HNW platform teams up to offer U.S. registered alts funds

State Street formed a new partnership with iCapital Network so as to link State Street’s transfer agency and private market administration capabilities with iCapital’s technology and distribution network, enhancing the offering and servicing of U.S. registered funds.

The partnership will support State Street’s alternative fund manager clients as they navigate the complex high-net-worth and family office markets, officials said.

The collaboration with State Street aims to allow their clients accelerate the launch of registered private market products, to establish scaled access to the wealth management channels, monitor fund raising activities and to use a comprehensive database of all their investor documents across all funds.

“If the private markets were to capture just 5-10 percent of the affluent and mass affluent market in the U.S. alone, it would represent between $800 billion and $1.6 trillion in assets under management,” said Paul Fleming, global head of State Street’s Alternative Investment Solutions (AIS) Group. “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.”

For its part, iCapital has been steadily attracting attention among industry giants. As of December 31, 2019, iCapital serviced more than $43 billion in invested capital across more than 100,000 underlying accounts.

This past November, for instance, the tech platform added PIMCO’s alternative strategies to its offering set, which is geared toward advisors and high-net-worth clients in a bid to further democratize the alternative investment space.

“The opportunities of the private market have traditionally been unattainable for those that lack the scale of an institutional investor,” said Lawrence Calcano, CEO at iCapital. “However, our technology is rapidly changing that with access, efficiency and transparency.”

He added that the partnership with State Street creates new opportunities for managers, advisors and high-net-worth investors by offering registered funds. Not only to managers have access to new sources of capital, but for investors it is an opportunity to add new asset classes to their portfolios, he said.