iCapital Defies Turbulent Markets, Seals $146 Million Fund-Raiser

Tom Burroughes

24 March 2020

iCapital Network, the fintech platform widening access to alternative investments and having inked pacts with a raft of firms, has shrugged off the COVID-19 pandemic to complete a $146 million capital raise.

Ping An Global Voyager Fund led the fund-raising round, joined by new investors Goldman Sachs, Affiliated Managers Group, Hamilton Lane and WestCap, iCapital said in a statement yesterday. Additional commitments came from existing investors BlackRock, UBS Financial Services, Blackstone and BNY Mellon.

“Closing on the transaction in this current environment is arguably a significant demonstration of the industry’s confidence in iCapital’s long-term fundamentals,” the group said.

The platform hosts investments such as private equity, credit, real estate and other “alternative” asset classes, and is part of a shift in how investors can get more access to areas previously the preserve of the ultra-wealthy or large institutions. Regulators are to some extent encouraging this “democratization” of alternative asset class investing. Late last year the Securities and Exchange Commission, the US regulator, amended the definition of accredited investor, one of the principal tests for who is eligible to participate in private capital markets. A concern that regulators around the world have had is that investors’ expectations about liquidity and access to funds may not fit with what private markets involve.

iCapital said the fresh money allows it to enhance technology and give clients more services and support. The funds will also help it expand globally and educate clients.

The firm has been busy. In October 2019 it expanded its business links with Schwab Advisor Services, adding to a run of alliances. Among recent developments, iCapital added four senior figures to its executive team: Michael Kushner, chief financial officer; Jennifer Ashley, chief people officer; Diane Frankenfield, chief marketing officer; and Stephen Jacobs, general counsel. In April 2019 it entered an exclusive relationship with The Nasdaq Private Bank, building a secondary market for private equity funds. In October 2018, HSBC Global Private Banking, Americas agreed with iCapital Network to speed up the process whereby clients can tap into alternative investments such as private equity at far lower minimums than operate at present. Early in 2020 it signed a partnership with Boston-based State Street.