iCapital and SIMON Markets, the award-winning fintech company offering a digital platform designed to help financial advisors understand and manage structured investments, annuities, and other risk-managed products, announced they have entered into a definitive agreement under which iCapital will acquire SIMON.
Joining these companies will meaningfully enhance the alternative investing experience for advisors and their clients.
SIMON is a preeminent technology platform facilitating structured investments and annuity products with more than $48 billion of issuances in 2021. Through deeply embedded technology, SIMON delivers integrations across 50 plus product manufacturers and 50 plus wealth managers – including the largest IBDs, bank/regional broker dealers and private banks, and more than 100 RIAs, as well as platform access to more than 100,000 advisors.
SIMON brings transparency to the industry, streamlines workflows for advisors, and creates scalable distribution for product manufacturers, according the firm’s information.
iCapital is an alternatives platform, servicing more than $125 billion in platform assets and employing more than 800 people globally.
The deal will significantly expand iCapital’s investment menu, and augment its technical capabilities, education offerings and support services for wealth managers.
SIMON offers an end-to-end digital suite of tools, on-demand education, robust marketplace, real-time data and analytics, and life-cycle management. Its platform also includes SIMON Spectrum, a multi-dimensional allocation analysis and portfolio construction tool designed to evaluate how structured investments and/or annuities may fit into a portfolio. The combined capabilities of these platforms will deliver a best-in-class experience for financial professionals.
“Today’s wealth management professionals seek a premium technology platform and access to a broader range of alternative investment strategies that provide thoughtful ways to diversify and potentially enhance long-term returns in client portfolios,” said Lawrence Calcano, Chairman and Chief Executive Officer of iCapital.
Under the agreement, Jason Broder, Chief Executive Officer of SIMON, will join iCapital as Managing Director, Head of iCapital Solutions and member of the Operating Committee. In this capacity, he will oversee the combined platform’s integration, market development, and sales of iCapital’s full suite of technology offerings. Additionally, iCapital will extend offers of employment to the nearly 200 SIMON team members.
“We have long-admired iCapital and everything it has accomplished in the alternative investing space,” said Mr. Broder.
The transaction is expected to close in the second half of 2022 after the necessary regulatory approvals have been granted. Terms of the agreement were not disclosed.
Morgan Stanley & Co. LLC and UBS Investment Bank are serving as financial advisors to iCapital. Goldman Sachs & Co. LLC is serving as the exclusive financial advisor to SIMON.