iCapital has announced the introduction of iCapital Model Portfolios, available to over 100,000 U.S. Financial Advisors who use the alternative investments platform.
Envestnet Solutions and Blue Owl Capital have praised the launch of Model Portfolios as a seamless application for wealth managers to incorporate alternative investments into their clients’ portfolios.
Available on iCapital Marketplace, model portfolios enable advisors to easily integrate alternative investments with traditional public market portfolios.
iMAP combines income and growth through private markets investing
iMAP (iCapital Multi-Asset Portfolio) is the first model portfolio, but several additional portfolio models are set to follow in the coming months.
In regard to iMAP, it is a balanced portfolio that combines income and growth through private markets investing. It aims to generate total returns with reduced volatility and fewer drawdowns than traditional asset classes, helping to manage market stress more effectively. The portfolio simplifies the entire process, from due diligence and manager selection to investment, construction, and ongoing monitoring.
Advisors will be able to run an analysis, paired with iCapital’s portfolio construction tool, Architect, and evaluate the impact of incorporating alternative investments alongside traditional portfolio holdings.
Model Portfolios assist with asset allocation within alternative investments
The Model Portfolios are designed to assist with asset allocation within alternative investments and identify top-tier products that fit those allocations.
iCapital’s research and due diligence team used quantitative analysis to develop the Model Portfolios suite to offer a comprehensive and flexible way for financial advisors to include these investments in their practice.
The Multi-Asset Portfolio easily provides a balanced alternative investment allocation across five funds from top-tier managers in private equity, private credit, and real assets.
iCapital to design and curate additional outcome-based models
Lawrence Calcano, Chairman and CEO of iCapital, said: “We are excited to introduce iCapital Model Portfolios, an innovative application for wealth managers to incorporate alternative investments into their clients’ portfolios. As demand grows, iCapital will continue to work with leading alternative asset managers to design and curate additional outcome-based models.”
Dana D’Auria, Co-Chief Investment Officer and Group President of Envestnet Solutions, commented: “The introduction of iCapital Model Portfolios greatly simplifies the creation of diversified portfolios with an allocation to alternatives. This focus on asset class enables advisors to build holistic portfolios for their clients through this accessible, ready-to-use format. Advisors, already familiar with establishing client allocations using trusted models on the Envestnet platform, will find iCapital’s integration of this growing asset class into their workflows to be a straightforward process. It’s a significant innovation in portfolio management.”
Sean Connor, President & CEO Global Private Wealth at Blue Owl Capital, added: “We are proud that our direct lending strategy is a leading allocation in iCapital’s iMAP model portfolio. Since we began partnering with iCapital in 2017, we have been committed to unlocking access to the private markets for financial advisors and their clients. We believe models are a critical tool to simplify and enhance the investment experience for advisors seeking to integrate high quality alternative investment strategies into portfolios. Private credit can deliver consistent income and capital preservation for investors and Blue Owl is one of the leaders in this asset class. iCapital Model Portfolios distill the essence of balanced portfolio theory into a practical tool that wealth managers can implement for their clients immediately.”
