A Bank of America building (Photo: AP)
Bank of America Corp. agreed to sell businesses that administer alternative investment feeder funds to iCapital Network, a financial-technology firm led by a former Goldman Sachs Group Inc. banker.
The operations for feeder funds, which pool client money to invest in hedge funds and private equity, handle about $20 billion in client holdings, boosting the assets on iCapital's platform by more than four times, iCapital Network said Tuesday in a statement. Terms of the deal, expected to close in the first half of next year, weren't disclosed.
Bank of America Chief Executive Officer Brian Moynihan has worked to streamline the bank since the financial crisis, and the iCapital deal will help it further simplify operations.
New York-based iCapital, founded in 2013 and run by former Goldman technology banker Lawrence Calcano, has sought to give high net worth individuals access to more alternative funds that were typically limited to institutional investors.
"Partnering with them will allow us to do what we do in a more efficient way," Nancy Fahmy, head of alternative investments and specialty asset management at Bank of America, said in an interview. "We view iCapital as a leading partner in this space, really providing the infrastructure and architecture across the AI industry."
