Alternative Investment Platform Purchases Onboarding Solutions Company
A recent transaction in the financial industry has seen iCapital, a platform specializing in alternative investments located in New York, acquire Parallel Markets, a company focusing on investor onboarding, verification, and monitoring solutions. Although the specific financial terms of the agreement were not disclosed, the move was driven by iCapital’s recognition of the extensive resources dedicated to identity verification services and compliance, which collectively amount to $2.5 billion globally across the financial services sector.
iCapital’s decision to acquire Parallel Markets emerges from an awareness of the inefficiencies and complexities associated with the onboarding processes in private markets investing. Lawrence Calcano, the chairman and CEO of iCapital, emphasized the importance of simplifying these operational challenges. He highlighted Parallel Markets’ innovative software, which facilitates a reusable investor passport that streamlines onboarding processes, thereby benefiting advisors, investors, and fund managers. By integrating technology advancements such as artificial intelligence (AI) and machine learning, iCapital aims to automate alternative investment processes and enhance efficiency, resulting in faster onboarding timelines, reduced costs, and overall process optimization.
The development of the iCapital Investor Passport signifies a strategic move to offer a comprehensive onboarding solution for various investors, both institutional and in wealth management. With this universal reusable investor identity, iCapital aims to streamline the subscription process across its platform, including the iCapital Marketplace and suite of services offered to global alternative asset managers. The digital identity established through the Investor Passport serves as a secure data bank for managing and sharing personal information required during fund subscriptions, compliance verifications, and private market transactions.
The financial industry is witnessing a swift transformation driven by technological innovations, such as data-driven solutions and digital identities, that are reshaping conventional onboarding processes. By integrating Parallel Markets’ advanced technologies and expertise with iCapital’s existing platform, the collaborative effort seeks to revolutionize investor onboarding experiences and compliance procedures. This acquisition represents a significant step towards achieving a seamless, efficient, and secure onboarding solution tailored to the diverse needs of investors and fund managers navigating the complex landscape of alternative investments.
