iCapital announced the successful launch of the first fund leveraging emerging distributed ledger technology (DLT) from iCapital. The fund is distributed by UBS Wealth Management, marking a significant technological advancement to increase scale and real-time connectivity across the alternative investment experience.
This launch delivers on iCapital’s commitment to technology that creates unmatched operational efficiency and convenience for more than 100,000 U.S. financial advisors, the release said.
iCapital’s DLT is designed to simplify and improve the lifecycle management of alternative investments. It aims to foster a safer and more efficient alternative investment management environment, connecting key financial players and enabling seamless data sharing and transaction processing.
This accounting technology is expected to eliminate more than 100,000 activity reconciliations over the average life of a private equity fund, improving visibility and efficiency of data processing, reducing errors, and improving overall investment management.
As a result, iCapital’s DLT is expected to not only save customers thousands of hours of manual data reconciliation and version sharing, but also generate significant cost savings and productivity gains, in addition to reducing the risks associated with manual data entry.
“Distributed ledger technology represents an important milestone for iCapital innovation. Our technological commitment and experience position us to lead this advancement in support of our clients’ investment lifecycle activities. We are dedicated to optimizing the entire alternative investment experience, enabling fund managers and wealth advisors to operate with efficiency, precision and ease,” said Lawrence Calcano, President and CEO of iCapital.
“We are excited to collaborate with UBS as our distribution partner for the historic launch of the first fund using iCapital’s Distributed Ledger technology. Additionally, we hope to launch more funds with other partners in the coming months,” added Calcano.
The first fund is distributed by UBS Wealth Management and managed by Gen II. All lifecycle activities, including subscriptions, capital activities, reporting and fund liquidity, will be organized through iCapital DLT, which automates data and document connectivity between companies and minimizes manual reconciliation of data.
“This is an important step towards creating greater efficiency and improving the quality of fund data,” said Jerry Pascucci, co-head of Global Alternative Investment Solutions at UBS Global Wealth Management. “We continually strive to make it easier for our financial advisors to manage and track their clients’ alternative investment holdings.”
