Bank of America has made a strategic investment in iCapital, which provides technology to investors, advisors and asset managers. The company also runs funds to help financial advisors invest client money in private equity and hedge funds at lower minimums.
The amount invested by the banking company was not disclosed.
iCapital has raised money or secured strategic investments from wealth management firms multiple times since 2014. Its most recent funding round was in December 2021, when it raised $50 million. Before that, it raised $440 million in July 2021.
For this latest infusion, the company was approached by Bank of America to become an investor and part of its advisory board, says Lawrence Calcano, chairman and chief executive of iCapital.
“We were not out looking for financing. We have a substantial amount of capital,” he says. Nonetheless, the company welcomed the “opportunity to create further alignment with an important partner,” he adds.
iCapital plans to use the Bank of America investment to continue building its technical capabilities, according to a press release.
(ticker: BAC) and iCapital first teamed up in 2018, with the banking and wealth management giant announcing a deal to sell its alternative investment feeder fund operations to iCapital. That deal closed in March 2019.
“Deepening our support of iCapital through a strategic investment is emblematic of the success of our collaborative relationship,” said Nancy Fahmy, Bank of America’s head of alternative investments and specialty asset management, in the press release.
Previous investors in iCapital include WestCap, Apollo, Temasek, Blackstone, KKR, The Carlyle Group, Affiliated Managers Group,
Credit Suisse, Goldman Sachs Asset Management, Golub Capital, Hamilton Lane,
MSD Partners, Noah Holdings, Owl Rock, Ping An Voyager Partners, Pivot Investment Partners,
iCapital serviced more than $130 billion in global client assets, as of May 31.