iCapital Network Acquires Artivest
iCapital Network is to acquire Artivest in a combination of influential alternative investment technology platforms. iCapital will purchase the majority of Artivest’s assets, including all technology and its operating platform. The transaction also 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. As part of the transaction, 28 Artivest team members are expected to join iCapital. “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. The integration of these attributes 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.”
“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, 2020, iCapital announced its most recent funding round 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.
Following the close of this transaction, 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.
Terms of the agreement were not disclosed. PJT Partners LP served as financial advisor and Ropes & Gray LLP served as legal advisor to iCapital Network. RBC Capital Markets served as financial advisor and Morrison & Foerster LLP served as legal advisor to Artivest.
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