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iCapital to Buy Deutsche Bank’s $2.5B Fund Portfolio

September 25, 2017, 07:11 AM
Filed Under: Mergers & Acquisitions

iCapital Network, the financial technology platform democratizing alternative investments for high-net-worth (HNW) individuals and their advisors, announced it has entered into a definitive purchase agreement to acquire the US Private Equity Access Fund Platform from the Asset Management division of Deutsche Bank.

The US Private Equity Access Fund Platform is comprised of 33 funds representing a range of investment strategies and underlying managers with approximately $2.5 billion in invested assets and more than 7,000 domestic and international investors. iCapital Advisors LLC, an SEC registered investment adviser, will take over as investment manager for the portfolio of private equity access funds and iCapital’s end-to-end technology solution will be leveraged to streamline and automate the ongoing administration of the funds and provide operational support for investors. With the transfer of assets, iCapital will service approximately $5 billion in private fund assets making it one of the largest US-based independent alternative investment platforms for the HNW community.

“We see this deal as an important step forward in our mission to connect alternative asset managers with high-net-worth individuals, and are excited to work with a new universe of advisors and investors who can benefit from our state-of-the-art tech-enabled services,” said Lawrence Calcano, Chief Executive Officer of iCapital Network. “This strategic acquisition perfectly complements our existing business and brings with it an outstanding team of experienced professionals as well as expanded relationships with leading general partners, which will strengthen our value proposition to the marketplace and our growing investor network.”

To ensure continuity of service, iCapital plans to maintain relationships with the funds’ third-party service providers and will offer positions to the 18 employees currently managing the fund portfolio and servicing the investors within Deutsche Asset Management. As part of iCapital, the team will continue to support existing fund investors, which include clients of Deutsche Bank Wealth Management and Raymond James.

“iCapital is a well-known leader in the alternative investments space delivering a suite of digital capabilities that are well-suited to foster and grow the US Private Equity Access Fund Platform,” said Pierre Cherki, Head of Alternatives at Deutsche Asset Management. “We remain committed to Private Equity as part of our growth strategy for the Alternatives platform in the institutional space.”

“The core of our offering is the technology behind it, which gives us the ability to scale exponentially while continuing to offer the high-touch, seamless service that our network expects when investing in alternatives,” said Tom Fortin, Chief Operating Officer of iCapital Network. “This acquisition presents new possibilities for consolidation and growth, and further solidifies our position as the preferred alternative investments technology solution for asset managers and wealth managers.”

The transaction is expected to close before the end of 2017. Terms of the agreement were not disclosed.

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