ICapital Secures $820 Million Funding, Valued Over $7.5 Billion

ICapital, a prominent player in alternative investments fintech, recently announced that it has been valued at more than $7.5 billion following its latest financing cycle. This round raised over $820 million, illustrating the growing interest among investors in platforms that offer enhanced access to private market strategies.

Shifting Focus Towards Individual Investors

Asset managers are increasingly targeting individual investors, particularly those utilizing smaller wealth management services, in their efforts to provide private market investments. Historically, these investment opportunities have primarily been accessible to institutional investors due to their elite status and associated risks.

BlackRock’s Strategic Move into Private Assets

Recently, BlackRock, an investor in ICapital and a significant client, announced plans to integrate private assets into its retirement plans, which constitute more than half of the assets the company manages. This move reflects a broader trend of asset managers diversifying their offerings to include private market investment opportunities.

Navigating Regulatory Challenges

While some analysts express concerns that regulatory hurdles may complicate the path for asset managers looking to expand into private markets, ICapital CEO Lawrence Calcano remains optimistic. In a recent interview, he stated, “If people remain focused on education and customer results, regulations are generally designed to protect investors.”

Leading the Investment Round

The latest funding round was spearheaded by T. Rowe Price and hedge fund Surgocap Partners. This investment comes more than three years after a financing round led by Apollo, which previously valued the New York-based company at over $6 billion. Notably, alternative investment giant Blackstone is also a backer of ICapital.

Strategic Acquisitions Enhancing Capability

Founded in 2013, ICapital has successfully completed 23 strategic acquisitions to date, including the significant purchase of Citigroup’s wealth management unit in May. Calcano remarked that this acquisition will facilitate a more unified investment platform for customers, enhancing their overall experience.

Tools for Investment Professionals

ICapital focuses on simplifying alternative asset management by providing investment professionals with comprehensive asset administration, analytical tools, and educational resources. With approximately $945 billion currently managed on its platform, $257 billion of which pertains to alternative assets, the firm is poised for continued growth.

Future Plans of ICapital

When discussing potential plans for going public, Calcano expressed that this consideration doesn’t occupy much of his thinking at the moment. Instead, the emphasis remains on delivering value to investors while navigating the evolving landscape of alternative investment strategies.