iCapital Network to Buy Alternative Investment Feeder Fund Operations from Bank of America
iCapital Network, an online platform that provides access to alternative investments, has agreed to purchase Bank of America's alternative investment feeder fund operations businesses that represent approximately $20 billion in client assets.
iCapital Network, an online platform that provides access to alternative investments, has agreed to purchase Bank of America’s alternative investment feeder fund operations businesses that represent approximately $20 billion in client assets. The transaction is expected to close during the first half of 2019.
Upon closing, iCapital’s said that it will “streamline and automate ongoing operations and fund administration services for the funds and provide support to advisors and investors.”
As part of the transaction, iCapital will offer positions to 22 Bank of America employees who currently support AI feeder fund operations businesses, and the transitioning team will continue to support the fund portfolio.
Bank of America’s investment solutions group will continue to source, distribute and monitor AI feeder funds on its platform, while providing guidance on the role of alternative investments within a diversified investment strategy, the company said.
Investors in these funds will continue to be clients of Merrill Lynch and U.S. Trust, and the funds will continue to be distributed through their channels.
Financial terms of the deal were not disclosed.
iCapital Network’s platform offers high-net-worth investors and independent wealth advisors access to private equity and hedge funds in a digital environment. Banks and asset managers leverage the company’s services to assist with their private investments’ operational infrastructure. As of June 30, 2018, the company serviced more than $6 billion in invested capital across more than 14,000 underlying accounts.
