iCapital breaks in its distributed ledger capabilities

The fintech's first DLT-enabled fund, launched jointly with UBS, will be the first proof point of its efficiency-boosting technology.

iCapital is breaking fresh ground as it launches a fund leveraging a leading-edge piece of technology on its platform.

The leading alternative investments provider announced Thursday that it has launched the first fund using its distributed ledger technology, which aims to streamline operations and improve efficiency in the alternative investment sector.

The fund, distributed by UBS Wealth Management, “marks an important technological advancement for increasing scale and real-time connectivity” in the alternatives space, according to the firm.

iCapital’s DLT is designed to simplify the management of alternative investments. By automating data and document connectivity, it aims to reduce the manual reconciliation of activities, enhance data processing visibility, and improve overall investment handling, iCapital said.

The technology is expected to eliminate over 100,000 activity reconciliations during the average life of a private capital fund, resulting in thousands of hours saved as well as cutting down on costs and risks with manual data entry.

“Distributed ledger technology represents a significant milestone for iCapital’s innovation. Our technological commitment and experience positions us to spearhead this advancement in support of our clients’ investment lifecycle activities,” Lawrence Calcano, chairman and CEO of iCapital, said in a statement.

“We’re excited to collaborate with UBS as our distribution partner for [our first DLT-enabled fund launch and] look forward to launching more funds with other partners in the coming months,” Calcano said.

The fund will be distributed by UBS Wealth Management and administered by Gen II. It will utilize iCapital’s technology to manage lifecycle activities such as subscriptions, capital activities, reporting, and liquidity, aiming to minimize manual data reconciliation and improve efficiency.

“This is an important step forward in creating greater efficiency and improving fund data quality,” said Jerry Pascucci, co-head of global alternative investment solutions for UBS Global Wealth Management. “We are continuously striving to make it easier for our financial advisors to manage and monitor their clients’ alternative investment holdings.”

The new technology is part of iCapital’s broader commitment to innovation and digital transformation, following other recent initiatives like the launch of its model portfolios, as well as its acquisition of Mirador in April.

“Distributed ledger technology serves and connects firms across the investing ecosystem, including fund managers, administrators, transfer agents, wealth managers, advisors, custodians, and tax providers,” said Jason Broder, chief product officer at iCapital.