iCapital Network is a leading fintech platform that is revolutionizing the way alternative investments are accessed and managed. Founded in 2013 by a team of experienced industry professionals, iCapital Network provides a comprehensive digital platform that connects high-net-worth individuals, financial advisors, and asset managers with a curated selection of alternative investment opportunities.
The company’s mission is to “democratize access to alternative investments.” iCapital Network provides a platform for wealth advisors to access a variety of alternative investments, including private equity, hedge funds, and real estate.
iCapital Network is a SEC-registered investment advisor and it is a member of the Financial Industry Regulatory Authority (FINRA). The company has over $100 billion in assets under management and it serves over 1,000 wealth advisors.
iCapital Network’s platform is designed to make it easy for wealth advisors to access alternative investments. The platform provides a single point of access to a variety of investments, and it offers a variety of tools to help wealth advisors manage their clients’ portfolios.
iCapital Network is a leading provider of alternative investment solutions to wealth advisors. The company’s platform is easy to use and it offers a wide variety of investments. iCapital Network is well-positioned for continued growth in the years to come.
Here are some of the key features of iCapital Network:
- Access to a wide variety of investments: iCapital Network provides access to a wide variety of alternative investments, including private equity, hedge funds, and real estate. This gives wealth advisors the ability to diversify their clients’ portfolios and to achieve their investment goals.
- Ease of use: iCapital Network’s platform is easy to use and it provides a single point of access to a variety of investments. This makes it easy for wealth advisors to manage their clients’ portfolios.
- Transparency: iCapital Network is transparent about its fees and its investment process. This gives wealth advisors the confidence to recommend iCapital Network’s platform to their clients.
- Security: iCapital Network is a SEC-registered investment advisor and it is a member of FINRA. This ensures that the company is compliant with all applicable regulations and that client assets are safe.
iCapital Network is a leading provider of alternative investment solutions to wealth advisors. The company’s platform is easy to use, transparent, and secure. iCapital Network is well-positioned for continued growth in the years to come.
Founding History of iCapital Network
iCapital Network was founded in 2013 by Lawrence Calcano, Dan Vene, and Nick Veronis, three industry veterans with extensive experience in the alternative investments space. Recognizing the inefficiencies and challenges faced by investors and financial advisors in accessing and managing alternative investments, they set out to create a technology-driven platform that would transform the industry.
The founding team had previously worked together at Veronis Suhler Stevenson (VSS), a leading private equity firm focused on media and communications investments. While at VSS, they witnessed firsthand the complexities and limited access to alternative investments that hindered many investors and advisors.
Motivated by the desire to democratize alternative investments and make them more accessible, the founders identified an opportunity to leverage technology and provide a digital platform that would streamline the investment process, increase transparency, and expand investor options.
To bring their vision to life, the founders assembled a team of experienced professionals and began developing the iCapital Network platform. They focused on building a robust technology infrastructure that could aggregate investment opportunities from top-tier asset managers and deliver them to a broader investor base.
Securing partnerships with leading financial institutions and asset managers was a key component of iCapital Network’s founding strategy. By partnering with established players in the alternative investments space, iCapital Network gained access to a wide range of high-quality investment opportunities that were traditionally reserved for institutional investors.
In 2014, iCapital Network launched its platform, providing investors and financial advisors with a comprehensive digital solution for accessing and managing alternative investments. The platform combined advanced technology, data analytics, and a curated selection of investment opportunities to simplify the investment process and enhance transparency.
Recognizing the importance of compliance and regulatory requirements, iCapital Network worked diligently to establish strong compliance frameworks and ensure adherence to industry standards. This commitment to regulatory compliance helped build trust and credibility with investors and financial institutions, further establishing iCapital Network as a leading platform in the alternative investments space.
As the company grew, it attracted significant investments from notable financial institutions and venture capital firms. These investments provided the necessary resources to expand its platform capabilities, enhance user experience, and fuel the company’s rapid growth.
Over the years, iCapital Network has continued to innovate and refine its platform. The company has expanded its product offerings, added new features, and improved its technology infrastructure to meet the evolving needs of investors and advisors. Today, iCapital Network is recognized as a leader in the alternative investments industry, serving a diverse range of clients and fostering strategic partnerships with prominent financial institutions.
Products and Features of iCapital Network
iCapital Network offers a comprehensive suite of products and features designed to simplify the investment process, enhance transparency, and provide access to a diverse range of alternative investments. Here is a detailed explanation of the products and features offered by iCapital Network:
Investment Platform: iCapital Network provides a robust digital investment platform that connects investors and financial advisors with a curated selection of alternative investment opportunities. The platform offers a streamlined and user-friendly interface where users can explore, evaluate, and invest in a wide range of alternative assets, including private equity, venture capital, private credit, real estate, and hedge funds.
Alternative Investment Offerings: iCapital Network aggregates investment opportunities from leading asset managers, providing access to institutional-grade alternative investments that were traditionally reserved for large institutional investors. The platform offers a curated selection of investment offerings, ensuring high-quality opportunities with diverse risk-return profiles. Investors can access a broad range of investment strategies and sectors, enabling them to build diversified portfolios aligned with their investment goals.
Due Diligence and Research: iCapital Network conducts thorough due diligence and research on investment opportunities to ensure quality and transparency. Their team of investment professionals analyzes each offering, assessing factors such as investment strategy, track record, risk profile, and market dynamics. This due diligence process provides investors with comprehensive insights and helps them make informed investment decisions.
