Spotlight: iCapital, the Alternative Investment Platform Behind Bank Feeder Funds
Since 2016 iCapital has taken over feeder fund programs from Credit Suisse, Deutsche Bank, Bank of America, Morgan Stanley, Wells Fargo, Stifel, UBS, and Citi, and in September 2026 DTCC became its latest strategic investor.
October 7, 2026
iCapital is a New York-based technology platform that wealth managers use to research, buy, and administer alternative investments, structured investments, and annuities, and that asset managers use to reach the wealth channel. Founded in 2013 and led by chairman and CEO Lawrence Calcano, the firm reports $1.2 trillion of assets serviced on its platform as of June 30, 2026. That total includes $327 billion in alternative platform assets, $311 billion in structured investments and annuities and insurance outstanding, and $563 billion in client assets it reports on. iCapital says it serves nearly 3,900 wealth management firms and 144,000 active financial professionals.
Taking over bank feeder fund platforms
Feeder funds pool commitments from many wealth clients into a single investment in an institutional private fund, and whoever runs them handles subscriptions, capital calls, and reporting for every underlying investor. Since 2016 iCapital has taken over a series of these programs from the banks and wealth firms that built them. Its published milestones list Credit Suisse's Hedge Focus platform in 2016, Deutsche Bank's US Private Equity Access Fund platform in 2017, the private wealth feeder operations of Bank of America and Morgan Stanley in 2019, Wells Fargo's Alternative Investments Feeder Fund Program in 2020, and the Stifel and UBS feeder fund platforms in 2022.
The most recent, announced May 13, 2025, was Citi. iCapital acquired Citi Global Alternatives, LLC, the adviser to Citi Wealth's global platform of more than 180 alternative funds. Under the announced terms, iCapital manages and operates the fund platform, while Citi remains the distributor and continues advising its clients on the role of alternatives in a portfolio. iCapital also said it would supply a dedicated alternative investment specialist team to support Citi Wealth's advisors before, during, and after a sale.
Several of the same institutions are iCapital shareholders. The firm lists strategic investments from BlackRock in 2016, UBS and Morgan Stanley Investment Management in 2017, Blackstone, Carlyle, and JPMorgan in 2018, and Bank of America in 2022. In 2025 it reported completing a capital raise of more than $820 million at a valuation above $7.5 billion.
The alternative investment marketplace and the tools around it
iCapital Marketplace, launched in 2014, is the flagship platform connecting wealth managers with asset managers. Its menu covers private markets, hedge funds, structured investments, separately managed accounts, the m+ funds line of defined outcome ETFs, and annuities. On September 30, 2026, ExchangeRight added its Net-Leased Preferred Equity Fund strategy to the Marketplace. The Marketplace also runs inside other firms' systems: Inspira Financial has described custodying the alternatives that advisors on TradePMR's Fusion platform buy through iCapital.
iCapital has also bought businesses covering the steps before and after a purchase. AI Insight, acquired in 2021, became iCapital Insight, its research, education, and compliance documentation unit, and the same year the firm launched the AltsEdge advisor education program with CAIA. SIMON Markets, acquired in 2022, added a structured products platform for advisors. Mirador (2024) brought data management and reporting, and Parallel Markets (2025) brought digital identity, investor onboarding, and compliance verification. In March 2026 iCapital agreed to acquire Hexure, whose FireLight e-application and ForeSight illustration software it plans to fold into its annuity platform so that annuity and life insurance business runs on one system from education through order entry and post-sale servicing.
Retirement plans and DTCC
On September 14, 2026, Great Gray Trust Company named iCapital its preferred partner for private markets manager evaluation, due diligence, and portfolio construction. The two firms plan a suite of collective investment trusts for defined contribution plans, one each for private equity, private credit, and private real assets. Great Gray will establish the CITs, act as trustee, and keep ultimate fiduciary authority over their investments. iCapital will recommend the underlying managers and the allocation design, advise on liquidity management, and provide education for plan sponsors and advisors.
On September 28, 2026, DTCC announced a strategic collaboration with iCapital along with a strategic investment in the firm. The first project is a deeper integration between DTCC's Alternative Investment Product (AIP) and iCapital's platform across transaction processing, data exchange, administration, and reporting. Talia Klein, DTCC's head of wealth and investment solutions, joins iCapital's board as an observer.
