JPMorgan, Carlyle are latest Wall Street firms to back iCapital

JPMorgan, Carlyle are latest Wall Street firms to back iCapital
Both already use iCapital's technology to offer alternative investments like hedge funds and private equity to high-net-worth investors.
NOV 08, 2018

iCapital Network is adding two more firms to its stable of Wall Street backers. JPMorgan Chase & Co. and Carlyle Group have invested in the financial technology company, just a week after Blackstone Group also announced a stake, iCapital said. "This is less about us being out fundraising and more of just evolving already excellent partnerships," said Lawrence Calcano, a former Goldman Sachs Group banker who leads iCapital. "We want to make sure that we have the biggest players on each end of the pipe pushing us to build the biggest network we can build." The company makes it easier for high-net-worth investors and their advisers to access hedge funds, private equity vehicles and real estate deals. Both JPMorgan and Carlyle already use iCapital's technology to market their products to this demographic, which often invests in smaller sums than institutions like pensions and endowments. (More: Digital marketplaces aim to ease RIA access to alternative investments)​ Both companies made the investment in iCapital from their own balance sheet and not through their funds. iCapital has drawn interest from some of Wall Street's biggest banks and asset managers over the past few years. Other backers include BlackRock Inc, Credit Suisse Group, Morgan Stanley and UBS Group. As of June 30, iCapital serviced $6 billion of investments, a number that will jump to $26 billion after it completes the acquisition of Bank of America Corp.'s feeder-funds business. "We have seen firsthand how iCapital's technology facilitates access to alternative investments for high-net-worth clients and eases fund administration," Paul Ferraro, head of Carlyle's private client group, said in a statement. "Their technology has become the standard in the marketplace."

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