iCapital to Acquire UBS Fund Advisor LLC

Posted on 08/25/2022

iCapital (formerly known as Institutional Capital Network, Inc.), an online website driving access and efficiency in alternative investing for the asset and wealth management industries, inked a deal to acquire UBS Fund Advisor LLC, UBS’s legacy proprietary US alternative investment manager and the feeder fund platform it manages. The platform, generally referred to as “AlphaKeys Funds,” represents more than US$7 billion in client assets. The seller is UBS Group AG. The transaction is expected to close during the second half of 2022. Terms of the agreement were not disclosed.

With this transaction, iCapital will assume the management and operation of the platform, which includes private equity, hedge fund and real estate feeder funds. UBS Financial Advisors will continue to serve their high and ultra-high net worth clients that hold feeder funds as they always have, providing advice and solutions.

In 2017, UBS became an investor in iCapital and entered into a strategic relationship with the firm to structure new feeder funds for UBS to distribute going forward. At that time, UBS also integrated iCapital’s proprietary technology into its private fund operations to streamline and automate its alternative investment offerings.

On October 16, 2015, UBS Willow Management (UWM) and its managing member UBS Fund Advisor agreed to pay over US$ 17 million to the SEC, to settle charges stemming from UWM’s failure to inform investors it switched the investment strategy of its advisee-fund from investing in distressed debt to shorting distressed debt, and UBS Fund Advisor’s failure to supervise UWM.

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