Unlocking liquidity: iCapital taps tech to democratise alternative assets

Alternative assets have become more accessible to individual investors in recent years due to the proliferation of fintech platforms, greater data transparency and the ability to invest in smaller amounts. 

Alternative investments like private equity, private credit, real estate and hedge funds were once the exclusive domain of institutional investors. 

“To date, (the focus had been) about giving private wealth individuals access (to alternative assets) as if they were institutional investors,” said Tuan Lam, head of APAC at US-headquartered alternative investment fintech platform iCapital, “(but we need to) give them a similar way to get out.” 

But enabling easier access is only half the equation. 

The other half? Liquidity.

Lam explained that the lack of liquidity in private markets limits an investor’s ability to rebalance portfolios or exit a position. 

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iCapital’s digital platform is designed to guide investors through the entire investment lifecycle: from onboarding and subscription, to portfolio management and reporting. And soon, liquidity.

Ease of tangible returns

In September, iCapital announced an investment in London-based liquidity solutions provider Tangible Markets. 

The firms will work together to develop liquidity solutions for alternative investments, which are expected to be available through iCapital’s platform by the end of 2025.

On the digital platform, clients can rebalance portfolios, access liquidity when needed, and adjust exposure to alternative assets.

Institutional investors have long had access to secondary markets to sell or rebalance large positions, but smaller investors have not enjoyed the same flexibility, said Lam.

The solution developed by iCapital and Tangible Markets will allow investors to exit or reallocate positions from as small as US$75,000 (S$97,446) and over US$250 million.

Alternative wave in Asia

The pent-up demand for alternative investments has been steadily released across Asia over the past five years, and the trend is likely to continue, Lam noted.

iCapital opened its first APAC office in Hong Kong in 2022. It has since expanded its presence to Singapore and Tokyo, with plans for a Sydney office. 

Today, Asia-Pacific investors hold about half of the US$40.8 billion in non-US assets on iCapital’s platform. 

Lam attributed the momentum to “greater familiarity (with the asset class), and the increasing ease of investing in alternatives”.

Another key driver, he added, is the growing desire among APAC investors to broaden allocation beyond their home markets.

Lam explained that Asian clients have traditionally held much of their wealth in the region, but are now keen to diversify. “Alternatives assets, being a longer-term investment strategy, are (seen by these investors to be) less volatile.”

This was produced in partnership with the Monetary Authority of Singapore and the Global Finance & Technology Network.

For more stories, go to https://bt.sg/sff2025