iCapital bolsters model portfolio suite with new private market offering

iCapital has taken another step in its efforts to infuse model portfolios with private-market exposure.

The fintech platform provider has announced the launch of its Growth Model Portfolio, offering financial advisors a streamlined way to integrate private equity investments alongside traditional public market holdings.

The portfolio is part of iCapital's broader suite of solutions designed to help advisors build diversified allocations to alternative investments.

The Growth Model Portfolio provides access to a curated selection of private equity funds managed by top-tier firms, aiming to diversify across various strategies and styles.

It also incorporates iCapital's Architect, the portfolio construction tool it launched last year, which enables advisors to evaluate portfolio impacts using advanced analytics and visualization features.

“Well-designed model portfolios play an important role in the widespread and successful adoption of alternatives,” Steve Houston, managing director and co-head of iCapital Solutions, said in a statement on Wednesday.

Private equity has consistently outperformed public markets over the course of decades, and demand for such investments continues to rise among wealth managers, according to iCapital.

“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 advisors and their clients with a streamlined, holistic alternatives experience,” Houston said.

The Growth Model Portfolio follows the earlier release of iCapital’s Balanced Model Portfolio, which was developed using quantitative analysis from the company’s research and due diligence team. Together, these offerings give wealth advisors tools to expand private market exposure for accredited investors and qualified clients.

iCapital debuted its iCapital Model Portfolio suite in May with the launch of the iCapital Multi-Asset Portfolio, or iMAP for short. The balanced strategy actively brings together five funds from best-in-class managers spanning different alts classes, including private equity, private credit, and real assets.

The firm also offers a multi-investment workflow tool that simplifies managing alternatives by enabling multiple transactions to be processed simultaneously, supporting advisors in creating tailored portfolios for their clients