Bank of America has invested in the alternative investment platform iCapital.
The size of the bank’s stake was not disclosed, but iCapital said it received the same $6 billion valuation as 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 company raised $50 million 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 continue iCapital’s mission to provide financial advisors with a comprehensive alternative investment solution,” said iCapital CEO Lawrence Calcano (pictured). “We look forward to continuing to work with the Bank of America team to enhance our platform to better 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 $20 billion feeder fund business. This platform sponsors and distributes a suite of alternative mutual funds for Bank of America’s wealth management and investment division, which includes approximately 18,600 advisors employed by both Merrill Lynch and BofA Private Bank.
Acquisitions of feeder fund platforms have been a constant source of growth for iCapital. The company acquired Stifel’s feeder fund business in March and purchased Bank of Singapore’s private market feeder fund platform in February.
iCapital, founded in 2013, manages approximately $130 billion in client assets on its platform.