Category Archives: iCapital Network

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iCapital’s Amoroso on Markets Post-Fed, Strategy (Video)

iCapital’s Amoroso on Markets Post-Fed, Strategy (Video)

November 2, 2022 | Bloomberg: Daybreak-Australia

Anastasia Amoroso, Chief Investment Strategist at iCapital, discusses the market reaction to the latest rate decision from the Federal Reserve and her investment strategy. She speaks in “Bloomberg Daybreak: Australia” with Haidi Stroud-Watts and Kathleen Hays.

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The Credit Face-Off: Do Leveraged Loans, High Yield Bonds, or Private Debt Offer the Best Value?

The Credit Face-Off: Do Leveraged Loans, High Yield Bonds, or Private Debt Offer the Best Value?

October 25, 2022 | Anastasia Amoroso | iCapital

While leveraged loans have far outshined all other fixed income assets this year, we explore why now might be the right time for investors to re-allocate from publicly traded leveraged loans to a barbell of high yield and private credit.

Another week brings another reset higher in Fed fund rate (FFR) expectations. Fed policy has been the driver of markets this year and effectively set the hurdle rate investments need to overcome to prove attractive to investors. At present, the expected FFR by Q1 ’23 is now approaching 5% (4.96% to be exact), up from 4.5% two weeks ago.1 As long as recession uncertainty is swirling and dampening the outlook for stocks, for investors it’s all about income and getting paid while you wait. So where can investors still get cash-beating income returns? With high yield, leveraged loans, and private credit all yielding in the range of 9-11%,2 the question remains – which one is best? Leveraged loans have far outshined all other fixed income assets this year, but in this week’s commentary, we explore why now might be the right time to re-allocate from publicly traded leveraged loans to a barbell of high yield and private credit.

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Ardian and iCapital® Partner to Broaden Private Markets Investment Access for Wealth Managers Globally

Ardian and iCapital® Partner to Broaden Private Markets Investment Access for Wealth Managers Globally

October 4, 2022 | iCapital®

Ardian, a world leading private investment house, has entered into a partnership with iCapital1, the leading global fintech platform driving access and efficiency in alternative investing for the asset and wealth management industries to provide wealth managers with access to Ardian’s private market investment strategies. Notably, iCapital products created as a result of this partnership will be available through Allfunds, one of the world’s leading B2B WealthTech platforms.

Marco Bizzozero, Head of International at iCapital, said: “Our mission is to solve the fundamental challenges of investing in private markets for wealth managers and their private clients.”

Ardian will leverage iCapital’s technology platform and structuring solutions to provide wealth managers and their clients with access to Ardian’s deep private markets expertise and suite of alternative investment strategies, based on its global network of 15 offices in Europe, the Americas and Asia. Ardian’s alternative investment strategies spanning Private Equity, Real Assets and Private Credit, will be available to wealth managers.

Private Wealth has always been an important part of Ardian’s investor base. Today, this segment represents more than $8.3 billion of assets under management and over 600 investors. Over the past three years and following the launch of its Private Wealth Solutions unit, Ardian has been developing new ways to give private clients and wealth managers greater access to private market assets.

With more than $141 billion in alternative assets under management and long-standing experience as a private investment house, Ardian’s partnership with iCapital comes amid a surging interest in alternative investing from the global wealth management community and their clients, who have historically had more limited access to appropriately structured alternative investing opportunities. These investors are also increasingly prioritising ESG when making their investment decisions. Ardian has been developing its approach to responsible investment for over 10 years, notably through its annual Secondaries portfolio ESG monitoring. Ardian’s objective is to amplify its impact by assessing GP’s practices and actively engaging with them to improve ESG integration in private investments.

Erwan Paugam, Head of Private Wealth Solutions and Managing Director at Ardian, said: “In 2020, we launched our Private Wealth Solutions initiative based on our conviction that alternative investment opportunities should be accessible to wealth managers and their private clients around the world. Joining forces with iCapital ensures that wealth managers can now seamlessly access our broad expertise in Private Equity, Real Assets and Private Credit investing. Through this partnership, we are combining iCapital’s innovative technology platform with our long-standing commitment to meet the evolving demands of the global wealth management community, to bring a leading solution to wealth managers and help their clients achieve their investment goals.”

Marco Bizzozero, Head of International at iCapital, said: “Our mission is to solve the fundamental challenges of investing in private markets for wealth managers and their private clients. iCapital’s solutions help asset managers and wealth managers facilitate their clients’ access to the growth and diversification opportunities of private markets. This partnership represents another important milestone in our global expansion. We are very pleased to support Ardian’s commitment to bring attractive alternative investment opportunities to the wealth management channel globally and to help advisors and their clients achieve their investment objectives.”

About Ardian

Ardian is a world leading private investment house, managing or advising $141bn of assets on behalf of more than 1,300 clients globally. Our broad expertise, spanning Private Equity, Real Assets and Credit, enables us to offer a wide range of investment opportunities and respond flexibly to our clients’ differing needs. Through Ardian Customized Solutions we create bespoke portfolios that allow institutional clients to specify the precise mix of assets they require and to gain access to funds managed by leading third-party sponsors. We also provide a specialist service for private clients through Ardian Private Wealth Solutions. Ardian is majority-owned by its employees and places great emphasis on developing its people and fostering a collaborative culture based on collective intelligence. Our 900+ employees, spread across 15 offices in Europe, the Americas and Asia, are strongly committed to the principles of Responsible Investment and are determined to make finance a force for good in society. Our goal is to deliver excellent investment performance combined with high ethical standards and social responsibility. At Ardian we invest all of ourselves in building companies that last.
www.ardian.com

About iCapital

Founded in 2013, iCapital is the leading global fintech company powering the world’s alternative investment marketplace. iCapital has transformed the way the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions; education tools and resources; and robust diligence, compliance, and portfolio analytics capabilities. iCapital’s solutions enable organizations to streamline and scale their alternative investments operational infrastructure and to provide access to direct investments and feeder funds at lower minimums through simplified digital workflows. iCapital-managed platforms offer wealth advisors and their high-net-worth clients access to an extensive menu of private investments including equity, credit, real estate, infrastructure, structured investments, annuities and risk-managed solutions. iCapital has been recognized on the Forbes FinTech 50 list in each year 2018 through 2022, the Forbes America’s Best Startup Employers in 2021 and 2022, and MMI/Barron’s Industry Awards as Solutions Provider of the Year in 2020 and 2021. As of August 31, 2022, iCapital services more than US$138 billion in global client assets, of which more than US$32.7 billion are from international investors (non-US Domestic), across more than 1,100 funds. Employing more than 1,000 people globally, iCapital is headquartered in NYC and has offices worldwide including in Zurich, London, Lisbon, Hong Kong, Singapore, and Toronto.

For additional information, please visit the iCapital website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork

See disclosures here.

1 Institutional Capital Network, Inc. and its affiliates (together, “iCapital”)

Contacts

Ardian Media Contacts
United Kingdom, Headland
ardian@headlandconsultancy.co.uk / +44 (0)20 3435 7469

North America, The Neibart Group, Rachelle Gaynor
ardian@neibartgroup.com / + 1 631 278 2046

iCapital Media Contacts
United Kingdom, Viktor Tsvetanov
icapital@headlandconsultancy.com / +44 (0)20 3435 7469

North America, Morgan Miller
icapital@neibartgroup.com / +1 919- 602-2806

Switzerland, Tanja Kocher
tanja.kocher@holisticom.ch / +41 31 311 43 48

Italy, Marina Riva
m.riva@barabino.it / +39 02/72.02.35.35

Asia, Marylene Guernier
icapital@secnewgate.hk / + 852 5225 7820

 

iCapital® and Tikehau Capital Announce Partnership to Broaden Wealth Managers’ Access to Private Markets across EMEA

iCapital® and Tikehau Capital Announce Partnership to Broaden Wealth Managers’ Access to Private Markets across EMEA

September 15, 2022 | iCapital

Tikehau Capital (Paris:TKO), the global alternative asset manager, and iCapital[1], the leading global fintech platform driving access and efficiency in alternative investing for the asset and wealth management industries, today announced a partnership to increase wealth managers’ access to Tikehau Capital’s private market investing opportunities.

Through the partnership, Tikehau Capital will launch a customized marketplace powered by iCapital’s technology to deliver Tikehau Capital’s suite of alternative offerings to wealth managers and their high-net-worth clients in the EMEA region.

Initially, the digital solution will provide wealth managers with access to alternative investments which are generally accessible to institutional investors only. It includes the second vintage of Tikehau Capital’s Impact-driven real estate value-add strategy, and the third vintage of Tikehau Capital’s special opportunities strategy, which allows investors to seize credit opportunities across market cycles and credit dislocation.

