iCapital is adding new technology to its platform and handing off a recently added wealth management arm.
New York-based iCapital Network, a digital alternative investment platform for financial advisors, announced today that it divested its Private Client Group to AlphaCore Wealth Advisory. In the same transaction, iCapital took ownership of factorE, a portfolio and analytics tool, from AlphaCore.
The Private Client Group (PCG), based in La Jolla, Calif., is a team of six professionals serving 600 high-net-worth family relationships iCapital inherited via its recently closed acquisition of rival alternatives platform Artivest.
“iCapital was established to help wealth advisors successfully serve their clients. We have taken this step to stay true to our mission and ensure that iCapital is a facilitator of that success and not in competition with advisors for their clients,” said Lawrence Calcano, CEO of iCapital Network, in released comments. “We were extremely thoughtful in making the right decision on behalf of the PCG team and their clients.”
The factorE acquisition fits into iCapital’s existing platform as advisors use the tool to assess and analyze the performance and risk of alternatives in client portfolios. Launched by AlphaCore in 2018, the tool can also be used by general partners to illustrate how their strategies can enhance the performance or risk characteristics of an overall portfolio.
AlphaCore’s founder and CEO, Dick Pfister, formerly served as a partner at Altegris, a firm that . merged with Artivest in 2018. Altegris recently split away from Artivest ahead of the closure of its deal with iCapital.
“We are proud of the accomplishments of factorE and, in contemplating its future, carefully considered the ideal partner to build upon its success,” said Pfister in released comments. “iCapital Network has set the standard in automating the end-to-end alternative investing process for advisors, and their technological capabilities make them uniquely qualified to guide factorE forward in its next chapter.”
The $1 billion AUM AlphaCore Wealth Advisory, founded five years ago and also based in La Jolla, Calif., has embraced the use of alternative investments for their investors.
The iCapital/AlphaCore transaction was completed on Sep. 23. Additional terms of the AlphaCore agreement were not disclosed in announcements from either firm.