iCapital, the global financial technology platform driving access and efficiency in alternative investing for the asset and wealth management industries, announced that iCapital RF Advisor is expanding the investment mandate of the iCapital KKR Private Markets Fund (“the Fund”) to include sourcing direct investments from two additional leading private equity managers, Vista Equity Partners (Vista) and Warburg Pincus.
Vista and Warburg Pincus are committing to the innovative Direct Access arrangement that the Fund pioneered with KKR, which provides accredited investors access to direct investments via co-investment opportunities through or alongside private equity funds sponsored or managed by each of these proven managers. In addition, all three firms will make significant subscriptions in the Fund alongside existing shareholders. Once the expansion of the Direct Access program is effective, it is anticipated that the name of the Fund will change from iCapital KKR Private Markets Fund to iDirect Private Markets Fund.
The Fund will remain available to accredited investors with a $25,000 investment minimum, with no capital calls, simplified 1099 tax reporting and quarterly tender offers.
The combination of KKR, Vista, and Warburg Pincus (collectively the “Core Underlying Managers”) is intended to deliver highly complementary global exposure across buyout and growth equity investment styles. The Core Underlying Managers invest on a global basis in private companies of varying sizes up to $5+ billion in enterprise value and diversified across numerous industries and sectors, including enterprise software, health care, industrials, financial services, consumer, and business services. Together, these three firms have 125 years of experience with over 600 dedicated investment professionals based in 40 offices globally.
“iCapital’s mission is to provide seamless access to private fund managers and, just as we have been doing in the qualified purchaser market for almost 10 years, we are bringing high quality managers to the accredited investor market with low investment minimums,” said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital. “We’re excited to be adding Vista and Warburg Pincus to an already seasoned portfolio of KKR investments.”
The fundamental investment objective, philosophy, and investment strategy of the Fund, to provide accredited investors with exposure to private equity investments, remains unchanged.
“The success of our strategic collaboration with iCapital has been rooted in our shared commitment to expanding access to alternatives by delivering ongoing education and product innovation for financial advisors and accredited investors,” said Todd Builione, Global Head of Private Wealth at KKR. “We look forward to continuing to provide iCapital RF Advisor with access to differentiated private equity investment opportunities across geographies and industries.”
“We are excited to collaborate with iCapital, KKR and Warburg Pincus to democratize access to Vista’s differentiated and high-quality investments that provide access to one of the most important and transformative sectors in the global economy – enterprise software and technology-enabled businesses,” said Greg Myers, Senior Managing Director, Global Head of Capital & Partner Solutions, Vista Equity Partners.
“Alongside KKR and Vista, we are thrilled to work with iCapital to provide access to alternatives to a broader set of high-net-worth investors,” said Greg Baecher, Managing Director, Warburg Pincus. “Our firm’s diversified growth portfolio is an ideal fit for this next evolution of iDirect Private Markets Fund, an innovative and differentiated fund for the accredited investor market.”
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