iCapital, a global fintech platform focused on alternative investments, reported that Bank of America has made a strategic investment in the company. Financial terms were not disclosed.
iCapital will use the investment to continue to build out the technical capabilities of its global alternative investing platform, which supports more than $130 billion in assets.
The investment highlights another milestone in the relationship between iCapital and Bank of America. In March 2019, iCapital acquired Bank of America’s alternative investment feeder fund operations. This enabled Bank of America to “streamline and automate” ongoing fund operations and administration services for Merrill and Private Bank advisors and their clients, the company said.
Since the initial agreement with Bank of America, iCapital said that it has made a series of acquisitions and launches to expand its technical capabilities, broaden the investment opportunities offered on its platform, and continue to develop services to overcome barriers to efficiency and adoption.
“iCapital and Bank of America share the belief that alternative investments are an important component of a well-diversified portfolio and it is critical to increase access, education and service to advisors and their clients,” said Nancy Fahmy, head of alternative investments, specialty asset management and investment solutions specialist for Bank of America.
Bank of America reportedly invested in iCapital at the same valuation as iCapital’s last funding round in December 2021. The $50 million funding round was led by WestCap, with Apollo (NYSE: APO) and Temasek also investing in the round, which valued the company in excess of $6 billion.
“We look forward to continuing to work with the Bank of America team to enhance our platform to best meet the needs of its Merrill and Private Bank advisors seeking a range of alternative investments for their high-net-worth clients,” said Lawrence Calcano, chairman and chief executive officer.
iCapital was founded in 2013 in New York City and provides end-to-end technology and services to wealth management firms, asset managers, registered investment advisors. Additionally, its ‘flagship’ platform offers wealth advisors and their high-net-worth clients access to private equity, private credit, hedge funds, structured notes, and other alternative investments. iCapital’s research and diligence team provides analysis alongside the firm’s advisor education, compliance, portfolio management, and portfolio analytics tools and services.