iCapital Network and Artivest entered into a definitive agreement under which iCapital will acquire the Artivest platform and operating businesses.
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 enterprise relationships and Artivest’s ‘Open Network’ platform, which offers a menu of alternative products and strategies to approximately 1,800 financial advisors and their high-net-worth investors. As part of the transaction, 28 Artivest team members are expected to join iCapital.
Following the close of this transaction, 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.
Terms of the agreement were not disclosed. PJT Partners served as financial advisor and Ropes & Gray served as legal advisor to iCapital Network. RBC Capital Markets served as financial advisor and Morrison & Foerster served as legal advisor to Artivest.
“Given our shared mission to facilitate meaningful alternative investing opportunities across the wealth and asset management spectrum, this acquisition was compelling for a number of reasons,” Lawrence Calcano, chairman and CEO of iCapital Network, said. “We have long admired Artivest’s technical innovations and capabilities in registered funds and direct investments and the strength of their team. The integration of these attributes with iCapital’s already robust platform and product offerings creates a powerful combination delivering a ‘best-in-breed’ technology experience while also presenting new platform partners and strategies to our respective clients.”
“We are pleased to reach an agreement with iCapital, which is well positioned to deliver the quality and continuity of client experience that is central to Artivest’s offering,” Martin Beaulieu, chairman and CEO of Artivest, said. “We are confident that iCapital is the right service provider for our managers, advisors and their clients.”
KKR is expected to convert its current holdings in Artivest into equity shares of iCapital.
On March 23, iCapital announced its most recent funding round led by Ping An Global Voyager Fund, which also included commitments from strategic partners and investors such as Goldman Sachs, Affiliated Managers Group, Hamilton Lane, WestCap, BlackRock, UBS Financial Services, Blackstone and BNY Mellon. Additional existing strategic partners and investors in iCapital include The Carlyle Group, Credit Suisse, JPMorgan Chase and Morgan Stanley Investment Management.
Artivest Holdings 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.
iCapital Network is a financial technology platform focused on the alternative investment marketplace.
