iCapital Network1, the leading global financial technology platform driving access and efficiency in alternative investing for the asset and wealth management industries, announced today that as part of the recent closing of its acquisition of Artivest, it had divested its right to acquire a private client team to AlphaCore Wealth Advisory. In the same transaction, iCapital also took ownership of factorE, a portfolio and analytics tool designed to help advisors assess and analyze the performance and risk of alternative investments in client portfolios, from AlphaCore. Terms of the agreement were not disclosed.
iCapital Network Divests Right to Acquire Private Client Group (PCG)
As part of the Artivest acquisition, iCapital inherited rights to purchase the Private Client Group (PCG), a La Jolla-based team of six professionals serving over 600 high-net-worth family relationships in August 2020. However, consistent with iCapital’s focus on serving the needs of financial advisors – rather than individual investors – iCapital worked closely with the PCG team during the Artivest negotiations to identify a wealth management firm where the needs of the PCG clients would be well-served.
iCapital immediately recognized AlphaCore as an appropriate fit for the PCG Team based on their long-standing relationship, the extent to which they have embraced the opportunities of alternatives for their investors and the PCG team members’ affinity for AlphaCore. Through his former role as a partner at Altegris, AlphaCore’s Founder and CEO, Dick Pfister, is well acquainted with the PCG team, having forged a strong relationship before Altegris merged with Artivest in 2018. Recognizing the obvious synergies, iCapital reached agreement for AlphaCore to acquire the team immediately after the Artivest transaction closed.
“iCapital was established to help wealth advisors successfully serve their clients. We have taken this step to stay true to our mission and ensure that iCapital is a facilitator of that success and not in competition with advisors for their clients,” said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital Network. “We were extremely thoughtful in making the right decision on behalf of the PCG team and their clients,” said Mr. Calcano.
“The Private Client Group is made up of a group of talented advisors who understand the needs of their high-net-worth clientele incredibly well and we are proud to add them to our team along with their respected roster of clients,” said Mr. Pfister.
iCapital Acquires Portfolio and Risk Analytics Tool
As part of the same transaction to divest its right to acquire the PCG team, iCapital has taken ownership of factorE. A proprietary portfolio and risk analytics tool launched by AlphaCore in 2018, factorE helps advisors, chief investment officers and research analysts evaluate and manage complex portfolios that hold a mix of traditional and alternative investments such as private equity, private credit, hedge funds and real estate. General Partners can also leverage factorE’s capabilities to show how their strategy can complement the performance or risk characteristics of an overall portfolio.
“iCapital is committed to helping the wealth management industry understand the opportunities and complexities of alternative investments as part of a diversified portfolio,” said Mr. Calcano. “Our decision to continually build out our toolkit with technologies such as factorE is based on listening to our network of advisors and asset managers, and understanding what they need to be successful as they navigate the world of alternative investing.”
iCapital plans to evaluate how the factorE tool best fits into iCapital’s existing technology and service offerings. It will build out a tailored roadmap for the tool’s augmentation and integration into the firm’s advisor resources over the next several months.
“We are proud of the accomplishments of factorE and, in contemplating its future, carefully considered the ideal partner to build upon its success,” said Mr. Pfister. “iCapital Network has set the standard in automating the end-to-end alternative investing process for advisors, and their technological capabilities make them uniquely qualified to guide factorE forward in its next chapter.”
The transaction was completed on September 23, 2020. Ropes & Gray LLP served as legal advisor to iCapital Network and Mintz Levin served as the legal advisor for AlphaCore.
About iCapital Network
iCapital Network’s mission is to power the world’s alternative investment marketplace. Its financial technology platform has transformed the way alternative investments are bought, sold and managed through the development of tech-based solutions for advisors, their high-net-worth client base, wealth management firms, asset managers, and banks. The firm’s flagship platform offers advisors and their clients access to a curated menu of private equity, private credit, hedge funds, and other alternative investments at lower minimums with a full suite of due diligence, administrative support and reporting in a secure digital environment. Wealth management firms use iCapital’s turnkey technology solutions to provide clients with quality funds, simplified operational process and an improved investor experience. Asset managers and banks leverage iCapital Network’s tech-enabled services to streamline and scale their private investments operational infrastructure. iCapital was recognized in the 2018, 2019, and 2020 Forbes FinTech 50 which highlights the top 50 innovative financial technology companies that are transforming finance through technology. As of August 2020, iCapital Network services more than $60 billion in client assets across more than 100,000 underlying accounts.
For additional information, please visit iCapital Network’s website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork
iCapital Network Disclosures:
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security offered by Institutional Capital Network, Inc. or its affiliates (together “iCapital Network”). Past performance is not indicative of future results. Alternative investments such as those described are complex, speculative investment vehicles and are not suitable for all investors. An investment in an alternative investment entails a high degree of risk and no assurance can be given that any alternative investment fund’s investment objectives will be achieved or that investors will receive a return of their capital. The information contained herein is subject to change and is also incomplete. This industry information and its importance is an opinion only and should not be relied upon as the only important information available. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.
Securities may be offered through iCapital Securities, LLC, a registered broker dealer, member of FINRA and SIPC and subsidiary of Institutional Capital Network, Inc. All rights reserved
1 Institutional Capital Network, Inc. and its affiliates (together, “iCapital Network” or “iCapital”)