iCapital Network, a global financial technology platform focused on alternative investing, has agreed to purchase Axio Financial LLC, an end-to-end service provider to the U.S. structured notes market. Financial terms were not disclosed.
iCapital said that the acquisition, which is expected to close in the fourth quarter of 2021, will expand its menu of alternative investment strategies, technology stack, educational offerings, and support services for financial advisors, as well as its distribution capabilities to support fund managers.
Founded in 2010, Axio provides financial advisors with support in the evaluation, selection, and purchase of structured notes for client portfolios. The firm serves both issuers and financial advisors with distribution support using customer relationship management technology.
In the US, more than $72 billion in structured notes were issued in 2020, an increase of 36 percent compared to the prior year, with 2021 issuances expected to reach $86 billion. Axio is expected to exceed $9 billion in issuances in 2021, the company said.
Under the agreement, Axio’s chief executive officer Marc Paley and the entire team will join iCapital. Paley will maintain his responsibilities as leader of the Axio team as managing director and head of distribution.
In other company news, iCapital recently announced that financial advisors would have access to digital currencies on its platform through a partnership with Grayscale Investments. Earlier this year, iCapital completed its acquisition of AI Insight, a provider of alternative investments education and compliance services for financial advisors.
Founded in 2013, iCapital Network is a global financial technology company with approximately 450 employees that service $86 billion in global client assets across more than 790 funds. The company is headquartered in New York City, with offices in Zurich, London, Lisbon, and Hong Kong.