March 15, 2019
NEW YORK, NY – (BUSINESSWIRE) – Morgan Stanley (NYSE: MS) and iCapital Network, the financial technology platform that is improving access and efficiency in the alternatives marketplace, today announced that iCapital has entered into a strategic relationship with Morgan Stanley where iCapital will become the exclusive feeder fund service provider for Morgan Stanley’s Wealth Management Alternative Investments Group, with responsibility for the oversight functions of the group’s alternative investment feeder fund assets.
The transaction was completed on March 14, 2019. The alternative investments feeder fund business transferring to iCapital is comprised of approximately 115 investment vehicles across a range of investment strategies. iCapital’s proprietary end-to-end technology solution will be leveraged to streamline ongoing operations and administration services for the funds and provide support to advisors and their high-net-worth client base. Following today’s transaction, iCapital will service approximately $40 billion in private fund assets for more than 100,000 underlying accounts.
"Morgan Stanley has been a trusted, strategic business associate of iCapital for the last two years, and this agreement is testimony to the collaborative nature of our relationship and common goal to enhance the alternative investing process for advisors and their clients," said Lawrence Calcano, Chief Executive Officer of iCapital Network, "The iCapital technology's capacity for scale, customization and support allows us to offer a level of service in the alternative investing industry that has not previously been available and we look forward to providing the highest quality experience for the Morgan Stanley team during this transition."
Morgan Stanley will continue to source and monitor alternative investments for its clients, while providing ongoing guidance to those clients on the role of alternative investments within a diversified investment strategy. Investors in these funds will continue to be clients of Morgan Stanley. Furthermore, iCapital will provide additional elements of technical support for Morgan Stanley advisors to enhance the administrative processes for the broader wealth management portfolio.
"iCapital has emerged as the industry’s leading provider of technology, infrastructure and feeder fund services," added Jeremy Beal, head of Alternative Investments, Morgan Stanley. "Our relationship with iCapital will bring greater scale and efficiency to our feeder fund business as well as enhanced technology and reporting to our advisors and clients."
As part of the transaction, iCapital will offer positions to a group of Morgan Stanley employees who currently support alternative investment feeder fund oversight, and the transitioning team will continue to support the fund portfolio to ensure continuity of service.
Terms of the agreement were not disclosed.
About iCapital Network
iCapital Network’s mission is to power the world’s alternative investment marketplace. Its financial technology platform has transformed the way alternative investments are bought and sold through the development of tech-based solutions for advisors, their high-net-worth client base, asset managers and banks. The firm’s flagship platform offers advisors and their clients access to a curated menu of private equity and hedge funds at lower minimums with a full suite of due diligence and administrative support in a secure digital environment. Asset managers and banks leverage iCapital’s tech-enabled services to streamline and scale their private investments operational infrastructure. iCapital was recognized in the 2018 and 2019 Forbes FinTech 50 which highlights the top 50 innovative financial technology companies that are transforming finance through technology. As of March 14, 2019, iCapital services more than $40 billion in invested capital across more than 100,000 underlying accounts.
For additional information, please visit the Company’s website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork | Facebook: https://www.facebook.com/icapitalnetwork/
This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as, legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security offered by iCapital. Past performance is not indicative of future results. Alternative investments are complex, speculative investment vehicles and are not suitable for all investors. An investment in an alternative investment entails a high degree of risk and no assurance can be given that any alternative investment fund’s investment objectives will be achieved or that investors will receive a return of their capital. The information contained herein is subject to change. Securities may be offered through iCapital Securities, LLC, a registered broker dealer, member of FINRA and SIPC and subsidiary of Institutional Capital Network, Inc. iCapital is a registered trademark of Institutional Capital Network, Inc. All rights reserved.