iCapital Feeder Fund
iCapital Network, a financial technology platform driving access and efficiency in alternative investing for the asset and wealth management industries, announced today that it has entered into an agreement to acquire the alternative investments feeder fund platform from Wells Fargo’s Global Alternative Investments (GAI) division.
As a part of the transaction, Wells Fargo is making a strategic investment in iCapital under the terms of iCapital’s latest fundraising round. Wells Fargo’s alternative investment feeder fund platform supports a full suite of alternative solutions, including private equity, private debt, hedge funds, private real estate and direct private investments across approximately 70 investment vehicles. Last month, iCapital announced its agreement to acquire the Artivest platform and operating businesses. Upon completion of both transactions, iCapital’s platform will service nearly $58 billion in client assets across more than 720 funds, 120,000 underlying accounts, and more than 70 white label partners. “We are enormously excited to forge this partnership with Wells Fargo as another important milestone on our mission to create the industry standard technology solution for private investments,” said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital Network.
iCapital’s white-label technology will be leveraged to streamline and automate ongoing operations and fund administration services for Wells Fargo’s alternative investment feeder funds. It will also provide support to Wells Fargo’s advisors and their high-net-worth client base. As part of the transaction, iCapital will offer employment to a team of Wells Fargo employees who currently support operations for the GAI Feeder Fund Platform. The transitioning team will continue to support the fund portfolio to ensure continuity of service.
Earlier this year iCapital announced the close of a $146 million capital raise to support its future growth. As a part of the transaction, Wells Fargo will be the latest strategic investor to join the consortium of wealth and asset managers strategically invested in iCapital. Wells Fargo joins Ping An Global Voyager Fund, Goldman Sachs, Affiliated Managers Group, Hamilton Lane and WestCap as new investors. Additional existing strategic partners and investors in iCapital include BlackRock, Blackstone , BNY Mellon, The Carlyle Group, Credit Suisse, JPMorgan Chase & Co, Morgan Stanley and UBS Financial Services, Inc.. The transaction is expected to close during the second half of 2020.
Rising demand for alternative investments by RIAs and their clients have fueled the growth of platforms and marketplaces that improve efficiency and enable access to high-quality deals. Some big players in this space are:
CAIS: An open architecture financial product platform offering independent wealth management firms access to a diversified menu of alternative investment funds and capital market offerings.
Mercury iFunds: A comprehensive digital solution for accessing multiple different alternative investment verticals spanning the liquidity spectrum complete with online research, product tutorials, roadshow videos, institutional due diligence, interactive manager webinars, and automated, logic-rich subscription documents.
PPB Capital Partners: Turnkey fund structures for wealth managers, fund managers, and sophisticated investors seeking a cost-efficient way to invest in alternatives. As a fiduciary, PPB manages the daily fund operations with precise adherence to risk and compliance standards.
Republic Capital Group: An investment banking services firm that specializes in serving the RIA community by providing direct and co-investment opportunities while maintaining a network of RIAs and Family Offices to help collaborate on private investments.
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