Tikehau Capital’s offerings will also be made available via Allfunds, the world’s largest fund distribution network. iCapital and Allfunds announced a strategic partnership in June 2021 through which iCapital makes private market investment opportunities available for Allfunds’ clients.

While institutional investors have long had access to alternative investing opportunities, high-net-worth investors and their advisors have historically faced significant barriers such as high investment minimums and difficulties in accessing top-tier asset managers.

iCapital’s technology automates the subscription process, provides transparency into each step of the investing process and seamlessly integrates performance and reporting for alternative investments in an end-to-end digital platform, meaningfully improving the efficiency and client experience of alternative investing.

“We are delighted to partner with iCapital, the leading platform in the alternative investment market for the asset management industry. This strategic partnership is a key step for Tikehau Capital, allowing us to expand our investor base and provide investors with solutions across multiple assets classes,” said Antoine Flamarion, co-founder of Tikehau Capital.

“We believe that the trend of retail investors seeking alternative sources of returns that can offer diversification from traditional markets will be a significant force for change, and it is important for Tikehau Capital to address this trend and increase wealth manager’s access to private market investment opportunities” added Mathieu Chabran, co-founder of Tikehau Capital.

“Wealth managers working with individual investors are increasingly looking at the private markets to potentially generate high risk-adjusted returns with portfolio diversification. We believe that both Tikehau Capital strategies that will be distributed on the platform are particularly adapted to the current economic context and will meet investors demand.” added Vincent Archimbaud, head of Wholesale Europe, Tikehau Capital.

“Today marks another important milestone in our global expansion, and we are extremely pleased to partner with Tikehau Capital, a highly respected alternative asset manager, to provide EMEA wealth managers and their clients with institutional-quality private market investment opportunities,” said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital.”

“Wealth creation is increasingly taking place outside the public markets. We are delighted to support Tikehau Capital in their ambition to offer banks and wealth managers across EMEA with greater access to the growth and diversification opportunities the private markets can offer to client portfolios,” commented Marco Bizzozero, Head of International at iCapital.

About iCapital

Founded in 2013, iCapital is the leading global fintech company powering the world’s alternative investment marketplace. iCapital has transformed the way the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions; education tools and resources; and robust diligence, compliance, and portfolio analytics capabilities. iCapital’s solutions enable organizations to streamline and scale their alternative investments operational infrastructure and to provide access to direct investments and feeder funds at lower minimums through simplified digital workflows. iCapital-managed platforms offer wealth advisors and their high-net-worth clients access to an extensive menu of private investments including equity, credit, real estate, infrastructure, structured investments, annuities and risk-managed solutions. iCapital has been recognized on the Forbes FinTech 50 list in each year 2018 through 2022, the Forbes America’s Best Startup Employers in 2021 and 2022, and MMI/Barron’s Industry Awards as Solutions Provider of the Year in 2020 and 2021. As of August 31, 2022, iCapital services more than US$138 billion in global client assets, of which more than US$31 billion are from international investors (non-US Domestic), across more than 1,100 funds. Employing more than 1,000 people globally, iCapital is headquartered in NYC and has offices worldwide including in Zurich, London, Lisbon, Hong Kong, Singapore, and Toronto.

For additional information, please visit the iCapital website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork

See disclosures here.

About Tikehau Capital

Tikehau Capital is a global alternative asset management group with €36.8 billion of assets under management (at 30 June 2022).

Tikehau Capital has developed a wide range of expertise across four asset classes (private debt, real assets, private equity and capital markets strategies) as well as multi-asset and special opportunities strategies.

Tikehau Capital is a founder led team with a differentiated business model, a strong balance sheet, proprietary global deal flow and a track record of backing high quality companies and executives.

Deeply rooted in the real economy, Tikehau Capital provides bespoke and innovative alternative financing solutions to companies it invests in and seeks to create long-term value for its investors, while generating positive impacts on society. Leveraging its strong equity base (€3.1 billion of shareholders’ equity at 30 June 2022), the firm invests its own capital alongside its investor-clients within each of its strategies.

Controlled by its managers alongside leading institutional partners, Tikehau Capital is guided by a strong entrepreneurial spirit and DNA, shared by its 725 employees (at 30 June 2022) across its 13 offices in Europe, Asia and North America.

Tikehau Capital is listed in compartment A of the regulated Euronext Paris market (ISIN code: FR0013230612; Ticker: TKO.FP). For more information, please visit: www.tikehaucapital.com.

Disclaimer

The funds are managed by TIKEHAU INVESTMENT MANAGEMENT SAS (on behalf of the funds that it manages), a portfolio management company approved by the AMF since 19/01/2007 under number GP-0700000006.

This document does not constitute an offer of securities for sale or investment advisory services. It contains general information only and is not intended to provide general or specific investment advice. Past performance is not a reliable indicator of future earnings and profit, and targets are not guaranteed. Certain statements and forecasted data are based on current forecasts, prevailing market and economic conditions, estimates, projections and opinions of Tikehau Capital and/or its affiliates. Due to various risks and uncertainties. actual results may differ materially from those reflected or expected in such forward-looking statements or in any of the case studies or forecasts. All references to Tikehau Capital’s advisory activities in the US or with respect to US persons relate to Tikehau Capital North America.

[1] Institutional Capital Network, Inc. and its affiliates (together, “iCapital”)

Contacts

iCapital Media Contacts
USA – Morgan Miller – + 1 919-602-2806 / icapital@neibartgroup.com
UK – Viktor Tsvetanov – +44(0)78 8466 7775 / vtsvetanov@headlandconsultancy.com
Italy – Marina Riva – +39 02/72.02.35.35 / m.riva@barabino.it
Switzerland – +41 31 311 43 48 / tanja.kocher@holisticom.ch
Hong Kong – Marylène Guernier + 852 3758 2696 / icapital@secnewgate.hk

Tikehau Capital Media Contact
Valérie Sueur – +33 1 40 06 39 30
UK – Prosek Partners: Alexa Bethell – +44 (0) 7940 166 251
USA – Prosek Partners: Trevor Gibbons – +1 646 818 9238
press@tikehaucapital.com

Tikehau Shareholder and Investor Contacts
Louis Igonet – +33 1 40 06 11 11
Théodora Xu – +33 1 40 06 18 56
shareholders@tikehaucapital.com

iCapital® to Acquire US Alternative Investments Feeder Fund Platform from UBS

iCapital® to Acquire US Alternative Investments Feeder Fund Platform from UBS

August 23, 2022 | iCapital

iCapital1, the leading global fintech platform driving access and efficiency in alternative investing for the asset and wealth management industries, and UBS (NYSE: UBS) today announced they entered into a definitive agreement whereby iCapital will acquire UBS Fund Advisor LLC, UBS’s legacy proprietary US alternative investment manager and the feeder fund platform it manages. The platform, generally referred to as “AlphaKeys Funds,” represents more than US$7 billion in client assets.

With this transaction, iCapital will assume the management and operation of the platform, which includes private equity, hedge fund and real estate feeder funds. UBS Financial Advisors will continue to serve their high and ultra-high net worth clients that hold feeder funds as they always have, providing advice and solutions to help meet their unique needs and financial goals.

“iCapital has a long-standing global relationship with UBS through which we utilize our market-leading technology to facilitate the management of their direct and feeder funds on a single platform and offer their advisors the tools they need to be successful,” said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital. “We are thrilled to expand that relationship to include management of UBS Fund Advisor and the feeder fund platform.”

“This agreement underscores the importance of having partners like iCapital, with aligned values and priorities to support clients’ financial goals,” said Jerry Pascucci, Global Co-Head of Alternative Investment Solutions at UBS Global Wealth Management. “iCapital is uniquely qualified to manage the on-going operations of this platform and service our clients’ existing investments, enabling us to help our financial advisors focus on what’s important – providing personalized advice and solutions to their clients.”

In 2017, UBS became an investor in iCapital and entered into a strategic relationship with the firm to structure new feeder funds for UBS to distribute going forward. At that time, UBS also integrated iCapital’s proprietary technology into its private fund operations to streamline and automate its alternative investment offerings. In 2021, the strategic partnership was enhanced to further digitize the UBS Advisor experience, improving the information and analytics of clients’ private market investments across its international locations, including Switzerland, Hong Kong, and Singapore.

The transaction is expected to close during the second half of 2022. Terms of the agreement were not disclosed.

