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Deals Of The Day: The Latest In Wealth Management M&A - iCapital, AlphaCore
The latest corporate moves, including mergers and acquisitions, within the North American wealth management sector.
iCapital Network, the fintech platform for alternative investments such as private equity, said this week that as part of its May 2020 purchase of Artivest, it has divested its right to acquire Artivest’s private client group, transferring that right to AlphaCore Wealth Advisory.
iCapital has also acquired factorE, a portfolio and analytics tool, from AlphaCore. Terms of the agreement were not disclosed.
When iCapital acquired Artivest earlier in 2020, by nature of the acquisition, it also received the right to acquire the private client group which was a part of Artivest’s business. In this transaction with AlphaCore, iCapital has given up that right, transferring that right to AlphaCore, who has in turn bought them into their fold. The PCG was based in La Jolla, comprising six people serving more than 600 high net worth clients, as of August this year.
“However, consistent with iCapital’s focus on serving the needs of financial advisors – rather than individual investors – iCapital worked closely with the PCG team during the Artivest negotiations to identify a wealth management firm where the needs of the PCG clients would be well served,” iCapital said.
“iCapital was established to help wealth advisors successfully serve their clients. We have taken this step to stay true to our mission and ensure that iCapital is a facilitator of that success and not in competition with advisors for their clients,” Lawrence Calcano, chairman and chief executive of iCapital Network, said.
The factorE operation that iCapital acquired is a portfolio and risk analytics tool launched by AlphaCore in 2018. The tool helps advisors, chief investment officers and research analysts evaluate and manage complex portfolios that hold a mix of traditional and alternative investments such as private equity, private credit, hedge funds and real estate.
The transaction was completed on September 23. Ropes & Gray LLP served as legal advisor to iCapital Network and Mintz Levin served as the legal advisor for AlphaCore.
