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UBS sells its alternative investment platform

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UBS unloads a fund platform for alternative investments on iCapital. But the Swiss bank continues to hold a strategic stake in the buyer.

UBS is selling the management and operation of its UBS Fund Advisor platform for alternative investments to iCaptial. The platform, known as Alpha Keys Funds, represents more than $7 billion in client assets, according to a press release.

The transaction notably includes feeder funds in the areas of private equity, hedge funds and real estate investment. UBS Financial Advisors will continue to advise high net worth and ultra high net worth clients who hold such funds in their portfolios. It would also offer solutions to better meet each client’s financial needs and goals.

Automation Specialist

Founded in 2013, iCapital presents itself as the first global fintech platform promoting access to alternative investments for the asset and wealth management industry. Because iCapital’s solutions automate and digitize the entire private markets investment lifecycle, they eliminate many manual and paper-based transaction processes.

Strategic investment by UBS

In 2017, UBS took a stake in iCapital and entered into a strategic partnership to distribute new feeder funds that provide private market assets to clients. At the time, UBS also integrated iCapital’s proprietary technology into its private funds business to automate its alternative investment offerings. The New York company has also had a presence in Zurich since 2018.

In 2021, the strategic partnership was expanded to further digitize the offering for UBS advisors. At the same time, information and analysis of clients’ investments in the private market must be improved on UBS’s international sites.

In an interview with finenews.com in May, CEO of iCaptial Lawrence Calcano says that UBS, for example, “doesn’t need our help finding managers or due diligence managers. But we can build their alternative investment infrastructure, power it with our technology, and grow their alternative ecosystem.”