors that would impact actual investments, such as the reinvestment of dividends or the deduction of expenses and fees that would be incurred in the management or trading of portfolio assets, including, but not limited to, account fees, custody, trading, brokerage, advisory fees or commissions, as applicable – all of which would reduce performance returns of actual investments. Due to a wide variety of risks and uncertainties, information concerning the iCapital model portfolios, including holdings, performance, and rebalancing, may vary materially from any portfolios or accounts derived from the iCapital model portfolios. Liquidity constraints in the constituents comprising the iCapital model portfolios would also prevent an actual investment program from rebalancing in the same manner as an iCapital model portfolio, which would have a material impact on performance. Past, projected, targeted, or hypothetical performance is not indicative of future results, and there is no guarantee that the iCapital model portfolios or any investment strategy will be successful or achieve any particular level of results, or that substantial or complete losses will be avoided in respect of actual investments.

When selecting an alternative investment for inclusion in an iCapital model portfolio, iCapital selects from a limited universe of alternative investments, without considering or canvassing the universe of alternative investments that could be used in the model portfolio. iCapital only considers alternative investments available to sub-accredited investors, accredited investors, and qualified clients for which an iCapital affiliate serves as investment adviser and/or for which an iCapital affiliate receives compensation for distribution and other services, and which are approved on the major custodial platforms. iCapital has an incentive to select alternative investments for which it receives higher fees and iCapital generally receives higher fees when an affiliate serves as investment adviser or it provides distribution services. iCapital Registered Fund Adviser LLC, an affiliate of Institutional Capital Network, Inc., serves as the investment adviser to iDirect Private Markets Fund (iDPE). iCapital and its affiliates receive compensation for managing iDPE, and as a result, has an incentive to present these funds in a favorable light and include in the iCapital model portfolio. Other products and alternative investments may be more suitable for a client and may provide the same or greater returns with less risk and/or lower fees, or other favorable terms, relative to the alternative investments included in the model portfolio. The sponsor, general partner, investment adviser (or equivalent) of alternative investments included in the iCapital model portfolios, the underlying fund, and/or the underlying fund’s affiliates (the “Sponsor”), and/or an investor’s broker-dealer or registered investment adviser or their affiliates (such investor’s “RIA”), together with their subsidiaries, may own a passive minority share of the outstanding equity securities of Institutional Capital Network, Inc., which wholly owns the investment adviser iCapital Advisors The existence of any such relationship creates potential conflicts of interest. For instance, due to a Sponsor’s or RIA’s ownership interest in iCapital, iCapital may be more willing to select such Sponsor’s alternative investments for inclusion in an iCapital Model Portfolio than alternative investments controlled by other sponsors or for clients of other RIAs.

iCapital model portfolios have not been reviewed or approved by, and have not been adopted, sponsored or endorsed by, the sponsor or issuer of any financial instrument that is made available on the iCapital platform. Alternative investments are considered complex products, involve risk and are only suitable for highly sophisticated investors who are willing and prepared to bear the associated risk, including the risk of total loss of
their investments.

Before investing in any alternative investment comprising part of the iCapital model portfolios, investors should review the prospectus or other offering documents, which contain important information, including the product’s investment objectives or goals, its strategies for achieving those goals, the principal risks of investing in the product, the product’s fees and expenses, and its past performance.

ALTERNATIVE INVESTMENTS ARE CONSIDERED COMPLEX PRODUCTS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. Prospective investors should be aware that an investment in an alternative investment is speculative and involves a high degree of risk. Alternative Investments often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; may not required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; and often charge high fees. There is no guarantee that an alternative investment will implement its investment strategy and/or achieve its objectives, generate profits, or avoid loss. An investment should only be considered by sophisticated investors who can afford to lose all or a substantial amount of their investment. iCapital makes no representation or warranty regarding the accuracy or completeness of the information herein. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented.

Securities products and services are offered through iCapital Markets LLC, a registered broker dealer, member of FINRA and SIPC. iCapital Advisors, LLC is registered with the SEC as an investment adviser. iCapital Markets LLC and iCapital Advisors, LLC are affiliates of Institutional Capital Network, Inc., and iCapital, Inc. iCapital and iCapital Network are registered trademarks of Institutional Capital Network, Inc. Please visit icapital.com for complete disclosures, including terms of use and privacy policy.