About iCapital

Founded in 2013, iCapital is the leading global fintech company powering the world’s alternative investment marketplace. iCapital has transformed the way the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions; education tools and resources; and robust diligence, compliance, and portfolio analytics capabilities. iCapital’s solutions enable organizations to streamline and scale their alternative investments operational infrastructure and to provide access to direct investments and feeder funds at lower minimums through simplified digital workflows. iCapital-managed platforms offer wealth advisors and their high-net-worth clients access to an extensive menu of private investments including equity, credit, real estate, infrastructure, structured investments, annuities and risk-managed solutions. iCapital has been recognized on the Forbes FinTech 50 list in each year 2018 through 2022, the Forbes America’s Best Startup Employers in 2021 and 2022, and MMI/Barron’s Industry Awards as Solutions Provider of the Year in 2020 and 2021. As of July 31, 2022, iCapital services more than US$136 billion in global client assets, of which more than US$32 billion are from international investors (non-US Domestic), across more than 1,080 funds. Employing more than 1,000 people globally, iCapital is headquartered in NYC and has offices worldwide including in Zurich, London, Lisbon, Hong Kong, Singapore, and Toronto.

For additional information, please visit the iCapital website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork

See disclosures here.

About UBS

UBS convenes the global ecosystem for investing, where people and ideas are connected and opportunities brought to life, and provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as to private clients in Switzerland. UBS offers investment solutions, products and impactful thought leadership, is the leading global wealth manager, provides large-scale and diversified asset management, focused investment banking capabilities, and personal and corporate banking services in Switzerland. The firm focuses on businesses that have a strong competitive position in their target markets, are capital efficient and have an attractive long-term structural growth or profitability outlook.

UBS is present in all major financial centers worldwide. It has offices in more than 50 regions and locations, with about 30% of its employees working in the Americas, 30% in Switzerland, 19% in the rest of Europe, the Middle East and Africa and 21% in Asia Pacific. UBS Group AG employs more than 72,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).

1. Institutional Capital Network, Inc. and its affiliates (together, “iCapital”)

Contacts

iCapital Media Contact
Morgan Miller
919-602-2806
icapital@neibartgroup.com

UBS Media Contact
Erica Chase
212-713-1302
erica.chase@ubs.com

iCapital Market Pulse: Portfolio do’s and don’ts as the Fed hits the brakes

iCapital Market Pulse: Portfolio do’s and don’ts as the Fed hits the brakes

June 17, 2022 | iCapital

After a hawkish Fed meeting, investors are rightly worried about what rate hikes may mean for growth, and what that might mean for portfolio positioning. We still see a sustained growth slowdown–but not outright recession–as the most likely outcome, and recommend staying with a defensive portfolio stance, potentially integrating alternatives, for now at least.

The U.S. Federal Reserve’s June meeting was hawkish, but not a hawkish surprise for the markets, as an aggressive path of interest rate increases was already priced in.
 
By moving aggressively the Fed is restoring some credibility—with inflation this high, rates are far too low and need to be raised quickly. Especially while the economy is still strong and there is a window in which it can act decisively.
 
Importantly, the Fed seems to have updated the markets on its reaction function—its focus is on fighting headline Consumer Price Index (CPI) inflation (rather than just focusing on the core, which is declining) because this measure seems to be driving consumer expectations. That is why it is important it acts firmly to slow inflation because higher expectations could become entrenched. If inflation (headline or not) comes in hotter than expected, expect more decisive hikes.
 
All of this is not a consolation for the markets per se, but it at least goes some way towards restoring the Fed’s credibility and highlights its resolve in fighting inflation.

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Headroom in Tech Budgets Offers Long-term Upside for Private Capital

Headroom in Tech Budgets Offers Long-term Upside for Private Capital

June 13, 2022 | iCapital

 

Key takeaways from this white paper:

• Current valuations for tech providers may seem high, but the headroom for increases in corporate tech expenditures suggests that this is a long-term trend to stay invested in.

• Financial companies are leading corporate spending on technology, but investment from other sectors is surprisingly low. Taking finance as a benchmark and looking at upward trends in business IT budgets suggests there is the potential for sustained upside.

• As tech budgets increasingly focus on digital transformation, budgets for innovation are likely to continue to rise. Private capital is best placed to provide funding for these innovative sectors and to take advantage of the opportunity that these investments offer.

Read White Paper

 

Keynote: Q1 Market Commentary and Looking Forward to the Remainder of 2022 (iCapital)

Watch iCapital’s Blue Vault Bowman Alts Week 2022 keynote presentation, featuring Anastasia Amoroso (Managing Director, Chief Investment Strategist).

 

Alternative Investment Sponsors may be contributing members of Blue Vault, which could create potential conflicts of interest.  Blue Vault subscribers and followers should consider this in their review and analysis.  Information is intended only for institutional, broker dealer or registered investment adviser use.  This information is prohibited for use by the general public.

iCapital: Transforming Access to Alternative Investment Opportunities for Retail Investors

Watch iCapital’s Blue Vault Bowman Alts Week 2022 presentation, featuring Dan Vene (Co-Founder and Managing Partner, Head of Client Solutions).

 

Alternative Investment Sponsors may be contributing members of Blue Vault, which could create potential conflicts of interest.  Blue Vault subscribers and followers should consider this in their review and analysis.  Information is intended only for institutional, broker dealer or registered investment adviser use.  This information is prohibited for use by the general public.

Market Pulse: Rising chance of a soft-ish landing an opportunity for financials

Market Pulse: Rising chance of a soft-ish landing an opportunity for financials

June 8, 2022 | Anastasia Amoroso | iCapital

A combination of growth expectations remaining in positive territory, signs of inflation peaking, and the Fed’s apparent willingness to take a balanced approach to tightening collectively offer hope that we can avoid an economic crash landing. In this scenario, financials start to look like good value.

There has been relative calm in the markets lately. No one is particularly excited about chasing stocks higher near term given the precarious economic backdrop, but at the same time, no one is panicking about an imminent recession. The question is—is it a calm before a coming storm or could it last a while longer? We think the main reason for the relative peace of mind is a higher chance of a soft landing than previously perceived—and this could remain the case for weeks or even months. As a result, we see an opportunity in financial stocks as a cyclical trade that can perform as concerns about an end-of-cycle recession get pushed back and the benefits of rising rates ripple through into second quarter earnings.

A higher chance of avoiding a crash landing

What specifically has been giving the markets this peace of mind lately? Three things, all of which seem to show that, as narrow as a path is to a soft or “soft-ish” landing, there is a path.

First, growth is slowing but not falling off a cliff. Sure, GDP expectations have been revised down but they are not in negative territory yet. The 2022 consensus forecast is for growth to slow to 2.6% and fall marginally to 2.0% in 2023.1 And that might be precisely what is needed to cool the jobs market but avoid an outright contraction.

Second, there are signs that suggest inflation could be peaking. For one, this Friday the core Consumer Price Index is expected to come in at 5.9% in May vs 6.2% in April.2 Year-over-year wage growth cooled to 5.2% in May from 5.5% in April.3 The index of supply chain bottlenecks has shown definitive signs of easing and the return to relative normality in Shanghai should also help.4 Used car price growth is falling.5Lastly, businesses are finally flagging a pause in price rise intentions.6

(1) Source: Bloomberg, as of June 6, 2022.
(2) Source: Bloomberg, as of June 6, 2022.
(3) Source: Bloomberg, as of June 6, 2022.
(4) Source: Bloomberg, as of June 6, 2022.
(5) Source: Bloomberg, as of June 6, 2022.
(6) Source: Bloomberg, NFIB, as of June 6, 2022.

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iCapital Market Pulse: Parsing credit risk as rates rise and spreads widen

iCapital Market Pulse: Parsing credit risk as rates rise and spreads widen

June 2, 2022 | Anastasia Amoroso | iCapital

Anxiety about potential credit defaults has risen on the back of equity volatility, rate rises, credit spreads widening, and recessionary concerns. Thankfully, data on high yield and leveraged loan credit quality suggests borrowers are entering a volatile period from a position of relative strength, though investors should stay vigilant.

In recent weeks, as equities whipsawed, rates rose, and credit spreads widened, one question has kept coming up—how concerned should investors be about default risk in credit, especially among issuers that took on a lot of floating-rate debt?

In this week’s commentary, we look at the key metrics of health in high yield debt and leveraged loans. Bottom line—a slower economy and rising rates are sure to pinch some issuers, but by and large we believe strong corporate fundamentals and higher margins in sectors that relied on floating-rate debt should mitigate a surge in defaults.

