Registered investment advisors know that alternative investments play pivotal roles in reducing correlations and enhancing diversification within clients’ portfolios. However, accessing alternative investments beyond basics, such as commodities and real estate, hasn’t always been easy. Thanks to technology, the access to alts is broadening. Take the case of iCapital, a fintech platform that increases access to alts for the wealth management industry. The firm rolled out its iCapital Marketplace offering on Wednesday, June 14.
“Powered by its proprietary and patented technology, iCapital Marketplace delivers an all-digital investment experience that bridges the structural divide that has historically separated asset managers, advisors, and clients from alternative investment,” according to a statement.
Among the primary advantages offered to advisors by the iCapital Marketplace are convenience and depth. The platform provides advisors with exposure to “the broadest selection of alternative investments from the world’s leading asset managers” with the convenience of one-stop shopping.
iCapital Marketplace also features bespoke options for wealth managers, indicating that it offers more than a one-size-fits-all approach. For example, the platform features customization options for asset classes including hedge funds, private credit, private equity and real assets, among others.
“With iCapital Marketplace, asset managers may now also choose to fundraise through iCapital Marketplace and manage distribution themselves. These funds will be supported by iCapital’s end-to-end technology platform that streamlines and automates the alternative investing process, from subscriptions and capital calls to reporting,” the firm added in the statement.
Beyond the Basics
iCapital offers other benefits, including extensive educational tools, streamlined compliance and due diligence, as well as some investment vehicles with minimum investments of $25,000. That could broaden the audience to which advisors can market the offering.
That’s relevant at a time when more and more clients, particularly those in the high-net-worth category, demand strategies that extend beyond basics, such as stocks and bonds, and as more sophisticated clients realize the value in having exposure to assets not highly correlated to equities and fixed income.
“The platform’s document center and investment dashboard provide a holistic view of client investments throughout the investment lifecycle and simplifies oversight and investment communication to the advisors’ clients. Furthermore, iCapital continues to share education and insights about investment strategies and the broader market. Additionally, filtering options allow advisors to narrow the fund menu to what is most relevant to them, including by funds distributed by iCapital for those advisors looking for additional guided support,” concluded iCapital.
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