BlackRock leads iCapital’s fourth funding round

This is the firm's first investment in iCapital, which has previously received funding from Panorama Point Partners and Pivot Investment Partners among others. 

BlackRock has made an undisclosed investment in iCapital Network, a platform connecting high-net-worth individuals to private equity. It was the lead investor in iCapital’s fourth round.

According to iCapital chief executive officer Lawrence Calcano, this follows the first three rounds in 2013, 2014 and 2015, and it is iCapital’s first time to receive an investment from BlackRock.

He added that BlackRock is well-positioned to understand the space that iCapital serves, because, as an investment manager and advisor, BlackRock knows the competitors in this space and the landscape of high-net-worth investing.

“Companies think about ways to scale their businesses and who has the expertise in the space they operate in,” Calcano told Private Equity International . “BlackRock elected to partner with us and we’re flattered they sought to invest in iCapital.”

He declined to disclose BlackRock’s investment or the total amount iCapital raised in the fourth round.

According to tech investing data platform CrunchBase, iCapital raised $4 million in its first round in June 2013 from undisclosed investors.  The company raised $9.25 million in a second round in June 2014, which was led by Omaha-based growth equity firm Panorama Point Partners. New York-based Venture firm Pivot Investment Partners led the $11 million third round in May 2015.

Neither Panorama nor Pivot were available to comment.

Calcano said existing investors also include placement agents Eaton Partners, Park Hill Group and Monument Group, Bank of New York and software company Intralinks. Credit Suisse led the second around, alongside Panarama.

Alongside the investment, BlackRock’s US wealth advisory business chairman Frank Porcelli will become a member of iCapital’s board, according to a statement from iCapital from last week.

Earlier this month, PEI reported that iCapital expects to roll out a direct private equity investing platform next year to meet the demand from high-net-worth individuals.

The New York-based platform has received $2 billion in subscriptions from about 3,000 high-net-worth investors for more than 40 private equity offerings, since it publicly launched in 2014, the statement said.

BlackRock manages $5.1 trillion in assets as of 30 September. It was not available to comment.