iCapital assumes oversight of 115 Morgan Stanley feeder funds

Morgan Stanley agreed to sell a business that administers its alternative investment feeder funds to iCapital, a financial technology firm run by a former Goldman Sachs banker. ICapital will assume oversight of 115 Morgan Stanley feeder funds, which invest in private equity, hedge funds and real estate for the bank’s wealth management arm, New York-based iCapital said Friday in a statement that didn’t include terms. JPMorgan brings alternative investments to the masses UBS invests in iCapital tech platform: Fund Scan JPMorgan, Carlyle are latest Wall Street firms to back iCapital ICapital has benefited from the willingness of Wall Street firms including Credit Suisse and Deutsche Bank to outsource some technology functions in an effort to cut costs. The agreement with Morgan Stanley will boost assets serviced by iCapital to $40 billion from $28 billion earlier this month, when it completed a similar transaction with Bank of America. The deal “will ultimately enhance what our clients will see and get out of our feeder-fund business," Jeremy Beal, head of alternative investments at Morgan Stanley, said in an interview. “Partnering with iCapital made a lot of sense as we try and grow this business.”