US-based fintech platform iCapital has signed a definitive agreement with UBS Fund Advisor to acquire the latter’s US alternative investment manager and the feeder fund platform for an undisclosed sum.
The platform, known as AlphaKeys Funds, represents client assets worth more than $7bn.
Following the transaction, iCapital is expected to take over the platform’s management and operation, which includes feeder funds for real estate, hedge funds, and private equity while UBS Financial Advisors serves its high and ultra-high net worth clients that hold feeder funds.
iCapital chairman and chief executive officer Lawrence Calcano said: “iCapital has a long-standing global relationship with UBS through which we utilise our market-leading technology to facilitate the management of their direct and feeder funds on a single platform and offer their advisors the tools they need to be successful.
“We are thrilled to expand that relationship to include management of UBS Fund Advisor and the feeder fund platform.”
In 2017, UBS invested in iCapital and established a strategic partnership to structure new feeder funds.
UBS is said to have automated and streamlined its alternative investment offerings by integrating iCapital’s proprietary technology into its private fund operations.
The new partnership was boosted to further digitise the UBS Advisor experience, enhancing the information and analytics of clients’ private market investments across its global locations, including Switzerland, Hong Kong, and Singapore.
UBS global wealth management alternative investment solutions global co-head Jerry Pascucci said: “This agreement underscores the importance of having partners like iCapital, with aligned values and priorities to support clients’ financial goals.
“iCapital is uniquely qualified to manage the ongoing operations of this platform and service our clients’ existing investments, enabling us to help our financial advisors focus on what’s important – providing personalized advice and solutions to their clients.”
The deal is anticipated to be closed in the second half of 2022.
