iCapital RF Adviser, a new subsidiary of financial technology platform iCapital focused solely on registered fund management, has been appointed investment adviser of the iCapital KKR Private Markets Fund. The fund offers accredited investors access to private equity funds and co-investments sponsored or advised by KKR, a global investment firm that manages multiple alternative asset classes, including private equity, credit, and real assets.
iCapital KKR Private Markets Fund, formerly known as the Altegris KKR Commitments Master Fund, is a closed-end investment company. The fund was launched in August 2015 and has current net assets of $430 million across nearly 400 underlying portfolio companies in buyout, growth equity and real asset strategies as of December 31, 2020. iCapital Network purchased Artivest, a competitor, in 2020.
The company said that since the fund’s inception in August 2015 and through November 2020, the Class I shares have annualized at 8.7 percent net of fees while delivering less than 45 percent of the volatility of global equities.
As investment adviser, iCapital RF Adviser is responsible for investment selection, portfolio construction, and operational oversight of the fund.
The fund intends to invest and/or make capital commitments of at least 80 percent of its assets to private equity investments sponsored or advised by KKR and will also seek to diversify its portfolio across vintages, industries, and geographies. iCapital Securities will serve as the fund’s distributor.
“Advisors are seeking quality registered fund offerings to meet their investors’ burgeoning appetite for alternative investments such as private equity, and the important role they play in diversifying a portfolio,” said Lawrence Calcano, chairman and chief executive officer of iCapital Network. “This is a unique opportunity to offer investors access to one of the most respected investment managers in an established, innovative product customized for accredited investors.”
The iCapital RF Adviser team is led by Nick Veronis, head of portfolio management, co-founder and managing partner of iCapital Network.
iCapital RF Adviser was approved by the fund’s board and shareholders to assume responsibility for advising the fund, subsequent to iCapital Network’s acquisition of Artivest in 2020.
At the time, iCapital purchased the majority of Artivest’s assets, including its technology and operating platform, and assumed management of Artivest’s 28 proprietary alternative investment funds, along with several large enterprise relationships and Artivest’s ‘open network’ platform.
In addition, KKR has made an equity investment in iCapital Network and has also acquired less than 25 percent of iCapital RF Adviser. KKR has no control over or voting interests in iCapital RF Adviser, including no representation on any investment committee or equivalent body or any input into the investment advice provided by iCapital RF Adviser.
In other company news, earlier this year, iCapital Network agreed to purchase the assets of AI Insight Inc., an alternative investment education and compliance platform for financial advisors.
iCapital Network’s platform offers advisors and their clients access to private equity, private credit, hedge funds, and other alternative investments. As of January 2021, the company had more than 380 employees and services more than $70 billion in global client assets across more than 746 funds for in excess of 125,000 underlying accounts.