The Depository Trust & Clearing Corporation (DTCC) has invested in iCapital as part of a collaboration focused on private markets infrastructure.
Financial term of the deal remains undisclosed.
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The agreement will combine DTCC’s market infrastructure, processing capabilities, and network with iCapital’s technology platform and investment workflows.
The companies intend to link data, operational processes, and market participants throughout the private investment lifecycle.
The work is aimed at reducing operational complexity for wealth advisers and asset managers participating in private markets.
DTCC and iCapital plan to develop industry solutions covering operational processes, data quality, and workflows across private investments.
For wealth advisers, the tie-up is intended to simplify access to and management of alternative investments in client portfolios.
For asset managers, it is intended to provide more standardised infrastructure for serving the wealth market.
The initial focus will be further integration between DTCC’s alternative investment product (AIP) and iCapital’s alternative investment platform.
The companies plan to connect functions covering transaction processing, data exchange, access, administration, and reporting.
DTCC and iCapital will also examine the use of current and emerging technologies in alternative investments, with a focus on connectivity, transaction management, and operational efficiency.
As part of the transaction, Talia Klein, head of wealth & investment solutions at DTCC, will serve as an observer on iCapital’s board of directors.
iCapital chairman and CEO Lawrence Calcano said: “Together, iCapital and DTCC are advancing the infrastructure and standards shaping the future of private markets. “We will partner on technologies that support the overall goals of the relationship such as blockchain enabled DLT and tokenisation where appropriate that help build a stronger foundation for the industry’s continued evolution.”
