NEW YORK — iCapital2, the global financial technology platform driving access and efficiency in alternative investing for the asset and wealth management industries, today announced that iCapital RF Advisor is expanding the investment mandate of the iCapital KKR Private Markets Fund (“the Fund”) to include sourcing direct investments from two additional leading private equity managers, Vista Equity Partners (Vista) and Warburg Pincus.
Vista and Warburg Pincus are committing to the innovative Direct Access arrangement that the Fund pioneered with KKR, which provides accredited investors access to direct investments via co-investment opportunities through or alongside private equity funds sponsored or managed by each of these proven managers. In addition, all three firms will make significant subscriptions in the Fund alongside existing shareholders. Once the expansion of the Direct Access program is effective, it is anticipated that the name of the Fund will change from iCapital KKR Private Markets Fund to iDirect Private Markets Fund.
The Fund will remain available to accredited investors with a $25,000 investment minimum, with no capital calls, simplified 1099 tax reporting and quarterly tender offers.
The combination of KKR, Vista, and Warburg Pincus (collectively the “Core Underlying Managers”) is intended to deliver highly complementary global exposure across buyout and growth equity investment styles. The Core Underlying Managers invest on a global basis in private companies of varying sizes up to $5+ billion in enterprise value and diversified across numerous industries and sectors, including enterprise software, health care, industrials, financial services, consumer, and business services. Together, these three firms have 125 years of experience with over 600 dedicated investment professionals based in 40 offices globally.
“iCapital’s mission is to provide seamless access to private fund managers and, just as we have been doing in the qualified purchaser market for almost 10 years, we are bringing high quality managers to the accredited investor market with low investment minimums,” said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital. “We’re excited to be adding Vista and Warburg Pincus to an already seasoned portfolio of KKR investments.”
The fundamental investment objective, philosophy, and investment strategy of the Fund, to provide accredited investors with exposure to private equity investments, remains unchanged.
“The success of our strategic collaboration with iCapital has been rooted in our shared commitment to expanding access to alternatives by delivering ongoing education and product innovation for financial advisors and accredited investors,” said Todd Builione, Global Head of Private Wealth at KKR. “We look forward to continuing to provide iCapital RF Advisor with access to differentiated private equity investment opportunities across geographies and industries.”
“We are excited to collaborate with iCapital, KKR and Warburg Pincus to democratize access to Vista’s differentiated and high-quality investments that provide access to one of the most important and transformative sectors in the global economy – enterprise software and technology-enabled businesses,” said Greg Myers, Senior Managing Director, Global Head of Capital & Partner Solutions, Vista Equity Partners.
“Alongside KKR and Vista, we are thrilled to work with iCapital to provide access to alternatives to a broader set of high-net-worth investors,” said Greg Baecher, Managing Director, Warburg Pincus. “Our firm’s diversified growth portfolio is an ideal fit for this next evolution of iDirect Private Markets Fund, an innovative and differentiated fund for the accredited investor market.”
About iCapital RF Adviser and the Fund
iCapital RF Adviser is a subsidiary of iCapital solely focused on registered fund management. As investment adviser, iCapital RF Adviser is responsible for investment selection, portfolio construction, and operational oversight of the Fund.
The Fund is registered under the Investment Company Act of 1940 as a closed-end investment management company, and its shares are registered for public offering under the Securities Act of 1933. The Fund was launched in August 2015 and has current net assets of $575 million across nearly 400 underlying portfolio companies in buyout and growth equity investment styles as of February 28, 2023. Since the Fund’s inception in August 2015 and through February 2023, the Class I shares of the Fund have annualized at 9.3% net of fees while delivering roughly half of the volatility of global equities.
For more information, visit https://www.icapitalkkrpmfund.com/
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 clients 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 over $153 billion in global client assets, of which nearly $30 billion are from international investors (non-US Domestic) across more than 1,230 funds. Employing 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 www.icapital.com | Twitter: @icapitalnetwork | LinkedIn: https://www.linkedin.com/company/icapital-network-inc
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
About Vista Equity Partners
Vista is a leading global investment firm with more than $96 billion in assets under management as of December 31, 2022. The firm exclusively invests in enterprise software, data and technology-enabled organizations across private equity, permanent capital, credit and public equity strategies, bringing an approach that prioritizes creating enduring market value for the benefit of its global ecosystem of investors, companies, customers and employees. Vista’s investments are anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions and proven, flexible management techniques that drive sustainable growth. Vista believes the transformative power of technology is the key to an even better future – a healthier planet, a smarter economy, a diverse and inclusive community and a broader path to prosperity. Further information is available at vistaequitypartners.com. Follow Vista on LinkedIn, @Vista Equity Partners, and on Twitter, @Vista_Equity.
About Warburg Pincus
Warburg Pincus LLC is a leading global growth investor. The firm has more than $85 billion in assets under management. The firm’s active portfolio of more than 260 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 21 private equity and 2 real estate funds, which have invested more than $108 billion in over 1,055 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information, please visit www.warburgpincus.com. Follow us on LinkedIn.
iCapital Media Contact
The Neibart Group
KKR Media Contact
Miles Radcliffe-Trenner or Julia Kosygina
Vista Equity Partners Media Contact
Brian W. Steel
Warburg Pincus Media Contact
1. A new supplement to the Fund’s registration statement outlining changes to the Direct Access Program was filed with the SEC on April 12, 2023, and a new registration statement containing full details of the changes will be filed with the SEC.
2. iCapital, Inc., and its affiliates (together, “iCapital”).
Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. The Fund should be considered a speculative investment and entails substantial risks. These risks include, but are not limited to, market risk, concentration risk, illiquidity, risks of leverage, non-diversification risk, lack of transparency, regulatory risk, potentially unfavorable changes in tax laws, lack of a secondary market or exchange to trade securities, foreign investment risks, sector risks, pricing risk, and volatility.
There is no guarantee that any investment will achieve its objectives, generate profits, or avoid losses. Diversification does not ensure profit nor protect against loss in declining markets. A prospective investor should invest in the Fund only if it can sustain a complete loss of its investment. The performance data does not reflect the deduction of the sales load or distribution and service fees for Class A Shares. If reflected, the sale load and distribution and service fees would reduce the performance quoted.
This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Fund. Investors should carefully consider the investment objectives, risks, charges, and expenses of the iCapital KKR Private Markets Fund. This and other important information about the Fund is contained in the Fund’s prospectus, which can be obtained by calling 855-891-0092 or at www.icapitalkkrpmfund.com. The prospectus should be read carefully before investing.