Alternative investment platform iCapital has added new capabilities to its Architect portfolio construction tool, including making a customed version available on the website of asset manager Apollo Global Management.
Launched in early 2024, iCapital Architect allows financial advisors to evaluate both traditional and alternative assets using historical performance and risk factor analysis. The expanded capabilities should give advisors greater flexibility in using the tool, whether for education purposes or building portfolios with it, said Lawrence Calcano, chairman and CEO of iCapital.
As part of the upgrade, iCapital has added a white-label capability to the tool, allowing asset managers and financial advisors to offer it as an educational product to their clients. In the first application, a customized version of Architect called Apollo Allocation Pro will now be available on Apollo’s website. It enables users to create and compare examples of public and private index portfolio allocations interactively using factors like historical risk/return metrics and running allocations through various past market events. Advisors will be able to access 17 different indices to make their allocations. (Apollo is an investor in iCapital.) Last fall, the firm revealed that it aims to grow its global wealth channel to $150 billion in AUM by 2029, with private markets playing an essential role in achieving this goal.
“This provides the ability for wealth managers to visit the Apollo website and to understand how those products fit into their clients’ specific portfolios,” said Calcano. “It’s an outstanding approach on the part of Apollo to help drive education around these assets in helping advisors really understand the implications of adding the Apollo products to specific client portfolios. It helps advisors better understand the impact and be in a position to effectively explain the impact to their clients.”
According to a statement by Stephanie Drescher, partner and chief client and product development officer at Apollo, “With Apollo Allocation Pro, we’re continuing to educate and empower financial advisors as they seek greater diversification and excess return on behalf of their clients. This tool highlights our commitment to providing advisors with resources to integrate private market strategies into portfolios, enabling them to deliver tailored solutions that align with their clients’ financial goals.”
Other enhancements to the Architect tool include Portfolio Allocator, a smart feature that will allow advisors to build portfolios to suit a client’s individual objectives; more seamless sharing of PDF proposals between advisors and their clients through a new proposal feature; and complete integration with iCapital’s Multi-Investment Workflow tool, which allows advisors to process multiple investments through a single process. iCapital launched the Multi-Investment Workflow tool last year.