Less about credit quality, more about macro sentiment

On the back of U.S. Federal Reserve (Fed) tightening and the accompanying rate volatility, credit markets have seen the greatest spread widening since 2020. So far this year, the spread on U.S. investment grade corporates (IG Corps) has widened 38bps to 130bps, with high yield (HY) and leveraged loan (Lev Loan) spreads also widening.1 A net 55% of IG and net 68% of HY investors expect spreads to widen further in the coming months.2 That said, spreads remain significantly below levels associated with recessions.3 For HY, for example, spreads would need to widen another 400bps to roughly 800bps before flashing a recessionary signal.4

(1) Source: Bloomberg, iCapital Investment Strategy, as of May 31, 2022.
(2) Source: BofA US Credit Investor Survey, as of May 12, 2022.
(3) Source: Bloomberg, iCapital Investment Strategy, as of May 31, 2022.
(4) Source: Bloomberg, Morgan Stanley, US Credit Strategy Mid-Year Outlook, as of May 19, 2022.

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iCapital® to Acquire SIMON Markets, a Leading Advisor Platform for Structured Investments, Annuities, and Risk-Managed Solutions

iCapital® to Acquire SIMON Markets, a Leading Advisor Platform for Structured Investments, Annuities, and Risk-Managed Solutions

May 25, 2022 | iCapital

iCapital1, the leading global fintech platform driving access and efficiency in alternative investing for the asset and wealth management industries, and SIMON Markets2, the award-winning3 fintech company offering a digital platform designed to help financial advisors understand and manage structured investments, annuities, and other risk-managed products, today announced they have entered into a definitive agreement under which iCapital will acquire SIMON. Joining these companies will meaningfully enhance the alternative investing experience for advisors and their clients.

SIMON is a preeminent technology platform facilitating structured investments and annuity products with more than $48 billion of issuances in 2021. Through deeply embedded technology, SIMON delivers integrations across 50 plus product manufacturers and 50 plus wealth managers – including the largest IBDs, bank/regional broker dealers and private banks, and more than 100 RIAs, as well as platform access to more than 100,000 advisors. SIMON brings transparency to the industry, streamlines workflows for advisors, and creates scalable distribution for product manufacturers.

“Today’s wealth management professionals seek a premium technology platform and access to a broader range of alternative investment strategies that provide thoughtful ways to diversify and potentially enhance long-term returns in client portfolios,” said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital. “SIMON is a recognized leader in structured investments and annuities offering an exceptional user experience and a distribution network of impressive depth and breadth. We are thrilled to welcome the highly accomplished SIMON team to iCapital with whom we share a mission to expand access and efficiency of alternative investing across the industry. This acquisition provides our advisors with a much more robust platform and suite of tools to help them pursue successful investment outcomes for their clients.”

Under the agreement, Jason Broder, Chief Executive Officer of SIMON, will join iCapital as Managing Director, Head of iCapital Solutions and member of the Operating Committee. In this capacity, he will oversee the combined platform’s integration, market development, and sales of iCapital’s full suite of technology offerings. Additionally, iCapital will extend offers of employment to the nearly 200 SIMON team members.

“We have long-admired iCapital and everything it has accomplished in the alternative investing space,” said Mr. Broder. “After a highly collaborative exploratory process over recent months, it became abundantly clear that together we can create an unrivaled experience for our clients and set the stage for iCapital’s continued expansion of investment opportunities and support services for advisors. Together we’re delivering something the wealth management industry has wanted for a very long time – access to all alternative solutions under one, centralized platform.”

Engaging Advisors with Educational and Analytical Resources

Developing industry knowledge has been a priority for iCapital since its founding. iCapital provides the wealth management community with comprehensive research, education, and portfolio analytics tools to support advisors in understanding alternatives and incorporating them into their practices. iCapital offers AltsEdge, AI Insight and iCapital Portfolio Intelligence alongside a robust library of articles with insights on market trends, various asset classes within alternatives, the mechanics of private investing, emerging product strategies and practice management.

SIMON has been a leader in the development of educational resources and analytical tools to further financial advisors’ understanding of structured investments, annuities, target return ETFs, and alternative investment solutions, including digital assets. With the acquisition, SIMON’s advisor education and analytical resources – which includes SIMON Spectrum, as well as an extensive video collection with interactive product training and a dashboard to track advisor progress, product training for all levels, and custom compliance tracking – will further build out iCapital’s already robust education and analytics capabilities.

“Everything we do is about setting advisors up for success, and we are enormously excited to integrate the robust offerings of SIMON into the iCapital suite of analytical and educational resources providing a comprehensive resource to support advisor efforts to drive positive client outcomes,” said Mr. Calcano.

The transaction is expected to close in the second half of 2022 after the necessary regulatory approvals have been granted. Terms of the agreement were not disclosed.

Morgan Stanley & Co. LLC and UBS Investment Bank are serving as financial advisors to iCapital. Goldman Sachs & Co. LLC is serving as the exclusive financial advisor to SIMON.

About iCapital

Founded in 2013 in NYC, iCapital is the leading global fintech company powering the world’s alternative investment marketplace. It has transformed the way the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions. Wealth management firms use iCapital’s solutions to provide clients with quality funds at lower minimums and simplified digital workflows. Asset managers, RIAs and banks leverage iCapital’s technology to streamline and scale their alternative investments operational infrastructure. Additionally, the iCapital ‘flagship’ platform offers wealth advisors and their high-net-worth clients access to a curated menu of private equity, private credit, hedge funds, structured investments, and other alternatives to help meet their investing needs for return and diversification. iCapital’s research and diligence team offers robust analysis alongside the firm’s extensive suite of advisor education, compliance, portfolio management, and portfolio analytics tools and services. iCapital was recognized on the Forbes FinTech 50 list in 2018, 2019, 2020 and 2021, the Forbes America’s Best Startup Employers in 2021, and MMI/Barron’s Industry Awards as Solutions Provider of the Year in 2020 and 2021. As of April 30, 2022, iCapital services more than US$125 billion in global client assets, of which more than US$30 billion are from international investors (non-US Domestic), across more than 1,000 funds. Employing more than 800 people globally, iCapital is headquartered in NYC and has offices worldwide including in Zurich, London, Lisbon, Hong Kong, Singapore, and Toronto.

For additional information, please visit the iCapital website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork

See disclosures here.

About SIMON

Launched in 2018, SIMON helps financial advisors build the portfolio of tomorrow by giving them access to more investment opportunities. The SIMON platform offers a marketplace for risk-managed and alternative solutions, including structured investments, annuities, and traditional and progressive alternatives. With education and analytics breaking down the complexity inherent in these products, and a centralized workflow for lifecycle management, financial advisors can learn, transact, and manage client portfolios with confidence.

Over 100,000 financial professionals with $5 trillion in combined client assets turn to SIMON to stay ahead in an ever-evolving investment landscape. SIMON is an independently operating fintech company with backing from market participants Barclays, Citi, Credit Suisse, Goldman Sachs, HSBC, J.P. Morgan, Prudential, and Wells Fargo, and growth equity firm WestCap. To learn more about SIMON, visit www.simon.io and follow the company on Instagram, LinkedIn, and Twitter.

Securities products and services offered by SIMON Markets LLC, a broker-dealer registered with the SEC, Member FINRA / SIPC. Annuities and insurance services provided by SIMON Annuities and Insurance Services LLC.

iCapital Media Contacts
Morgan Miller / Emma Murphy
919-602-2806 / 347-968-6800
icapital@neibartgroup.com

SIMON Media Contact
Francie Rawson
877.317.4666
francie@simonmarkets.com

(1) Institutional Capital Network, Inc. and its affiliates (together, “iCapital”)
(2) SIMON Markets, LLP., and its affiliates (together, “SIMON”)
(3) 2021 SRP Americas Award Winner “Best Issuance Platform” and “Best Technology Platform”

 

Griffin Capital Partners with iCapital to Make Qualified Opportunity Zone Fund Investment Offerings More Accessible to Financial Advisors and Their Investors

Griffin Capital Partners with iCapital to Make Qualified Opportunity Zone Fund Investment Offerings More Accessible to Financial Advisors and Their Investors

May 11, 2022 | Griffin Capital Company, LLC

Griffin Capital Company, LLC (“Griffin Capital”), a leading alternative investment manager based in El Segundo, California, has announced a partnership with iCapital, the leading global fintech platform driving access and efficiency in alternative investing for the asset and wealth management industries, to make Griffin Capital Opportunity Zone Fund investment offerings more accessible to financial advisors and their high-net-worth clients via iCapital’s technology and service offering.

Financial advisors will now be offered Griffin’s Opportunity Zone Fund investing expertise and strategies alongside iCapital’s education, technology, and investment administration capabilities.

“We look forward to working with a network of deeply experienced wealth advisors, and recognize the value and importance that iCapital’s technology and service provide our mutual clients. It is one thing to have a great strategy and differentiated approach, but if you can combine that with a technology and service platform that enables ease of use to facilitate broader access, that is a combination that can be extremely additive to all stakeholders,” commented Nick Rosenthal, Managing Director of Advisor Solutions at Griffin Capital.

