Alternative investment platform iCapital signed a definitive agreement to buy AI fintech platform AltExchange for an undisclosed amount. AltExchange uses AI and machine learning to aggregate data and manage and complete reporting on alternative investments for financial advisors and asset managers. As part of the acquisition, AltExchange CEO Kareem Hamady will join iCapital.
AltExchange’s technology aggregates and converts unstructured data from multiple documents and multi-format data feeds into structured insights to provide real-time information and streamline tax reporting. Its AdvisorVue platform helps financial advisors aggregate clients’ portfolios, standardize data and documents and automate the reporting process. The firm’s Digital Custodian Platform also allows asset managers to standardize post-investment reporting, automate investor reporting and help make integration with advisors’ systems more seamless.
“AltExchange has developed one of the most advanced document retrieval solutions that’s connected to sophisticated mapping, routing technology and LLM (large language model)-based document extraction,” said Lawrence Calcano, chairman and CEO of iCapital, in a statement. “This acquisition complements the investments we are making in our internal R&D to further enhance our data management capabilities. Combined with our existing solutions, it allows us to deliver on our goal of creating reliable end-to-end data management services for all our clients.”
It's iCapital's second enhancement this week in what has been a busy year of bulking up for the alts platform. It also announced a partnership with asset management giant BlackRock and turnkey asset management platform GeoWealth to allow RIAs who use BlackRock’s custom model portfolios to invest in private assets alongside traditional investments in unified managed accounts.
Both moves, in turn, follow iCapital’s recent launch of its Multi-Investment Workflow Tool, which aims to streamline the alternative investing experience for RIAs.The tool, which iCapital debuted earlier this month, allows advisors to process multiple investments in a single setting.
In addition, back in April iCapital announced its acquisition of Mirador, a fintech platform providing data aggregation and financial reporting for both alternative and traditional investments.
According to Hamady: “We are thrilled to join iCapital and offer our collective clients automated data aggregation, reporting and direct integrations with leading asset and wealth management systems, providing a seamless experience for advisors and their clients.”
