iCapital, a fintech platform specialising in alternative investment solutions for the wealth and asset management sectors, has agreed to acquire Parallel Markets, a reusable financial identity technology provider.
The terms of the transaction were not revealed.
Parallel Markets provides a scalable, end-to-end solution for investor onboarding, verification and monitoring.
Parallel Markets co-founder and CEO Tony Peccatiello said: “We built an industry-leading onboarding and KYC/AML Passport solution for financial institutions who are looking to streamline and scale their business by eliminating redundant processes.
“As of today, we have focused on fund managers and the broader private wealth channel which is an increasingly important focus for leading financial institutions.”
Through the integration of Parallel Markets’ advanced technology into iCapital, the latter aims to streamline onboarding, verification, and compliance monitoring for fund managers and wealth advisers.
The acquisition will also enable iCapital to introduce the iCapital Investor Passport, a universal, reusable digital identity solution designed to simplify fund subscription processes and compliance verification in private markets.
The iCapital Investor Passport will serve as a secure data locker, allowing investors to store, manage, and share personal information required for know your customer (KYC) and know your business (KYB) compliance.
This streamlined system will reduce the repetitive nature of identity verification processes, enhancing efficiency for both institutional and individual investors.
The solution also supports fund managers in scaling operations while maintaining adherence to regulatory standards, including anti-money laundering (AML) measures.
The universal passport identity technology from iCapital and Parallel Markets is expected to significantly reduce onboarding time and associated costs for fund managers.
Established in 2013, iCapital offers a suite of tools and services to incorporate alternative assets, structured investments, and annuities into client portfolio strategies.
iCapital chairman and CEO Lawrence Calcano said: “Onboarding and verifying digital investor identity and compliance is a major friction point in private markets investing.
“Parallel Markets has pioneered software that supports a reusable investor passport, streamlining these duplicative processes for advisors, investors, and fund managers.”
