iCapital’s latest capital raise brought in two new investors, joining follow-on investments from familiar faces to the fintech, helping the raise surpass $820 million. The round was led by T. Rowe Price and hedge fund SurgoCap Partners.
According to a press release, the round also included additional participation from State Street and increased commitments from three of the company’s long-standing backers: Temasek, UBS, and BNY. Altogether, this raised the company’s valuation to over $7.5 billion.
The capital will be used, according to the statement, to accelerate iCapital’s global acquisition strategy, geographic expansion, and technological innovation.
“The resources from this capital raise will be strategically deployed to accelerate our acquisition efforts, with a focus on enhancing our technology platform and expanding our data capabilities,” said Michael Kushner, Chief Financial Officer of the fintech, in the press release.
This marks a continued path of consolidation for iCapital, which was founded in 2013. In total, the company noted it has invested over $700 million into its platform and completed 23 strategic acquisitions, including recent purchases of Mirador, AltExchange, and Parallel Markets.
Currently, iCapital has $945 billion in assets under service globally on its platform. This includes $257 billion in alternative assets, $203 billion in structured investments and pending annuities, and $485 billion in client assets.
Moreover, the fintech emphasized that the last 12 months have seen a surge in global activity on its platform, with the number of funds rising to 2,100 and the number of financial professionals using the platform increasing to 114,000.
“This capital raise reflects our investors’ enthusiasm for the opportunity we have to transform the investment experience,” said Lawrence Calcano, Chairman and CEO of iCapital.
The capital round included Goldman Sachs as financial advisor and placement agent, while legal counsel was provided by Ropes & Gray.
