New York-based fintech company iCapital, which has built a platform for democratising alternative investments for high-net-worth individuals and their advisors, has secured an undisclosed investment from Bank of America.
Bank of America’s investment in the fintech company is at a valuation of over $6bn, which was the same during the latter’s last funding round in December 2021.
iCapital said that it will use the investment to continue developing the technical capabilities of its global alternative investing solution which is claimed to support over $130bn in platform assets.
By using iCapital’s solutions, wealth management companies are said to offer quality funds to clients at lower minimums and streamlined digital workflows.
Asset managers, banks, and registered investment advisors (RIAs) are said to use iCapital’s technology for optimising and scaling the operational infrastructure of alternative investments.
Bank of America alternative investments, specialty asset management and investment solutions specialists head Nancy Fahmy said: “iCapital and Bank of America share the belief that alternative investments are an important component of a well-diversified portfolio and it is critical to increase access, education and service to advisors and their clients.
“Deepening our support of iCapital through a strategic investment is emblematic of the success of our collaborative relationship.”
The parties had already been in a partnership since 2018. The following year, iCapital acquired the alternative investment feeder fund operations of Bank of America.
The sale is said to have helped Bank of America to optimise and automate ongoing fund operations and administration services for Merrill and Private Bank advisors as well as their clients.
iCapital chairman and CEO Lawrence Calcano said: “We are honoured to have the support of Bank of America to further iCapital’s mission to provide financial advisors with a complete alternative investing solution.
“We look forward to continuing to work with the Bank of America team to enhance our platform to best meet the needs of its Merrill and Private Bank advisors seeking a range of alternative investments for their high-net-worth clients.”
