iCapital Network expands product offering for accredited investors with iCapital KKR Private Markets Fund
iCapital RF Adviser, a registered investment adviser and subsidiary of iCapital Network, has been appointed investment adviser of the iCapital KKR Private Markets Fund.
The appointment expands the scope of iCapital’s business model to include registered fund management. iCapital Securities, LLC has been appointed the distributor of the Fund.
The Fund offers accredited investors, estimated to be over 13 million American households, access to a selection of private equity funds and co-investments sponsored or advised by KKR. Established in 1976, KKR manages multiple alternative asset classes, including private equity, credit, and real assets and aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies. The Fund intends to invest and/or make capital commitments of at least 80 per cent of its assets to private equity investments of any type sponsored or advised by KKR and will also seek to diversify its portfolio across vintages, industries, and geographies.
“Advisors are seeking quality registered fund offerings to meet their investors’ burgeoning appetite for alternative investments such as private equity, and the important role they play in diversifying a portfolio,” says Lawrence Calcano, Chairman and CEO of iCapital Network. “This is a unique opportunity to offer investors access to one of the most respected investment managers in an established, innovative product customised for accredited investors.”
The iCapital RF Adviser team is led by Nick Veronis, Head of Portfolio Management, Co-Founder and Managing Partner of iCapital Network. iCapital RF Adviser is a new subsidiary of iCapital Network solely focused on registered fund management. As investment adviser, iCapital RF Adviser is responsible for investment selection, portfolio construction, and operational oversight of the Fund.
“The dispersion of returns in private equity is extremely wide,” says Veronis. “The ability to access a diversified portfolio of investments sourced and managed by KKR, one of the most established and experienced firms in the industry, represents a unique opportunity for accredited investors.”
“KKR is committed to delivering innovative solutions that increase and democratise access to private equity for financial advisors and their accredited investors,” says Doug Krupa, Managing Director and Co-Head of KKR’s Private Wealth Partners group. “The iCapital RF Adviser team has a deep understanding of the drivers of long-term performance in private equity and iCapital’s familiarity with the needs and preferences of the financial advisors and high net worth investors positions them to deliver a diversified fund with exposure across KKR’s global investment strategies.”
The Fund, formerly known as the Altegris KKR Commitments Master Fund, is registered under the Investment Company Act of 1940 as a closed-end investment company, and its shares are registered for public offering under the Securities Act of 1933.The Fund was launched in August 2015 and has current net assets of USD430 million across nearly 400 underlying portfolio companies in buyout, growth equity and real asset strategies as of 31 December, 2020. Since the Fund’s inception in August 2015 and through November 2020, the Class I shares of the Fund has annualised at 8.7 per cent net of fees while delivering less than 45 per cent of the volatility of global equities.
iCapital RF Adviser was approved by the Fund’s board of directors and shareholders to assume responsibility for advising the fund effective 12 February, 2021, subsequent to iCapital Network’s acquisition of Artivest in 2020. At the time, iCapital purchased the majority of Artivest’s assets, including its technology and operating platform, and assumed management of Artivest’s 28 proprietary alternative investment funds, along with several large enterprise relationships and Artivest’s ‘Open Network’ platform.
KKR acquired less than 25 per cent of iCapital RF Adviser concurrent with iCapital RF Adviser being appointed as the investment adviser of the Fund and has also made an equity investment in iCapital Network. KKR has no control over or voting interests in iCapital RF Adviser, including no representation on any investment committee or equivalent body or any input into the investment advice provided by iCapital RF Adviser.