Investment Outlook

Private infrastructure includes long-duration investments that aim to provide a mix of cash income and capital appreciation and can play a role in complementing a fixed income allocation. Infrastructure projects are large-scale and tend to have project-specific return elements with revenue tied to usage volume and little sensitivity to price. Given performance is often tied to individual projects, these assets have a longer investment horizon.

An attractive supply and demand environment, in part to a large funding gap, has been drawing interest to the infrastructure opportunity. According to The Work Bank, the projected infrastructure spending to meet societal needs will reach $15 trillion by 2040. Projects tend to be large and expensive with 10-plus year time periods, which is ideal for private market investments. Further, growing public deficits are shifting more financing opportunities to the private sector.

The opportunity is characterized by a push towards renewable energy projects and supportive policies such as the 2022 U.S. Inflation Reduction Act (IRA). Importantly, this is a global trend also affecting Europe and Asia. For example, the NextGenerationEU’s Recovery and Resilience Facility (RRF) is a financing facility geared towards climate transition and digital transition projects for EU Member States.

Infrastructure is not without risks, including financial and operational risks.¹ Because projects have high costs and long payback periods, duration risk exists. Economic growth can also affect GDP-sensitive sectors such as transportation while regulatory hurdles and shifting policy landscapes can be difficult to predict. For example, rather than a single provision, the recently enacted One Big Beautiful Bill Act (OBBBA) includes a series of changes that, on net, scales back parts of the IRA’s energy transition agenda. Most notably, it accelerates the phase-out of clean energy investment (ITC) and production (PTC) tax credits for wind and solar. The earlier phase-out of wind and solar credits may drive a near-term flurry of deal activity through mid-2026.

Recent Market Trends

The interest in infrastructure is backed by strong demand, especially around digital infrastructure and energy transition opportunities. Infrastructure funds raised over $115 billion in the first half of 2025, compared to $102 billion for all of 2024, and are on pace to exceed annual fundraising highs from 2022.² Transaction activity has been lower over the last several years. However, deal activity is improving in 2025 and is on pace to show annual growth from 2024 due in part from larger deals (Exhibit 3).

Globally, we estimate that significant funding gaps exist that will require annual investments of $3.2 trillion in infrastructure assets through 2040 in order to keep pace with global GDP growth.³ This is nowhere more evident than the increase in the electricity and data center demand associated with the rapid development of artificial intelligence (AI). Amazon, Google, Meta, and Microsoft invested roughly $180 billion into data center expansion in 2024, with large portions of these investments earmarked for deals with private market firms to develop energy infrastructure.⁴

Governments are also increasingly using a variety of public-private partnerships to bridge infrastructure funding gaps. In the U.S. alone, there is an estimated $2.9 trillion of cumulative investment need for the period 2020 to 2029, much of which is unfunded.⁵ With so much focus on growing public deficits, many of these projects will likely be funded through the private markets, which currently sit on $350 billion in dry powder.⁶ There are also tactical tailwinds that could support infrastructure. For example, should inflation remain elevated from tariffs enacted by the U.S. administration, fund flows could see support as infrastructure typically outperforms in moderate and high inflation environments.

Industry Focus – Electricity

The increasing appetite for data centers isn’t just affecting traditional and renewable energy demand, but also the need for investment in power and utilities. This includes both the need for more power generation projects as well as grid connection capacity to meet the upcoming demand. Some sources forecast that data centers could account for up to 12% of total U.S. electricity consumption by 2028, from about 4.4% in 2023.⁷ Starting in 2017, the growth of graphic processing unit (GPU)-accelerated servers for AI became such a significant portion of data center usage that it had a material uplift on data center electricity demand.

Upgrading electricity infrastructure is also critical in meeting growing global demand for energy. The World Bank estimates that over 700 million people lack access to electricity, primarily in Sub-Saharan Africa and South Asia.⁸ Elsewhere, outdated grids do not always have the flexibility or capability to successfully integrate high levels of solar power. Smart grids can balance supply and demand, optimize energy flow, and accommodate intermittent sources of energy such as wind and solar. The global push for renewable energy sources requires significant upgrades to successfully integrate these energy sources.

