NEW YORK--(BUSINESS WIRE)--iCapital Network today announced it has surpassed $2 billion in platform assets since the launch of its online alternative investment platform two years ago. The firm’s proprietary technology has helped to rapidly democratize private investments such as private equity and hedge funds by connecting individual investors and their advisors to asset managers through a streamlined and secure digital interface.
Via iCapital’s platform, high-net-worth (HNW) investors and financial advisors have access to education, data, analytics and an array of high-demand private investment opportunities that have heretofore been the domain of institutional investors. Asset managers use iCapital’s full suite of solutions to automate the offering and administration of their private placements – which are notoriously labor-intensive and complex processes – including customizable platform technology, access to new pools of investor capital through the firm’s extensive network in the HNW marketplace, and investor relations support.
“We are excited by the remarkable response to the iCapital platform thus far and will continue our efforts to connect investors and asset managers and improve the process of allocating to alternative investments,” said Phil Pool, Chairman of the Board of iCapital Network.
“Our differentiated end-to-end model has been widely adopted by investors and their advisors, as well as many highly-regarded GPs, since our launch 24 months ago,” added Lawrence Calcano, Chief Executive Officer of iCapital Network. “iCapital’s extraordinary growth is a testament to an ever increasing, but not surprising, appetite from the high-net-worth community for access to private investments.”
Since the portal’s official launch in the Fall of 2014, iCapital has expanded to more than 45 employees across core functions, grown significantly in all key metrics and executed a number of critical initiatives to improve access for all qualified investors.
Growth in Users and Assets
- Built a member network of more than 1,300 sophisticated users who are expressly interested in alternative investments and collectively represent more than $1.6 trillion in investable assets. The rapidly growing network includes more than 120 family offices and more than 450 registered investment advisors, private banks and independent broker-dealers, many of whom represent thousands of individual HNW investors.
- Accumulated, and currently services, more than $2 billion in subscriptions from approximately 3,000 individual investors across more than 40 alternative investment funds.
“We view iCapital Network as a critical long term partner for our firm,” said David Keevins, Managing Director and Chief Investment Officer at Crescent Grove Advisors. “iCapital has enabled us to invest client assets in a way that allows us to access private funds at a fraction of the institutional minimum via their secure online workflows. iCapital has also streamlined our existing private investments via custom access funds exclusively for Crescent Grove."
Strategic Alliances
- Joined the Fidelity Institutional alternative investment platform as a strategic partner and completed technological integration with the firm’s proprietary systems.
- Been appointed by Dynasty Financial Partners to power the Dynasty Select platform of alternative asset managers for its network of independent wealth advisory professionals.
- Expanded investment options for retirement accounts through alliances with alternative asset custody providers, including Millennium Trust, to allow investors to put tax-advantaged retirement dollars into private equity and hedge funds via self-directed IRAs.
- Entered strategic alliances with more than a dozen established alternative asset managers to simplify the administration of their private funds and increase their fundraising access to the HNW markets.
“Our strategic relationship with iCapital Network allows our institutional client base of more than 3,500 registered investment advisors, broker-dealers, family offices and banks to access private equity investments with a complement of tech-enabled support,” said Gary Gallagher, Senior Vice President, Investment Products at Fidelity Institutional.
Expansion of Platform Features
- Expanded the alternative investment offerings on the platform from an initial focus on private equity opportunities to include a range of hedge funds across major strategies, including the integration of the HedgeFocus platform acquired from Credit Suisse in March 2016.
- Introduced an annual vintage program to help investors achieve diversified private equity exposure in a disciplined and systematic fashion. The firm’s turnkey program, which recently marked its first full year, includes origination, diligence and transaction support, allowing investors to build private equity allocations through successive “vintage year” funds composed of complementary underlying managers.
- Integrated with the industry’s leading custodians through DTCC’s Alternative Investment Product Services platform; enhanced capability allows investors to choose their desired custodial platform for each investment on a transaction-by-transaction basis and complete all documentation online at the time of commitment.
- Initiated annual independent third-party examinations of service organization controls (SOC) regarding the design suitability and operating effectiveness of iCapital’s computer operations, information security, application change controls and data communications; successful completion of Type 2 SOC 1 exam for the period ending 7/31/16.
“Having spent significant time diligencing the space, we reached the conclusion that a vintage program is a thoughtful way to build diversified private equity allocations and iCapital's institutional-quality suite of capabilities has simplified the process of providing our qualified clients with vintage year exposure,” said Chris Jordan, Director of Alternative Investments at Moneta Group.
“Our top priority is to offer our investors, registered investment advisors, broker-dealers, private banks and family offices access to the highest caliber of alternative investing opportunities,” said Mr. Calcano. “In order to meet that goal, we are sharply focused on bringing together the right combination of industry leaders and experts to ensure we have the necessary skills and bench strength across every function.”
“We are proud of the robust and innovative business we have built in two short years, along with the excellent team that we have in place today,” added Mr. Pool. “We are poised for continued growth and look forward to helping the high-net-worth community source and find quality private investing opportunities in the years ahead.”
About iCapital Network
iCapital Network is a powerful financial technology platform that provides modular alternative investment solutions for registered investment advisors, broker-dealers, private banks, family offices and other sophisticated investors. The state-of-the-art online portal offers a curated selection of private equity funds and hedge funds, extensive due diligence support, an automated subscription process and integration with a wide range of custodial platforms and reporting packages. The firm’s customizable technology and specialized suite of services is also used by asset managers and financial institutions to streamline and automate the offering and administration of private investments. Visit www.icapitalnetwork.com for more information.
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Disclosures: 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 iCapital. Past performance is not indicative of future results. Alternative investments 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. Securities may be offered through iCapital Securities, LLC, a registered broker dealer, member of FINRA and SIPC and subsidiary of Institutional Capital Network, Inc. All rights reserved.
iCapital Network is an independent company and unaffiliated with Fidelity Investments. There is no form of legal partnership, agency, affiliation, or similar relationship between these third-party service providers and Fidelity Investments. Fidelity Family Office Services is a division of Fidelity Brokerage Services LLC. Fidelity Clearing & Custody SolutionsSM provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC. 777246.1.0
