In its latest effort to further strengthen its offerings in the private markets, fintech iCapital has revealed plans to acquire Passthrough, a specialist in investor onboarding and compliance solutions. Announced on February 11, 2026, this strategic deal aims to streamline operations for general partners (GPs) by automating key processes and unifying fundraising channels across diverse investor bases.
The acquisition positions iCapital to deliver a more comprehensive platform that handles everything from investor identity verification to subscription management and anti-money laundering (AML) checks.
By integrating Passthrough’s technology, iCapital can now support GPs in engaging both high-net-worth individuals through wealth channels and larger institutional investors seamlessly.
This unified approach is expected to reduce administrative burdens, enhance scalability, and provide a consistent experience for limited partners (LPs) regardless of their size or investment strategy.
iCapital, founded with the goal of modernizing alternative investments, already serves over 1,200 GPs and product issuers, from niche managers to major global firms.
The addition of Passthrough’s tools complements iCapital’s existing identity solutions, allowing for tailored reporting and compliance features that cater to the evolving needs of the private markets ecosystem.
Lawrence Calcano, iCapital’s Chairman and CEO, emphasized:
“Our journey started by simplifying GP connections to wealth advisors. Acquiring Passthrough naturally broadens this to encompass all LP interactions, fostering a smoother, more integrated experience across the sector.”
He highlighted how this will empower GPs worldwide to manage their investor relationships more efficiently.
The timing aligns with surging interest in alternatives.
Last year alone, institutional investments in these assets topped $1.3 trillion, underscoring the demand for efficient onboarding systems that can handle both institutional inflows and growing wealth manager allocations.
Passthrough, headquartered in New York, has built its reputation on innovative software that automates workflows for fund managers.
Its platform secures sensitive data while integrating with broader private capital tech stacks, making investor experiences more streamlined and compliant.
Tim Flannery, Passthrough’s CEO and co-founder, expressed:
“Combining our onboarding expertise with iCapital’s robust infrastructure will drive the industry toward a standardized, identity-focused model for alternatives.”
As a global enabler of investments, iCapital manages over $1.13 trillion in assets across its platforms, including $295.9 billion in alternatives, and supports more than 3,300 wealth firms and 122,000 professionals.
With operations spanning 18 offices worldwide, from New York to Tokyo, the company leverages AI and machine learning for secure investment processes.
This acquisition not only expands iCapital’s technological edge but also signals a broader industry shift toward digitization in private markets.
By addressing pain points in fundraising and compliance, the combined entity is poised to accelerate growth for asset managers, ultimately benefiting investors with faster, more secure access to opportunities.
As alternative investments continue to gain traction, such innovations could redefine how capital flows in the sector, promoting efficiency and inclusivity.