iCapital Network Agrees to Purchase HedgeFocus from Credit Suisse

Mar 22 2016 | 9:41pm ET

Financial technology platform iCapital Network has agreed to purchase Credit Suisse’s HedgeFocus alternative investment access business from Credit Suisse. 

The HedgeFocus portfolio contains more than 20 hedge fund access vehicles representing approximately US$1.8 billion in assets in a combination of event driven, multi-strategy, directional, relative value and tactical strategies run by well-established managers, according to a statement. With the transfer of assets, iCapital will be responsible for the ongoing administration and servicing of the investments for all existing investors as well as marketing, administration and servicing for new investors subscribing through iCapital.

Terms of the transaction were not disclosed.

“This acquisition is a natural extension of our business strategy, helping us expand our footprint in ways that align with the critical investment priorities of the high-net-worth community for access, choice and transparency,” said Lawrence Calcano, managing partner of iCapital Network. “By any metric, this is a transformational deal for iCapital and an important milestone in our efforts to equip the independent wealth community with a leading-edge alternative investments solution.”

“This deal is the culmination of a highly collaborative and close working relationship with iCapital Network that dates back to the firm’s inception in 2013,” said Eileen Duff Blalock, head of alternative investments, private banking North America for Credit Suisse. “We needed to be extremely thoughtful about who we could entrust these assets to, and, after reviewing the entire landscape carefully, we knew that iCapital was the right decision on behalf of our investors and relationship managers.”

iCapital’s online platform offers a curated selection of alternative investments, including private equity, credit, real estate, venture capital and hedge funds, to its private network of registered investment advisors, broker-dealers, family offices and individual high-net-worth investors. The state-of-the-art platform was purpose-built to provide next-generation research, fund diligence and reporting tools, as well as enabling electronic fund subscriptions, redemptions, capital confirmations and statements.

The New York-based company was founded in 2013 by former Fir Tree executive Dan Vene and former Veronis Suhler Stevenson managing director Nick Veronis. It is among a new generation of alternative investment firms that utilize technology to open investment channels previously unavailable to wide swaths of the investing community. The firm has raised a total of $28.85 million in early-stage financing to date, according to CrunchBase, including a $10 million venture round that closed in June of last year. 

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