iCapital Network, a financial technology platform providing access to alternative investing for the asset and wealth management industries, is to acquire Artivest.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 USD55 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,” says 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,” says 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 23 March, 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, 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, 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 have not been 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.
