Alternative investment platform iCapital signed a definitive agreement to acquire AI fintech platform AltExchange for an undisclosed amount. AltExchange uses AI and machine learning to aggregate data and manage and complete reporting on alternative investments for financial advisors and asset managers. As part of the acquisition, AltExchange CEO Kareem Hamady will join iCapital.
AltExchange's technology aggregates and converts unstructured data from multiple documents and multi-format data sources into structured insights to deliver real-time information and improve tax reporting. Its AdvisorVue platform helps financial advisors aggregate client portfolios, standardize data and documents, and automate the reporting process. The firm's Digital Custodian Platform also allows asset managers to standardize post-investment reporting, automate investor reporting and help make integration with advisor systems more seamless.
“AltExchange has developed one of the most advanced document discovery solutions related to sophisticated document mapping, routing technology and document extraction based on the LLM (Large Language Model),” said Lawrence Calcano, chairman and CEO of iCapital , in a statement. “This acquisition complements the investments we are making in our internal research and development to further enhance our data management capabilities. Combined with our existing solutions, it allows us to realize our goal of creating reliable end-to-end data management services for all our customers.”
It's iCapital's second upgrade this week in what has been a busy year of growth for the alts platform. She too announced a partnership with asset management giant BlackRock and the GeoWealth asset management platform to allow RIAs using BlackRock's custom model portfolios to invest in private assets alongside traditional investments in unified managed accounts.
Both moves, in turn, follow iCapital's latest launch of its multi-investment workflow toolwhich aims to simplify the alternative investment experience for RIAs. The tool, which iCapital debuted earlier this month, allows advisors to process multiple investments in a single environment.
In addition, again in April iCapital announced the acquisition of Miradora fintech platform that provides data aggregation and financial reporting for both alternative and traditional investments.
According to Hamady: “We are delighted to join forces with iCapital and offer our collective clients automated data collection, reporting and direct integrations with leading asset and wealth management systems, providing a seamless experience for advisors and clients theirs.”