In an effort to broaden access to alternative financial investment techniques among the mass upscale, iCapital Network is joining forces with personal equity powerhouse KKR.
The partnership, which was announced Wednesday, involves offering a rebranded $430 million private mutual fund through the iCapital platform to certified investors for a $25,000 minimum financial investment.
The fund, originally introduced in 2015 as the Altegris KKR Commitments Market Fund, is currently purchased by 400 underlying private companies, 88% of which come through KKR sourced funds and offers.
The KKR brand name is expected to assist enhance the appeal of the technique, which has produced 8.7% annualized performance web of charges considering that inception with less than 45% of the volatility of the public equity markets, according to Doug Krupa, co-head of KKR’s personal wealth partners group.
The fund, which is technically a closed-end fund, is being managed by iCapital RF Consultant, an authorized investment adviser, and a subsidiary of iCapital. The adviser is also less than 25% owned by KKR.
“This is the very first time a private equity sponsor owns a piece of a democratized fund,” Krupa stated.
More leveraging the KKR brand name, the fund is developed to invest and make capital dedications of a minimum of 80% of its assets to personal equity financial investments of any type sponsored or recommended by KKR.
Lawrence Calcano, chairman and primary executive of iCapital, said the appeal for monetary consultants is the capability to offer customers access to KKR-caliber private financial investments.
“What benefits iCapital is originated from what benefits financiers,” he stated, pointing out the 13 million American households that would qualify based on net worth as qualified to access the fund.
“Democratized access is the mission we’re pursuing,” Calcano added.
The fund charges a 1.25% management charge and provides quarterly liquidity equal to 5% of the fund’s total properties, implying it is not developed for short-term investors.
“The iCapital RF Advisor team has a deep understanding of the chauffeurs of long-lasting performance in personal equity and iCapital’s familiarity with the needs and choices of the monetary consultants and high-net-worth financiers position them to provide a diversified fund with exposure across KKR’s international investment strategies,” Krupa stated.