Schwab Advisor Services has launched an alternative investment marketplace platform in partnership with financial technology platform iCapital Network that will create an automated alternative investing process for advisors, the companies said in a news releases.
The Schwab Alternative Investment Marketplace platform offers access to private funds provided by third-party platform sponsors.
With a minimum client investment of $100,000, independent Schwab advisors will be able to customize portfolios with alternative investment solutions they can select on iCapital’s curated menu of alternative funds, as well as manage iCapital investments within Schwab’s client accounts on the platform. iCapital Network is the first third-party platform sponsor to join.
The new platform removes custodial fees and offers advisors direct access to research on funds and strategies, a streamlined investing and reporting process and electronic access to documents associated with clients’ investments.
“By working with firms that have experience and scale, we’re able to offer a more streamlined way for advisors to deliver alternative investment solutions to their clients,” said Jalina Kerr, a senior vice president at Schwab Advisor Services, in a news release.
Lawrence Calcano, CEO of iCapital Network, said the partnership would greatly enhance the two companies’ shared services to advisors.
“iCapital advocates tirelessly for increasing access to alternatives in client portfolios, given their potential to provide diversification and returns and [to] help close the retirement income gap,” Calcano said. “This relationship with Schwab furthers that mission by incorporating alternative investments into the holistic investment management process for advisors.”
iCapital, headquartered in New York, was founded in 2013. Schwab Advisor Services is a division of Charles Schwab.