NEW YORK, NY – iCapital Network1, the global financial technology platform driving access and efficiency in alternative investing for the asset and wealth management industries today announced a number of accomplishments over the past 12 months. The firm significantly grew platform assets, expanded its technology and education capabilities, launched tailored offerings for accredited investors, widened its international footprint, developed more than 30 new white labels, and closed a $162 million capital raise.
As of December 31, 2020, iCapital services more than $68 billion in invested capital across approximately 740 funds, 125,000 underlying accounts, and more than 90 white label partners. Overall, the iCapital platform assets increased by more than $20 billion in organic growth during the past 12 months.
iCapital’s expansion reaffirms a broader long-term industry trend toward growing alternative allocations generally, and amongst advisors serving affluent investors specifically. Preqin’s Future of Alternatives 2025 report indicates that 81% of investors plan to increase their alternatives exposure by 2025. A joint 2020 wealth management report from Morgan Stanley and Oliver Wyman, After the Storm, projects that upper-high-net-worth allocations to alternative assets will grow from $16 trillion in 2020 to $24 trillion in 2024.
“The iCapital team is encouraged to see strong interest and intent from advisors and their clients for alternative investing, and we’re extremely proud of the work our team and partners have done to meet the surging demand,” said Lawrence Calcano, Chairman and CEO of iCapital Network.
“Comprehensive technology is playing a critical role in centralizing and streamlining the historically complex process of investing in the private markets. iCapital continues to respond to the growing appetite for alternatives, reinforcing its commitment to technology and education solutions,” continued Mr. Calcano.
Advancements in Technology and Education
In 2020, iCapital made several notable acquisitions to enhance the technology underpinning its full-service alternative investments platform. In August, it acquired the Artivest platform, and in October, it acquired a 65-person technology team from Runtime Group, a Portugal-based product development company.
Further, the firm took steps to recognize the important role of technology in improving advisor education on private markets. iCapital acquired factorE, a portfolio and risk analytics tool to help advisors, chief investment officers and research analysts evaluate and manage complex portfolios that hold a combination of traditional and alternative investments.
Additionally, iCapital strengthened its education programs for independent financial advisors. In January, it acquired AI Insight, an alternative investment education and compliance platform enabling advisors to study modules on a fund-by-fund basis, complete an assessment of the fund information, and fulfill their compliance and regulatory commitments within a single workflow.
“The combination of thoughtful education and innovative technology creates a powerful cornerstone for successful investing in alternatives,” said Tom Fortin, Chief Operating Officer of iCapital Network. “iCapital’s continued investment in smart solutions has never been more critical and helps prepare advisors to offer alternative investments to an increasing number of qualified clients.”
Serving New Client Demand
In 2020, the SEC updated the “accredited investor” definition allowing individual investors to gain greater access to private market strategies. In response to resulting interest from investors, and alongside feedback from advisors, iCapital launched five new registered fund products on the platform over the past 12 months.
“As the regulatory landscape shifts and demand intensifies, we anticipate further expanding our offering geared toward accredited investors. When coupled with adequate protections and access to education, expanded access to private markets allows individuals to consider opportunities formerly outside their reach, and may result in better portfolio outcomes,” said Mr. Calcano.
iCapital sees similar demand for private market strategies from the global wealth management community. The firm has expanded several of its international partnerships to serve a growing international client base, including in Asia, and announced impressive growth outside of the U.S.
“The interest in alternative investing from the global high-net-worth community continues to reach new peaks, driven by the pursuit of diversifying, return-generating assets,” said Marco Bizzozero, Head of International at iCapital Network. “Our goal at iCapital is to continue to provide excellent solutions for advisors and investors across the globe to allow them to seamlessly access the same types of opportunities that the largest investors have historically enjoyed.”
2020 Momentum Fuels Continued Growth
While a challenging year for many industries, iCapital experienced unabated growth in 2020, adding 120 new team members and closing the year servicing $68 billion in global client assets.
The firm launched 32 new white label platforms during the past year and established deep integrations with Pershing and State Street, furthering iCapital’s support of the full alternative investing ecosystem. It also acquired the alternative investments feeder fund platform from Wells Fargo’s Global Alternative Investments division.
Additionally, iCapital closed a $162 million capital raise in 2020 to fuel its expansive growth and support burgeoning demand with investments from Ping An Global Voyager Fund, Goldman Sachs, Affiliated Managers Group, Hamilton Lane, WestCap, BlackRock, UBS, Blackstone, BNY Mellon and Wells Fargo.
iCapital was recognized in 2020 for its commitment to providing innovative solutions; it was named to the Forbes Fintech 50, the CB Insights Fintech 250, and selected as Solutions Provider of the Year in the MMI / Barron’s Industry Awards.
About iCapital Network
iCapital Network’s mission is to power the world’s alternative investment marketplace. Its financial technology platform has transformed the way alternative investments are bought, sold and managed through tech-based solutions for advisors, their high-net-worth client base, wealth management firms, asset managers, and banks. The firm’s flagship platform offers advisors and their clients access to a curated menu of private equity, private credit, hedge funds, and other alternative investments at lower minimums with a full suite of due diligence, administrative support and reporting in a secure digital environment. Wealth management firms use iCapital’s turnkey technology solutions to provide clients with quality funds and simplified operational workflows in an intuitive digital experience. Asset managers and banks leverage iCapital’s tech-enabled services to streamline and scale their private investments operational infrastructure. iCapital was recognized in the 2018, 2019, and 2020 Forbes FinTech 50 and was named Solutions Provider of the Year in the 2020 MMI/Barron’s Industry Awards. As of December 2020, iCapital Network has more than 340 employees and services more than $68 billion in global client assets across more than 740 funds for more than 125,000 underlying accounts.
For additional information, please visit iCapital Network’s website at icapital.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork
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For iCapital Network media inquiries, please contact:
(1) Institutional Capital Network, Inc. and its affiliates (together, “iCapital Network” or “iCapital”)