It didn’t take long for alternative investment platform iCapital Network to put fresh cash to work. Just weeks after announcing a $146 million round of funding, CEO Lawrence Calcano purchased alternatives platform Artivest for an undisclosed price. In addition to the approximately $4 billion in assets Artivest brings, iCapital gets key technology builders and developers with the acquisition.
“We have long admired Artivest’s technical innovations and capabilities in registered funds and direct investments, and the strength of their team,” said Calcano, in a statement. “This acquisition was compelling for a number of reasons.”
iCapital Network will be retaining 28 employees from Artivest, including members of the tech, finance and client solutions teams, said Calcano. Artivest CEO and Chairman Martin Beaulieu will be helping transition clients over to iCapital, but he will eventually be leaving after the deal closes.
Artivest investor KKR is expected to convert its ownership stake into equity holdings of iCapital Network, according to the announcement. Artivest's other owners included Aquiline Capital Partners, Genstar Capital and Thiel Capital.
Both wirehouse and non-wirehouse advisors will benefit from the new tech, said Calcano. While advisors familiar with either Artivest or iCapital’s systems shouldn’t expect to be forced into using a system unfamiliar to them, they will eventually see improvements as iCapital selects the best tech from each framework.
“We’ll make a broader set of functions and features available,” Calcano explained. “No one’s going to be forced to do anything they don’t want to do. We’re not going to go in and tell people they’ve got to switch.”
While not explicitly ruling out future acquisitions, Calcano said his company has the firepower it needs to strengthen its internal development, alongside the clout it needs to seek out partnerships in the industry.
iCapital Network’s client list has grown rapidly over the past few years, and is now both more numerous and diverse than it was not long ago, said Calcano. The company has had to respond. Even without its acquisitions, iCapital Network added 17 new staff in the past few months alone, he said.