“Since 1995, our focus has been to serve our investors and our partners. We view our partnership with iCapital as accretive to that mission as iCapital is a market leader in removing the operational friction points to make for a more positive experience.”

“We are thrilled to see Griffin Capital utilizing the iCapital technology solution to provide efficient and secure access to their alternative investment products,” said Lawrence Calcano, Chairman and CEO of iCapital. “We share their ambition of removing the roadblocks that have traditionally hindered access to financial advisors and their high-net-worth clients and providing a complete investment experience.”

About Griffin Capital Company, LLC

Griffin Capital (the “Company”) is a leading alternative investment asset manager headquartered in El Segundo, California. Founded in 1995, Griffin Capital has owned, managed, sponsored or co-sponsored investment programs encompassing approximately $22 billion in assets.1 The Company’s senior executives and employees have co-invested over $300 million in various investment verticals, aligning Griffin Capital’s interest with those of its investors. The Company leverages the breadth and depth of its cycle-tested investment management teams to capitalize on long-term economic trends and secular growth opportunities in the real estate sector through direct investment strategies.

1.Includes estimated total project costs for assets under construction.

Stormy weather an opportune climate for private equity investment

Stormy weather an opportune climate for private equity investment

May 11, 2022 | Anastasia Amoroso| iCapital

With the stock market volatile and continuing to slide, and fixed income only selectively offering protection, investors are scrambling for alternatives. Historical data suggests a downturn might be just the time to target private equity and venture capital funds.

Equities have been on a wild ride since the start of the year, unfortunately far more down than up. Falls have been sharp and rallies have been brief. This has only intensified of late, with the S&P 500 has recorded three daily declines exceeding 3% since April 29.The index is down more than 16% year-to-date, with the Nasdaq falling even more sharply, off 25% over the same period.2 And though we see some value starting to emerge in pockets of fixed income such as short dated municipal bonds, fixed income as a whole has offered little shelter from the equity slump so far in 2022.3 Indeed, there are signs that we may be entering a new market paradigm, wherein stocks and bonds are actually positively correlated, reversing a two-decade-long negative correlation.4

So the question for investors is, where might be a port in this market storm? Investors with a longer time horizon might want to consider allocating to private equity (PE) and venture capital (VC), for which a downturn may actually be a very good time to invest.5

(1) Source: Investing.com, as of May 10, 2022.
(2) Source: Bloomberg, as of May 10, 2022.
(3) Source: Bloomberg, as of May 10, 2022.
(4) Source: PGIM, “US stock-bond correlation: what are the macroeconomic drivers?”, May 6, 2021.
(5) Source: PitchBook, as of May 10, 2022.

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CION Investments, Man Group, and iCapital Partner to Scale Alternative Investing Access

CION Investments, Man Group, and iCapital Partner to Scale Alternative Investing Access

May 10, 2022 | CION Investments

CION Investments (CION), a leading manager and distributor of alternative investment solutions, and Man Group, a global active asset manager with $151.4 billion1 in AUM, announced today that they have partnered with iCapital2, the leading global fintech platform driving access and efficiency in alternative investing for the asset and wealth management industries.

CION and Man Group are teaming up to create unique, scalable, and accessible investment solutions offered through a joint venture partnership, CION Man Management (CMM). CMM pairs Man Group’s origination, operational, and asset management expertise and CION’s investment acumen, retail product management and distribution experience. The initial collaboration began with Man Global Private Markets (Man GPM), Man Group’s private markets business.

CMM will leverage iCapital’s customized technology, services platform, and diligence solutions for financial advisors and their high-net-worth clients seeking access to alternative strategies.

“Advisors are responding to the changing, more volatile economic landscape by incorporating alternatives in their client portfolios. Products that simplify access to institutional-caliber investments and managers are seeing increased demand,” said Michael A. Reisner, co-Chief Executive Officer, CION Man Management.

iCapital has transformed how wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions that digitize the subscription, administration, operational and reporting processes of alternative investing.

“We are pleased to support CION and Man Group in their venture to meet the needs of advisors for accessible alternative investments,” said Lawrence Calcano, Chairman and CEO of iCapital. “As the industry continues to expand, tech-forward, scalable solutions will support increased appetite.”

ABOUT CION INVESTMENTS

CION Investments is a leading manager of alternative investment solutions designed to redefine the way individual investors can build their portfolios and help meet their long-term investment goals.

CION Investments currently sponsors CION Investment Corporation (NYSE: CION), a leading publicly listed business development company that currently manages approximately $1.8 billion in assets, and also sponsors, through CION Ares Management, CION Ares Diversified Credit Fund, a globally diversified interval fund that currently manages approximately $3.1 billion in assets. CION Investments has also partnered with the Man Group to create unique, scalable, and accessible investment solutions.

For more information, please visit www.cioninvestments.com.

ABOUT MAN GPM

Man Global Private Markets (Man GPM) is the private markets business of Man Group. Man GPM is focused on investing in real and corporate assets in differentiated markets with high barriers to entry. We have long-standing experience in residential real estate and private credit and seek to deliver attractive risk-adjusted returns to clients globally.

Our specialist investment teams in the US and UK have deep local market expertise, with established track records in building and managing large-scale real estate and credit businesses. Operating from New York, Charlotte, North Carolina and London, Man GPM’s funds under management were $3.7 billion including committed capital at March 31, 2022, across commingled, separately managed accounts and joint venture structures. For more information, visit www.man.com/gpm.

ABOUT MAN GROUP

Man Group is a global, technology-empowered active investment management firm focused on delivering alpha and portfolio solutions for clients. Headquartered in London, the firm manages $151.4 billion* and operates across multiple offices globally.

Man Group invests across a diverse range of strategies and asset classes, with a mix of long only and alternative strategies run on a discretionary and quantitative basis, across liquid and private markets. The firm’s investment teams work within Man Group’s single operating platform, enabling them to invest with a high degree of empowerment while benefiting from the collaboration, strength and resources of the entire firm. Man Group’s platform is underpinned by advanced technology, supporting our investment teams at every stage of their process, including alpha generation, portfolio management, trade execution and risk management.

Man Group plc is listed on the London Stock Exchange under the ticker EMG.LN and is a constituent of the FTSE 250 Index. Further information can be found at www.man.com.

* As of March 31, 2022. All investment management and advisory services are offered through the investment “engines” of Man AHL, Man Numeric, Man GLG, Man Solutions / FRM and Man GPM.

1 As of March 31, 2022
2 Institutional Capital Network, Inc. and its affiliates (together, “iCapital Network” or “iCapital”)
 
Contact
For more information:

Alex Cavalieri
Head of Marketing & Strategy
E: acavalieri@cioninvestments.com

Fresh off a $440 million raise, iCapital CEO Lawrence Calcano is ready to dream the impossible–to unite the alts industry in order to dominate it– despite doubters who say it’s a proven exercise in futility

Fresh off a $440 million raise, iCapital CEO Lawrence Calcano is ready to dream the impossible–to unite the alts industry in order to dominate it– despite doubters who say it’s a proven exercise in futility

April 21, 2022 | Oisin Breen | RIABiz

Venture anchored by BlackRock, Blackstone, KKR, Apollo and the Carlyle Group may realize a dominant role by releasing a lingua franca to eradicate data protocol fragmentation.

Lawrence Calcano built iCapital into a $6-billion company by finding a way to sell alternative investments (alts) in a Rubik’s cube market where colors in the data rarely match up.

Now, the chairman and CEO is intent on leveraging his financial capital ($440 million just raised), political capital and critical mass ($112-billion of AUA) to solve the puzzle in a way that works for all investors in the private investments universe.

The iCapital idea is to create real order in the form of frictionless throughput trading by getting hedge funds and private equity firms to agree on one standard for coding, codifying and just calling things what they are across all alts investments.
The journey could hardly have a more alluring destination — to “own” and collect fees from the sale and management of high-margin assets that measure in the trillions of dollars.

iCapital’s ace in the hole is the large a block of influential investment firms — BlackRock, Blackstone, Apollo Group, Morgan Stanley KKR, and the Carlyle Group — that are among those already pledged to abide by a protocol, seasoned by the concept of “coopetition.”

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iCapital Market Pulse: Amid renewed Fed hawkishness recession risks might be worth hedging

iCapital Market Pulse: Amid renewed Fed hawkishness recession risks might be worth hedging

April 7, 2022 | Anastasia Amoroso

The FOMC minutes suggest a more hawkish approach than markets have priced in and the risk of a consumer-led recession is rising. Equity returns are therefore likely to be muted at best over the coming year, and we continue to advise layering in some hedges and adopting a more defensive portfolio stance.

