iCapital, a global fintech platform focused on alternative investments, has agreed to purchase UBS Fund Advisor LLC, the alternative investment manager and the feeder fund platform managed by UBS (NYSE: UBS). The platform, generally referred to as “AlphaKeys Funds,” represents more than $7 billion in client assets.
“iCapital has a long-standing global relationship with UBS through which we utilize our market-leading technology to facilitate the management of their direct and feeder funds on a single platform and offer their advisors the tools they need to be successful,” said Lawrence Calcano, chairman and chief executive officer of iCapital. “We are thrilled to expand that relationship to include management of UBS Fund Advisor and the feeder fund platform.”
With this transaction, iCapital will assume the management and operation of the platform, which includes private equity, hedge fund and real estate feeder funds. UBS Financial Advisors will continue to serve their high and ultra-high net worth clients that hold feeder funds.
In 2017, UBS became an investor in iCapital and entered into a strategic relationship with the firm to structure new feeder funds for UBS to distribute going forward. At that time, UBS also integrated iCapital’s proprietary technology into its private fund operations.
In 2021, the partnership “was enhanced to further digitize the UBS Advisor experience, improving the information and analytics of clients’ private market investments across its international locations, including Switzerland, Hong Kong, and Singapore,” the company said.
The latest transaction is expected to close during the second half of 2022. Financial terms were not disclosed.
iCapital was founded in 2013 and provides end-to-end technology and services to wealth management firms, asset managers, registered investment advisors. As of July 31, 2022, iCapital services more than $136 billion in global client assets, of which more than $32 billion are from international investors (non-US Domestic), across more than 1,080 funds. Employing more than 1,000 people globally, iCapital is headquartered in NYC and has offices worldwide including in Zurich, London, Lisbon, Hong Kong, Singapore, and Toronto.
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