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JPMorgan, Carlyle are latest Wall Street firms to back iCapital
[NEW YORK] iCapital Network is adding two more firms to its stable of Wall Street backers.
JPMorgan Chase & Co and Carlyle Group LP have invested in the financial-technology company, just a week after Blackstone Group LP also announced a stake, iCapital said.
"This is less about us being out fundraising and more of just evolving already excellent partnerships," said Lawrence Calcano, a former Goldman Sachs Group Inc banker who leads iCapital. "We want to make sure that we have the biggest players on each end of the pipe pushing us to build the biggest network we can build."
The company makes it easier for high-net worth investors and their advisers to access hedge funds, private equity vehicles and real estate deals. Both JPMorgan and Carlyle already use its technology to market their products to this demographic, which often invests in smaller sums than institutions like pensions and endowments. Both companies made the investment from their own balance sheet and not through their funds.
iCapital has drawn interest from some of Wall Street's biggest banks and asset managers over the past few years. Other backers include BlackRock Inc, Credit Suisse Group AG, Morgan Stanley and UBS Group AG. As of June 30, it serviced US$6 billion of investments, a number that will jump to US$26 billion after it completes the acquisition of Bank of America Corp's feeder-funds business.
"We have seen first hand how iCapital's technology facilitates access to alternative investments for high-net worth clients and eases fund administration," Paul Ferraro, head of Carlyle's private client group, said in a statement. "Their technology has become the standard in the marketplace."