iCapital Network, a financial technology platform aiming to improving access and efficiency in the alternative investment marketplace, is to enter into an exclusive relationship with The Nasdaq Private Market (NPM) to create an integrated secondary marketplace for iCapital sponsored funds through the NPM platform.
The agreement will offer liquidity solutions to advisors and their high-net-worth clients who have private equity investments in their portfolios.
NPM’s qualified matching service will give investors who have holdings in iCapital sponsored funds – on the iCapital flagship platform or on third party platforms powered by iCapital technology – the option to put private holdings up for auction. NPM’s technology will be integrated with iCapital’s platform technology to automate the secondary marketplace, easing the operational process and adding transparency for advisors and their high-net-worth client base.
“We are continually listening to advisors and anticipating their needs to ensure we are delivering a superior set of capabilities. Illiquidity is frequently cited as an obstacle to investing in private asset classes. This partnership with Nasdaq Private Market will provide a crucial tool to help advisors confidently mitigate liquidity obstacles for their clients,” says Lawrence Calcano, Chief Executive Officer of iCapital Network. “This is a true milestone in iCapital’s journey to offer the high-net-worth advisory community and their investors the same opportunities to effectively manage an alternatives portfolio that institutional investors have long enjoyed.”
iCapital is expected to launch the first auction on the integrated NPM platform later this year. The qualified matching service provided on the NPM Platform will help ensure regulatory compliance throughout the process while matching potential buyers and sellers based on specified terms set by the fund sponsors. The auction process will leverage NPM’s existing list of qualified secondary liquidity providers. iCapital plans to offer liquidity events on a regular basis as participants are identified.
“Our innovative solutions drive the industry forward by improving the efficiency of the secondary markets across all private fund structures,” adds Eric Folkemer, Head of Nasdaq Private Market. “Partnering with iCapital to bring this complementary technology to their growing platform will help to ease their clients’ access to the private markets.”