Bank of America has agreed to divest businesses, which provide sponsorship, administration and advisory services to alternative investment feeder funds, to fintech platform iCapital Network.

The businesses to be acquired manage around $20bn in assets. Financial terms of the deal were not revealed.

iCapital Network CEO Lawrence Calcano said: “This transaction brings us one step closer to our vision of using technology to create a standard industry architecture for alternative investments that improves the experience for investors, advisers and asset managers.”

The Investment Solutions Group of Bank of America will continue to be engaged in sourcing, monitoring, and distributing the feeder funds. Merrill Lynch and U.S. Trust customers will continue to serve as clients.

iCapital Network will also offer positions to 22 Bank of America staff involved in the feeder fund business.

Following deal completion, which is expected in the first half of next year, iCapital will use its technology to streamline ongoing operations and fund administration services for the funds.

iCapital Network COO Tom Fortin said: “The combined horsepower of our two organisations will greatly benefit all of our clients and partners.

“At the close, our platform will service more than $25 billion in invested capital and nearly 70,000 accounts, which can only be accomplished with the scaling power of iCapital’s technology.”