iCapital Raises $820mm
- Kendrick Wakeman, CFA
- Jul 10
- 1 min read
iCapital announced that they have raised over $820mm in a funding round lead by T Rowe Price and SurgoCap Partners. Other noteable strategics participated including State Street, Temasek, UBS, and Bank of NY. The round was reportedly valued at $7.5 billion.
We see this as yet another point of validation for the thesis of increased alternative use in wealth management. Blackrock estimates that over $20 trillion of wealth management assets will be invested in alternatives by 2030. Blackrock's CEO, Larry Fink, stated in his annual letter that he foresees a day when the ubiquitous 60/40 Portfolio becomes the 50/30/20 Portfolio with the 20% being made up of alternative assets. It's probably worth noting that Blackrock owns a large chunk of iCaptial, so it's probably less of a coincidence than one might expect.
It's also notable that they are earmarking a good chunk of proceeds towards acquisitions. They have been quite acquisitive in the past and it looks like that will not be ending anytime soon. Nor should it, if the opportunity is really there to try and lock-up a rapidly growing and significant market. In some ways, it is their market to lose at this point.
For more information on our "Rise of Alternatives in Wealth Management" thesis, as well as our other key WealthTech theses, please feel free to check out our themes piece "WealthTech Themes for the Next 5 Years" here: https://www.wealthtechstrategy.com/post/wealthtech-themes-for-the-rest-of-the-decade
