iCapital Network, a financial technology platform focused on alternative investments, has agreed to purchase its competitor, Artivest, for an undisclosed sum.
Under the terms of the agreement, iCapital will purchase the majority of Artivest’s assets, including all technology and its operating platform. The transaction also includes management of Artivest’s 28 alternative investment funds, along with several large enterprise relationships, and Artivest’s ‘Open Network’ platform, which offers alternative products to approximately 1,800 financial advisors and their high-net-worth investors. As part of the transaction, 28 Artivest team members are expected to join iCapital.
Following the close of this transaction, iCapital will service more than $55 billion in client assets across approximately 650 funds, 115,000 underlying accounts, and more than 70 white label partners.
“Given our shared mission to facilitate meaningful alternative investing opportunities across the wealth and asset management spectrum, this acquisition was compelling for a number of reasons,” said Lawrence Calcano, chairman and chief executive officer of iCapital Network.
He added, “We have long admired Artivest’s technical innovations and capabilities in registered funds and direct investments, and the strength of their team. The integration of these attributes with iCapital’s already robust platform and product offerings creates a powerful combination delivering a ‘best-in-breed’ technology experience while also presenting new platform partners and strategies to our respective clients.”
KKR is expected to convert its current holdings in Artivest into equity shares of iCapital. In March, iCapital announced its most recent funding round led by Ping An Global Voyager Fund which also included commitments from Goldman Sachs, Affiliated Managers Group, Hamilton Lane, WestCap, BlackRock, UBS Financial Services Inc., Blackstone, and BNY Mellon.
Additional partners and investors in iCapital include The Carlyle Group, Credit Suisse, JPMorgan Chase & Co, and Morgan Stanley Investment Management.
Artivest Holdings Inc., will continue to manage the legacy Altegris mutual fund business, as well as commodity pools that are not included in the transaction with iCapital. These vehicles will be overseen by Altegris Advisors, the existing portfolio management team, and related operational staff.
iCapital’s platform supports the subscription, administration, and reporting processes for private equity, private credit, hedge funds, and other alternative investments. As of April 30, 2020, iCapital serviced more than $51 billion in client assets across more than 100,000 underlying accounts.