BOSTON — State Street Corporation (NYSE: STT) today announced it has entered into a new partnership with iCapital Network 1, the financial technology platform setting the industry standard for delivering access and efficiency in alternative investing. The collaboration will combine State Street’s registered transfer agency and private market fund administration capabilities with iCapital’s platform technology and distribution network to enhance the offering and servicing of US registered funds.
Historically, private market funds, such as private equity, private credit, real estate and infrastructure have been available primarily to institutional investors. However, high-net-worth investors and family offices are increasingly seeking access and exposure to these alternative asset classes to achieve portfolio goals of diversification and income. This partnership aims to support State Street’s clients as they navigate this complex market.
This collaboration will allow State Street’s alternative fund manager clients to simplify and accelerate the launch of registered private market products, establish scaled access to the wealth management channels, monitor fund raising activities, and utilize a comprehensive, fully searchable database of all their investor documents across all funds.
“We’re delighted to be cementing our relationship with iCapital in order to support the needs of this growing distribution channel”, said Paul Fleming, global head of State Street’s Alternative Investment Solutions (AIS) group. “If the private markets were to capture just 5-10 percent of the affluent and mass affluent market in the US alone, it would represent between $800 billion and $1.6 trillion in assets under management.2 A strong partner with a solution that addresses the needs of the investor, fund manager and investment advisors and distributors is critical. That’s why we’re partnering with iCapital.”
“The opportunities of the private market have traditionally been unattainable for those that lack the scale of an institutional investor”, said Lawrence Calcano, chief executive officer at iCapital Network. “However, our technology is rapidly changing that with access, efficiency and transparency. This partnership with State Street aims to create new opportunities for fund managers, advisors and high-net-worth investors by facilitating the offering of registered funds, providing managers access to fresh capital and giving investors an opportunity to add new asset classes to their portfolios.”
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world’s leading providers of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $32,754 billion in assets under custody and administration and $2,918 billion* in assets under management as of June 30, 2019, State Street operates globally in more than 100 geographic markets and employs approximately 40,000 worldwide. For more information, visit State Street’s website at www.statestreet.com.
* Assets under management include the assets of the SPDR® Gold ETF and the SPDR® Long Dollar Gold Trust ETF (approximately $36 billion as of June 30, 2019), for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.
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 and sold through the development of tech-based solutions for advisors, their high-net-worth client base, asset managers and banks. The firm’s flagship platform offers advisors and their clients access to a curated menu of private equity and hedge funds at lower minimums with a full suite of due diligence and administrative support in a secure digital environment. 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 and 2019 Forbes FinTech 50 which highlights the top 50 innovative financial technology companies that are transforming finance through technology. As of December 31, 2019, iCapital services more than $43 billion in invested capital across more than 100,000 underlying accounts.
[1] Institutional Capital Network, Inc. and its affiliates (together, “iCapital Network” or “iCapital”)
[2] Cerulli US Alternative Products and Strategies
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 to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security offered by Institutional Capital Network, Inc. or its affiliates (together “iCapital Network” or “iCapital”). Past performance is not indicative of future results. Alternative investments such as those described are complex, speculative investment vehicles and are not suitable for all investors. An investment in an alternative investment 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. The information contained herein is subject to change and is also incomplete. This industry information and its importance is an opinion only and should not be relied upon as the only important information available. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. Inclusion in the Forbes FinTech 50 list makes no guarantee to future performance and may not be representative of a platform user’s experience. Awards, rankings and/or recognition by unaffiliated 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 iCapital Network is engaged, nor should it be construed as a current or past endorsement of iCapital Network by any of its clients. Securities may be offered through iCapital Securities, LLC, a registered broker dealer, member of FINRA and SIPC and subsidiary of iCapital Network.
iCapital and iCapital Network are registered trademarks of Institutional Capital Network, Inc. All rights reserved.
