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August 24, 2022

iCapital to buy UBS’ alternative investments feeder fund unit

American fintech platform iCapital has reached an agreement to buy UBS Fund Advisor, the alternative investment manager and feeder fund platform managed by Swiss giant UBS.

Commonly referred to as AlphaKeys Funds, the platform manages more than $7bn in client assets.

As part of the deal, iCapital is set to manage and operate UBS Fund Advisor, which covers private equity, hedge fund and real estate feeder funds.

Financial and other terms of the deal were not divulged.

The deal is scheduled to be completed in the second half of this year.

Following the closure of the deal, UBS Financial Advisors will continue to provide its high and ultra-high net worth customers holding feeder funds with necessary advice and solutions as per their individual requirements and financial goals.

iCapital chairman and CEO Lawrence Calcano said: “iCapital has a long-standing global relationship with UBS through which we utilise our market-leading technology to facilitate the management of their direct and feeder funds on a single platform and offer their advisors the tools they need to be successful.”

The company offers solutions that enable access and efficiency in alternative investment for the asset and wealth management sector.

UBS Global Wealth Management alternative investment solutions global co-head Jerry Pascucci said: “This agreement underscores the importance of having partners like iCapital, with aligned values and priorities to support clients’ financial goals.

“iCapital is uniquely qualified to manage the on-going operations of this platform and service our clients’ existing investments, enabling us to help our financial advisors focus on what’s important – providing personalised advice and solutions to their clients.”

In 2017, UBS made an investment in iCapital and forged strategic partnership with the company to develop new feeder funds that would be distributed by UBS.

During the same period, UBS incorporated iCapital’s technology into its private fund business to update and automate its alternative investment solutions.

In 2021, both the companies expanded the strategic partnership to further digitise the UBS Advisor.

Early this month, iCapital completed its previously announced acquisition of Simon Markets, a technology provider that offers structured investments and annuity solutions.

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