Institutional Capital Network, Inc (doing business as iCapital) is an American fintech company that provides platform solutions related to alternative investments in the private markets.
 | |
| iCapital | |
| Company type | Private |
| Industry | Financial services |
| Founded | 2013 |
| Headquarters | One Grand Central Place, New York City, U.S. |
Key people | Lawrence Calcano (Chairman & CEO) |
| Products | |
| Total assets | US$191.2 billion (May 2024) |
Number of employees | 1,510 (2024) |
| Website | icapital |
Background
editiCapital was founded in New York in 2013 with the goal of opening up alternative investments to more investors.[1][2]
iCapital has made a series of acquisition from banks. In March 2016, iCapital acquired HedgeFocus, a hedge fund business of Credit Suisse that focused on private banking clients.[3] In December 2017, iCapital acquired Deutsche Bank's US private equity access fund platform.[4] In March 2019, iCapital acquired Bank of America’s alternative investment feeder fund operations business.[5] In June 2020, iCapital acquired the feeder fund platform from Wells Fargo’s Global Alternative Investments division.[6]
When BlackRock became an investor of iCapital in 2016, it also negotiated the option to buy all of the company in two to five years. In 2019, Blackrock renegotiated its agreement where it would give up its option to acquire all of iCapital while acquiring additional ownership to remain as iCapital's largest minority shareholder. It was decided it was in the best interests for iCapital to remain independent in the hands of multiple investors.[1]
in 2022, iCapital reached a valuation of $6 billion.[5]
In February 2024, Institutional Investor reported that more than 100,000 financial advisors used iCapital and it had access to funds from 560 asset managers.[7]
In April 2024, iCapital acquired Mirador, a fintech reporting company. Mirado had strengths in data aggregation which would enhance iCapital's reporting process.[8] In the same month, iCapital launched iCapital Marketplace in Hong Kong and Singapore.[9]
The company provides platforms that make alternative investments more accessible to investors. Traditionally, most alternative investment assets have been held by institutional investors due to their complex nature as well as strict regulations.[2][10] iCapital invests in private funds and assembles the fund allocation into vehicles that can be accessed more broadly by investors.[3]
iCapital has been backed by financial institutions such as banks which include JPMorgan Chase and Morgan Stanley as well as asset management firms which include Blackrock, Fidelity Investments and Blackstone Inc.. They have also partnered with iCapital to use its technology platforms.[2][5][10]
References
edit- ^ a b Lim, Dawn (December 29, 2019). "BlackRock in Talks to Cancel Option to Take Over iCapital Network". Wall Street Journal. Archived from the original on December 7, 2022. Retrieved July 20, 2024.
- ^ a b c Block, Fang (November 9, 2018). "Fintech Startup iCapital Aims to Democratize Alternative Investments". Barrons. Archived from the original on June 24, 2019. Retrieved July 20, 2024.
- ^ a b Lim, Dawn (May 3, 2016). "iCapital Uses Tech Platform to Help GPs and the Wealthy Connect". Wall Street Journal.
- ^ "ICapital Network Buys US Private Equity Access Fund Platform from Deutsche Bank". Wall Street Journal. December 14, 2017.
- ^ a b c Foerch, Andrew (June 23, 2022). "iCapital scores Bank of America investment at $6bn valuation". Citywire. Archived from the original on February 28, 2024. Retrieved July 20, 2024.
- ^ Benjamin, Jeff (June 18, 2020). "Wells Fargo sells $3 billion alternatives platform to iCapital". Investment News.
- ^ Thrasher, Michael (February 27, 2024). "Why Family Offices Have Little Interest in Alts Platforms". Institutional Investor. Archived from the original on April 24, 2024. Retrieved July 20, 2024.
- ^ Deaton, Holly (April 3, 2024). "iCapital Is Acquiring Fintech Reporting Company Mirador". RIA Intel. Retrieved July 20, 2024.
- ^ Walker, Rupert (April 17, 2024). "iCapital launches alternatives platform in Hong Kong and Singapore". Fund Selector Asia. Archived from the original on May 18, 2024. Retrieved July 20, 2024.
- ^ a b Foxman, Simone (November 8, 2018). "JPMorgan, Carlyle Are Latest Wall Street Firms to Back iCapital". Bloomberg News. Archived from the original on January 20, 2022. Retrieved July 20, 2024.