iCapital expands platform to accredited investors

The online marketplace, which helps high-net-worth individuals invest in private equity, now includes investors with a lower net-worth threshold.

Financial technology company iCapital Network has expanded its platform to provide accredited investors access to alternative investment products, starting with private credit, the firm said on Monday.

The New York-based company had already been providing alternative investment products to qualified purchasers, defined as those with investable assets – excluding their primary home – of at least $5 million, according to iCapital chief executive officer Lawrence Calcano.

Now, iCapital has opened its doors to accredited investors, who Calcano defined as having a minimum net worth of $1 million. He told Private Equity International the size of the accredited investor pool is about 10 times bigger than that of qualified purchasers, which broadens iCapital’s client base that will have access to alternative assets.

He added that iCapital started with a focus on private credit for the accredited investors, and plans to introduce other private asset classes in the near future.

This comes at a time when some private equity firms have been seeking an extension of their reach to various types of investors. For example, PEI exclusively reported earlier this month Blackstone launcheda retail channel to offer its products to investors of all sizes.

“We recognise the growing appetite from a widening set of investors for alternative investments, and this expansion marks our commitment to providing individual investors with the tools they need to thoughtfully construct diversified, institutional-quality portfolios,” Calcano said.

iCapital, which launched its online platform in 2014 and connects high-net-worth investors to alternative fund investments including private equity, private debt, venture capital, real estate and hedge funds, managed more than $2 billion in assets for about 3,000 investors as of 31 March.

In December, PEI reported iCapital plans to roll out a direct investing platform to meet demand for direct and co-investments among high-net-worth investors.

According to Calcano, iCapital is in the process of gauging client interest in the direct platform, which is expected to launch sometime in the second half of 2017.