iCapital Snatches Citi’s Alternatives Feeder Platform in Power Move
Wall Street’s favorite middleman just got fatter—iCapital gobbles up Citi Wealth’s alternatives feeder business, because why let billionaires diversify their own portfolios when you can take a cut?
The deal juices iCapital’s private markets dominance while Citi offloads another non-core asset. Because nothing says ’strategic focus’ like selling the furniture to pay for the yacht.
Watch for more banks to unload alternative investment arms as compliance costs bite and crypto-native platforms eat their lunch. The old guard’s buffet is shrinking—bon appétit.
iCapital will also assist with global sales and service enablement through a team dedicated to Citi Wealth to support the growth of Citi’s alternatives program
iCapital1, the global fintech platform transforming the world’s investment industry for better outcomes, and Citi announced that iCapital is acquiring from Citi one of its indirect subsidiaries, Citi Global Alternatives, LLC (“Citi Global Alternatives”), the advisor to Citi Wealth’s global alternative investment fund platform. This platform represents more than 180 alternatives funds distributed globally. It comprises investment vehicles across a diverse range of alternative investment strategies and asset classes, including private equity, growth equity, private credit, infrastructure, venture capital, real estate and hedge funds.
“We are excited to partner with Citi Wealth to drive growth for their alternatives business globally. iCapital’s technology platform will streamline the operations and management of their current and future alternative investment funds platform,” said Lawrence Calcano, Chairman and CEO of iCapital. “Additionally, we will enhance Citi Wealth’s global sales capabilities with a dedicated alternative investment specialist team, equipping advisors with more resources focused on pre-sale, sale and post sales investment activities. The team will cover all asset classes and product structures, working in close partnership with Citi and general partners to support alts platform growth.”
“Citi Wealth already has a strong working relationship with iCapital on alternative solutions, and we’re excited to expand our relationship to bring greater integration of iCapital’s market-leading digital capabilities to our advisors, bankers, investment counselors and clients,” said Daniel O’Donnell, Head of Citi Wealth Alternatives and Investment Manager Solutions.
Having completed many fund platform acquisitions with leading financial institutions, iCapital is uniquely qualified to consolidate fund platforms of all types and sizes, unlocking operational efficiency, and providing a unified technology solution for our partners. With this transaction, iCapital will manage and operate the fund platform, while Citi remains the distributor of such funds and will continue offering guidance to its clients on the role of alternative investments within a diversified investment strategy.
Terms of the purchase agreement were not disclosed.
Source: iCapital
