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Alternatives Platforms Gain Traction in the Retail Market

Earlier this week, in the midst of the current market chaos, iCapital Network, announced that it had closed on a new $146 million funding tranche. Latest round of investors included well-known industry giants such as Goldman Sachs, AMG and Hamilton Lane, who joined an equally impressive list of earlier backers featuring BlackRock, UBS and Blackstone.

The robust capital commitment reaffirmed the expectations of leading investment firms that interest in hedge funds and other alternative products among HNW investors – and the intermediaries that serve them – would continue to rise and perhaps accelerate through this period of market uncertainty. 

With AUM approaching $50 billion, iCapital now ranks among the largest of the new alternatives platforms targeting the HNW market. iCapital offers investors access to a curated menu of private equity, hedge funds, and private credit products from an independent source at lower minimums and with a set of due diligence tools. The firm has over 50 private label relationships with leading investment firms to drive distribution. Among these, is BlackRock, which has integrated iCapital as an alternatives source with its popular Aladdin wealth platform. 

iCapital, however, is not alone in this space. Listed below are other leading names in retail directed alternatives platforms. These platforms also typically offer a variety of services related to access, evaluation, trading, and reporting of various alternatives investments including:
• Comprehensive dashboards showing offerings, performance, execution records, manager roadshows
• Analytic tools and performance tracking
• Simplified execution with automated subscription and redemption processes
• Integration with PM and reporting systems

We will continue to track the growth of these alternatives marketplaces among B/Ds and RIAs serving the HNW and UHNW markets to see if they become a preferred option for alt. access and an attractive point of differentiation for intermediaries.