The firm, known for its connections to Silicon Valley entrepreneurs, is branching out into the residential real estate sector.

Iconiq Capital, the investment firm renowned for links to Facebook’s Mark Zuckerberg, is reportedly buying apartments in large US cities, part of a drive into the residential rental sector.

The Wall Street Journal reported that Iconiq Capital, based in San Francisco, has purchased more than 1,600 rental apartments in Denver, Los Angeles and Seattle, and is planning to buy more, according to unnamed sources. 

The firm has attracted a degree of media attention, fueled by its association with Silicon Valley’s high fliers. As this publication reported back in December last year, Iconiq recruited a BlackRock executive to look after ultra-high net worth clients. (The executive is Nugi Jakobishvili, who led a team at BlackRock focused on alternative investments, is investment chief at Iconiq and caters for family office clients.)

The WSJ said that the firm has $13.9 billion in assets under management as of July, advising on a further $18.8 billion, citing public filings. The firm, according to its website, has offices in San Francisco, New York, Palo Alto and Singapore. 

Iconiq makes its commercial property investments through funds backed by its family-office clients and institutional investors, the WSJ said. The report said Iconiq’s real-estate funds charge a 1.5 per cent management fee and as much as 20 per cent of profits beyond a certain threshold, according to Securities and Exchange Commission filings.

Iconiq declined to comment to Family Wealth Report about the story.

There have been changes at Iconiq. One of its co-founders, Chad Boeding, left to start a new rival wealth manager called Epiq Capital Group. FWR reported on that move here.