iCapital Network, a fintech platform focused on alternative investing for the asset and wealth management industries, acquired Artivest, a technology company for accessing and investing in alternatives.
The amount of the deal was not disclosed.
Under the terms of the agreement, 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 its “Open Network” platform, which offers a menu of alternative products and strategies to approximately 1,800 financial advisors and their high-net-worth investors.
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. Additional existing strategic partners and investors in iCapital include The Carlyle Group, Credit Suisse, JPMorgan Chase & Co, and Morgan Stanley Investment Management.
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.
As part of the transaction, 28 Artivest team members are expected to join iCapital. Following the close of this deal, 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.
Led by Lawrence Calcano, Chairman and CEO, iCapital Network provides a technology solution that is integrated and able to support the subscription, administration, and reporting processes for private equity, private credit, hedge funds, and other alternative investments.
Led by Martin Beaulieu, Chairman and Chief Executive Officer, Artivest provides financial advisors and high net worth investors with a platform to access, evaluate, and invest in private equity, real assets, and hedge funds. The company services more than $51 billion in client assets across more than 100,000 underlying accounts.
It is privately held by its employees and outside investors including Aquiline Capital Partners, Genstar Capital, KKR, and Thiel Capital.