The alternative investments platform iCapital Network, used by more than 7,000 financial advisors, raised a $50 million round of funding just before the new year, valuing the company at $6 billion.
WestCap, an $8 billion growth equity firm and previous investor in iCapital, led the new round. It was joined by current investor Temasek, Singapore’s roughly $282 billion state investment company, and others. Apollo Global Management, the $481 billion alternative investment firm in New York, invested in iCapital for the first time and plans to add one employee as a board observer.
Other existing investors, including Blackstone, KKR, Carlyle Group and others, still have the opportunity to participate in the latest round and maintain their proportional share, iCapital said. Some have already expressed interest in participating and the total raised could increase before the round closes at the end of January, Lawrence Calcano, chairman and CEO of iCapital, told RIA Intel.
"We're honored for WestCap and Temasek to expand their commitments and to now include Apollo as a shareholder," Calcano said. “With the addition of Apollo, we now have the largest and most distinguished general partners in the world supporting iCapital in its mission of delivering the definitive technology solution for alternative investments within the wealth management space.”
The latest round of funding will be used to invest in iCapital’s technology, education for the wealth managers using the platform, and to build new features. The company also plans to offer new investment products and expand the list of ones it offers already offers. (It recently acquired Axio Financial, a structured note provider.)
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The alternative investments platform used by advisors has raised a total of almost $750 million. In July, the company raised more than $440 million in a round of funding led by Temasek and was valued at $4 billion. In March of 2020 the company raised $146 million.
“This company had a really outstanding year. We’ve outperformed all of our numbers very significantly and I think this reflects the kind of [sic] revised opportunity set and financial profile of the company,” Calcano said.
In 2021, assets on iCapital’s platform grew from $68 billion to more than $104 billion. It is now used by more than 250 asset managers including Affiliated Managers Group, BlackRock, Goldman Sachs Asset Management, and other large firms. In August, RIA Intel reported that iCapital had partnered with the hedge fund Bridgewater and planned to offer to-be-determined strategies on the platform.
In December, iCapital said it hired Masato Degawa as a senior advisor for the Japanese market, and that plans to invest further in its international expansion.
The company has also been actively investing in artificial intelligence technology and blockchain technology to improve operational activities and management of assets on the platform, Calcano said.
Last year, iCapital grew to more than 700 employees, including 130 outside the U.S. (most international employees are based in Portugal). The company has offices in Hong Kong, Lisbon, Toronto, London, and Zurich and has grown platform assets from international clients to $22 billion. It also dropped the "Network" from its name this week.
Holly Deaton (@HollyLDeaton) is a staff writer at RIA Intel and based in New York City.
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