Enjoy the rally, but perhaps don’t get too comfortable with it—that was our message of caution last week. And this week has illustrated why investors need to adopt a more defensive stance. There are two main reasons: first, the U.S. Federal Reserve (Fed) is going to be a persistent headwind for equities for the time being and, second, rising recession probabilities are not yet priced in.

Parallels to the seventies do not bode well for equities
Just when the markets seemed convinced that they had priced in maximum hawkishness from the Fed—with the Fed funds rates expected/projected to rise to 2.5% by the end of 20221—it has signaled it will do more. This week, the Federal Open Market Committee minutes revealed the Fed’s intention to start using balance runoff and quantitative tightening (QT) tools as soon as its May meeting, somewhat sooner than markets expected. Notably, the minutes allowed for the sale of T-bills if the maturities in certain months were below certain caps and discussed outright sales of mortgage-backed securities once the runoff is well under way.2 As long as inflation is elevated and shows no signs of abating, the risk from a market perspective is that the Fed will err on the hawkish side. So, for the time being, expect the Fed to be a persistent headwind to equities at best. At worst, it risks repeating the 1970s.

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UBS, Envestnet and iCapital Announce Launch of Alternatives Exchange Platform Offering Expanded Access to Alternative Investment Strategies and Education

UBS, Envestnet and iCapital Announce Launch of Alternatives Exchange Platform Offering Expanded Access to Alternative Investment Strategies and Education

March 31, 2022 | iCapital

UBS (NYSE: UBS), Envestnet (NYSE: ENV), and iCapital1 today announced that the Alternatives Exchange is now live, providing private market investment opportunities to Envestnet’s client base with more than 35 funds available from managers across geographies and strategies. Users of Envestnet’s Alternatives Exchange will now also have access to the AltsEdgeTM Certificate Program, the award-winning2 educational initiative jointly created by iCapital and Chartered Alternative Investment Analyst (CAIA) Association to help advisors build their knowledge of the alternative investment space and how this asset class can potentially benefit their clients.

The expansion of the Alternatives Exchange comes at a time when high-net-worth (HNW) investors are increasingly looking to diversify into alternative investments.  According to “The Future is Private – Unlocking the Art of Private Equity in Wealth Management,” HNW individuals are expected to increase their private equity investments by a compound annual growth rate of nearly 19%, with global HNW investor commitments to private equity rising to $1.2 trillion by 2025.

“With the increased demand for alternative investments from HNW and ultra-high-net-worth investors accelerating, the Alternatives Exchange will help us broaden our distribution network and provide clients with curated products to meet their evolving needs,” said Jerry Pascucci, Head of Global Alternative Investment Solutions, Global Wealth Management, at UBS. “Advisors best serve their clients when they have access to the latest tools, educational resources and wide spectrum of investment solutions.”

“As inflation, yields and spreads rise, advisors continue to look for diversified investment options for their clients to help keep their portfolios on track to meet their goals and achieve an intelligent financial life,” said Dana D’Auria, Co-Chief Investment Officer of Envestnet. “Our partnership through the Alternatives Exchange empowers advisors with not only research, but easy access to alternative investment solutions in multiple categories – providing clients with a broader and more complete range of solutions through the Envestnet platform.”

“Creating access to alternative investments for advisors and clients has to start with making the experience much easier. We are thrilled that Envestnet has chosen to leverage iCapital’s turnkey technology to furnish the infrastructure powering the Alternatives Exchange and provide their advisors access to UBS and iCapital diligenced investment strategies,” said Lawrence Calcano, Chairman and CEO of iCapital. “The addition of the AltsEdgeTM advisor education program will offer those new to alternatives the requisite tools to help their clients successfully incorporate these investments to their portfolios.”

With the Alternatives Exchange, powered by iCapital technology, subscription and client servicing processes throughout the entire investment lifecycle are fully automated, eliminating operational difficulties and the traditional manual, paper-based practice advisors and their clients have historically faced with this asset class. Additionally, advisors and their clients benefit from centralized document management with full transparency and comprehensive, streamlined reporting holistically integrated into the Envestnet and Tamarac platforms.

The AltsEdgeTM Certificate Program is a comprehensive program with guided modules covering the private markets, various strategies and product structures, hedge funds, registered funds, and portfolio construction. The interactive modules, which provide advisors with foundational knowledge through practical considerations in employing alternatives, are hosted on a best-in-class learning management system that includes the opportunity to earn continuing education (CE) credits.

About UBS

UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. UBS is the largest truly global wealth manager, and a leading personal and corporate bank in Switzerland, with a large-scale and diversified global asset manager and a focused investment bank. The bank focuses on businesses that have a strong competitive position in their targeted markets, are capital efficient, and have an attractive long-term structural growth or profitability outlook.

About Envestnet

Envestnet refers to the family of operating subsidiaries of the public holding company, Envestnet, Inc. NYSE: ENV). Envestnet is transforming the way financial advice and wellness are delivered. Our mission is to empower advisors and financial service providers with innovative technology, solutions, and intelligence to make financial wellness a reality for everyone. Over 108,000 advisors and more than 6,000 companies including: 18 of the 20 largest U.S. banks, 47 of the 50 largest wealth management and brokerage firms, over 500 of the largest RIAs and hundreds of FinTech companies, leverage Envestnet technology and services that help drive better outcomes for enterprises, advisors, and their clients.

For more information on Envestnet, please visit www.envestnet.com, subscribe to our blog, and follow us on Twitter (@ENVintel) and LinkedIn.

About iCapital

Founded in 2013 in NYC, iCapital is the leading global fintech company powering the world’s alternative investment marketplace. It has transformed the way the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions. Wealth management firms use iCapital’s solutions to provide clients with quality funds at lower minimums and simplified digital workflows. Asset managers, RIAs and banks leverage iCapital’s technology to streamline and scale their alternative investments operational infrastructure. Additionally, the iCapital ‘flagship’ platform offers wealth advisors and their high-net-worth clients access to a curated menu of private equity, private credit, hedge funds, structured notes, and other alternative investments to help meet their investing needs for return and diversification. iCapital’s research and diligence team offers robust analysis alongside the firm’s extensive suite of advisor education, compliance, portfolio management, and portfolio analytics tools and services. iCapital was recognized on the Forbes FinTech 50 list in 2018, 2019, 2020 and 2021, the Forbes America’s Best Startup Employers in 2021 and 2022, and MMI/Barron’s Industry Awards as Solutions Provider of the Year in 2020 and 2021. As of February 28, 2022, iCapital services more than US$115 billion in global client assets, of which US$28 billion are from international investors (non-US Domestic), across more than 970 funds. Employing more than 750 people globally, iCapital is headquartered in NYC and has offices worldwide including in Zurich, London, Lisbon, Hong Kong, Singapore, and Toronto.

For additional information, please visit the iCapital website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork

See disclosures here.

Media Contacts:

UBS
Erica Chase
212-713-1302
erica.chase@ubs.com

Envestnet
Dana Taormina, JConnelly
973-647- 4626
envestnetpr@jconnelly.com

iCapital
Emma Murphy / Morgan Miller
+ 1 347-968-6800 / + 1 919-602-2806
icapital@neibartgroup.com

Product-related questions :
UBS
www.ubs.com/independentadvisorsolutions
1-833-827-1010

J.P. Connellan
joseph.connellan@ubs.com

Melanie Warner
melanie.warner@ubs.com

(1) Institutional Capital Network, Inc. and its affiliates (together, “iCapital Network” or “iCapital”)
(2) Barron’s/MMI 2021 Industry Award Winner, Thought Leadership/Education

Actionable Insights: It’s back to the future on a return to the tech trade

Actionable Insights: It’s back to the future on a return to the tech trade

March 29, 2022 | Anastasia Amoroso | iCapital

A valuation reset has underpinned a tech stock rebound in recent weeks. We would advise staying with the momentum for now, as historical precedent and seasonality suggest it may have some room to run, but rising one-year recession probabilities argue for layering in some hedges.

We are back from spring break and the Nasdaq is back from its March 14 lows, rallying 14.1% higher.1 Outperforming that, unprofitable tech jumped 32.2% and NYFANG stocks rose 24.6% over the same period.2 We highlighted in our last note on March 17 the reasons why we expected a further tactical bounce and advised adding exposure to the Nasdaq.
 
The tech trade, including speculative tech (“spec tech”), has been working again. Why is this? And will it last? We do think the Nasdaq could continue to be a near-term catch-up trade—it is still down 8.3% year-to-date versus a 4.0% decline for the S&P 500.3 Investors should not exit this rally too early, but we’d definitely take advantage of lower volatility to layer in some hedges.

