Key Takeaways
- • iCapital has entered a definitive agreement to acquire Parallel Markets, a reusable financial identity provider, with terms not disclosed.
- • The deal will underpin a new iCapital Investor Passport, a universal reusable KYC/AML and KYB identity usable across the iCapital Marketplace and its platform offerings.
- • iCapital cites an estimated $2.5 billion spent globally on identity verification and compliance across financial services, per Burton Taylor International Consulting.
- • Parallel Markets co-founder and CEO Tony Peccatiello will join iCapital as part of the acquisition, with a focus on fund managers and the private wealth channel.
- • iCapital, which reports $214 billion+ in global platform assets as of December 31, 2024, plans to integrate AI and machine learning into its onboarding and compliance tools.
Summary
iCapital, the alternative investment technology platform, and Parallel Markets, a provider of reusable financial identity solutions, announced on January 16, 2025 that they have entered a definitive agreement under which iCapital is expected to acquire Parallel Markets. Terms of the agreement were not disclosed.
In a statement, iCapital Chairman and CEO Lawrence Calcano said onboarding and verifying digital investor identity and compliance is a major friction point in private markets investing. He said Parallel Markets has developed software supporting a reusable investor passport that streamlines duplicative processes for advisors, investors and fund managers, and that iCapital plans to use AI and machine learning to deliver a more automated, end-to-end alternative investing solution, with the expected result of faster onboarding, reduced costs and a more efficient investment process.
The companies describe the planned iCapital Investor Passport as a turnkey onboarding solution for both institutional and wealth management fund investors. It is designed as a universal reusable digital identity functioning as a data locker for storing, managing and sharing information needed for fund subscription and compliance verification, including KYB, KYC and AML data. The identity would be usable across the iCapital Marketplace and the broader suite of iCapital offerings for global alternative asset managers, with the stated aim of helping fund managers scale efficiently and maintain consistency in compliance.
Parallel Markets CEO Tony Peccatiello said the company built its KYC/AML passport solution for financial institutions seeking to eliminate redundant processes, with its focus to date on fund managers and the private wealth channel. Parallel Markets describes its technology as reducing investor onboarding that can span weeks to a single click.
The announcement cites Burton Taylor International Consulting's 2024 Anti-Money Laundering/Know-Your Customer Data & Services Global Market Share report, which estimates $2.5 billion is spent globally on identity verification and compliance across financial services. Per the release, investors typically upload sensitive information repeatedly for different opportunities, and iCapital, fund managers and issuers bear the burden of reviewing and verifying it.
iCapital reports more than $214 billion in global platform assets as of December 31, 2024, and employs more than 1,695 people across 17 offices worldwide.
In a statement, iCapital Chairman and CEO Lawrence Calcano said onboarding and verifying digital investor identity and compliance is a major friction point in private markets investing. He said Parallel Markets has developed software supporting a reusable investor passport that streamlines duplicative processes for advisors, investors and fund managers, and that iCapital plans to use AI and machine learning to deliver a more automated, end-to-end alternative investing solution, with the expected result of faster onboarding, reduced costs and a more efficient investment process.
The companies describe the planned iCapital Investor Passport as a turnkey onboarding solution for both institutional and wealth management fund investors. It is designed as a universal reusable digital identity functioning as a data locker for storing, managing and sharing information needed for fund subscription and compliance verification, including KYB, KYC and AML data. The identity would be usable across the iCapital Marketplace and the broader suite of iCapital offerings for global alternative asset managers, with the stated aim of helping fund managers scale efficiently and maintain consistency in compliance.
Parallel Markets CEO Tony Peccatiello said the company built its KYC/AML passport solution for financial institutions seeking to eliminate redundant processes, with its focus to date on fund managers and the private wealth channel. Parallel Markets describes its technology as reducing investor onboarding that can span weeks to a single click.
The announcement cites Burton Taylor International Consulting's 2024 Anti-Money Laundering/Know-Your Customer Data & Services Global Market Share report, which estimates $2.5 billion is spent globally on identity verification and compliance across financial services. Per the release, investors typically upload sensitive information repeatedly for different opportunities, and iCapital, fund managers and issuers bear the burden of reviewing and verifying it.
iCapital reports more than $214 billion in global platform assets as of December 31, 2024, and employs more than 1,695 people across 17 offices worldwide.
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