DTCC Takes Stake in iCapital to Expand Private Markets Infrastructure 

The Depository Trust & Clearing Corporation, a post-trade market infrastructure provider, has made an undisclosed stake in fintech platform iCapital, to broaden its reach to private markets infrastructure. 

Through the initiative, DTCC and iCapital have joined forces to reduce workflow hurdles to further help wealth advisors and asset managers gain access to both public and private investments. 

For wealth advisors, the expansion is intended to streamline alternative investments within client portfolios.  

For asset managers, the partnership is aimed at providing more standardized infrastructure for reaching and serving the wealth market. 

Additionally, the firms plan to integrate DTCC’s Alternative Investment Product with iCapital’s alternative investment platform, which is designed to bolster capabilities across transaction processing, data exchange, access, administration, and financial reporting. 

“Private markets represent one of the most significant growth areas in financial services today, creating an urgent need for modern, scalable infrastructure,” said Frank La Salla, president, chief executive officer and director of DTCC. “Broader adoption of alternative investments will depend on making the ecosystem easier to navigate, more efficient to operate, and highly resilient.” 

As part of DTCC’s investment in iCapital, DTCC’s head of Wealth & Investment Solutions Talia Klein will serve on iCapital’s Board of Directors. 

Specific financial terms of the deal were not disclosed. 

ICapital’s latest partnership with DTCC, follows the platform’s collaboration with Aladdin Wealth and BlackRock to integrate their systems to create a unified platform for advisors navigating alternative investments. 

Last July, iCapital raised more than $820 million in its latest funding round, which was co-led by T. Rowe Price and SurgoCap Partners. The funding boosted iCapital’s post-money valuation to over $7.5 billion.