iCapital’s platform streamlines the account opening, transaction and reporting processes, easing the offering of the strategies and reducing the cost to investor and provider alike.
“Our system automates the whole process,” said Calcano. “We’re taking the operational burdens off of J.P. Morgan’s plate, and off of the advisor’s plate as well, and we’re managing both sides of the transaction with technology.”
The J.P. Morgan partnership is the latest in a series of arrangements between iCapital and major alternative strategy providers. The digital platform already boasts collaborations with UBS, Morgan Stanley and BlackRock to offer a range of alternatives to RIAs and their clients.
Currently, 800 RIAs are using the iCapital platform to manage $2 trillion in client assets, said Calcano.
“In our experience, we’re seeing a lot of interest in incremental allocations to alternatives through our platform,” he said.
He added that iCapital is now the fastest-growing digital alternative investment platform. Its chief competitor, Artivest, has also made deals with BlackRock and Nuveen to offer alternatives to RIAs at lower minimums.
The financial terms of the iCapital-J.P. Morgan relationship were not disclosed on Thursday.