BlackRock and iCapital Network® Expand Existing Partnership to Broaden Private Market Access to Wealth Managers Internationally
BlackRock will leverage iCapital’s technology and service solution to increase access to its private markets product range internationally, including European Long-Term Investment Funds (ELTIFs) in Europe
Partnership driven by a shared ambition to enhance access to private markets, bringing the benefits of this asset class to more investors across EMEA, APAC and LATAM
LONDON & HONG KONG & ZURICH & NEW YORK–(BUSINESS WIRE)–#PrivateMarkets–Today iCapital Network1 and BlackRock announce the expansion of their existing relationship to increase accessibility to private market investments for wealth managers. The combination of BlackRock’s private market investment products and iCapital’s proven technology and solutions will streamline the operational and administrative complexities faced by wealth managers seeking to distribute private market investments to their clients. The partnership will focus on the distribution of global private market funds, as well as the ELTIF, an increasingly important vehicle for the distribution of private markets in Europe.
While the global market for alternative investments stands at over $10.7 trillion, with growth of 9.8% forecast by 20252, individual investor allocations have historically lagged those of institutional investors. However, over the next several years, individual investor appetite is expected to increase driven by a persistently low interest rate environment, diminished return expectations in public markets, and demand for greater diversification in portfolios to counterbalance higher market volatility3.
BlackRock’s product offerings will include private equity, private debt, and real assets, across geographies, including a broadening array of ESG-integrated strategies. The investment products will be available to wealth managers across EMEA, APAC and LATAM. The new offering will leverage iCapital’s AIFMD-compliant feeder fund structures and innovative technology platform to digitalize every aspect of the subscription and investor servicing process including capital calls, distributions, transfers and performance reporting for wealth advisors and their clients. iCapital’s technology will sit seamlessly alongside that of eFront, enabling BlackRock to fully service the operational and administrative needs of both wealth and institutional clients.
This latest collaboration addressing the international wealth management industry, expands an existing commercial relationship between the two companies. BlackRock is a long-standing strategic investor in iCapital and currently employs its technology to streamline access for BlackRock’s North American private market offerings to the wealth management community.
“We are delighted to be expanding our trusted partnership with iCapital Network. This collaboration will allow us to deliver on our strategic priorities of broadening access to BlackRock’s alternative investment strategies, accelerating the distribution of our private market strategies internationally, and enabling our wealth management partners to scale their own distribution efforts,” said David Lomas, Global Head of BlackRock Alternatives Specialists.
“We are honored to partner with BlackRock on this initiative, which builds on years of collaboration between our firms and supports the expansion of its leading-edge private market offerings across EMEA, APAC and LATAM,” said Lawrence Calcano, Chairman and CEO of iCapital Network. “We are committed to optimizing the alternative investing experience across the industry so advisors can better serve their clients.”
The collaboration between BlackRock and iCapital will also create a suite of education tools to help wealth advisors and their clients understand and evaluate the role of private market strategies as part of their total portfolio.
“Our mission is to solve the fundamental challenges of investing in private markets for individual investors. iCapital’s solutions support asset and wealth managers in broadening client access to the growth and diversification opportunities of private markets,” said Marco Bizzozero, Head of International at iCapital Network. “BlackRock is a global leader, and we are delighted to support their ambition in alternative investing by facilitating access and emphasizing education.”
About BlackRock
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate.
About BlackRock Alternative Investors
BlackRock Alternative Investors serve investors seeking outperformance in real estate, infrastructure, private equity, credit, hedge funds and alternative solutions. We strive to bring our investors the highest quality investments by drawing upon our global footprint, superior execution capabilities and position as a preferred partner. BlackRock manages $264 billion in alternative investments and commitments on behalf of clients worldwide as of March 31, 2021.
