State Street has entered into a new partnership with iCapital Network, the financial technology platform. The collaboration will combine State Street’s registered transfer agency and private market fund administration capabilities with iCapital’s platform technology and distribution network to enhance the offering and servicing of US registered funds.
Historically, private market funds, such as private equity, private credit, real estate and infrastructure have been available primarily to institutional investors. However, high-net-worth investors and family offices are increasingly seeking access and exposure to these alternative asset classes to achieve portfolio goals of diversification and income. This partnership aims to support State Street’s clients as they navigate this complex market.
This collaboration will allow State Street’s alternative fund manager clients to simplify and accelerate the launch of registered private market products, establish scaled access to the wealth management channels, monitor fundraising activities, and utilize a comprehensive, fully searchable database of all their investor documents across all funds.
Paul Fleming, global head of State Street’s Alternative Investment Solutions (AIS) group said:
“We’re delighted to be cementing our relationship with iCapital in order to support the needs of this growing distribution channel. If the private markets were to capture just 5-10 percent of the affluent and mass affluent market in the US alone, it would represent between $800 billion and $1.6 trillion in assets under management. A strong partner with a solution that addresses the needs of the investor, fund manager and investment advisors and distributors is critical. That’s why we’re partnering with iCapital”
Lawrence Calcano, chief executive officer at iCapital Network said:
“The opportunities of the private market have traditionally been unattainable for those that lack the scale of an institutional investor. However, our technology is rapidly changing that with access, efficiency and transparency. This partnership with State Street aims to create new opportunities for fund managers, advisors and high-net-worth investors by facilitating the offering of registered funds, providing managers access to fresh capital and giving investors an opportunity to add new asset classes to their portfolios.”
About State Street
State Street Corporation is the world’s leading provider of financial services to institutional investors including investment servicing, investment management and investment research and trading. It has $34.36 trillion in assets under custody and administration and $3.12 trillion in assets under management. State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide.
About iCapital Network
iCapital Network’s mission is to power the world’s alternative investment marketplace. Its financial technology platform has transformed the way alternative investments are bought and sold. They did so through the development of tech-based solutions for advisors, their high-net-worth client base, asset managers and banks. The firm’s flagship platform offers advisors and their clients access to a curated menu of private equity and hedge funds at lower minimums. Besides with a full suite of due diligence and administrative support in a secure digital environment. Asset managers and banks leverage iCapital’s tech-enabled services to streamline and scale their private investments operational infrastructure. As of December 31, 2019, iCapital services more than $43 billion in invested capital across more than 100,000 underlying accounts.