ICapital the main international fintech platform driving entry and effectivity in different investing for the asset and wealth administration industries, and UBS (NYSE: UBS) at this time introduced they entered right into a definitive settlement whereby iCapital will purchase UBS Fund Advisor LLC, UBS’s legacy proprietary US different funding supervisor and the feeder fund platform it manages.
The platform, usually known as “AlphaKeys Funds,” represents greater than US$7 billion in consumer belongings.
With this transaction, iCapital will assume the administration and operation of the platform, which incorporates personal fairness, hedge fund and actual property feeder funds. UBS Monetary Advisors will proceed to serve their excessive and ultra-high internet value shoppers that maintain feeder funds as they at all times have, offering recommendation and options to assist meet their distinctive wants and monetary objectives.
“iCapital has a long-standing international relationship with UBS via which we make the most of our market-leading expertise to facilitate the administration of their direct and feeder funds on a single platform and provide their advisors the instruments they have to be profitable,” stated Lawrence Calcano, Chairman and Chief Govt Officer of iCapital. “We’re thrilled to develop that relationship to incorporate administration of UBS Fund Advisor and the feeder fund platform.”
“This settlement underscores the significance of getting companions like iCapital, with aligned values and priorities to assist shoppers’ monetary objectives,” stated Jerry Pascucci, International Co-Head of Various Funding Options at UBS International Wealth Administration. “iCapital is uniquely certified to handle the on-going operations of this platform and repair our shoppers’ present investments, enabling us to assist our monetary advisors deal with what’s necessary – offering customized recommendation and options to their shoppers.”
In 2017, UBS turned an investor in iCapital and entered right into a strategic relationship with the agency to construction new feeder funds for UBS to distribute going ahead. At the moment, UBS additionally built-in iCapital’s proprietary expertise into its personal fund operations to streamline and automate its different funding choices. In 2021, the strategic partnership was enhanced to additional digitize the UBS Advisor expertise, enhancing the data and analytics of shoppers’ personal market investments throughout its worldwide places, together with Switzerland, Hong Kong, and Singapore.
The transaction is anticipated to shut throughout the second half of 2022. Phrases of the settlement weren’t disclosed.