Alternative investment platform iCapital announced that it will introduce customized alternative investment model portfolios to its platform this year.
“People like to use model portfolios with clients, so we feel for a large part of the advisor population ... bringing alternative models to market is a way to help them build alternative allocations in a way that’s comfortable for them,” said Lawrence Calcano, chairman and CEO of iCapital.
The move to offer a more customized solution is in keeping with the overall goal of the firm, he said.
“A lot of what we do is build custom exposures for advisors to serve their client’s unique objective,” he said.
The firm is in talks with several RIAs about building customized model portfolios for them and Calcano said he is optimistic that the firm can roll out the first customized solutions by the end of the year. The make-up of each model will be dependent on the desires of the individual firm, he said.
The move comes after the firm announced the launch of the first of several standard alternative investment model portfolios last week, the first of which is the iCapital Multi-Asset Portfolio (iMAP).
It is a multi-asset product that combines income and growth through investments in the private markets, according to the firm. The goal will be to provide total returns along with minimized volatility and fewer drawdowns than normally seen in traditional asset classes, the firm said.
Subsequently, iCapital will launch additional standard model portfolios, with one focusing on growth and another targeting income, according to Calcano.
“I think there are a lot of advisors that are looking to implement alternatives into client portfolios,” he said.