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BlackRock Increases Stake in iCapital

07 Apr 2020

iCapital Well-Positioned for Future Growth as Leading Technology Platform for Alternative Investments

New York – March 23, 2020 – BlackRock, Inc. today announced that, in connection with the recapitalization undertaken by iCapital Network, the firm has increased its minority stake in iCapital and realized a nonoperating pre-tax gain of approximately $240 million. As the largest minority investor, BlackRock will also increase its iCapital Board representation from one to three Directors.

“BlackRock is excited to continue to support iCapital in its next phase of growth as a well-capitalized, independent entity,” said Rob Goldstein, Chief Operating Officer of BlackRock. “As financial advisors explore the role alternatives can play in robust, diversified portfolios, iCapital’s leading open-architecture platform provides technology to streamline, automate and facilitate investments in private markets.”

Over time, BlackRock has made a series of strategic acquisitions and corporate minority investments in the alternatives and wealth spaces to deliver industry-leading investment management and technology solutions, including the acquisition of eFront to extend Aladdin’s capabilities within illiquid alternatives and a strategic partnership with Envestnet.

This nonoperating noncash gain will be recorded in the firm’s first quarter earnings results. Going forward, the firm’s share of iCapital earnings will be recorded in Other Revenue, under the equity method of accounting.

About iCapital Network

iCapital Network’s mission is to power the world’s alternative investment marketplace. Its financial technology platform has transformed the way alternative investments are bought and sold through the development of tech-based solutions for advisors, their high-net-worth client base, asset managers and banks. The firm’s flagship platform offers advisors and their clients access to a curated menu of private equity and hedge funds at lower minimums with a full suite of due diligence and administrative support in a secure digital environment. Asset managers and banks leverage iCapital’s tech-enabled services to streamline and scale their private investments operational infrastructure. iCapital was recognized in the 2018, 2019 and 2020 Forbes FinTech 50 which highlights the top 50 innovative financial technology companies that are transforming finance through technology. As of December 31, 2019, iCapital services more than $46.6 billion in invested capital across more than 100,000 underlying accounts.

For additional information, please visit iCapital’s website at | LinkedIn: | Twitter: @icapitalnetwork