Tikehau Capital launches alternative investment offering with iCapital

Alternative asset manager Tikehau Capital has partnered with US alternative investment platform provider iCapital to launch a customised marketplace to deliver alternative investment opportunities to wealth managers.

The new marketplace will be powered by iCapital’s technology and will deliver Tikehau Capital’s alternative offerings to wealth managers and their high-net-worth clients in the EMEA region.

The platform will initially provide wealth managers with access to institutional investors-exclusive alternative investments. It will include the second vintage of Tikehau Capital’s impact-driven real estate value-add strategy and the third vintage of the firm’s special opportunities strategy.

The platform will also benefit from iCapital’s technology, which automates the subscription process and provides transparency into the investing process whilst integrating performance and reporting for alternative investments.

Tikehau Capital’s offerings will also be made available via fund distribution network Allfunds, a strategic partner of iCapital since 2021. As a result of the partnership, iCapital makes private market investment opportunities available to Allfunds’ clients.

The collaboration between Tikehau Capital and iCapital offers the former an opportunity to expand its investor base and provide them with solutions across multiple asset classes.

Vincent Archimbaud, head of Whole Europe at Tikehau Capital said, “Wealth managers working with individual investors are increasingly looking at the private markets to potentially generate high risk-adjusted returns with portfolio diversification.”

“We believe that both Tikehau Capital strategies that will be distributed on the platform are particularly adapted to the current economic context and will meet investors’ demand.”

The new platform launch continues to establish Tikehau Capital’s strategy to expand its exposure to private investors.

In 2021, the firm launched a Private Wealth Solutions Group aimed at enhancing direct access to group funds for family offices and high-net-worth individuals.

iCapital attracts firms for alternative investment

Tikehau Capital is the latest in a series of investment firms iCapital has provided with its tech platform.

In July, Morgan Stanley Investment Management (MSIM) selected iCapital to provide more bank wealth managers with access to a suite of private markets funds managed by MSIM.

That same month, AXA IM also partnered with iCapital to give wealth managers access to AXA’s private market funds, beginning with its Global Health Private Equity strategy.

The two partnerships, alongside others, followed a strategic investment from iCapital’s long-term partner Bank of America, which invested in the company at $6 billion-plus, the same as iCapital’s last funding round in December 2021.

At the time of the investment, iCapital had said that it would use the investment to expand its technical capabilities.

Advisors increase alternative investment allocations

iCapital’s popularity coincides with the increasing marketability of alternative investment opportunities among non-institutional clients looking to expand their portfolios.

According to Chartered Alternative Investment Analyst Association, alternative investments are expected to comprise up to 24% of the global investible market by 2025, up from 12% ($13.4 trillion) in 2018.

A study from alternative investments research companies Blue Vault and Cerulli also revealed that advisors were allocating an average of 14.5% of assets to alternative strategies in the first half of 2022, up from the 10.5% suggested by the 2021 survey. They expect to increase their allocation to 17.5% in the next two years.

The figure is underscored by advisors seeking out collaborations with alternative investment platform providers like iCapital.

Last week, Mariner Wealth Advisors expanded its alternative investment funds and product access to its clients with a new partnership with alternative investment platform CAIS.

Today, Davidson Kemper Partners also announced its selection of the CAIS platform to offer its alternative investment strategies to a wider selection of wealth managers.

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