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iCapital to Acquire AI-Based AltExchange

News November 01, 2024 at 01:17 PM
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What You Need To Know

  • The deal will enhance iCapital's data solutions capabilities for advisors and HNW clients, the firm says.
  • Separately, a new iCapital partnership will allow GeoWealth RIAs to offer alts in BlackRock models.
  • Retail wealth investors seek access to private markets, a BlackRock exec noted.
Lawrence Calcano

Alternative investment platform iCapital has agreed to acquire AltExchange, an artificial intelligence-based fintech for private markets investment, for an undisclosed price.

The deal should enhance iCapital's data capabilities for advisors and high-net-worth clients in the private wealth channel, the firm said Wednesday, noting that AltExchange aggregates, manages and reports alternative investment data for financial advisors and asset managers.

"AltExchange has developed one of the most advanced document retrieval solutions that's connected to sophisticated mapping, routing technology and … large language model-based document extraction," iCapital Chairman and CEO Lawrence Calcano said in a statement.

"This acquisition complements the investments we are making in our internal R&D to further enhance our data management capabilities," Calcano said. "Combined with our existing solutions, it allows us to deliver on our goal of creating reliable end-to-end data management services for all our clients."

These capabilities will help clients collect, extract and organize their data more efficiently and cost-effectively to make more informed decisions and achieve their financial objectives, added the iCaptial executive, who is a finalist for a 2024 ThinkAdvisor Luminaries industry award.

BlackRock, GeoWealth UMA Collaboration

Separately, a new collaboration with BlackRock and turnkey asset management platform GeoWealth will let eligible advisors to manage alternative investments alongside traditional investments in unified managed accounts.

The integration streamlines access to BlackRock custom models incorporating private markets, direct indexing and fixed income separately managed accounts, alongside regular ETFs and mutual funds, in a single account, the companies announced this week.

GeoWealth, using iCapital technology, will provide advisors with streamlined access to BlackRock custom models, which include private market assets with direct indexing and fixed income separately managed accounts, alongside traditional ETFs and mutual funds.

"Our deep integrations with GeoWealth and BlackRock will further transform the digital alternatives investing experience for advisors and their high-net-worth clients," iCapital's Calcano said.

"Retail wealth investors are leading the adoption of private markets as they seek portfolios offering exposure to investments they cannot access via public markets and the potential for uncorrelated returns," said Jaime Magyera, BlackRock's U.S. Wealth Advisory co-head, noting a broad industry trend.

"This collaboration between iCapital and GeoWealth complements our existing relationships to meet the evolving needs of advisors and their clients through an innovative and easy-to-use structure," Magyera added.

GeoWealth CEO Colin Falls said modern RIAs require solutions to give high-net-worth clients access to alternatives at scale.

"The industry is racing to solve the challenge of implementing alternatives into model portfolios, while GeoWealth's proprietary UMA technology will make this possible," Falls said.

iCapital says its technology includes unified trade orders across multiple investment products, intelligent automation, one-stop e-signature solutions and consolidated client communications.

Pictured: iCapital Chairman and CEO Lawrence Calcano

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