New York-based digital alternative investment platform iCapital announced today plans to acquire rival Artivest.
Artivest is a fintech dedicated to helping private wealth advisors access alternatives. Combining Artivest’s platform and capabilities with iCapital’s creates a platform offering a range of private market opportunities to advisors and investors, including private equity, private credit and hedge funds.
The acquisition of Artivest, which has about $4 billion in client assets, is expected to close by the end of June, an iCapital spokesperson said.
“Given our shared mission to facilitate meaningful alternative investing opportunities across the wealth and asset management spectrum, this acquisition was compelling for a number of reasons,” said Lawrence Calcano, iCapital Network chairman and CEO, in a released statement. “We have long admired Artivest’s technical innovations and capabilities in registered funds and direct investments, and the strength of their team. The integration of these attributes with iCapital’s already robust platform and product offerings creates a powerful combination delivering a ‘best-in-breed’ technology experience while also presenting new platform partners and strategies to our respective clients.”
In the deal, iCapital will acquire all of Artivest’s technology, the management of 17 private capital and hedge fund feeder funds and several of the large relationships on its ‘Open Network’ platform, the release said. Twenty-eight Artivest team members will move to iCapital.
After the deal closes, the iCapital platform will swell to serve more than $55 billion in client assets across 650 funds and 115,000 underlying accounts, with more than 70 white label partners.
KKR is expected to convert its holdings in Artivest into equity shares of iCapital, the release said. To date, iCapital has a number of investors and strategic partners, including The Carlyle Group, Credit Suisse, JP Morgan Chase and Morgan Stanley Investment Management.
Additional terms of the agreement were not disclosed on Wednesday.
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