UBS is unloading a fund platform for alternative investments to iCapital. But the Swiss bank continues to hold a strategic stake in the buyer.
UBS is selling the management and operation of its UBS Fund Advisor platform for alternative investments to iCaptial. The platform, known as Alpha Keys Funds, represents more than $7 billion in client assets, according to a media release.
The transaction notably includes feeder funds in the private equity, hedge fund, and real estate investment areas. UBS Financial Advisors will continue to advise its high-net-worth and ultra-high-net-worth clients who hold such funds in their portfolios. It would also offer solutions to better meet individual client needs and financial goals.
Automation Specialist
Founded in 2013, iCapital bills itself as the leading global fintech platform promoting access to alternative investments for the asset and wealth management industry. Because iCapital's solutions automate and digitize the entire lifecycle of private market investments, they eliminate numerous manual and paper-based transaction processes.
Strategic Investment by UBS
In 2017, UBS took a stake in iCapital and entered into a strategic partnership to distribute new feeder funds that deliver private market assets to clients. At the time, UBS also integrated iCapital's proprietary technology into its private funds business to automate its alternative investment offerings. The New York-based company has also had a presence in Zurich since 2018.
In 2021, the strategic partnership was expanded to further digitize the offering for UBS advisors. At the same time, information and analysis on clients' private market investments should be improved at UBS' international locations.
In an interview with finews.com in May, iCaptial CEO Lawrence Calcano said that UBS, for example, «doesn’t need our help in finding managers or diligence managers. But we can create their alternative investing infrastructure, power it with our technology, and build out their alternative ecosystem».
