iCapital, the global fintech platform driving access to alternative investments for the wealth management industry, announced the successful launch of the first fund leveraging iCapital’s new Distributed Ledger Technology (DLT).
The fund is distributed by UBS Wealth Management.
This marks an important technological advancement “for increasing scale and real-time connectivity across the alternative investments experience.”
The milestone launch delivers on iCapital’s commitment to technology “that creates unmatched operational efficiency and convenience for over 100,000 U.S. financial advisors.”
iCapital’s DLT is designed to simplify and “enhance the lifecycle management of alternative investments.”
It aims to foster a “more secure, efficient alternative investment management environment, connecting key financial players and allowing for seamless data sharing and transaction processing.”
This ledger technology is expected to “eliminate 100,000+ activity reconciliations over the average life of a private capital fund2, improving data processing visibility and efficiency, reducing errors, and enhancing overall investment handling.”
As a result, iCapital’s DLT is expected “to not only save clients thousands of hours of manual data reconciliation and version sharing, but also create significant cost savings and productivity gains in addition to reducing the risks associated with manual data entry.”
Lawrence Calcano, Chairman and CEO of iCapital said:
“Distributed ledger technology represents a significant milestone for iCapital’s innovation. Our technological commitment and experience positions us to spearhead this advancement in support of our clients’ investment lifecycle activities. We are dedicated to optimizing the entire alternative investing experience, enabling fund managers and wealth advisors to operate with efficiency, precision, and ease. We’re excited to collaborate with UBS as our distribution partner for the milestone launch of the first fund using iCapital’s Distributed Ledger Technology. Additionally, we look forward to launching more funds with other partners in the coming months.”
The first fund is distributed “by UBS Wealth Management and administered by Gen II.”
All lifecycle activities – including subscriptions, capital activities, reporting, and liquidity for the fund – will be orchestrated through iCapital’s DLT, which “automates data and document connectivity between firms and minimizes manual data reconciliation.”
The release of iCapital’s DLT is part of the firm’s “ongoing commitment to innovation and digital transformation, following recent launches like iCapital Marketplace, Architect, Model Portfolios, and the acquisition of Mirador, which continue to showcase the company’s commitment to developing the private market’s leading-edge technology solutions.”
Jason Broder, Chief Product Officer at iCapital, said:
“Distributed ledger technology serves and connects firms across the investing ecosystem, including fund managers, administrators, transfer agents, wealth managers, advisors, custodians, and tax providers, who each require timely, precise data to manage alternative investments on behalf of individual investors. iCapital’s DLT eliminates the need for each party to manage multiple integrations across partner firms, reconcile data and documents to their records, and maintain conflicting workflows across funds.”