Why tech rebounded and why it could continue
Two factors have been driving tech higher in recent weeks.

First is short-covering activity.4 We wrote in early February that shorts were elevated in spec tech trades and a rally could trigger a wave of short covering that would in turn amplify the rally.

The second factor is individual investors buying the dip. According to JPMorgan, last week retail traders bought a net $5.6 billion—a standard deviation of 1.6 above the 12-month average of $3.3 billion, with notably strong inflows into Nasdaq 100 stocks.5

This begs the question, why tech versus anything else? Well, in a highly uncertain economic environment you first buy things in which you have a really high long-term conviction. For most people, that would be tech. But more broadly, we see three main market drivers for the rebound:

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Actionable Insights: Three things to watch to find the market bottom

Actionable Insights: Three things to watch to find the market bottom

March 9, 2022 | Anastasia Amoroso | iCapital

It is too soon in our view to call a market bottom given heightened geopolitical and economic uncertainty. A turnaround will require the emergence of positive growth catalysts and for certain measures of market sentiment to shift. For now, patience and selectivity are the watchwords.

Last week, U.S. Federal Reserve (Fed) Chair Jerome Powell struck a more cautious tone on monetary policy during his semiannual Congressional testimony, in light of developments in Ukraine. A 50bp rise in interest rates in March was taken off the table, with 25bps all but assured.1 The markets cheered—at least for one day. Payrolls came in above consensus, with a solid 678,000 jobs added in February despite the recent market turmoil2, suggesting strength in the underlying economy. However, even together these developments are not yet enough to turn the tide of negativity.

In this week’s commentary, we discuss why we think it is not yet time for an all-clear signal in markets and share three things we are watching to identify a bottom.

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iCapital Brokers Deal to Buy Stifel’s Feeder Fund Platform

iCapital Brokers Deal to Buy Stifel’s Feeder Fund Platform

March 11, 2022 | Private Banker International

Financial technology firm iCapital Network has finalised a deal to buy alternative investment feeder fund platform from Stifel Financial.

Financial terms of the deal were not disclosed. The transaction is expected to close later this quarter.

Stifel’s feeder fund platform facilitates the distribution of an array of hedge fund strategies.

Following the transaction, iCapital will provide its white label technology to manage and automate and the onboarding, subscription processing and lifecycle operations of Stifel feeder funds.

Furthermore, the firm will also support advisors and their high-net-worth (HNW) investors Stifel.

Stifel will remain responsible for sourcing alternative investments for its clients and offering them guidance on the role of alternative investments within a diversified investment strategy.

Investors in these funds will remain as Stifel’s customers.

iCapital CEO and chairman Lawrence Calcano said: “Stifel is an industry leader and iCapital is honored to be entrusted with the management of their feeder fund business.

“We are grateful for the industry’s adoption of our technology as the standard alternative investing operating system, which provides a best-in-class digitalised investing experience.”

As part of the deal, Stifel’s employees who currently support operations for the feeder fund platform will join iCapital. This team will remain responsible for supporting the fund portfolio.

Stifel senior managing director Tom Lee said: “We look forward to expanding our partnership with iCapital to continue offering our clients access to high-quality alternative investment opportunities on an updated platform that offers increased transparency and streamlined workflows.

“After careful consideration, we concluded the iCapital technology and team are best qualified to take over the ongoing service of our feeder fund platform.”

In December last year, iCapital secured a $50m investment in a funding round to enhance its platform technology, bolster the breadth of strategies and product types on its alternative investment menu.

Actionable Insights: Bitcoin proves its mettle during Russian financial turmoil

Actionable Insights: Bitcoin proves its mettle during Russian financial turmoil

March 2, 2022 | Anastasia Amoroso | iCapital

A pivotal geopolitical moment may also have been a pivotal one for the cryptocurrency ecosystem. Under pressure from governments, cryptocurrency platforms stood firm as independent, decentralized, and safe from central authority interference.

The period we are living through now is going to be remembered for a long time. And there is a good chance it will be seen as a significant geopolitical inflection point. Last week we wrote how Russia’s invasion of Ukraine will spur: the country’s financial isolation (unless the regime drastically changes); a major acceleration of measures to improve energy security, via investments in both clean energy and domestic oil and gas production; and a sharpened focused on cybersecurity. This week another secular shift is in the making—the testing and validation of Bitcoin as a haven.

Here is how. On the back of Russian President Vladimir Putin’s actions, the ruble lost 27% of its value from last Thursday to this Tuesday1, Standard & Poor’s cut Russia’s credit rating to junk2, the country’s default probability rose to 56%3, and there were queues to get money out of Russia’s banks. Unfortunately, reports suggest that some forex ATMs exhausted their supply of foreign currency.4 Mr. Putin issued a presidential decree banning residents of Russia from transferring foreign currency to accounts opened with banks located outside the country’s territory effective March 1.5

Amid this turmoil, Bitcoin rose nearly 15% from Monday morning to Tuesday afternoon.6

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iCapital Network® Named Solutions Provider of the Year for Second Consecutive Term in 2021 MMI/Barron’s Industry Awards

iCapital Network® Named Solutions Provider of the Year for Second Consecutive Term in 2021 MMI/Barron’s Industry Awards

November 15, 2021 | iCapital Network

iCapital Network1, the leading global financial technology platform driving access and efficiency in alternative investing for the asset and wealth management industries, announced today it has been honored as the winner in the 2021 MMI/Barron’s Industry Awards in two categories: Solutions Provider of the Year and Thought Leadership/Education.

The MMI/Barron’s Industry Awards highlights firms in 12 categories overall that exemplify innovation and leadership in the investment advisory solutions industry.

“Being recognized by MMI, Barron’s, and our peers for the second year – and in two categories – is an honor. Wealth managers are seeing a growing appetite for alternatives from clients, and we are proud to provide comprehensive award-winning solutions for the industry to meet the demand thoughtfully and efficiently,” said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital Network. “On behalf of the entire iCapital team, I would like to thank MMI/Barron’s and all of our fellow nominees who are playing an important role in developing innovative initiatives to advance the wealth management industry.”

Solutions Provider of the Year

iCapital secured top honors for the second consecutive year as Solutions Provider of the Year for exemplifying “innovation in delivering better outcomes for investors and financial advisors.”

The iCapital platform offers a seamless, digitally enabled, end-to-end alternative investing experience. Leading wealth management firms, family offices, private banks, asset managers, transfer agents, administrators, and custodians integrate iCapital’s technology infrastructure, creating an intuitive investment experience for the wealth management industry and the HNW clients it serves. Additionally, the firm’s customized digital solutions offer asset managers, banks, and wealth management firms the opportunity to leverage iCapital’s technology and services to scale and reach new sources of capital.

Thought Leadership/Education

iCapital also won top honors in the Thought Leadership and Education category for AltsEdgeTM, an alternative investing education program for wealth advisors developed by iCapital and CAIA Association.

Launched in February 2021, AltsEdge offers financial advisors research-based modules to prepare advisors to optimize the use of alternatives in client portfolios. The AltsEdge program consists of ten guided modules covering an overview of the private markets, various types of strategies and product structures, hedge funds, registered funds, and portfolio construction. The modules, which progress the advisor from foundational knowledge through the practical considerations in employing alternatives, are hosted on a learning management system that includes in-program learning assessments and the opportunity for continuing education (CE) credits. The program has been adopted by many of iCapital global distribution clients and has been highly effective as a foundational resource to build alternatives expertise among their advisor bases.

“This recognition is a testament to our mission at iCapital. Our incredible team and partners work relentlessly to ensure that the solutions and education we offer meet the needs of advisors and their clients,” said Dan Vene, Co-Founder and Head of Client Solutions at iCapital Network. “We are extremely appreciative of the acknowledgment of the value we bring the market.”

The winners were announced at the 2021 MMI Annual Conference on November 11. Finalists were reviewed by the specially appointed MMI Industry Awards Steering Council and by the MMI Membership Experience Committee (MEC). Nominees were evaluated based on their “innovative, needle-moving programs and initiatives that measurably advance the investment advisory solutions industry and deliver improved outcomes for financial advisors and investors.” Award winners in each category were determined by a vote of MMI member firms.

About the MMI/Barron’s Industry Awards Program:

Nominations were reviewed and evaluated by a specially appointed MMI Industry Awards Steering Council and the MMI Membership Experience Committee (MEC). The council and committee members represent all segments of the MMI membership—asset managers, wealth managers and solutions providers. The Steering Council and MEC reviewed the nominations based on:

• Level of innovation and forward-thinking

• Potential to effect noticeable change in the investment advisory industry

• Advancement of existing investment advisory practices and protocols

• Potential to deliver improved outcomes for financial advisors and investors

After carefully reviewing the nominations submitted, the Steering Council and MEC determined a slate of finalists in each award category. The primary contacts at each of MMI’s 182 members firms were eligible to vote to determine the winners in each category.

