Amerant Investments Partners with iCapital to Expand US and LATAM Access to Alternative Investment Opportunities

Rhea-AI Summary

Amerant Investments, a subsidiary of Amerant Bank, partners with iCapital to offer financial advisors and clients access to private market opportunities and analytics. The collaboration aims to provide a wide range of alternative investment options through iCapital's technology platform, education resources, and distribution support.

Market Research Analyst

The strategic alliance between Amerant Investments and iCapital signifies a pivotal shift in the wealth management landscape, particularly for high-net-worth (HNW) clients. By integrating iCapital's technology and private market offerings into Amerant's advisory services, there is a clear expansion of investment options beyond traditional public markets. This move may result in increased client retention and attraction for Amerant, as HNW individuals often seek differentiated investment opportunities that promise higher returns and portfolio diversification.

From a market perspective, the collaboration is a testament to the growing demand for alternative investments and the role of fintech in democratizing access to these assets. By leveraging iCapital's platform, Amerant advisors can potentially enhance their value proposition, which could translate into a competitive advantage in the wealth management sector. This partnership could also signal a broader industry trend where community banks and regional financial institutions increasingly adopt fintech solutions to expand their service offerings.

Financial Technology Expert

The integration of iCapital's technology into Amerant's wealth management services is a significant development in the fintech domain, showcasing the potential for technology to streamline complex investment processes. iCapital's platform addresses historical barriers to private market investments, such as high entry costs and administrative burdens, by automating subscription, administration and reporting tasks. This technological efficiency could lead to a broader adoption of alternative investments among Amerant's client base and potentially increase the volume of assets under management.

Furthermore, the educational component, including the AltsEdgeTM Certificate Program, reflects a strategic move to empower advisors with knowledge, which is crucial for compliance and informed investment advice. The provision of comprehensive educational offerings is an innovative approach that not only enhances the advisor-client relationship but also aligns with regulatory trends emphasizing transparency and advisor competency in alternative investments.

Investment Education Specialist

The focus on education, particularly the AltsEdgeTM Certificate Program, is a forward-thinking aspect of the Amerant and iCapital partnership. By equipping financial advisors with specialized knowledge in alternative investments, Amerant is addressing a critical industry gap. Many advisors lack the necessary expertise to confidently navigate the complexities of private markets, which can lead to underutilization of these investment options. The emphasis on education could improve advisors' ability to tailor investment strategies to their clients' needs, potentially leading to better investment outcomes and higher client satisfaction.

Moreover, the educational initiative could foster a more sophisticated understanding of risk, return and portfolio construction among advisors, which is especially pertinent as the investment landscape grows more complex. The long-term impact of this could be a more resilient and dynamic wealth management industry that is better equipped to handle market volatility and economic shifts.

The partnership offers Amerant advisors and HNW clients access to a broad private market menu along with iCapital’s technology and comprehensive solutions

MIAMI, ZURICH & NEW YORK, Feb. 22, 2024 (GLOBE NEWSWIRE) -- Amerant Investments, a wholly owned subsidiary of Amerant Bank - the largest community bank in Florida - announced today that it has entered into a strategic relationship with iCapital[1], the global fintech platform driving the world’s alternative investment marketplace for the wealth management industry. This collaboration will provide Amerant Investment’s financial advisors, along with their clients, access to private market opportunities and analytics. The partnership will also entail oversight of the entire investment and education experience through a unified technology platform and operating system. Unicorn Strategic Partners, a key distribution partner to asset managers and a strategic ally to iCapital in the LATAM region, will play a crucial role in supporting Amerant’s distribution efforts. Additionally, they will educate Amerant’s network of advisors on the available asset classes and funds via iCapital Marketplace, a platform featuring the industry’s broadest selection of alternative investment funds, due diligence and education resources, fund subscription processing, and third-party reporting services.

The menu will focus on semi-liquid and closed-end funds available on iCapital Marketplace. iCapital’s market-leading technology platform and solutions have effectively and efficiently diminished the historical barriers that wealth managers and their clients have faced when investing in private markets by automating the subscription, administration, operational, and reporting processes for the life of the investment.

In addition, the partnership with iCapital provides Amerant with a full suite of research, due diligence, and educational materials to empower their financial advisors and investors. It will include access to iCapital’s comprehensive educational offerings, including the AltsEdge^TM Certificate Program, an educational initiative jointly created by iCapital and the Chartered Alternative Investment Analyst (CAIA) Association, designed to help wealth managers better understand alternative investments and how they can leverage them to improve client outcomes. The AltsEdge^TM program consists of ten research-based, CE-accredited modules covering the private markets, various types of strategies and product structures, and portfolio construction.

“At Amerant Investments, we recognize that private markets investments have the potential to generate higher returns and provide diversification benefits to investors as they seek to access relatively untapped opportunities,” said Sergio Guerrero, COO at Amerant Investments. “We are excited to leverage iCapital’s curated options, innovative technology, and robust educational materials to help set our financial advisors up for success.”

“Wealth managers are increasingly looking to alternative investments as a way to help their clients improve their financial outcomes,” said Wes Sturdevant, Managing Director, iCapital Enterprise Solutions. “We are proud to establish this partnership with Amerant Investments, a respected registered investment advisor and broker-dealer with wealth management expertise in the Latin America and U.S. markets and welcome the opportunity to support their expansion into alternative investments.”

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[1] iCapital, Inc., and its affiliates (together, “iCapital”).

What is the partnership about between Amerant Investments and iCapital?

The partnership aims to provide Amerant advisors and clients access to private market opportunities and analytics through iCapital's technology platform and comprehensive solutions.

Who is Unicorn Strategic Partners in relation to this partnership?

Unicorn Strategic Partners is a key distribution partner to asset managers and a strategic ally to iCapital in the LATAM region, supporting Amerant's distribution efforts.

What does the partnership offer in terms of investment options?

The partnership provides access to semi-liquid and closed-end funds available on iCapital Marketplace, featuring a broad selection of alternative investment funds, due diligence, and education resources.

What educational initiatives are included in the partnership?

The partnership offers access to iCapital's AltsEdgeTM Certificate Program, jointly created with the Chartered Alternative Investment Analyst (CAIA) Association, covering various alternative investment topics to empower wealth managers.

How does iCapital's technology platform benefit wealth managers and clients?

iCapital's technology platform automates subscription, administration, operational, and reporting processes for private market investments, removing historical barriers faced by wealth managers and clients.