Singapore state investor Temasek has led a $440 million funding round in US-based fintech firm iCapital Network, which is valued at $4 billion, according to a statement.
Existing investors in the company such as Ping An Voyager Partners, Blackstone and WestCap also participated in the round, along with new backers including Blue Owl Capital, MSD Partners, Noah Holdings and Golub Capital.
iCapital said it will use the new investment to enhance its platform technology, expand product types on its alternative investment menu, and pursue strategic acquisitions that will broaden its client capabilities.
The company also anticipates a modest second closing of this round next month that will include new strategic investors in addition to further commitments from its existing shareholders.
iCapital provides end-to-end technology and service solutions for the wealth management, banking, and asset management industries. It claims to help wealth management firms provide their clients with quality funds at lower minimums and simplified digital workflows while assisting asset managers and banks to streamline and scale their private investments operational infrastructure. In addition, iCapital’s platform offers access to a curated menu of private equity, private credit, hedge funds, and other alternative investments.
iCapital last raised a $162 million funding in March 2020. It has since grown platform assets from $46 billion to more than $80 billion, doubled its headcount, made five acquisitions, and expanded its technology and education capabilities.
Headquartered in New York with offices in Zurich, London, Lisbon, and Hong Kong, the company had access across more than 780 funds as of June 30 this year.
Apart from firms participating in the latest investment round, iCapital’s other strategic partners and investors include global investment managers such as BlackRock, The Carlyle Group, KKR, JPMorgan Chase, and Hamilton Lane.
iCapital cited a recent report by Morgan Stanley and Oliver Wyman that additional high net worth allocations to private market investment opportunities will represent around $1.5 trillion of assets under management by 2025.
“Many high-net-worth investors remain under-allocated to alternative investments relative to institutional investors, but are increasingly exploring the larger role these strategies can play in portfolio construction,” said Gregg Lemkau, CEO of MSD Partners. “The market opportunity to open up access and digitise alternative investing in this space is substantial,” he added.