iCapital to acquire the Artivest platform

iCapital Network announced today that it will acquire the Artivest platform and operation businesses. Following the close of this transaction in the next 30 to 45 days, New York-based iCapital will service more than $55 billion in client assets across approximately 650 funds, 115,000 underlying accounts, and more than 70 white label partners. The acquisition will create further operational economies of scale in the offering and servicing of alternative investments and additional benefits for both Artivest and iCapital clients and partners. Under the terms of the agreement, iCapital will purchase the majority of Artivest’s assets, including all technology and its operating platform. Run by fintech and investment industry executives in New York and California, Artivest is privately held by its employees and outside investors including Aquiline Capital Partners, Genstar Capital, KKR and Thiel Capital. The purchase includes management of Artivest’s 28 proprietary alternative investment funds, along with several large enterprise relationships and Artivest’s ‘Open Network’ platform, which offers a menu of alternative products and strategies to approximately 1,800 financial advisors and their high-net-worth investors. Artivest Holdings, Inc., will continue to manage the legacy Altegris mutual fund business, as well as commodity pools that are not included in the transaction with iCapital. These vehicles will be overseen by Altegris Advisors, the existing portfolio management team, and related operational staff to ensure continuity post transaction. “Given our shared mission to facilitate meaningful alternative investing opportunities across the wealth and asset management spectrum, this acquisition was compelling for a number of reasons,” said Lawrence Calcano, chairman and chief executive officer of iCapital Network. “We have long admired Artivest’s technical innovations and capabilities in registered funds and direct investments, and the strength of their team.” He added that the integration with iCapital’s already robust platform and product offerings creates a powerful combination delivering a ‘best-in-breed’ technology experience while also presenting new platform partners and strategies to our respective clients. As part of the transaction, 28 Artivest team members are expected to join iCapital. “We are pleased to reach an agreement with iCapital, which is well positioned to deliver the quality and continuity of client experience that is central to Artivest’s offering,” said Martin Beaulieu, chairman and chief executive officer of Artivest. “We are confident that iCapital is the right service provider for our managers, advisors, and their clients.” KKR is expected to convert its current holdings in Artivest into equity shares of iCapital. On March 23, iCapital announced its most recent funding round totaling $146 million led by Ping An Global Voyager Fund which also included commitments from strategic partners and investors: Goldman Sachs, Affiliated Managers Group, Hamilton Lane, WestCap, BlackRock, UBS Financial Services, Inc., Blackstone, and BNY Mellon. Additional existing strategic partners and investors in iCapital include: The Carlyle Group, Credit Suisse, JPMorgan Chase & Co. and Morgan Stanley Investment Management.

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