Investment Monitoring and Reporting: iCapital Network offers robust tools for monitoring and managing investments. Investors can access real-time performance data, track their portfolio holdings, and view detailed investment reports through the platform. This enables investors to stay informed about their investments, monitor their progress, and make data-driven decisions.
Investor Education and Insights: iCapital Network provides educational resources and insights to help investors understand alternative investments and make informed decisions. The platform offers educational content, market analysis, and thought leadership articles to enhance investor knowledge and promote informed investment strategies.
Advisor-Led Investing: iCapital Network’s platform empowers financial advisors to construct and manage diversified alternative investment portfolios on behalf of their clients. Advisors can leverage iCapital Network’s technology to efficiently access investment opportunities, perform portfolio analysis, and monitor performance. The platform streamlines advisor workflows, enhances client reporting capabilities, and facilitates collaboration between advisors and their clients.
Digital Onboarding and Document Management: iCapital Network simplifies the onboarding process for investors and advisors through digital capabilities. Users can complete the necessary documentation electronically, reducing paperwork and processing time. The platform also offers secure document management, allowing users to upload and store relevant investment documents securely.
Overall, iCapital Network’s products and features leverage technology and expertise to democratize access to alternative investments. The platform offers a curated selection of investment opportunities, robust due diligence, and reporting capabilities, as well as tools to enhance advisor-led investing. By providing a comprehensive and user-friendly platform, iCapital Network enables investors and advisors to navigate the alternative investments space with confidence, transparency, and efficiency.
Business Model of iCapital Network
iCapital Network operates on a business model that combines technology, data analytics, and strategic partnerships to provide a comprehensive platform for accessing and managing alternative investments. Here is a detailed explanation of iCapital Network’s business model:
Platform-as-a-Service (PaaS) Model: iCapital Network functions as a Platform-as-a-Service (PaaS) provider, offering its technology infrastructure, data analytics capabilities, and investment offerings to investors and financial advisors. Through its platform, iCapital Network acts as an intermediary, connecting investors with a curated selection of alternative investment opportunities from leading asset managers.
Aggregation of Investment Opportunities: A key aspect of iCapital Network’s business model is its ability to aggregate a diverse range of alternative investment opportunities from top-tier asset managers. By partnering with established financial institutions and asset managers, iCapital Network brings together a comprehensive menu of investment options that were traditionally difficult to access for individual investors and smaller financial advisory firms.
Technology-Enabled Platform: iCapital Network’s platform leverages advanced technology to streamline the investment process and enhance user experience. The platform provides a user-friendly interface where investors and advisors can explore investment opportunities, evaluate performance, and manage their portfolios. The platform’s technology enables efficient document management, digital onboarding, performance monitoring, and reporting.
Data Analytics and Due Diligence: iCapital Network utilizes data analytics and rigorous due diligence processes to evaluate investment opportunities. The platform’s team of investment professionals conducts thorough research and analysis, assessing factors such as investment strategy, historical performance, risk profiles, and market trends. The data-driven approach helps ensure the quality and transparency of the investment offerings available on the platform.
Revenue Sharing and Fee Structure: iCapital Network generates revenue through a combination of fees and revenue-sharing arrangements with its strategic partners. The platform charges fees to investors and financial advisors for accessing and utilizing its platform. Additionally, iCapital Network enters revenue-sharing agreements with asset managers, receiving a portion of the fees generated from investments made through the platform. This revenue-sharing model aligns the interests of iCapital Network with its partners and ensures a sustainable revenue stream.
Scalability and Growth: iCapital Network’s business model is designed for scalability and growth. By leveraging technology and automation, the platform can efficiently onboard new investors, expand its product offerings, and enhance its platform capabilities. As the company continues to attract investors and forge new partnerships, it can scale its operations and increase its market presence.
In summary, iCapital Network’s business model revolves around providing a technology-driven platform that aggregates alternative investment opportunities, employs data analytics and due diligence, forms strategic partnerships, and generates revenue through fees and revenue sharing. By offering a comprehensive platform and prioritizing customer support, iCapital Network aims to democratize access to alternative investments, empower investors and advisors, and transform the way alternative investments are accessed and managed.
Investors, Funding and Valuation of iCapital Network
Here is an explanation of iCapital Network’s investors, funding, and valuation:
Investors
iCapital Network has raised over $720 million in funding from a variety of investors, including Blackrock, SoftBank Vision Fund, Morgan Stanley, TPG, Wellington Management and more.
Funding
iCapital Network’s funding has come in a series of rounds, with the most recent round being a $50 million Series E round in 2022. This round of funding valued iCapital Network at $6 billion.
Valuation
iCapital Network’s valuation has increased significantly in recent years. In 2017, the company was valued at $200 million. In 2022, the company was valued at $6 billion. This rapid valuation growth is a testament to iCapital Network’s success and to the potential of its business model.
Future plans
iCapital Network plans to use its funding to expand its business and to reach new customers. The company also plans to invest in research and development to develop new products and services. iCapital Network is well-positioned for growth and it is expected to play a significant role in the future of the alternative investment industry.
In addition to the investors mentioned above, iCapital Network has also been the subject of controversy due to its high fees. The company’s fees have been criticized by some as being too high, especially for smaller investors. However, iCapital Network argues that its fees are justified given the level of service and access to investment opportunities that it provides.
Despite this controversy, iCapital Network is still a leading provider of alternative investment solutions to wealth advisors. The company has a strong management team, a clear vision, and a growing customer base.
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