The list of high-profile names aligning with iCapital grew Tuesday as firm announced that it will enter into an exclusive relationship with The Nasdaq Private Market (NPM) to create an integrated secondary marketplace for iCapital-sponsored funds.
The agreement, according to a news release, will offer liquidity solutions to advisors and their high-net-worth clients who have private equity investments in their portfolios.
The release said NPM’s qualified matching service will give investors, who have holdings in iCapital sponsored funds – on the iCapital flagship platform or on third party platforms powered by iCapital technology – the option to put private holdings up for auction. It added that NPM’s technology will be integrated with iCapital’s platform technology to automate the secondary marketplace, easing the operational process and adding transparency for advisors and their high-net-worth client base.
iCapital, the release said, is expected to launch the first auction on the integrated NPM platform later this year. The auction process will leverage NPM’s existing list of qualified secondary liquidity providers. iCapital plans to offer liquidity events on a regular basis as participants are identified.
Tuesday’s announcement is the latest example of iCapital making the private alternative investment marketplace accessible to high-net-worth clients, the release said. It noted that as of March 31, 2019, iCapital serviced approximately $40 billion in invested capital across more than 100,000 underlying accounts.
“We are continually listening to advisors and anticipating their needs to ensure we are delivering a superior set of capabilities. Illiquidity is frequently cited as an obstacle to investing in private asset classes. This partnership with Nasdaq Private Market will provide a crucial tool to help advisors confidently mitigate liquidity obstacles for their clients,” said Lawrence Calcano, chief executive officer of iCapital Network, said in the release.
Within the past six months, several high-profile players have strategically aligned with iCapital to widen the reach of alternative investments. The list includes Credit Suisse Group AG, BlackRock, BNY Mellon, UBS Financial Services, Morgan Stanley, JP Morgan Chase & Co. and the Carlyle Group.
iCapital Network says it transformed the way alternative investments are bought and sold through the development of tech-based solutions for advisors, their high-net-worth client base, asset managers and banks.
The Nasdaq Private Market, LLC (NPM) is a premier liquidity provider to private companies.