Hedge fund and private equity FinTech firm iCapital Network will acquire the feeder fund platform from Wells Fargo’s alternatives investment business.
The acquisition will give iCapital access to 70 investment vehicles across private markets, hedge funds and real estate.
As part of the transaction, Wells Fargo will make a strategic investment in iCapital, joining a list of coveted investors which include some of the biggest investment and custody banks such as JP Morgan and BNY Mellon, as well as BlackRock, Blackstone and The Carlyle Group.
“We are pleased to partner with iCapital to deliver alternative investments to enhance the experience for our advisors and clients,” said Darrell Cronk, president of Wells Fargo Investment Institute. “This transaction will allow us to continue to provide innovative alternative investment solutions to our clients as well as upgrade the overall platform and launch new offerings.”
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 CEO of iCapital Network.
“This agreement is emblematic of the great strides we have made to provide greater access, efficiency and transparency for the wealth management community seeking alternative investing strategies for their high-net-worth clients.”
Last year, iCapital acquired the alternative investment feeder fund platform from Morgan Stanley where it assumed oversight of 115 Morgan Stanley feeder funds that invest in private equity, hedge funds and real estate for the bank’s wealth management arm.
The firm also partnered with State Street to combine the Boston-based custodian’s registered transfer agency and private equity fund administration capabilities with the platform’s technology and distribution network to enhance the offering and servicing of US registered funds.