Alternative investment platform iCapital has entered into an agreement to acquire Mirador, a fintech that provides investment data aggregation and financial reporting for both alternative and traditional investments.
With the acquisition, iCapital will expand its data management and reporting capabilities. Mirador enables clients and advisors to aggregate asset reporting, regardless of where assets are held.
Mirador's client base includes advisors serving high net worth investors, family offices, foundations and foundations. The company provides consolidated financial reporting, private investment support, offline and alternative investment data management, K-1 document management and compensation management for wealth management firms. Mirador also has a technology consulting team that provides bespoke wealth technology solutions.
“If you think about what we've done for the last decade, we've built the technology infrastructure to give access to alts and automate that whole investment lifecycle journey. One of the things that is a pain point is the data infrastructure and how the data goes from one place to another,” said Lawrence Calcano, Chairman and CEO of iCapital. “Mirador has done an incredible job of providing a glove service white to ensure data acquisition. where you need it. As we seek to solve industry pain points, this piece of data is important. By acquiring Mirador, we are addressing technology needs, but also data needs.”
One area where the merger could help is with the big wires, B/Ds and RIAs that have grown through acquisitions that need to consolidate investment data and reporting.
“We continue to win mandates from large RIAs that are large due to organic and acquired growth,” Calcano said. “They have large existing investment portfolios that need to be transferred to a common chassis. What Mirador does is extremely valuable in serving those customers who are asking us to take their back book in addition to taking their front book.”
The two companies began talking about merging in 2023. They discovered they had some customer overlap with both serving around 40 firms, for which they can now offer an integrated solution. However, many other firms are only using iCapital or Mirador, which will create an opportunity to cross-sell.
“While we both serve the wealth management and RIA community, half of our clients are directly family,” Mirador CEO and President Joseph Larizza. “We look forward to bringing this to families and think it will be another segment to introduce our combined services.”
As part of the transaction, over 180 Mirador employees are expected to join iCapital. Terms of the deal were not disclosed.
Morgan Stanley & Co. LLC and Goodwin Proctor LLP are serving as advisors to iCapital. Raymond James and DBM Legal Services LLC are advising Mirador.