About iCapital Network
Founded in 2013 in NYC, iCapital Network is the leading global financial technology company powering the world’s alternative investment marketplace. It has transformed the way the wealth management, banking, and asset management industries facilitate access to private markets investments for their high-net-worth clients by providing intuitive, end-to-end technology and service solutions. Wealth management firms use iCapital’s solutions to provide clients with quality funds at lower minimums and simplified digital workflows. Asset managers and banks leverage iCapital’s technology to streamline and scale their private investments operational infrastructure. Additionally, the iCapital ‘flagship’ platform offers financial advisors and their high-net-worth clients access to a curated menu of private equity, private credit, hedge funds, and other alternative investments to help meet their investing needs for return and diversification. iCapital’s research and diligence team offers robust analysis alongside the firm’s extensive suite of advisor education, compliance, portfolio management, and portfolio analytics tools and services. iCapital was recognized on the Forbes FinTech 50 list in 2018, 2019, 2020 and 2021, the Forbes America’s Best Startup Employers in 2021, and MMI/Barron’s Industry Awards as Solutions Provider of the Year in 2020. As of April 30, 2021, iCapital Network has more than 400 employees and services $75 billion in global client assets across more than 750 funds. Headquartered in NYC, it also has offices in Zurich, London, Lisbon, and Hong Kong.
For additional information, please visit iCapital Network’s website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork
See disclosures here.
Risk Warnings
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested. Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy. Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
Important information
This material is for distribution to Professional Clients (as defined by the Financial Conduct Authority or MiFID Rules) only and should not be relied upon by any other persons.
Until 31 December 2020, issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL. Tel: + 44 (0)20 7743 3000. Registered in England and Wales No. 02020394. For your protection telephone calls are usually recorded. Please refer to the Financial Conduct Authority website for a list of authorised activities conducted by BlackRock. From 1 January 2021, in the event the United Kingdom and the European Union do not enter into an arrangement which permits United Kingdom firms to offer and provide financial services into the European Economic Area, the issuer of this material is: (i) BlackRock Investment Management (UK) Limited for all outside of the European Economic Area; and (ii) BlackRock (Netherlands) B.V. for in the European Economic Area, BlackRock (Netherlands) B.V. is authorised and regulated by the Netherlands Authority for the Financial Markets. Registered office Amstelplein 1, 1096 HA, Amsterdam, Tel: 020 – 549 5200, Tel: 31-20-549-5200. Trade Register No. 17068311 For your protection telephone calls are usually recorded.
For qualified investors in Switzerland: This document is marketing material. Until 31 December 2021, this document shall be exclusively made available to, and directed at, qualified investors as defined in the Swiss Collective Investment Schemes Act of 23 June 2006 (“CISA”), as amended. From 1 January 2022, this document shall be exclusively made available to, and directed at, qualified investors as defined in Article 10 (3) of the CISA of 23 June 2006, as amended, at the exclusion of qualified investors with an opting-out pursuant to Art. 5 (1) of the Swiss Federal Act on Financial Services (“FinSA”). For information on art. 8 / 9 Financial Services Act (FinSA) and on your client segmentation under art. 4 FinSA, please see the following website: www.blackrock.com/finsa
Any research in this document has been procured and may have been acted on by BlackRock for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy. This document is for information purposes only and does not constitute an offer or invitation to anyone to invest in any BlackRock funds and has not been prepared in connection with any such offer. © 2021 BlackRock, Inc. All Rights reserved. BLACKROCK, BLACKROCK SOLUTIONS, iSHARES, BUILD ON BLACKROCK and SO WHAT DO I DO WITH MY MONEY are trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.
1 Institutional Capital Network, Inc., and its affiliates (together, “iCapital Network” or “iCapital”)
2 Source: Future of Alternatives 2025: Preqin Forecasts Alternative AUM Growth of 9.8% through to 2025 – link.
3 Source: Cerulli Associates Democratization of Private Investments for Europe’s Retail Fund Investors, May 2020
Contacts
For BlackRock Media Inquiries
Venetia Hendy
[email protected]
Cell +44 7776496563
For iCapital Network Media Inquiries
Emma Murphy / Morgan Miller
[email protected]
Cell +1 347-968 6800 / Cell +1 919-602-2806
