Alternative investment platform iCapital has entered into an agreement to acquire Mirador, a fintech that provides investment data aggregation and financial reporting across 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, no matter where the assets are held.
Mirador’s client base includes advisors serving high-net-worth investors, family offices, endowments 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 offering custom wealth technology solutions.
“If you think about what we’ve been doing for the last decade, we’ve been building out the tech infrastructure to give access to alts and to automate that whole journey for the life cycle of the investment. One of the things that’s a pain point is the data infrastructure and how data goes from one place to another," said Lawrence Calcano, Chairman and CEO of iCapital. “Mirador has done an incredible job providing a white glove service to make sure data gets to where you need it. As we look to solve industry pain points, this data piece is a significant one. By acquiring Mirador, we’re addressing tech needs, but data needs as well.”
One area where the merger could help is with large wirehouses, B/Ds and RIAs that have grown through acquisitions needing to consolidate investment data and reporting.
“We continue to win mandates from large RIAs that are large because of organic and acquired growth,” Calcano said. “They have large existing investment portfolios that need to be ported forward to a common chassis. What Mirador does is incredibly valuable to service those clients who are asking us to take on their back book in addition to taking on the front book.”
The two companies began talking about the merger in 2023. They found they had some client overlap with both servicing about 40 firms, for which they can now provide an integrated solution. However, many other firms are using only iCapital or Mirador, which will create an opportunity to cross-sell.
“While we both service the wealth management and RIA community, half of our clients are direct to family,” Mirador CEO and President Joseph Larizza. “We look forward to implementing this to families, and we think it will be a whole other segment to introduce our combined services to.”
As part of the transaction, over 180 employees of Mirador are expected to join iCapital. Terms of the agreement 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.