In the first phase, the iCapital integration will take place in Singapore and Hong Kong.

iCapital, the global fintech platform for alternative investments, is to provide its technology to HSBC Global Private Banking, extending iCapital’s reach into the wealth and private banking sectors.

The New York-headquartered firm’s solution will be integrated into HSBC’s platform to digitalise the private market investment experience for its relationship managers, investment counsellors and operations teams. Initially deployed in Hong Kong and Singapore, the solution is intended to be gradually expanded to more markets, iCapital said in a statement yesterday. 

The integration comes at a time when private banks continue to push into alternative investment sectors such as private equity, credit, infrastructure and hedge funds, seeking diversification, superior returns and options when listed public markets have been volatile.

“Our thorough understanding of alternative investments and private markets enables us to advise and support our clients in diversifying and enhancing their portfolios to reach their financial objectives,” Willem Sels, the private bank’s global chief investment officer, said. 

iCapital boasts $194.3 billion of assets on its platform. The rise of firms such as iCapital, along with Moonfare (Germany) and CAIS (US) speaks to how wealth managers and banks seek easier routes into alternative assets, which have generally only been open to UHNW clients and large institutions such as pension funds.

Leon Capital Group, which is based in the US, recently partnered with iCapital.