March 16, 2022

iCapital Brokers Deal to Buy Stifel’s Feeder Fund Platform

March 11, 2022 | Private Banker International

Financial technology firm iCapital Network has finalised a deal to buy alternative investment feeder fund platform from Stifel Financial.

Financial terms of the deal were not disclosed. The transaction is expected to close later this quarter.

Stifel’s feeder fund platform facilitates the distribution of an array of hedge fund strategies.

Following the transaction, iCapital will provide its white label technology to manage and automate and the onboarding, subscription processing and lifecycle operations of Stifel feeder funds.

Furthermore, the firm will also support advisors and their high-net-worth (HNW) investors Stifel.

Stifel will remain responsible for sourcing alternative investments for its clients and offering them guidance on the role of alternative investments within a diversified investment strategy.

Investors in these funds will remain as Stifel’s customers.

iCapital CEO and chairman Lawrence Calcano said: “Stifel is an industry leader and iCapital is honored to be entrusted with the management of their feeder fund business.

“We are grateful for the industry’s adoption of our technology as the standard alternative investing operating system, which provides a best-in-class digitalised investing experience.”

As part of the deal, Stifel’s employees who currently support operations for the feeder fund platform will join iCapital. This team will remain responsible for supporting the fund portfolio.

Stifel senior managing director Tom Lee said: “We look forward to expanding our partnership with iCapital to continue offering our clients access to high-quality alternative investment opportunities on an updated platform that offers increased transparency and streamlined workflows.

“After careful consideration, we concluded the iCapital technology and team are best qualified to take over the ongoing service of our feeder fund platform.”

In December last year, iCapital secured a $50m investment in a funding round to enhance its platform technology, bolster the breadth of strategies and product types on its alternative investment menu.