iCapital is part of a change in how alternative assets such as private equity and hedge funds are accessed by HNW and other investors. Nuveen, the investment arm of a major US teachers' union pension fund, oversees more than $1.2 trillion in assets.
Nuveen, the investment house overseeing $1.2 trillion of assets, has expanded its partnership with fintech investments platform iCapital Network. Under the pact, iCapital will provide technology, service, advisory and distribution solutions for advisors and their high net worth clients seeking access to Nuveen’s real estate and private capital offerings.
The iCapital business, which is based in New York, pitches itself as an offering that “democratises” how HNW investors can tap into alternative investment areas such as private equity and hedge funds, previously hard to enter for all but the wealthiest investors. Interest in alternative assets has expanded because of their superior yields against a backdrop of very low or negative interest rates.
“From real estate and real assets to private credit, offering alternative investment opportunities can help advisors and their clients generate additional alpha and navigate a low rate environment,” Mike Perry, head of Nuveen’s global client group, said. “By expanding our partnership with iCapital, we’re able to bring more asset classes and alternative investment brands now and in the future to a broader set of clients with solutions that fit seamlessly within our offering.”
In Nuveen’s case, the value of the alternative assets it manages amounts to more than $220 billion. Nuveen is the investment manager of TIAA (Teachers Insurance and Annuity Association of America-College Retirement Equities Fund.) As of 31 March, iCapital Network serviced $73 billion in global client assets across more than 760 funds.
In May iCapital said that it was boosting its international footprint, naming its first Asian leadership hire. It appointed Edwin Chan as head of client solutions, Asia. Additionally, it named Manuel Faccio as head of client solutions, Europe. Chan is based in Hong Kong, where iCapital is opening a new office. Faccio is based in iCapital’s Zurich office.
Nuveen's real estate business recently made a number of hires, including in the Asia-Pacific region.