Bank of America recently acquired a strategic stake in alternative investment platform iCapital, following a single meeting between CEOs that led to a new private financing round valued at $6 billion. The investment, alongside Apollo Global and other major Wall Street players, highlights the growing influence of iCapital in the wealth management space. iCapital, which manages $135 billion in assets under administration across 1,035 funds, aims to deepen Merrill Lynch brokers’ involvement in alternative investment offerings.
The platform’s expansion followed its 2019 acquisition of Bank of America’s alternative investment feeder fund operations, streamlining services for Merrill and Private Bank clients. Bank of America emphasizes that alternative investments play a critical role in diversified portfolios, providing increased access, education, and advisory support. With expanded technical capabilities, broader fund offerings, and enhanced automation, iCapital is poised to strengthen its multi-billion-dollar relationship with Bank of America while driving growth in alternative investment adoption among advisors and clients…