The use of DLT will reduce manual data reconciliation and data entry, and boost productivity for the fund.
iCapital, which offers an alternative investment platform, has launched its first fund that exploits distributed ledger technology (DLT) to save clients “thousands of hours of manual data reconciliation and version sharing,” and promises to cut costs, boost productivity, and reduce the risks of manual data entry.
Using DLT to ease these pain points is intended to increase scale and real-time connectivity across alternatives “for fund managers, administrators, transfer agents, wealth managers, advisors, custodians, and tax providers,” officials say.
“The inaugural fund, distributed by UBS Wealth Management and administered by Gen II, will have all lifecycle activities — including subscriptions, capital activities, reporting, and liquidity for the fund — orchestrated through iCapital’s DLT,” officials say.
The ledger technology of the new fund is “expected to eliminate 100,000+ activity reconciliations over the average life of a private capital fund, improving data processing visibility and efficiency, reducing errors, and enhancing overall investment handling,” officials say.
iCapital’s use of DLT “is expected to not only save clients thousands of hours of manual data reconciliation and version sharing but also create significant cost savings and productivity gains in addition to reducing the risks associated with manual data entry,” officials say.
“We’re excited to collaborate with UBS as our distribution partner for the milestone launch of the first fund using iCapital’s Distributed Ledger Technology. Additionally, we look forward to launching more funds with other partners in the coming months,” says Lawrence Calcano, chairman and CEO of iCapital, in a prepared statement.
iCapital assists clients who want investments in private equity, private credit, and real assets. The firm also offers hedge fund solutions and defined outcome solutions such as individual structured notes, market-linked CDs, yield-based separately managed accounts (SMAs), and ’40-Act funds, officials say.
The DLT-based fund will be used by more than 100,000 U.S. financial advisors on the iCapital Marketplace platform, officials say.
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