State Street Corporation (NYSE: STT) today announced it has entered into a new partnership with iCapital Network, the financial technology platform setting the industry standard for delivering access and efficiency in alternative investing. The collaboration will combine State Street’s registered transfer agency and private market fund administration capabilities with iCapital’s platform technology and distribution network to enhance the offering and servicing of US registered funds.
Historically, private market funds, such as private equity, private credit, real estate and infrastructure have been available primarily to institutional investors. However, high-net-worth investors and family offices are increasingly seeking access and exposure to these alternative asset classes to achieve portfolio goals of diversification and income. This partnership aims to support State Street’s clients as they navigate this complex market.
This collaboration will allow State Street’s alternative fund manager clients to simplify and accelerate the launch of registered private market products, establish scaled access to the wealth management channels, monitor fund raising activities, and utilize a comprehensive, fully searchable database of all their investor documents across all funds.
“We’re delighted to be cementing our relationship with iCapital in order to support the needs of this growing distribution channel”, said Paul Fleming, global head of State Street’s Alternative Investment Solutions (AIS) group. “If the private markets were to capture just 5-10 percent of the affluent and mass affluent market in the US alone, it would represent between $800 billion and $1.6 trillion in assets under management. A strong partner with a solution that addresses the needs of the investor, fund manager and investment advisors and distributors is critical. That’s why we’re partnering with iCapital.”
“The opportunities of the private market have traditionally been unattainable for those that lack the scale of an institutional investor”, said Lawrence Calcano, chief executive officer at iCapital Network. “However, our technology is rapidly changing that with access, efficiency and transparency. This partnership with State Street aims to create new opportunities for fund managers, advisors and high-net-worth investors by facilitating the offering of registered funds, providing managers access to fresh capital and giving investors an opportunity to add new asset classes to their portfolios.”