iCapital Launches First Alts Model Portfolio

Over 100,000 US Advisors Using iCapital’s Platform Can Access New iCapital Multi-Asset Portfolio.
Lawrence Calcano, Chairman & CEO, iCapital
Lawrence Calcano, Chairman & CEO, iCapital
Jeff Berman, Contributing Editor & Reporter, Wealth Solutions Report
Jeff Berman, Contributing Editor & Reporter, Wealth Solutions Report

The iCapital Multi-Asset Portfolio (iMAP), announced by iCapital on Monday, was touted by the company as the first alternatives model portfolio of its newly introduced iCapital Model Portfolios.

More than 100,000 U.S. financial advisors who use the iCapital Marketplace platform can now access iMAP and additional portfolio models are “set to follow in the coming months,” the firm said.

The new model portfolio lets advisors easily integrate alternative investments with traditional public market portfolios in their clients’ portfolios, according to iCapital.

The portfolio “simplifies the entire process, from due diligence and manager selection to investment, construction, and ongoing monitoring,” the company said.

Combined with Architect, iCapital’s portfolio construction tool, advisors will be able to run an analysis to “easily evaluate the impact of incorporating alternative investments alongside traditional portfolio holdings,” the company said.

“As demand grows, iCapital will continue to work with leading alternative asset managers to design and curate additional outcome-based models,” said Lawrence Calcano, CEO and Chairman of iCapital.

The Model Portfolios by iCapital are “designed to assist with asset allocation within alternative investments and identify top-tier products that fit those allocations,” according to the company.

They were developed using quantitative analysis by iCapital’s research and due diligence team, according to iCapital.

The Model Portfolios suite provides a “comprehensive and flexible way for financial advisors to include these investments in their practice,” according to iCapital.

iMAP provides a balanced alternative investment allocation across five funds from private equity, private credit and real assets, iCapital said.

iMAP is a balanced portfolio that iCapital said combines income and growth through private markets investing. Its goal is to generate total returns with “reduced volatility and fewer drawdowns than traditional asset classes, helping to manage market stress more effectively,” according to iCapital.

Dana D’Auria, Co-Chief Investment Officer and Group President, Envestnet Solutions
Dana D’Auria, Co-Chief Investment Officer and Group President, Envestnet Solutions

“This focus on asset class enables advisors to build holistic portfolios for their clients through this accessible, ready-to-use format,” according to Dana D’Auria, Co-Chief Investment Officer and Group President of Envestnet Solutions.

“Advisors, already familiar with establishing client allocations using trusted models on the Envestnet platform, will find iCapital’s integration of this growing asset class into their workflows to be a straightforward process. It’s a significant innovation in portfolio management,” she said.

Since his company started partnering with iCapital in 2017, “we have been committed to unlocking access to the private markets for financial advisors and their clients,” said Sean Connor, President and CEO of Global Private Wealth at Blue Owl Capital. “We believe models are a critical tool to simplify and enhance the investment experience for advisors seeking to integrate high quality alternative investment strategies into portfolios.”

The iCapital operating system had $184.7 billion in global platform assets as of March 31, it said.

Jeff Berman, Contributing Editor & Reporter at Wealth Solutions Report, can be reached at jberman@wealthsolutionsreport.com.

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