Alt Investments
iCapital Wins Another Investments Pact

Founded in 2013, the rise of iCapital is an example of how tech platforms and similar businesses are widening access to private market investments and hedge funds – areas that have previously been the preserve of ultra-wealthy individuals and large institutions.
iCapital, the fintech
platform operating in the alternative asset class space,
yesterday said it is collaborating with HSBC Asset
Management to widen access to its climate technology venture
capital strategy for wholesale clients.
Under the terms of the agreement, iCapital will provide a
customised “white label” solution to deliver HSBC AM’s climate
tech VC strategy to wholesale clients across Europe, the Middle
East and Asia. The HSBC strategy focuses on companies active in
four segments – power transformation, transport electrification,
supply chain sustainability and climate risk management –
and invests across North America, Europe and Israel.
The pact is an example of how New York-headquartered iCapital has
expanded, using its tech platform to widen access to alternative
asset classes and creating a distribution route once dominated by
banks.
In August 2022, iCapital agreed to buy UBS’s alternative
investment manager platform in the US. iCapital has been busy. In
June of that year, Bank of America made a strategic investment in
iCapital, and Morgan Stanley Investment Management expanded its
US partnership in July 2022.
Expansion
The iCapital collaboration is part of HSBC Asset Management’s
ambition to grow its alternatives capabilities, which now fall
under a single business unit, HSBC Alternatives, with a team of
170 professionals covering nine direct and indirect capabilities.
HSBC Alternatives has combined assets under management and advice
of $60.6 billion as of 31 December 2022.
“With $6.5 trillion of investment in technology required for net
zero to be achieved by 2050, our climate tech VC strategy
provides investors with exposure to sectors that have the
potential to become major sources of financial and environmental
value over the next decade. We are pleased to be working with
iCapital to provide our wholesale clients with significantly
improved access to this opportunity,” Joanna Munro, CEO HSBC
Alternatives, said.
Marco Bizzozero, head of international at iCapital, said: “There
is significant unmet demand from wealth managers and their
clients for private markets as value creation is increasingly
taking place outside public markets while companies are still
private.”