About Money Management Institute (MMI)

Established in 1997, the Money Management Institute (MMI) is the industry association representing financial services firms that provide financial advice and investment advisory solutions to investors. MMI is driven by our promise of increasing connections, knowledge, and growth for our members. We are dedicated to fostering professional relationships, sharing experiences, and expanding the industry’s influence through advocacy and education. MMI offers premier professional development programs, specialized curriculums, and facilitates peer-to-peer connections through our communities and conferences. As part of our longstanding commitment to diversity and inclusion, the Gateway Foundation provides clear pathways to entry and career advancement in the financial services industry for historically excluded and underrepresented groups. MMI member firms include wealth manager, asset manager and solutions provider firms of all sizes and professionals representing all functional areas.

About iCapital Network

Founded in 2013 in NYC, iCapital Network is the leading global financial technology company powering the world’s alternative investment marketplace. It has transformed the way the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions. Wealth management firms use iCapital’s solutions to provide clients with quality funds at lower minimums and simplified digital workflows. Asset managers and banks leverage iCapital’s technology to streamline and scale their private investments operational infrastructure. Additionally, the iCapital ‘flagship’ platform offers financial advisors and their high-net-worth clients’ access to a curated menu of private equity, private credit, hedge funds, and other alternative investments to help meet their investing needs for return and diversification. iCapital’s research and diligence team offers robust analysis alongside the firm’s extensive suite of advisor education, compliance, portfolio management, and portfolio analytics tools and services. iCapital was recognized on the Forbes FinTech 50 list in 2018, 2019, 2020 and 2021, the Forbes America’s Best Startup Employers in 2021, and MMI/Barron’s Industry Awards as Solutions Provider of the Year in 2020. As of September 30, 2021, iCapital services more than $93 billion in global client assets across more than 819 funds. Employing more than 555 people globally, iCapital is headquartered in NYC and has offices in Zurich, London, Lisbon, Hong Kong and Singapore.

For additional information, please visit iCapital Network’s website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork

See disclosures here.

Media Contact

Emma Murphy / Morgan Miller
icapital@neibartgroup.com
Cell: +1 347-968-6800 / Cell: +1 919-602-2806

(1) Institutional Capital Network, Inc. and its affiliates (together, “iCapital Network” or “iCapital”)

 

iCapital Network® to Acquire Axio Financial, a Leading Service Provider to the U.S. Structured Notes Market

iCapital Network® to Acquire Axio Financial, a Leading Service Provider to the U.S. Structured Notes Market

Strengthens commitment to financial advisor education

September 22, 2021 |  iCapital Network

 iCapital Network1, the leading global financial technology platform driving access and efficiency in alternative investing for the asset and wealth management industries, and Axio Financial LLC (Axio), a leading end-to-end service provider to the U.S. structured notes market, today announced they have entered into a definitive agreement under which iCapital will acquire Axio. The acquisition will expand iCapital’s menu of alternative investment strategies, technology stack, educational offerings, and support services for financial advisors. It will also enhance iCapital’s distribution capabilities to support fund managers. Today, iCapital services more than $86 billion in global client assets across more than 790 funds.

Founded in 2010, Axio provides financial advisors with support in the evaluation, selection, and purchase of structured notes to complement the investment portfolios of their clients. Axio’s full-service solution is integrated with the industry’s leading domestic and international bank issuers of structured notes and various ecosystem providers. Axio leverages real-time data, analytics, and reporting interfaces to meet the diverse requirements related to the full structured note lifecycle. In addition, Axio serves both issuers and financial advisors with customized and knowledgeable distribution support fueled by state-of-the-art CRM technology.

In the US, more than $72 billion in structured notes were issued in 2020, an increase of 36% as compared to the prior year2, with 2021 issuances expected to reach $86 billion.3 Axio is expected to exceed $9 billion in issuances in 2021.

“iCapital is committed to being the single, comprehensive source for financial advisors seeking alternative investment opportunities to optimize portfolio performance. Advisors considering structured notes for their high-net-worth clients need best-in-class access, education, consultative support and enabling technology such as iCapital provides for other alternative offerings.  Axio’s position as a leader in this market makes them an ideal enhancement to our already robust platform and product offerings,” said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital Network. “We are thrilled to welcome the talented Axio team to iCapital.”

Under the agreement, Marc Paley, CEO, and the entire Axio team will join iCapital.  As Managing Director, Head of Distribution, Marc will report to Mr. Calcano, and maintain his responsibilities as leader of the Axio team, providing advisors with comprehensive support in their consideration of structured notes as well as iCapital’s full menu of alternative investments.

Similar to other alternative investments, structured notes require thorough advisor education and support alongside technology that eases access, which iCapital will continue to provide and enhance within the framework of its end-to-end alternatives platform.

“The Axio team is excited about the intuitive synergies and the common purpose driving both Axio and iCapital, and we’re thrilled to combine our efforts to serve financial advisors and their clients,” said Marc Paley, CEO of Axio. “I look forward to working together to integrate and continue to achieve our objectives.”

iCapital’s purchase of Axio is the most recent step in the firm’s commitment to expand the scope of strategies and product types available on its alternative investment platform and enhance platform technology to serve wealth advisors and their clients. This month, iCapital announced that financial advisors would have access to digital currencies on the iCapital platform through a partnership with Grayscale Investments. Earlier this year, iCapital completed its acquisition of AI Insight to bolster its Alternative Investments education and compliance offerings for financial advisors.

In February, it also announced a partnership with the Chartered Alternative Investment Analyst (CAIA) Association, to launch AltsEdgeTM, a comprehensive education initiative designed to help advisors better understand alternative investments and how they can leverage these products via a series of guided modules.  iCapital continues to look for opportunities and resources to help advisors expand their mastery of complex products and offer tools to help integrate them into client portfolios.

The transaction is expected to close in Q4 2021 after receipt of necessary regulatory approvals. Terms of the agreement were not disclosed.

About iCapital Network

Founded in 2013 in NYC, iCapital Network is the leading global financial technology company powering the world’s alternative investment marketplace. It has transformed the way the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions. Wealth management firms use iCapital’s solutions to provide clients with quality funds at lower minimums and simplified digital workflows. Asset managers and banks leverage iCapital’s technology to streamline and scale their private investments operational infrastructure. Additionally, the iCapital ‘flagship’ platform offers financial advisors and their high-net-worth clients’ access to a curated menu of private equity, private credit, hedge funds, and other alternative investments to help meet their investing needs for return and diversification. iCapital’s research and diligence team offers robust analysis alongside the firm’s extensive suite of advisor education, compliance, portfolio management, and portfolio analytics tools and services. iCapital was recognized on the Forbes FinTech 50 list in 2018, 2019, 2020 and 2021, the Forbes America’s Best Startup Employers in 2021, and MMI/Barron’s Industry Awards as Solutions Provider of the Year in 2020. As of August 30, 2021, iCapital services more than $86 billion in global client assets across more than 790 funds. Employing more than 550 people globally, iCapital is headquartered in NYC and has offices in Zurich, London, Lisbon, and Hong Kong.

For additional information, please visit iCapital Network’s website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork

See disclosures here.

About Axio Financial

Axio provides customized value-added services throughout the full Structured Note lifecycle from idea generation through maturity or secondary market trade. Axio specializes in providing calendar and custom structured notes optimized for today’s low yield environment, empowering RIAs in their efforts to maximize client portfolio return and diversification.  Founded in 2010, Axio couples traditional, in-person support practices with technology to drive increased outreach, product education and awareness. Leveraging its sales acceleration platform and proprietary data profiles on 300k+ financial advisors in the United States, Axio identifies and builds personal client relationships while simultaneously decreasing the cost of distribution.  Axio employs nearly 80 people across the United States, with headquarters in New York and offices in Delray Beach, Florida and Toronto, Canada.

Advisors

Ardea Partners LP is serving as financial advisor to Axio, and Kirkland & Ellis LLP is serving as legal advisor to Axio. Ropes & Gray LLP is serving as legal advisor to iCapital.

For iCapital Media Inquiries

Emma Murphy / Morgan Miller
+1 347-968-6800 / +1 919-602-2806
icapital@neibartgroup.com

(1) Institutional Capital Network, Inc., and its affiliates (herein “iCapital Network”, “iCapital” or “the Company”)
(2) Structured Products Weekly, By Prospect News – see here
(3) Structured Products Daily, By Prospect News – see here