They will collaborate to connect data, operations, and market participants across the private investment lifecycle.
Infrastructure support for private markets got a boost with the announcement that post-trade market infrastructure provider the Depository Trust & Clearing Corp. (DTCC) and fintech company iCapital are collaborating to connect data, operations, and market participants across the private investment lifecycle.
“The collaboration is intended to reduce operational friction and help wealth advisors and asset managers participate in private markets more efficiently, at greater scale and with less risk. In support of this initiative, DTCC has also made a strategic investment in iCapital,” according to the announcement.
DTCC’s strategic investment in iCapital specifies that Talia Klein, head of wealth and investment solutions at DTCC, will be an observer on iCapital’s board of directors, officials say.
“As an initial area of collaboration, the firms plan to further integrate DTCC’s Alternative Investment Product (AIP) with iCapital’s alternative investment platform. By connecting capabilities across transaction processing, data exchange, access, administration, and reporting, the firms aim to create a more seamless and efficient experience across the private investment lifecycle,” officials say. The companies will also explore current and emerging technologies.
“We will partner on technologies that support the overall goals of the relationship, such as blockchain-enabled DLT and tokenization where appropriate that help build a stronger foundation for the industry’s continued evolution,” says Lawrence Calcano, chairman and CEO of iCapital, in a prepared statement.
For wealth advisors, the collaboration “can simplify how alternative investments are accessed and managed within client portfolios,’ officials say. “For asset managers, it can provide more efficient and standardized infrastructure for reaching and supporting the wealth market.”
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