American investment bank Morgan Stanley has transferred its alternative investments feeder fund business to fintech platform iCapital Network.
Under the agreement, whose terms were not divulged, iCapital will manage the bank’s 115 investment vehicles.
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iCapital will have oversight of nearly $40bn in private fund assets for over 100,000 accounts as part of the deal.
Morgan Stanley head of alternative investments Jeremy Beal said: “Our relationship with iCapital will bring greater scale and efficiency to our feeder fund business as well as enhanced technology and reporting to our advisers and clients.”
Morgan Stanley would still remain responsible for sourcing and monitoring alternative investments for its clients.
At the same time, investors in the funds will continue to be the bank’s clients.
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By GlobalDataBesides, some employees involved in the transferred business are expected to join the fintech platform.
iCapital CEO Lawrence Calcano said: “The iCapital technology’s capacity for scale, customisation and support allows us to offer a level of service in the alternative investing industry that has not previously been available and we look forward to providing the highest quality experience for the Morgan Stanley team during this transition.”
Recently, various global banks have tapped iCapital for their alternative investment operations.
These include HSBC Private Banking, Bank of America, and JP Morgan Asset Management.
