LONDON, ZURICH & NEW YORK — iCapital1, a global fintech platform driving access to alternative investment products in the wealth management industry, today announced a collaboration with HSBC Asset Management (HSBC AM) to widen access to its climate technology venture capital strategy (climate tech VC) for wholesale clients.
Using its market leading technology, iCapital will provide a customized ‘white label’ solution to deliver HSBC AM’s climate tech VC strategy to wholesale clients across EMEA and Asia. The strategy provides clients with opportunities to invest in early-stage technology start-ups seeking to accelerate the decarbonisation and depollution of industries. The strategy focuses on companies active in four key verticals – power transformation, transport electrification, supply chain sustainability and climate risk management, and invests across North America, Europe and Israel.
The collaboration is part of HSBC Asset Management’s ambition to grow its alternatives capabilities, which now fall under a single business unit, HSBC Alternatives, with a team of 170 professionals covering nine direct and indirect capabilities. HSBC Alternatives has combined assets under management and advice of US$60.6 billion as of 31 December 20222.
Joanna Munro, CEO HSBC Alternatives, said: “With US$6.5 trillion of investment in technology required for net zero to be achieved by 20503, our climate tech VC strategy provides investors with exposure to sectors that have the potential to become major sources of financial and environmental value over the next decade. We are pleased to be working with iCapital to provide our wholesale clients with significantly improved access to this opportunity.
“As well as making venture capital more accessible to a broader investor audience, the collaboration will contribute to mobilising capital from a wider client base to invest in the solutions that address climate change.”
iCapital’s technology provides asset managers and wealth managers with access, insight, and education on private markets, automating historically complex subscription, administration, operational and reporting processes. Its end-to-end digital platform meaningfully improves the efficiency and client experience of alternative investing.
“There is significant unmet demand from wealth managers and their clients for private markets as value creation is increasingly taking place outside public markets while companies are still private,” said Marco Bizzozero, Head of International at iCapital. “We are honored to collaborate with HSBC Asset Management and support them with our technology and solutions in mobilizing private capital to address energy transition and climate change.
HSBC Asset Management
HSBC Asset Management should be referred to either in full or as HSBC AM to avoid confusion with any other financial services firms.
HSBC Asset Management, the investment management business of the HSBC Group, invests on behalf of HSBC’s worldwide customer base of retail and private clients, intermediaries, corporates and institutions through both segregated accounts and pooled funds. HSBC Asset Management connects HSBC’s clients with investment opportunities around the world through an international network of offices in 23 countries and territories, delivering global capabilities with local market insight. As of 31 December 2022, HSBC Asset Management managed assets totalling US$617bn on behalf of its clients. For more information see http://www.global.assetmanagement.hsbc.com/
HSBC Asset Management is the marketing name for the asset management businesses of HSBC Holdings plc.
About iCapital
Founded in 2013, iCapital is the leading global fintech company powering the world’s alternative investment marketplace. iCapital has transformed how the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions; education tools and resources; and robust diligence, compliance, and portfolio analytics capabilities. iCapital’s solutions enable organizations to streamline and scale their operational infrastructure for alternative investments and to provide access to direct investments and feeder funds at lower minimums through simplified digital workflows.
iCapital-managed platforms offer wealth advisors and their high-net-worth client’s access to an extensive menu of private investments, including equity, credit, real estate, infrastructure, hedge funds, structured investments, annuities, and risk-managed solutions. iCapital has been recognized on the Forbes Fintech 50 list each year from 2018 to 2022, the Forbes America’s Best Startup Employers in 2021, 2022 and 2023, and MMI/Barron’s Industry Awards as Solutions Provider of the Year in 2020, 2021 and 2022.
As of February 28, 2023, iCapital services US$153 billion in global client assets, of which US$30 billion are from international investors (non-US Domestic) across more than 1,230 funds. Employing more than 1,090 people globally, iCapital is headquartered in NYC and has offices worldwide, including in Zurich, London, Lisbon, Hong Kong, Singapore, and Toronto.
For more information, visit icapital.com | Twitter: @icapitalnetwork | LinkedIn: https://www.linkedin.com/company/icapital-network-inc
| HSBC Media Contacts Monika Witkowska [email protected] |
iCapital Media Contacts United Kingdom Ben Cope Eterna Partners T +44 (0) 7503 408 251 [email protected] Switzerland Tanja Kocher Holisticom T +41 31 311 43 48 [email protected] Italy Marina Riva T +39 02/72.02.35.35 [email protected] North America Morgan Miller The Neibart Group T +1 919- 602-2806 [email protected] |
1. Institutional Capital Network, Inc., and its affiliates (together, “iCapital”)
2. Alternatives assets includes committed capital (“dry powder”) as well as advisory and oversight assets. This figure is subject to change.
3. McKinsey, Delivering the climate technologies needed for net zero, April 2022
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Products offered by iCapital are typically private placements that are sold only to qualified clients of iCapital through transactions that are exempt from registration under the Securities Act of 1933 pursuant to Rule 506(b) of Regulation D promulgated there under (“Private Placements”). An investment in any product issued pursuant to a Private Placement, such as the fund described, entails a high degree of risk and no assurance can be given that any alternative investment fund’s investment objectives will be achieved or that investors will receive a return of their capital. Further, such investments are not subject to the same levels of regulatory scrutiny as publicly listed investments, and as a result, investors may have access to significantly less information than they can access with respect to publicly listed investments. Prospective investors should also note that investments in the products described involve long lock-ups and do not provide investors with liquidity.
Relationship Between iCapital and Underlying Fund GPs (defined as Underlying Fund GPs of products offered on the iCapital platform where iCapital is acting in an investment advisor capacity). iCapital is not a current client of, or investor in a private fund advised by, the Underlying Manager; however, iCapital sponsors and manages the Access Fund, which is or is expected to be an investor in the Underlying Fund, a private fund managed by the Underlying Manager. Prospective investors in the Access Fund should be aware that, as a result of the relationship between iCapital and Underlying Fund GPs and its affiliates created by the access fund arrangement discussed herein (1) iCapital is financially compensated for the arrangement by payment of certain management fees (which are calculated as described in “SUMMARY OF PRINCIPAL TERMS OF THE ACCESS FUND – Management Fee” or corollary section of the Access Fund Offering Memorandum) and, if applicable, certain fees for placement of investors in the Access Fund or the Underlying Fund (which are typically calculated as a percentage of an investor’s aggregate commitment to the relevant fund), and (2) the existence of such compensation may create conflicts of interest whereby, for example, iCapital may be more inclined (a) to establish access funds (including the Access Fund) (i) for investment in underlying funds (including the Underlying Fund) sponsored or managed by the Underlying Fund GPs and its affiliates, than for investment in investment funds sponsored or managed by other fund managers, and (ii) upon terms and conditions more favorable to the Underlying Fund GPs and its affiliates than iCapital would otherwise agree to in the absence of such compensation; (b) to make positive statements about the Underlying Fund GPs and its affiliates in order to encourage investors to make a larger commitment to the Access Fund, thereby increasing the fees paid to iCapital, or (c) to vote or exercise consent rights in respect of interests in underlying funds (including the Underlying Fund) held by access funds (including the Access Fund) in a manner more favorable to the Underlying Fund GPs and its affiliates than iCapital would otherwise vote or exercise in the absence of such compensation.
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