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iCapital® Network to Acquire Alternative Investment Feeder Fund Operations from Bank of America

September 18, 2018

NEW YORK--(BUSINESS WIRE)--Sep 18, 2018--iCapital Network, the financial technology platform democratizing alternative investments for high-net-worth individuals and their advisors, today announced it has entered into a definitive purchase agreement to acquire certain subsidiaries from Bank of America (NYSE: BAC) that provide sponsorship, administration and advisory services to alternative investment feeder funds (AI feeder funds).

Bank of America’s AI feeder fund operations businesses represent approximately $20 billion in client assets. Upon closing, iCapital’s end-to-end technology solution will be leveraged to streamline and automate ongoing operations and fund administration services for the funds and provide support to advisors and investors.

“Bank of America is one of the largest providers of alternative investments and its portfolio of AI feeder funds is a natural complement to our existing footprint,” said  Lawrence Calcano, Chief Executive Officer of iCapital Network. “This transaction brings us one step closer to our vision of using technology to create a standard industry architecture for alternative investments that improves the experience for investors, advisors and asset managers.”

Bank of America’s Investment Solutions Group will continue to source, distribute and monitor AI feeder funds on its platform, while providing ongoing guidance on the role of alternative investments within a diversified investment strategy. Investors in these funds will continue to be clients of Merrill Lynch and U.S. Trust and the funds will continue to be distributed through Merrill Lynch and U.S. Trust channels.

“Alternative investments are an important component of well diversified client portfolios, and we remain committed to providing clients with access to a broad range of third-party offerings on our platform,” said Nancy Fahmy, Head of Alternative Investments and Specialty Asset Management for Bank of America. “We selected iCapital based on its strong commitment to feeder fund administration, technology advancement and client service. This transaction will help simplify our operations, and we will work closely with them to ensure our advisors and clients continue to receive exemplary service.”

As part of the transaction, iCapital will offer positions to 22 Bank of America employees who currently support AI feeder fund operations businesses, and the transitioning team will continue to support the fund portfolio to ensure continuity of service.

“Bank of America’s team will add significant strength to iCapital’s operations department along with critical industry experience at an important stage in our company’s growth. The combined horsepower of our two organizations will greatly benefit all of our clients and partners,” said  Tom Fortin, Chief Operating Officer of iCapital Network. “At the close, our platform will service more than $25 billion in invested capital and nearly 70,000 accounts, which can only be accomplished with the scaling power of iCapital’s technology.”

The transaction is expected to close during the first half of 2019. Terms of the agreement were not disclosed.

About iCapital Network

iCapital Network is the financial technology platform democratizing alternative investments with complete tech-based solutions for investors, advisors and asset managers. The firm’s flagship platform offers high-net-worth investors and independent wealth advisors a curated menu of private equity and hedge funds at lower minimums with a full suite of due diligence and administrative support in a secure digital environment. Banks and asset managers leverage iCapital’s tech-enabled services to streamline and scale their private investments operational infrastructure. iCapital was included in the 2018 Forbes FinTech 50 and as of June 30, 2018, serviced more than $6 billion in invested capital across more than 14,000 underlying accounts.

For additional information, please visit the Company’s website at www.icapitalnetwork.com | LinkedIn: https://www.linkedin.com/company/icapital-network-inc | Twitter: @icapitalnetwork | Facebook: https://www.facebook.com/icapitalnetwork/

Disclosures: This material is provided for informational purposes only and is not intended as, and may not be relied on in any manner as legal, tax or investment advice, a recommendation, or as an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any fund or security offered by iCapital. Past performance is not indicative of future results. Alternative investments are complex, speculative investment vehicles and are not suitable for all investors. An investment in an alternative investment entails a high degree of risk and no assurance can be given that any alternative investment fund’s investment objectives will be achieved or that investors will receive a return of their capital. The information contained herein is subject to change. Securities may be offered through iCapital Securities, LLC, a registered broker dealer, member of FINRA and SIPC and subsidiary of Institutional Capital Network, Inc. iCapital is a registered trademark of Institutional Capital Network, Inc. All rights reserved.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180918005833/en/

CONTACT: For iCapital Network media inquiries:

Emma Murphy

Tel 718-875-4545

Cell 347-968-6800

icapital@neibartgroup.com

or

Morgan Cretella

Tel 718-875-7606

Cell 919-602-2806

icapital@neibartgroup.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: TECHNOLOGY SOFTWARE PROFESSIONAL SERVICES BANKING FINANCE

SOURCE: iCapital Network

Copyright Business Wire 2018.

PUB: 09/18/2018 12:00 PM/DISC: 09/18/2018 12:01 PM

http://www.businesswire.com/news/home/20180918005833/en

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