iCapital will introduce the first-of-its-kind reusable KYC/AML passport technology for alternative investments, aiming to eliminate duplicative investor profiles and compliance checks, which saves time and resources.
iCapital1, the global fintech platform driving the world’s alternative investment marketplace for the wealth and asset management industries, and Parallel Markets, a leader in reusable financial identity, providing a scalable, end-to-end solution for investor onboarding, verification and monitoring, announced they have entered a definitive agreement under which iCapital is expected to acquire Parallel Markets.
“We are thrilled to announce the acquisition of Parallel Markets and welcome their team to the iCapital family”
“We are thrilled to announce the acquisition of Parallel Markets and welcome their team to the iCapital family,” said Lawrence Calcano, Chairman and CEO of iCapital. “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. As we continue to evolve our tech stack, we will enhance automated entry for alternative investing and leverage AI and machine learning to offer a complete, intuitive end-to-end solution. This is expected to result in faster onboarding, reduced costs, and a more efficient investment process.”
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Integrating Parallel Markets’ advanced technology with iCapital’s onboarding and compliance monitoring processes will provide fund managers and wealth advisors with a more seamless user journey within the iCapital ecosystem while ensuring compliance in a constantly evolving regulatory landscape. The new iCapital Investor Passport will offer a turnkey onboarding solution for all fund investors, both institutional and wealth management, creating a universal reusable investor identity that can be used across iCapital Marketplace and the suite of offerings on iCapital’s platform for global alternative asset managers. This digital identity will function as a data locker for storing, managing, and sharing personal information needed for fund subscription and compliance verification in private markets. It will make it easier for investors from around the world to manage and share their KYB (Know Your Business) / KYC (Know Your Customer) data while helping fund managers scale more efficiently and ensure consistency in compliance, including AML (Anti-Money Laundering).
“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,” said Tony Peccatiello, Co-founder and CEO of Parallel Markets, who will be joining iCapital as part of the acquisition. “We are thrilled to join iCapital and together provide an innovative, tech-enabled identity management service that powers further integration between asset and wealth managers in a seamless experience.”
It is estimated that $2.5 billion is spent globally on identity verification services and compliance across the financial services industry2. With universal passport identity technology, fund managers have the potential to realize significant reductions in onboarding time and overhead costs. Investors typically upload sensitive information repeatedly for different opportunities, and iCapital, fund managers, and issuers bear the burden of reviewing and verifying this information.
iCapital powers the world’s alternative investment marketplace, offering a complete suite of tools, end-to-end enterprise solutions, data management and distribution capabilities, and an innovative operating system. iCapital is the trusted technology partner to financial advisors, wealth managers, asset managers, as well as other participants in this ecosystem, and offers unrivaled access, technology, and education to incorporate alternative assets, structured investments, and annuities into the core portfolio strategies for their clients.
At the forefront of the digital transformation in alternative investing, iCapital’s secure platform delivers a complete portfolio of management capabilities for education, transactions, data flows, analytics, and client support throughout the investment lifecycle. With $214 billion+3 in global platform assets, the iCapital operating system automates and streamlines the complex process of private market investing, and seamlessly integrates with clients’ existing infrastructure platform and tools.
iCapital employs more than 1,695 people globally and has 17 offices worldwide, including New York, Greenwich, Zurich, Lisbon, London, Hong Kong, Singapore, Tokyo, and Toronto. iCapital has consistently been recognized for its outstanding innovation, fintech industry leadership, and performance, including CNBC World Top Fintech Companies for 2024, and Forbes Fintech 50 for seven consecutive years since 2018.
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