Strategy
US-Headquartered iCapital Eyes Further APAC Expansion – Report
As headcount grows in Singapore, and with a recruitment drive in the jurisdiction and Hong Kong, the US-headquartered firm is in expansion mode, part of a wider shift in the popularity of alternative investments.
iCapital, the New York-headquartered fintech platform focusing on alternative investments, is reportedly expanding its Singapore and Hong Kong operations.
The company employs about 30 staff in Singapore, who make up half its Asian headcount. It is planning to recruit more sales staff in the city-state and Hong Kong, Marco Bizzozero, head of international at iCapital, told the Business Times (of Singapore) in an interview published on October 15.
iCapital, which has an office in Tokyo, is also planning to open its first office in Australia, the article said.
“We are in the process of relocating to a significantly larger office in Singapore, having outgrown our current space due to rapid team expansion and increased client activity. We are also looking into a bigger office space in Hong Kong,” Bizzozero was quoted as saying.
Founded in 2013, the rise of iCapital is part of a shift in providers of alternative assets, such as private equity, venture capital, private credit and hedge funds, distributing their wares to end investors. About two decades ago, investment banks dominated this value chain. However, since the turmoil of 2008 and the continued shift from public to private markets, new channels have opened up. Other players in the space besides iCapital are CAIS (headquartered in the US) and Moonfare (Germany).
“The wealth management channel is still at the very beginning of integrating private markets in client portfolios. Current allocations to private markets by the wealth management channel are low – on average 3 per cent – yet most wealth managers now target allocations (of) between 10 and 20 per cent, resulting in significant opportunities for firms like iCapital,” he said.
In September, iCapital said it had made strategic investment in, and partnered with Tangible Markets, a liquidity solutions provider for private market positions held via wealth management channels. It expects Tangible’s liquidity solutions to be available through iCapital’s platform by the end of this year.