iCapital, a global FinTech platform that facilitates alternative investment opportunities for wealth and asset managers, has entered into a definitive agreement to acquire AltExchange in a bid to enhance its data management capabilities.
The acquisition aims to bolster iCapital’s data management capabilities, aligning with the company’s commitment to innovation and improving operational efficiencies for clients.
Although the financial terms of the deal have not been disclosed, iCapital has expressed that the addition of AltExchange will support their goal to deliver end-to-end data management services.
The firm enables wealth managers and financial advisors to access and manage alternative investments on behalf of their clients, providing tools that streamline portfolio construction, analytics, and reporting.
Its platform is widely used across the wealth and asset management sectors to simplify investment processes and reduce operational costs for advisors and asset managers alike.
AltExchange, on the other hand, has developed robust AI-powered data aggregation solutions that convert unstructured data from multiple document formats into structured insights, supporting real-time data and tax reporting.
Their flagship platforms include AdvisorVue, which provides financial advisors with tools to aggregate client portfolios and automate reports, and the Digital Custodian Platform (DCP), a post-investment reporting tool for asset managers designed to streamline investor reporting and integrate seamlessly with advisors’ systems.
The acquisition is expected to complement iCapital’s ongoing internal research and development initiatives.
By integrating AltExchange’s advanced AI-powered data retrieval technology, which includes a large language model (LLM)-based document extraction system, iCapital aims to strengthen its offerings in document management, data mapping, and routing, providing clients with greater operational efficiency and insight.
Lawrence Calcano, chairman and CEO of iCapital, remarked, “AltExchange has developed one of the most advanced document retrieval solutions that’s connected to sophisticated mapping, routing technology, and LLM (Large Language Model) based document extraction. This acquisition complements the investments we are making in our internal R&D to further enhance our data management capabilities. Combined with our existing solutions, it allows us to deliver on our goal of creating reliable end-to-end data management services for all our clients. These capabilities will help our clients collect, extract, and organise their data more efficiently and cost-effectively, therefore making more informed decisions and achieving their financial objectives. We are excited to welcome AltExchange to iCapital.”
AltExchange CEO Kareem Hamady, who will join iCapital as part of the acquisition, added, “We built an intuitive advisor-facing platform to manage, monitor, and report on alternative investments, offering comprehensive tools for document management, advanced alerts, and streamlined tax workflows. We are thrilled to join iCapital and offer our collective clients automated data aggregation, reporting, and direct integrations with leading asset and wealth management systems, providing a seamless experience for advisors and their clients.”
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