Euroclear is to provide wider access to private markets investment following a partnership with iCapital, a platform that hosts funds investing in alternative assets such as private equity.
Euroclear, which is a major provider of financial infrastructure, will provide “enhanced access” for its 2,500 clients to strategies such as private credit, real estate and infrastructure, as well has hedge funds.
The funds are provided by iCapital Marketplace and will expand Euroclear’s own fund platform, FundsPlace, which is accessed by private banks and custodians, among others.
The firms say access to multiple funds and managers will be offered with “reduced minimum investment requirements”.
This reflects the move in the funds industry to make private assets available to investors beyond large institutions and sophisticated wealth investors, through vehicles such as the European Long-term Investment Fund in the EU and the Long-term Asset Fund in the UK.
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Technology will streamline tasks such as subscriptions and other administration processes of iCapital funds, reducing operational challenges and increasing efficiencies, Euroclear said.
Additionally, iCapital Marketplace will facilitate direct custody and execution flows to Euroclear, “seeking to ensure a seamless and streamlined client journey, from education and investment selection to subscription, administration, life-cycle management and asset
custody”.
Philippe Laurensy, global head of product expansion and strategy at Euroclear, said the collaboration will “establish a new standard in operational efficiency and effectiveness”.
Marco Bizzozero, head of international at iCapital , said the partnership would allow banks and wealth managers to efficiently incorporate private market funds in client portfolios to help meet their investment objectives and that it would enable a broader number of Investors to access private markets.
iCapital has $179 billion of assets under management on its platform.
