US firm iCapital has described how it sees a “compelling opportunity” to empower Australian wealth managers to access private markets, with further strategic collaborations expected with Aussie players.
iCapital describes itself as offering a way for wealth managers and asset managers to expand their access to private markets and alternatives and has US$228 billion ($345 billion) in alternative platform assets, working with over 2,900 wealth management firms globally.
Earlier this month, the company was praised by IMAP chair Toby Potter for its efforts to reach the platform and managed account market in Australia, with deals enacted with JP Morgan Asset Management (JPMAM) to open up access to its alternatives strategies, with platform Netwealth and Lonsec.
The Netwealth strategic partnership will distribute global private market and hedge fund investments to financial advice firms and their wholesale clients across Australia, while a partnership between Netwealth and Lonsec Investment Solutions launched an alternative asset investment solution for financial advisers and their high-net-worth (HNW) clients.
Commenting to Money Management on why the region is appealing to the firm, it said Australia presents an opportunity to allow private markets products to be accessed by wholesale clients.
As residential house prices have risen, around 12 per cent of Australian households now qualify as wholesale investors, and this number could rise to a fifth of households by 2033, while Capgemini found Australian HNW wealth already stands at $1.68 billion across 334,800 individuals in 2024.
This presents an attractive proposition for the New York-headquartered business to enter the Australian market, especially as HNW investors and their financial advisers have indicated they are keen to increase their alts allocations.
“Australia represents a sophisticated and well-regulated financial ecosystem where access to private assets has traditionally been limited to large institutions,” it said.
“We see a compelling opportunity to empower wealth managers and asset managers by unlocking private markets for wholesale clients. Through our leading technology, educational resources, and deep insights into private assets, we aim to bridge this gap and foster broader participation.”
Having hired Mark Oliver from Insignia Financial as its head of client strategy to work with wealth managers and advisers, a Sydney office is planned to open in the coming months, where iCapital will scale the Australian team to respond to local market needs.
Oliver was previously managing director and head of wholesale advisory and iShares at BlackRock in Australia and chief distribution officer at Insignia Financial.
“Our offerings in Australia will be tailored to the specific needs and challenges of our clients. We’ve seen strong interest in our global technology platform, which enables wholesale advisers to access and manage private market investments efficiently,” it told Money Management.
“In addition to our partnerships with Netwealth and Lonsec, we continue to explore further strategic collaborations to expand our reach and impact. Our services will also include educational tools, analytics, and curated insights into private market funds.”
iCapital is one of many US firms that are looking to target the Australian wholesale market, with private equity firms Oaktree Capital, CC Capital, Bain Capital, and TA Associates all making recent investments with Australian companies.
