iCapital Network® Acquires Artivest
Enhances private market investing opportunities for advisors and their high-net-worth clients
May 14, 2020
With their latest acquisition, iCapital will service more than $55 billion in client assets, solidifying global position as leading financial technology platform offering private equity, private credit, hedge funds, and other alternative investments
iCapital Network1, the leading financial technology platform driving access and efficiency in alternative investing for the asset and wealth management industries, and Artivest, one of the most innovative technology companies for accessing and investing in alternatives, today announced that they have entered into a definitive agreement under which iCapital will acquire the Artivest platform and operating businesses.
Under the terms of the agreement, iCapital will purchase the majority of Artivest’s assets, including all technology and its operating platform. The transaction also includes management of Artivest’s 28 proprietary alternative investment funds, along with several large enterprise relationships and Artivest’s ‘Open Network’ platform, which offers a menu of alternative products and strategies to approximately 1,800 financial advisors and their high-net-worth investors. As part of the transaction, 28 Artivest team members are expected to join iCapital.
Following the close of this transaction, iCapital will service more than $55 billion in client assets across approximately 650 funds, 115,000 underlying accounts, and more than 70 white label partners. The acquisition will create further operational economies of scale in the offering and servicing of alternative investments and additional benefits for both Artivest and iCapital clients and partners.
“Given our shared mission to facilitate meaningful alternative investing opportunities across the wealth and asset management spectrum, this acquisition was compelling for a number of reasons,” said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital Network. “We have long admired Artivest’s technical innovations and capabilities in registered funds and direct investments, and the strength of their team. The integration of these attributes with iCapital’s already robust platform and product offerings creates a powerful combination delivering a ‘best-in-breed’ technology experience while also presenting new platform partners and strategies to our respective clients.”
“We are pleased to reach an agreement with iCapital, which is well positioned to deliver the quality and continuity of client experience that is central to Artivest’s offering,” said Martin Beaulieu, Chairman and Chief Executive Officer of Artivest. “We are confident that iCapital is the right service provider for our managers, advisors, and their clients.”
KKR is expected to convert its current holdings in Artivest into equity shares of iCapital. On March 23, 2020, iCapital announced its most recent funding round led by Ping An Global Voyager Fund which also included commitments from strategic partners and investors: Goldman Sachs, Affiliated Managers Group, Hamilton Lane, WestCap, BlackRock, UBS Financial Services, Inc., Blackstone, and BNY Mellon.
Additional existing strategic partners and investors in iCapital include The Carlyle Group, Credit Suisse, JPMorgan Chase & Co, and Morgan Stanley Investment Management.
Artivest Holdings, Inc., will continue to manage the legacy Altegris mutual fund business, as well as commodity pools that are not included in the transaction with iCapital. These vehicles will be overseen by Altegris Advisors, the existing portfolio management team, and related operational staff to ensure continuity post transaction.
iCapital’s platform is purpose-built to provide an end-to-end technology solution that is fully configurable, integrated, highly scalable, and able to support the unique subscription, administration, and reporting processes for private equity, private credit, hedge funds, and other alternative investments. It addresses many of the longstanding challenges of investing in alternatives by using technology to streamline access, ease operational burdens, and improve the user experience. The platform is designed to meet the continually evolving needs of all industry participants: the advisors who need simplified, tech-enabled investment processes to help incorporate alternative investments in their clients’ portfolios; the asset managers looking to scale their fundraising efforts; and the wealth management firms seeking a technology platform to enhance or replace existing systems.
Terms of the agreement were not disclosed. PJT Partners LP served as financial advisor and Ropes & Gray LLP served as legal advisor to iCapital Network. RBC Capital Markets served as financial advisor and Morrison & Foerster LLP served as legal advisor to Artivest.
About iCapital Network
iCapital Network’s mission is to power the world’s alternative investment marketplace. Its financial technology platform has transformed the way alternative investments are bought and sold through the development of tech-based solutions for advisors, their high-net-worth client base, asset managers, and banks. The firm’s flagship platform offers advisors and their clients access to a curated menu of private equity and hedge funds at lower minimums with a full suite of due diligence and administrative support in a secure digital environment. Asset managers and banks leverage iCapital Network’s tech-enabled services to streamline and scale their private investments operational infrastructure. iCapital was recognized in the 2018, 2019, and 2020 Forbes FinTech 50 which highlights the top 50 innovative financial technology companies that are transforming finance through technology. As of April 30, 2020, iCapital Network services more than $51 billion in client assets across more than 100,000 underlying accounts.
For additional information, please visit iCapital Network’s website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork
Artivest is transforming the way financial advisors and high net worth investors access, evaluate, and invest in private equity, real assets, and hedge funds. Our platform delivers a streamlined digital experience for investors to transact directly with a wide selection of high-quality private alternatives, at sensible minimums. Run by accomplished fintech and investment industry executives in New York and California, Artivest is privately held by its employees and outside investors including Aquiline Capital Partners, Genstar Capital, KKR, and Thiel Capital.