Financial technology firm iCapital Network has agreed to acquire Axio Financial to provide its clients with access to an increased suite of alternative investment opportunities.

The deal, whose financial terms are undisclosed, follows iCapital’s $440m funding round led by Temasek.

Deal rationale

Founded in 2010, Axio is a service provider to the US structured notes market. It helps financial advisors to evaluate, select, and purchase structured notes that complement the investment portfolios of their clients.

The firm’s full-service solution is leveraged by domestic and international bank issuers of structured notes and various ecosystem providers.

It utilises analytics, real-time data, and reporting interfaces to serve the diverse needs related to the full structured note lifecycle.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Axio also provides customised distribution support to issuers and financial advisors.

The deal will increase iCapital’s suite of alternative investment strategies, technology stack, and educational offerings for financial advisors.

It will also bolster its distribution capabilities to support fund managers.

Under the agreement, the entire Axio team will join iCapital. Axio CEO Marc Paley will retain his responsibilities as leader of the Axio team and will directly report to Calcano.

The deal is expected to close in the fourth quarter of this year, subject to regulatory approvals.

Comments

iCapital Network chairman and CEO Lawrence Calcano said: “Advisors considering structured notes for their high-net-worth clients need best-in-class access, education, consultative support and enabling technology such as iCapital provides for other alternative offerings.

“Axio’s position as a leader in this market makes them an ideal enhancement to our already robust platform and product offerings.”

Commenting on the development, Paley said: “The Axio team is excited about the intuitive synergies and the common purpose driving both Axio and iCapital, and we’re thrilled to combine our efforts to serve financial advisors and their clients.”

iCapital’s strategies for alternative investment platform

The latest deal is part of iCapital’s move to expand the scope of strategies and product types available on its alternative investment platform.

Earlier this year, it acquired AI Insight, expanding its alternative investments education and compliance offerings for financial advisors.

iCapital currently services more than $86bn in global client assets across over 790 funds.