iCapital Portfolio Lets Advisers Integrate Private Equity, Other Alts With Traditional Investments

Global fintech platform iCapital has launched the iCapital Growth Model Portfolio, which enables advisers to easily integrate exposure to private equity investments with traditional public market investments. According to the company, the growth model portfolio complements its existing suite of both iCapital-designed and customized model portfolios and provides financial advisers an additional tool to help build out allocations to alternatives.

Private equity has outperformed public equities on a consistent basis, and iCapital said it recognized that the demand for adding private equity funds continues to grow among wealth advisers. By partnering with top-tier managers, iCapital Growth Model Portfolio provides a curated program of private equity funds that provides diversification across investment strategies and styles.

Paired with iCapital’s portfolio construction tool, Architect, which offers advanced analytics and data visualization tools, the company said advisers can run an analysis to easily evaluate the impact of incorporating alternative investments alongside traditional portfolio holdings.

“Well-designed model portfolios play an important role in the widespread and successful adoption of alternatives,” said Steve Houston, managing director and co-head of iCapitalSolutions. “With investor allocations into private markets expected to double by the end of the decade, combining model portfolios with intuitive technology is key to providing wealth advisers and their clients with a streamlined, holistic alternatives experience.”

Allocations to the growth model portfolio are further simplified, according to iCapital, with its multi-investment workflow tool, which streamlines the alts investment experience by enabling multiple investments to be processed simultaneously. This solution also allows advisers and asset managers using the platform to design and offer their own models.

In other iCapital news, it announced a definitive agreement last month to acquire AltExchange – an AI-driven technology firm focused on transforming alternative investment data aggregation, management, and reporting for financial advisers and asset managers. Terms of the agreement were not disclosed.

iCapital is a global fintech company supporting the alternative investments marketplace. Its solutions enable organizations to streamline and scale their operational infrastructure for alternative investments and to provide access to direct investments and feeder funds at lower minimums through simplified digital workflows. iCapital reports more than $202 billion in global platform assets.

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