In the interim, developed nations will be reliant on low cost and available power through existing sources. The U.S. is expected to see incremental demand of 3.3 billion cubic feet per day of new natural gas demand by 2030.⁹ New midstream pipeline capacity will be needed to supply further consumption domestically. Separately, European nations maintain the oldest power gids in the world with the majority of supply sourced from hydro, wind, and solar. To create more capacity, modernization of transmission and distribution requires $861 billion of capital investment over the next decade. Furthermore, an added $900+ billion of investment in solar and wind energy projects will be needed to support expected growth to consumption into the 2030s.¹⁰

Performance Snapshot

ENDNOTES

Different types of private infrastructure investments have different risk and return characteristics. See Infrastructure: More Than Just an Inflation Hedge for more.
Infrastructure Q2 2025: Preqin Quarterly Update, Aug. 5, 2025.
iCapital Alternatives Decoded, World Bank’s G20 Global Infrastructure Hub, Oxford Economics
Dell’Oro Group, company reports.
iCapital Alternatives Decoded Q2 2025 based on data from American Society of Civil Engineers.
Preqin, as of Jan. 31, 2025.
Source: Berkeley National Laboratory, 2024 United States Data Center Energy Usage Report.
2024 Tracking SDG 7: The Energy Progress Report, Press release tracking SDG7 2024 World Bank
Source: Goldman Sachs: AI is poised to drive 160% increase in data center power demand
Ibid

ADDITIONAL INFORMATION:

For Exhibit 1, infrastructure investment is defined as new investment, replacement investment and spending on maintenance where the investment will substantially extend the lifetime of an asset but excluding land purchases. The annual global infrastructure investment need through 2040 is a forecast based on the assumption that countries will continue to spend/invest in line with current trends and will match Oxford Economics baseline 2016-40 annual global GDP growth projection of +2.6%. The projected annual global infrastructure investment needed based on society’s needs is based on countries matching the performance of their best performing peers in terms of the resources they dedicate to infrastructure investment. For more information, please refer to the Index Definitions, Attributions, and Important Information sections at the end of this deck.

INDEX DEFINITIONS

Bloomberg Global Aggregate Bond Index: A flagship measure of global investment grade debt from a multitude of local currency markets. This multi-currency benchmark includes treasury, government-related, corporate, and securitized fixed-rate bonds from both developed and emerging markets issuers

EDHEC infra300 Index: The index is a global index that represents the monthly total return of 300 unlisted infrastructure companies and is designed to provide an accurate reflection of the performance of the unlisted infrastructure sector

MSCI ACWI Index: MSCI’s flagship global equity index is designed to represent performance of the full opportunity set of large- and mid-cap companies from developed and emerging markets around the world.

NCREIF Farmland Property Index: The NCREIF Farmland Index is a quarterly time series composite return measure of investment performance of a large pool of individual farmland properties acquired in the private market for investment purposes only.

NCREIF Timberland Property Index: The NCREIF Timberland Index is a quarterly time series composite return measure of investment performance of a large pool of individual U.S. timber properties acquired in the private market for investment purposes only.

Preqin Infrastructure Index: The index covers over 14,000 closed-end funds captured in the broader Private Capital index including funds/strategies listed as Infrastructure core, infrastructure core-plus, infrastructure debt, infrastructure fund of funds, infrastructure opportunistic, infrastructure secondaries, infrastructure value added, as defined by Preqin.

IMPORTANT INFORMAITON

This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer or solicitation to buy or sell any security, financial product or instrument, or otherwise to participate in any particular trading strategy. This material does not intend to address the financial objectives, situation, or specific needs of any individual investor. You should consult your personal accounting, tax, and legal advisors to understand the implications of any investment specific to your personal financial situation.

The information contained herein is an opinion only, as of the date indicated, and should not be relied upon as the only important information available. Any prediction, projection, or forecast on the economy, stock market, bond market, or the economic trends of the markets is not necessarily indicative of the future or likely performance. The information contained herein is subject to change, incomplete, and may include information and/or data obtained from third-party sources that iCapital believes, but does not guarantee, to be accurate. iCapital considers this third-party data reliable, but does not represent that it is accurate, complete, and/or up to date, and it should not be relied on as such. iCapital makes no representation as to the accuracy or completeness of this material and accepts no liability for losses arising from the use of the material presented. No representation or warranty is made by iCapital as to the reasonableness or completeness of such forward-looking statements or to any other financial information contained herein.