Alternative investment marketplace iCapital Network is expanding its relationship with Morgan Stanley to become an exclusive feeder fund service provider, according to an announcement. Morgan Stanley's Wealth Management Alternative Investments Group will now have iCapital Network overseeing its alternative investment feeder fund assets, comprised of 115 investment vehicles.
With the latest agreement, iCapital now services roughly $40 billion in private fund assets across more than 100,000 accounts, according to the firm. That's an increase from $28 billion and under 70,000 accounts, which were iCapital's tallies after it acquired Bank of America's alternative investment feeder fund operations in September 2018—a deal expected to close in the first half of this year.
The deal marks the culmination of a two-year ramp up for iCapital Network and Morgan Stanley, said iCapital CEO Lawrence Calcano. “Morgan Stanley has been a trusted, strategic business associate of iCapital," he said. "This agreement is testimony to the collaborative nature of our relationship and common goal to enhance the alternative investing process for advisors and their clients."
Morgan Stanley will still be responsible for sourcing and monitoring alternative investments for its clients, but it's possible there will be a transfer of personnel. iCapital will offer positions to a group of Morgan Stanley employees who currently support the role iCapital will be taking over. The offers come amid a larger reorganization recently announced for Morgan Stanley's wealth management business.