Bank of America has made an investment in alternative investing platform iCapital.
The size of the bank’s stake was not disclosed, but iCapital said it received the same valuation of $6bn that it received in its previous funding round in December.
Bank of America joins a litany of institutional investors in iCapital, including Goldman Sachs Asset Management, Wells Fargo, Morgan Stanley, UBS, BNY Mellon, KKR and Carlyle Group. In December, the firm raised $50m from private equity firm WestCap and venture capital firms Apollo Global Management and Temasek.
‘We are honored to have the support of Bank of America to further iCapital’s mission to provide financial advisors with a complete alternative investing solution,’ stated iCapital chief executive Lawrence Calcano (pictured). ‘We look forward to continuing to work with the Bank of America team to enhance our platform to best meet the needs of its Merrill and Private Bank advisors seeking a range of alternative investments for their high-net-worth clients.’
iCapital has had a relationship with Bank of America since March 2019, when it purchased the bank’s $20bn feeder fund business. That platform sponsors and distributes a suite of alternative pooled investment funds for Bank of America’s wealth and investment management division, which includes roughly 18,600 advisors employed by both Merrill Lynch and BofA Private Bank.
Feeder fund platform acquisitions have been a consistent source of growth for iCapital. The firm acquired Stifel’s feeder fund business in March and bought Bank of Singapore’s private market feeder fund platform in February.
iCapital, founded in 2013, services roughly $130bn in total client assets on its platform.