iCapital, a leading global fintech platform powering alternative investments for the wealth and asset management industries, has announced a definitive agreement to acquire Parallel Markets, a pioneer in reusable financial identity solutions. The acquisition aims to simplify investor onboarding, enhance compliance verification, and optimize digital identity management for fund managers and wealth advisors.
Revolutionizing Investor Onboarding and Compliance
“We are excited to welcome the Parallel Markets team to iCapital,” said Lawrence Calcano, Chairman and CEO of iCapital. “Investor onboarding and compliance verification remain significant challenges in private markets. Parallel Markets has developed an innovative reusable investor passport that eliminates redundant processes for advisors, investors, and fund managers. By integrating their technology, we will enhance automated entry for alternative investments, leveraging AI and machine learning to create a seamless, cost-effective, and efficient investment experience.”
Parallel Markets’ cutting-edge technology will be integrated into iCapital’s onboarding and compliance framework, providing a more streamlined and secure user experience. The newly introduced iCapital Investor Passport will serve as a universal, reusable digital identity for fund investors across iCapital’s Marketplace and global alternative asset management platform. This digital identity will function as a secure data locker, allowing investors to store, manage, and share personal information required for fund subscriptions and compliance verification.
Enhancing Efficiency and Compliance in Private Markets
By leveraging Parallel Markets’ identity verification solutions, iCapital aims to help fund managers scale operations more effectively while ensuring compliance with evolving regulatory requirements, including Know Your Business (KYB), Know Your Customer (KYC), and Anti-Money Laundering (AML) standards. This integration will enable investors worldwide to securely manage and share their identity data while reducing redundant onboarding efforts.
“We built a best-in-class KYC/AML onboarding passport for financial institutions looking to scale efficiently by eliminating repetitive verification processes,” said Tony Peccatiello, Co-founder and CEO of Parallel Markets, who will join iCapital as part of the acquisition. “Joining forces with iCapital allows us to expand our mission and provide an advanced identity management solution that seamlessly connects asset and wealth managers.”
Unlocking Cost Savings and Operational Efficiency
The financial services industry spends an estimated $2.5 billion annually on identity verification and compliance. Traditional onboarding requires investors to repeatedly upload sensitive information, creating inefficiencies for fund managers, issuers, and investment platforms. With the iCapital Investor Passport, fund managers can expect significant reductions in onboarding time and compliance costs while enhancing data security and operational efficiency.
This acquisition marks a major step in iCapital’s commitment to transforming alternative investment access through cutting-edge technology, reinforcing its position as a leader in the fintech industry.
—————————————————————————————————
About Innovation Streets:
Welcome to InnovationStreets.com! Get the latest insights from the finance and technology industries. Discover industry updates on fintech innovations, regulatory developments, industry insights, events, and collaborations between banks, insurers, and fintechs. A platform for C-level executives to submit thought leadership content for their peers. Subscribe for updates!
