iCapital poised to support the 80% of advisors likely to increase client allocations to private markets
iCapital Network, the leading global financial technology platform driving access and efficiency in alternative investing for the asset and wealth management industries, announced that it has launched the AMG Pantheon Fund, LLC, BlackRock Private Investments Fund, Carlyle Tactical Private Credit Fund, and Hamilton Lane Private Assets Fund on iCapital’s flagship platform. The expansion of iCapital’s fund offerings suitable for accredited investors and qualified clients enables financial advisors and their clients to access the return and diversification potential offered by private market investments with accessible investment minimums and simplified operations.
“Registered funds are purpose-built for this market and can help advisors access portfolio diversification and return potential while encouraging investors to think longer term.”
During the past 12 months, iCapital has prioritized expanding the selection of registered funds and other vehicles for accredited investors available on its flagship platform. These funds provide access to institutional-quality managers and can invest in private capital markets through tender offer funds, interval funds, non-traded business development companies (BDCs), and real estate investment trusts (REITs).
The funds have investment minimums that typically range from $25,000 to $50,000, generally do not utilize capital calls, and generally issue 1099s as opposed to K-1s, substantially simplifying tax reporting. iCapital supports these funds on its platform through its research, education, distribution, and technology. In addition, the iCapital flagship platform features the iCapital KKR Private Markets Fund for which iCapital RF Adviser, a subsidiary of iCapital Network, serves as investment adviser.
A recent joint 2021 wealth and asset management report from Morgan Stanley and Oliver Wyman, Competing for Growth, projects that additional high-net-worth (HNW) allocations to private market investing opportunities will represent around US$1.5 trillion of assets under management by 2025. With high-net-worth investors increasingly focused on capturing opportunities in the private markets, asset managers are catering to the growing demand with differentiated, in-demand products.
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“A core part of our mission at iCapital is to ensure advisors have access to the right portfolio tools to meet the long-term investment goals of their accredited investor clients,” said Eileen Duff, Chief Client Success Officer at iCapital Network. “Registered funds are purpose-built for this market and can help advisors access portfolio diversification and return potential while encouraging investors to think longer term.”
A recent survey of advisors on the iCapital platform highlights an appetite for accessing private investment opportunities, including funds suitable for accredited investors. Key findings include:
- Almost half (45%) of advisors say they have at least 20% of their accredited investor clients in private markets.
- 80% of advisors say they are likely to increase the number of their accredited investor clients invested in private markets in the next 12-24 months.
- Nearly 75% of advisors plan to increase allocations to private markets in the next 12-24 months for their accredited investor clients.
Each of the funds named above on the iCapital platform is registered under the Investment Company Act of 1940, as amended, as a closed-end investment company and shares of each are registered for public offering under the Securities Act of 1933. The funds referenced above are joined on the iCapital platform by a broad selection of additional registered funds that provide exposure to private equity, private credit, and private real estate strategies from experienced managers that have undergone rigorous due diligence by iCapital’s Fund Management & Research team. Together, these funds form a comprehensive offering for accredited investors and qualified clients seeking to access the potential benefits of the private markets.
AMG Pantheon Fund, LLC (“Pantheon”) provides accredited investors exposure to a diversified private equity portfolio sourced by Pantheon’s Global Investment Team. Pantheon offers diversification by manager, stage, vintage year and industry through a single allocation.
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