iCapital Network, which is helping to drive access and efficiency within the alternative investment sector, has received $440m in funding to hit a $4bn valuation.
The FinTech company is hoping to have a “modest” second closing of the round in the next month, which will include new strategic investors and reups from existing backers.
Temasek served as the lead investor, with commitments also coming from Owl Rock, MSD Partners, Noah Holdings and Golub Capital. Additional support came from existing iCapital backers, including WestCap, Ping An Voyager Partners, Blackstone, UBS, Pivot Investment Partners, BNY Mellon, Wells Fargo, Morgan Stanley and Goldman Sachs Asset Management.
With the proceeds, the FinTech company is looking to enhance its technology, expand the range of strategies and product types on its investment platform, and seek strategic acquisitions that diversify its client capabilities.
iCapital, which was founded in 2013, is an alternative investment marketplace. Wealth managers can leverage its solutions to provide clients with funds at lower minimums and improved workflows. Its platform also allows financial advisors and high-net-worth clients with access to a curated list of private equity, private credit, hedge funds, and other alternative investments to help them diversify their portfolios.
MSD Partners CEO Gregg Lemkau said, “Many high-net-worth investors remain under-allocated to alternative investments relative to institutional investors, but are increasingly exploring the larger role these strategies can play in portfolio construction.
“The market opportunity to open up access and digitize alternative investing in this space is substantial, and we believe iCapital is extremely well positioned to capture it.”
The company previously raised $162m in its Series C back in 2020. Since then, its platform assets have risen from $46bn to over $80bn. It has also doubled its team size, made five acquisitions, expanded its technology and education capabilities, released new services, grown internationally and launched over 45 white labels with partners.
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